Vietnam - Singapore: 40 Years of Development Cooperation

 

After Vietnam entered the Bali Treaty in July 1992 and became a full ASEAN member in July 1995, the relations between the two countries have been lifted to a new stage of development. Singapore attaches great importance to developing relations with Vietnam and Vietnam has become one of the major trade and investment markets of Singapore in Southeast Asia. The opening of the Vietnam Embassy in Singapore in December 1991 and the Singapore Embassy in Hanoi in September 1992 established a legal framework and created favourable conditions to promote friendly and cooperative relations in many aspects.

 

In particular, the two countries signed a joint declaration on comprehensive cooperation framework in the 21st century in 2004 and the connectivity framework agreement in 2005. These are the foundations to promote multifaceted cooperation between the two countries, especially in finance, investment, trade, service, transport, telecommunication, information technology, education and training. In addition, Vietnam and Singapore regularly exchange high-level delegations. Most recently, Vietnamese President Truong Tan Sang visited Singapore in September 2011 and Singaporean President Tony Tan Keng Yam visited Vietnam in April 2012. The two sides agreed to strengthen high-level visits and exchanges at all levels, especially at the ministerial level, to enhance cooperation in every industry, while boosting mutual understanding and trust and asserting continued coordination in regional and international cooperation frameworks such as ASEAN, ASEAN +1, ASEAN +3, EAS, ASEM and APEC. The visits have generated a strong political basis for the bilateral relationship to keep growing.

Besides, within the VCCI cooperation framework, in 2005, the Vietnam Chamber of Commerce and Industry (VCCI) hosted Vietnam Days in Singapore and the Vietnam - Singapore Trade, Investment and Tourism Forum at Suntec City Centre. In 2007, VCCI also led a business delegation accompanying Prime Minister Nguyen Tan Dung, who attended the ASEAN Summit and the ASEAN Business and Investment Summit at the Singapore National Convention Centre.

 

The two sides also agreed to create favourable conditions to promote cooperation in a number of areas such as trade, investment and industry, further tap trade and economic potential to develop business, trade and investment relationships to new highs.

 

In recent years, Vietnam has become one of Singapore's key markets in Southeast Asia and Singapore has been a major trading - investment partners of Vietnam. According to VCCI, the two-way trade turnover between Vietnam and Singapore increased from US$6.2 billion in 2010 to US$8.7 billion in 2011 and US$9 billion in 2012. Goods of the two countries are not competitive, but complementary. Vietnam mainly exports computers, electronics products and components, glass products, rice, seafood, crude oil, telephones and spare parts to Singapore while importing petroleum, plastic materials, paper, chemicals, and milk from Singapore.

 

Tourism is one of many potential cooperation fields. Visa exemptions assert the strong development of Vietnam - Singapore tourism. The Singapore Tourism Board is also the first international travel agency to open a representative office in Vietnam, helping increase the number of tourists from Singapore to Vietnam and vice versa.

 

In addition, with its worldwide international relations and extensive development through technical cooperation programmes, Singapore has helped Vietnam personnel for social management, scientific and technical research. According to the incomplete statistics, about 3,000 Vietnamese students are studying at universities, colleges and vocational training institutions in Singapore.

 

On investment, Singapore is now present in most economic sectors of Vietnam, from oil and gas exploration and exploitation, industrial production to agriculture, forestry and seafood. Its investment capital is mainly channelled into infrastructure, service and real estate business. Many Singaporean projects are effectively contributing to job creation, export expansion and economic growth of Vietnam. Vietnam International Container Terminals Joint Venture (VICT) in Ho Chi Minh City and Vietnam - Singapore Industrial Park (VSIP) in Binh Duong province are the evidence for right investments of Singaporean corporations in Vietnam. The Ministry of Planning and Investment of Vietnam, through its Foreign Investment Agency, coordinated with the Singapore Economic Development Board to choose mutually positive projects and stepped up the approval of projects to enhance attractiveness to investors around the world.

 

As of 2012, Singapore had 1,099 investment projects in Vietnam with a total registered capital of more than US$24.67 billion, ranking fourth among more than 98 countries and territories with investment capital in Vietnam, and ranking first in ASEAN. In 2012 alone, Singapore had 89 projects worth nearly US$490 million.

 

Besides, the two sides have pledged to work closely together to realise the goal of building an ASEAN Community by 2015 to ensure the region's long-term growth and prosperity.