Vietnam and Singapore Strengthen Ties as Close Partners

Singapore has been the largest foreign investor in Vietnam this year, with newly registered capital of more than USD 3.6 billion in the first eight months of 2020.

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According to a meeting held in Hanoi on August 27, Singapore is a major investor in Vietnam, with over USD 70 billion invested in 3,031 valid projects (VOV).

The Vietnam-Singapore Industrial Park III (VSIPIII) in Binh Duong province held a groundbreaking ceremony in March 2022 (VOV).

In the first eight months of 2023, Vietnam attracted investment from 100 countries and territories, with Singapore leading the way, according to the 17th Singapore-Vietnam Connectivity Ministerial Meeting.

Vietnam, Singapore Important Partners of Each Other
A groundbreaking ceremony of the Vietnam – Singapore Industrial Park III – VSIPIII – in Binh Duong province in March 2022. Photo: VOV

Singapore accounts for over USD 3.83 billion of the total foreign investment in Vietnam, which is 21.2% of the total (VOV).

Singaporean businesses are active in various sectors in Vietnam, including production, logistics, and consumer services.

The Vietnam-Singapore Industrial Park (VSIP) model is a successful example of economic cooperation between the two countries. There are currently twelve VSIPs established in Vietnam, with plans to increase the number to fifteen in the future.

These VSIPs have been productive, utilizing over 7,000 hectares of land, attracting around USD 18 billion in investment capital, and creating more than 312,000 jobs.

Vietnam, Singapore Important Partners of Each Other
The VSIP in Can Tho City will be the first of its kind in the Mekong Delta. Illustrative photo: Vietnam Finance

Bilateral trade between Vietnam and Singapore has grown by 11% annually, reaching USD 31.3 billion in 2022 (VOV). Vietnam is now Singapore’s 11th largest trading partner.

Economic cooperation between the two countries focuses on five pillars: energy, sustainable development, infrastructure, digital and innovation, and connectivity. This cooperation includes areas such as education, finance, information technology, telecommunications, tourism, investment, trade, services, and transportation.

The 2005 agreement covered areas such as finance, education and training, transportation, information and communications technology, investment, trade, and services.

At the 17th Vietnam-Singapore Connectivity Ministerial Meeting, both sides discussed the implementation of the 2022 Memorandum of Understanding on Digital Economy-Green Economy and explored possibilities for cooperation in energy and sustainable development. Vietnam proposed closer collaboration and increased investment from Singaporean businesses.

Vietnam, Singapore Important Partners of Each Other
Vietnam and Singapore hold the 17th Connectivity Ministerial Meeting in Hanoi on August 27. Photo: Vietnamese Government Portal

During the meeting, an MoU on innovation cooperation was signed between the National Innovation Centre of Vietnam and the Advanced Remanufacturing and Technology Centre under Singapore’s Agency for Science, Technology, and Research. Another MoU was signed for cooperation in training Vietnamese interns in supply chains and logistics between the Vinh Phuc provincial People’s Committee and the YCH Group Pte. Ltd of Singapore.

Construction of Phase 1 of the VSIP project in Can Tho City will begin on September 9, according to the municipal People’s Committee.

Anthony Tan, General Director of the Can Tho VSIP Joint Stock Company, stated that the park in Vinh Thanh district will be an industrial, residential, and logistic service complex focused on green and sustainable criteria.

The Can Tho VSIP project received approval from the Prime Minister and an investment registration certificate from the municipal People’s Committee in October 2022.

Phase 1 will cover 293.7 hectares of land and have a total investment of over VND 3.7 trillion (USD 153.8 million). During this phase, the project will provide support services for nearby factories and for laborers working at the VSIP.

The VSIP joint venture, consisting of Sembcorp of Singapore and Becamex IDC of Vietnam, is currently the largest industrial park developer in Vietnam. The first VSIP was established in Binh Duong province in 1996.

Currently, there are eleven VSIPs operating nationwide, with the Can Tho VSIP being the first in the Mekong Delta.

Hannah Nguyen