Economic cooperation a ‘key pillar’ of Singapore-Vietnam ties: PM Lee

SINGAPORE has been Vietnam’s top source of foreign investment for the last three years – which reflects the Republic’s confidence in Vietnam, its economy and the opportunities it offers, said Prime Minister Lee Hsien Loong on Thursday (Feb 9).

He made this point at a lunch that he hosted at the Istana in honour of Vietnamese Prime Minister Pham Minh Chinh, who is on his first official visit to Singapore since assuming office in 2021.

Describing economic cooperation as a “key pillar” of the bilateral relationship, PM Lee praised Vietnam for its “remarkable” economic recovery from the Covid-19 pandemic. Last year, Vietnam’s gross domestic product expanded by 8 per cent, a feat that made it one of the world’s fastest growing economies in 2022.

Latest figures from Singapore’s Ministry of Trade and Industry show that bilateral trade between Singapore and Vietnam has grown steadily over the past decade to reach S$31.3 billion last year. As at May 2022, Singapore was the second largest cumulative investor into Vietnam – after South Korea – with just under S$94.5 billion invested in some 3,600 projects.

In his speech, PM Lee talked about the Vietnam-Singapore Industrial Parks (VSIPs), which he hailed as “concrete symbols” of the cooperation between the two Asean member states.

He said that the VSIPs have “grown tremendously in scale and number” since the first project was launched in 1996. Today, there are 12 parks across Northern, Central and Southern Vietnam, and together they have attracted US$17 billion in investments and created over 300,000 jobs.

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PM Lee said there are many opportunities for the two counties to work together in new areas in the years to come, citing the digital economy, cybersecurity, renewable energy, carbon credits and sustainable infrastructure.

“Vietnam has vast potential for renewable energy. Singapore is keen to collaborate on renewable energy and carbon credits for the long term,” he said. “This collaboration will strengthen energy security in South-east Asia and help the region achieve our net-zero carbon emissions target by 2050.”

Before the lunch of double-boiled baby abalone soup and braised beef was served to the guests, Chinh – who arrived on Wednesday – delivered a speech in Vietnamese where he noted how bilateral relations have strengthened over the last half-century “with added trust and stability”.

His three-day trip coincides with the 50th anniversary of diplomatic relations between Singapore and Vietnam in 2023, and the 10th year of the two countries’ Strategic Partnership.

“Visits and contacts at all levels, especially the high level, have become an important catalyst, contributing to increasing political trust and laying a solid foundation for the confidence of the two countries’ businesses and investors,” he said.

“Singapore has always been an important economic partner, supporting Vietnam throughout its journey of reform, opening-up and development.”

PM Lee made a similar point in his earlier remarks when he spoke of how the “longstanding and deep bilateral relationship” is anchored by “strong political trust and understanding” between the two countries’ leaders.

Just before the lunch, both prime ministers witnessed the exchange of a set of agreements, including a memorandum of understanding (MOU) on a Green and Digital Economic Partnership.

This MOU is an overarching framework that aims to advance collaboration in the green and digital economy between Singapore and Vietnam, and covers areas including energy connectivity, sustainability and infrastructure.

The other agreements included an MOU on the Economic and Trade Cooperation Workplan, which sets out this year’s activities and goals for Singapore and Vietnam to enhance bilateral economic and trade cooperation.

Shortly after his arrival at the Istana, Chinh made a courtesy call on President Halimah Yacob and met with PM Lee. The Vietnamese leader also met with Speaker of Parliament Tan Chuan-Jin and Senior Minister Teo Chee Hean.

On Friday morning, Chinh will speak at a business forum at the Shangri-la Hotel organised by the Vietnamese Embassy and Vietnam’s Ministry of Planning and Investment. He will then meet Deputy Prime Minister and Finance Minister Lawrence Wong before leaving for Brunei for the second leg of his overseas trip.