Vietnam-Singapore relations have been increasingly developed in all fields: politics, diplomacy, culture, and especially trade and investment. Reporter Quynh Chi discussed with Ph.D Doan Duy Khuong, Vice President of Vietnam Chamber of Commerce and Industry (VCCI) on the cooperation between business communities of the two countries.
Vietnam and Singapore have signed several cooperation agreements, in particular the comprehensive economic connectivity agreement (April 1992). How do you evaluate the interests brought by the agreement to the two countries?
During the past years, Vietnam and Singapore have signed Maritime Trade Agreement (April 1992), Air Transport Agreement (April 1992), Trade Agreement (September, 1992), Investment Encouragement and Protection Agreement (October, 1992), Environment Management and Protection Agreement (October 14, 1993), Non-double Taxation Agreement (March 1994), Tourism Cooperation Agreement (August 1994),and some other cooperation agreements on youth (March 1995, press (January 1996) and cultural and information (April 1998). In particular, during Prime Minister Phan Van Khai’s visit to Singapore in March 2004, the two sides signed “Joint Statement on comprehensive cooperation framework for XXI century” creating a legal framework and conditions to promote friendship and cooperation in various fields between the two countries.
Furthermore, the 7th Ministerial Meeting on Vietnam-Singapore Economic Connectivity was held recently in Hanoi and co-chaired by Minister of Planning and Investment Vo Hong Phuc of Vietnam and Minister of Industry and Trade Lim Hng Kiang of Singapore.
Vietnam-Singapore Economic Connectivity Agreement signed in 2005 is a comprehensive cooperation programme focusing on six areas: finance, education and training, communication and transport, information technology and telecommunication, investment, trade and service. In addition, the two sides will discuss on measures to expand cooperation in areas of potentials and strength of each country.
By specific cooperation activities, Vietnam has reaffirmed its policy and interests in economic cooperation with Singapore and asked Singapore to implement new initiatives in the framework of the connectivity agreement, encouraging Singaporean business to increase investments in Vietnam and to promote cooperation of equality and mutual interests.
Successes have been clearly recorded in recent years. Will you please elaborate further on those achievements?
The trade value in 2010 between Vietnam and Singapore was US$6,222 million including Vietnam export of US$2,121 million and import of US$4,101 million.
Main Vietnamimports are: petroleum, plastic materials, computers, electronic products and parts, machines, equipment and parts, ships, paper, chemicals, milk and milk products, pesticides, steel ingots, cable and wire, LPD, pharmaceuticals, animal feeds, confectionaries, processed cereals, materials for garments and footwear.
While Vietnam exports are: crude oil, rice, computers, electronic products and parts, glass and glass products, aquatic products, steel, garments, coffee, cable and wire, plastic products, vegetable and fruit, timber and wood-based products, cashew nut, pepper, ceramics, bamboo and rattan products, rubber.
Regarding investment, statistics of Department of Foreign Investment (Ministry of Planning and Investment) show that Singapore led other countries in the first half of 2011 with newly registered capital and additional investments worth US$1.33 billion, or 23.30 percent of the total investment in Vietnam.
Presently, Singapore engages in almost all economic sectors of Vietnam, from exploring and exploiting oil and gas, industries to processing of agricultural, forestry and sea products, focusing on infrastructure, services and real estate. Many Singapore projects attain high efficiency, generating jobs and contributing to Vietnam export and economic growth such as Container joint venture VICT in Ho Chi Minh, and Binh Duong industrial zone (VSIP).
For its part, in spite of difficulties, Vietnamese businesses have invested in Singapore 35 projects valued at US$460 million.
In face of the world economic crisis, several foreign investors, including Singaporean, show certain hesitance in investing in Vietnam. What should Vietnam do to attract investments from Singapore?
To attract continued investments from Singapore in 2011 and the years to come, Vietnam should increase cooperation in five areas of high priority and comparative advantages of Singapore.
Vietnam should focus on projects of modern technology, environment friendly and regional connectivity, increasing investment in industries of high competitiveness and contributing to global chains of value, namely high technology, mechanics, information technology and telecommunication, pharmaceuticals, bio-technology, environment, clean and recycled energy, and new materials.
In addition, Vietnam should attract capital from international financial institutions based in Singapore, big investors of high technology and source technology.
Does VCCI have any cooperation agreement with Singapore to promote business activities between the two countries?
VCCI signed with Singapore Chamber of Commerce and Industry a cooperation agreement on December 19, 2003 in Singapore.
As a national trade promotion organization, VCCI has coordinated with the authorities and organizations nation-wide to sponsor many big events promoting bilateral relations and seeking opportunities for trade, investment and cultural cooperation.
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Singapore is almost without any natural resources and has to import raw materials and foods to meet domestic demand. However, with healthy and stable business environment, Singapore is leading other countries in seaports, ship building and repair, oil refinery, processing industry, electronics and high technology.
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In March 2004, VCCI organized a business delegation accompanying Prime Minister Phan Van Khai’s visit to Singapore and sponsored a Vietnam-Singapore Business Forum with the participation of many businesses and high officials of the two countries. In December 2004, VCCI organized an Investment Conference in Vietnam with the participations of over 500 businesses. In December 2005, in conjunction with concerned ministries and agencies, VCCI sponsored Vietnam Days in Singapore as well as Vietnam-Singapore Trade Investment and Tourism Forum at Suntec City Centre with the participations of over 300 businesses from the two countries.
In November 2007, VCCI led a business mission accompanying Prime Minister Nguyen Tan Dung attending ASEAN Summit and ASEAN Business and Investment Summit convened at the National Conference Centre in Singapore.
In particular, VCCI, in coordination with related organizations, will organize Vietnam-Singapore Business Forum by the end of 2011. It will be an annual activity to promote business connectivity and investments between business communities of the two countries.
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