Strengthening Strategic Ties Between Vietnam and Singapore

In order to maximize mutual economic benefits, enterprises from both countries should be more proactive in utilizing each other's strengths, drive, creativity, and be willing to explore new avenues of cooperation.

Deepening The Strategic Partnership Between Vietnam and Singapore
Deputy Prime Minister Le Minh Khai and delegates attending the Forum. Photo: VNA

On the morning of July 7, speaking at the 7th Singapore Regional Business Forum, Secretary of the Party Central Committee, Deputy Prime Minister Le Minh Khai wants businesses of the two countries to be more proactive, making the most of each other’s capabilities and comparative advantages, dynamism, creativity, daring to break through with new directions and ideas.

According to Deputy Prime Minister Le Minh Khai, this year’s forum takes place in the context of the evolving international and regional situation with rapid and complex changes that go beyond normal forecasts. In the gray picture of the world economy today, positive trends are still maintained, with the need for peace, stability and cooperation for development still being the main flow.

Asia-Pacific remains the world’s growth engine (contributing about 39% of GDP, 36% of global exports). ASEAN is still the bright spot for growth in the region (it is forecasted that in 2023, the growth rate will reach about 4.8%, 7 times higher than the growth rate of the developed countries). Singapore continues to be one of the innovation leaders in Southeast Asia.

In that situation, Vietnam synchronously and effectively implemented solutions and countermeasures to adapt to developments in the international and domestic situation.

Vietnam achieved important and comprehensive results, successfully realizing the “dual goal” of preventing and controlling the Covid-19 pandemic while recovering and developing the socio-economic.

To continue to overcome all challenges, successfully implement the strategic goal by 2030, to become a developing country with high middle income, and 2045 to become a developed and high-income country by, Vietnam is making efforts to build and perfect a socialist-oriented market economy, a socialist democracy, taking the people as the driving force and goal for development.

In the new period, Vietnam is promoting the building of an independent and self-reliant economy associated with extensive international integration, prioritizing the implementation of three strategic breakthroughs in institutions, human resources and infrastructure. Vietnam determines that internal resources are basic, strategic, decisive, and long-term, and external forces are important and breakthrough.

Deputy Prime Minister Le Minh Khai emphasized that in that journey, Vietnam wishes to continue to strengthen its cooperation with the Government and business community of Singapore.

Deepening The Strategic Partnership Between Vietnam and Singapore
Deputy Prime Minister Le Minh Khai and delegates witnessed the ceremony of cooperation documents between agencies, organizations and enterprises of the two countries. Photo: VNA

After 50 years of establishing diplomatic relations and 10 years of developing a strategic partnership, the Vietnam-Singapore relationship has never been as good and comprehensive as it is today. The relationship between the two countries is considered a typical example of a dynamic and effective relationship in ASEAN, becoming a model to promote cooperation within the bloc, as well as in the region and the world.

12 Vietnam-Singapore Industrial Parks (VSIPs) in 9 provinces and cities of Vietnam become a symbol of economic cooperation between the two countries. Singapore is the second largest investor in Vietnam (3,200 projects and US$73.4 billion of registered capital). Singaporean entrepreneurs participated in most of Vietnam’s economic sectors and fields, always seriously implementing projects on schedule, and with high efficiency.

Vietnamese investors invested in nearly 150 projects in Singapore with a total registered investment of nearly US$700 million, mainly focusing on professional activities, science and technology.

Regarding trade, Singapore continues to be one of Vietnam’s leading partners in the region with a total two-way import and export turnover of US$9.2 billion (up 11.6% compared to 2021).

However, the Deputy Prime Minister said that the above cooperation results are encouraging, but still not commensurate with the cooperation potential of the two sides.

In order to contribute to the effective development of the Vietnam-Singapore Strategic Partnership, Deputy Prime Minister Le Minh Khai suggested that businesses of the two countries maximize each other’s capabilities, and comparative advantages, and strengthen cooperation.

Deepening The Strategic Partnership Between Vietnam and Singapore
Deputy Prime Minister Le Minh Khai speaks at the Forum. Photo: VNA

The Government of Vietnam is committed to making efforts to create the best environment for businesses of the two countries to cooperate in favorable business, towards OECD standards.

These are maintaining socio-political and macroeconomic stability, removing bottlenecks in the economy in terms of legal institutions, infrastructure and human resources, developing supply chains, reducing costs, and building a stable, highly predictable and transparent policy-environment.

Both are members of the new generation FTAs (RCEP, CPTPP), Deputy Prime Minister Le Minh Khai suggested that businesses of the two countries should make efforts to effectively take advantage of the benefits that these agreements bring. This contributes to supporting the multilateral trading system, the economic recovery of the two countries, and the region after the pandemic.

Deepening The Strategic Partnership Between Vietnam and Singapore
Deputy Prime Minister Le Minh Khai, with domestic and international delegates attending the Forum. Photo: VNA

The Deputy Prime Minister hoped that the Singapore business community would continue to support Vietnam in accessing shifting investment sources, green finance, and serving the needs of sustainable development in areas such as innovation, green transport, start-ups, training high-quality human resources, and responding to climate change.

The two sides promote investment and cooperation in areas where Singapore has experience and strengths, Vietnam has needs and potentials for development, especially developing eco-industrial parks associated with smart cities, ecological urban areas, digital transformation, energy transformation, and training high-quality human resources.

The Deputy Prime Minister appreciated that Vietnam is the first country besides Singapore to be chosen as the venue for the Forum. This is a meaningful event, demonstrating the trust, respect and deep concern of Singaporean businesses and the international business community for Vietnam’s business and investment environment. This Forum takes place in the context of the two countries celebrating 50 years of diplomatic relations, and 10 years of strategic partnership.

Rosie Nguyen