Food cooperation, industrial park upgrades are potential areas to explore in Singapore-Vietnam partnership: PM Wong
The two countries also inked agreements in areas such as electricity trade and QR payments
[HANOI] Beyond “more of the same”, the Comprehensive Strategic Partnership (CSP) between Singapore and Vietnam will explore ideas to take the bilateral relationship to greater heights, such as in the areas of food cooperation and upgrading the Vietnam-Singapore Industrial Parks (VSIPs).
Prime Minister Lawrence Wong said this in an interview with Singapore media on Wednesday (Mar 26) at the end of his two-day introductory visit to Vietnam’s capital, Hanoi.
Though the trip was short, he and Vietnamese Prime Minister Pham Minh Chinh were able to put in place a plan of action, to ensure that progress can be tracked and ideas can be concretised, said PM Wong.
Ties between Singapore and Vietnam were elevated to a CSP earlier in March during Communist Party of Vietnam General Secretary To Lam’s official visit to the city-state.
PM Wong cited two examples of how the upgrade could take Singapore and Vietnam’s relationship further.
One potential area is food cooperation, as Vietnam is a major agricultural producer while Singapore imports significantly. A stronger relationship on this front would be a win-win project, he said.
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The second example was the VSIPs, of which there are now 20 across Vietnam.
“But we think there is scope to do more, upgrade the VSIPs, and then maybe even consider projects in third countries,” said PM Wong.
Earlier in the day, at a virtual ground-breaking event for the new VSIP in Thai Binh province that was announced last year, PM Wong said that VSIPs “set the benchmark for industrial park development in Vietnam” from the beginning.
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“Vietnam is one country which has made tremendous efforts since the start of its reform process to open up, to attract investments, and it is continuing to do so with great determination.”
Prime Minister Lawrence Wong
The next phase of VSIP development would take reference from the CSP.
First, VSIPs will be smarter, using technology to improve energy, water, waste and traffic management for greater efficiency and cost savings. One key enabler is a previously signed memorandum of understanding (MOU) on developing technology-enabled industrial parks.
Second, VSIPs will be greener, with more of them powered by renewable energy.
Finally, the industrial parks will be more connected. The 20 VSIPs “can be mutually supporting and have a synergistic effect”, with good connectivity being key to this, said PM Wong.
For example, a highway is being built to link Thai Binh province to Lach Huyen Port. VSIP Thai Binh can thus “serve as a satellite industrial park, supporting existing large manufacturers in other surrounding VSIPs, while attracting investments in high-tech and advanced manufacturing industries”, he said.
Extending beyond Vietnam
In his wrap-up interview, PM Wong noted that Singapore has industrial park projects with other countries, including China, India and Indonesia. There are learning points from each experience, he said.
A key consideration is whether the local government is able to provide a conducive environment, stability and predictability, allowing the country to attract investments – factors which Singapore cannot control.
“Vietnam is one country which has made tremendous efforts since the start of its reform process to open up, to attract investments, and it is continuing to do so with great determination,” he said.
It is also the first Asean member state with which Singapore has a CSP, reflecting the “comprehensive and strategic nature” of the relationship, which includes strong connectivity initiatives and economic cooperation.
“If we can do this (with) more Asean countries, so much the better,” said PM Wong. “But each relationship will evolve at its own pace.”
Strengthening bilateral ties will also benefit Asean as a whole, through networks of interactions and partnerships, he added.
With a “profound change in the global order... it feels like we are entering a world where it is every country for itself”, the prime minister said.
He noted that Asean countries, individually, will feel that this is a “very difficult, inhospitable global environment”. But collectively, Asean is much stronger and can hold its own.
National-level and VSIP-related agreements
At a ceremony earlier on Wednesday, Singapore and Vietnam exchanged five agreements on cooperation in various areas.
These included a letter of intent for enhanced cooperation in cross-border electricity trade for the Asean Power Grid.
The countries will explore increasing the targeted capacity of low-carbon electricity imports from Vietnam to Singapore to around two gigawatts (GW) by 2035. This builds on conditional approval that Sembcorp Utilities received in October 2023 to import 1.2 GW of low-carbon electricity from Vietnam, via new subsea cables spanning around 1,000 km.
“If we can do this (with) more Asean countries, so much the better. But each relationship will evolve at its own pace.”
Prime Minister Lawrence Wong
Three MOUs were signed for cooperation on digital development and innovation, cross-border QR payments, and people-to-people ties.
Singapore and Vietnam plan to promote collaboration on digital infrastructure development, as well as facilitate knowledge exchanges in digital transformation across industries, smart cities and digital government.
They also seek to enhance exchanges on interoperable digital systems, frameworks and platforms for digital trade and logistics solutions, and strengthen cooperation in artificial intelligence.
The two countries will also promote information exchange and facilitate partnerships in areas such as climate adaptation, youth engagement and development needs.
Before the ground-breaking for VSIP Thai Binh, MOUs were also signed between joint venture partners Sembcorp Development and Becamex IDC – which execute VSIPs – and Vietnam’s local governments.
These agreements pertain to exploring initial and expansion VSIP projects in the southern Binh Duong province, as well as Haiphong city and Hai Duong and Hung Yen provinces in the north.
Industrial land at VSIP Thai Binh will be available for handover to customers in 2026, Sembcorp and Becamex also said in a joint statement.
Future collaboration on carbon
Beyond the VSIPs, the leaders of both countries agreed that there is scope to pursue sustainable and resilient growth together, said PM Wong. This includes importing low-carbon energy into Singapore and carbon credit collaboration, with an implementation agreement for the latter being discussed.
“Through these projects, we can also pave the way for wider initiatives like the Asean Power Grid, which will improve the collective energy resilience of our region,” he said.
In addition to a meeting with Chinh on Wednesday morning, PM Wong also met National Assembly of Vietnam Chairman Tran Thanh Man, as well as called on President Luong Cuong and To Lam. He returned to Singapore in the evening.
The day’s events followed a dinner hosted by Chinh on Tuesday, where the two leaders toasted to the enduring relationship between Singapore and Vietnam, and expressed expectations for deeper cooperation.
Before the trip – the sixth of PM Wong’s introductory visits to South-east Asian nations since he was sworn into office last May – the prime ministers had met on the sidelines of the Asean Summit in Laos, as well as the Group of 20 Summit in Brazil.
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