EVEN as Singapore and Vietnam strengthen cooperation in traditional areas like trade and investment, there are many opportunities to work closer together in new growth areas, said Singapore’s Foreign Minister Vivian Balakrishnan.

These include the digital economy, renewable energy, carbon credits, green financing, cybersecurity and sustainable infrastructure, he said in an interview with Vietnam News Agency, a transcript of which was released to the Singapore media on Tuesday (Feb 7), the eve of Vietnamese Prime Minister Pham Minh Chinh’s official visit to Singapore.

“I would encourage interested parties to explore collaboration in these areas, to establish mutually beneficial partnerships that advance the interests of both countries,” he said.

The need to accelerate cooperation in the digital economy is a “priority” for both countries, and this encompasses many new areas such as cybersecurity, cross-border data flows, smart cities, innovation, artificial intelligence and digital payments.

In a statement on Tuesday, Singapore’s Ministry of Foreign Affairs said that Chinh and Prime Minister Lee Hsien Loong will witness the signing of several bilateral agreements that will “further strengthen the multi-faceted cooperation” between Singapore and Vietnam, particularly in the digital economy and green economy.

In his interview, Dr Balakrishnan also noted that Singapore and Vietnam have to do more together on sustainable development. He added that Singapore is keen to work with Vietnam in renewable energy, carbon credits and sustainable infrastructure – with the “ambitious” goal of achieving net-zero carbon emissions by 2050.

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Giving his take on the state of bilateral relations, Dr Balakrishnan described the two Asean member states as “long-standing friends and close partners”, with Chinh’s three-day visit to Singapore coinciding with the 50th anniversary of diplomatic relations and the 10th anniversary of the Singapore-Vietnam Strategic Partnership.

Vietnam’s gross domestic product (GDP) grew by 8 per cent in 2022, making it one of the world’s fastest-growing economies. The Asian Development Bank estimates that Vietnam’s GDP growth for 2023 will be around 6.3 per cent, with inflation staying below 5 per cent.

Bilateral trade between Singapore and Vietnam has grown steadily over the past decade. According to latest available statistics, bilateral trade reached S$31.3 billion last year, up from S$26.9 billion in 2021. Singapore was the second-largest cumulative investor in Vietnam after South Korea, with about US$70 billion invested in 3,600 projects as of June 2022.

The 12 Vietnam-Singapore Industrial Parks (VSIPs) across Northern, Central, and Southern Vietnam have attracted US$17 billion in investments and created over 300,000 jobs.

Dr Balakrishnan described the VSIP as an “enduring icon” of the bilateral partnership that was built on the close friendship and consultations between Singapore’s late founding prime minister Lee Kuan Yew and former Vietnam prime minister Vo Van Kiet.

Chinh’s visit to Singapore is his first since he took office in April 2021, and follows a series of high-level visits to Vietnam last year by Singapore President Halimah Yacob, Deputy Prime Minister Heng Swee Keat, Manpower Minister Tan See Leng and Speaker of Parliament Tan Chuan-Jin.

In a statement on Tuesday, Singapore’s Ministry of Foreign Affairs said that Chinh will be accompanied by his spouse Le Thi Bich Tran, Foreign Affairs Minister Bui Thanh Son, Minister-Chairman of the Government Office Tran Van Son, Planning and Investment Minister Nguyen Chi Dung, Industry and Trade Minister Nguyen Hong Dien, senior officials and a business delegation.

During his stay in Singapore, Chinh will receive a ceremonial welcome at the Istana on Thursday. He will call on President Halimah and PM Lee on the same day, with the latter hosting an official lunch in the Vietnamese leader’s honour.

Chinh’s schedule also includes separate meetings with Deputy Prime Minister and Finance Minister Lawrence Wong, Senior Minister Teo Chee Hean and Speaker of Parliament Tan.