Vietnam - Singapore Steadfast and Substantive Partnership

Over the last 50 years, relations between Singapore and Vietnam have blossomed into a steadfast and substantive partnership. This did not come about by chance. Instead, it is the result of sustained dialogue and interactions between our governments, businesses, and peoples.

My colleagues at the Embassy of the Republic of Singapore in Hanoi and I send our warmest greetings to the readers of this special edition of the Vietnam Business Forum (VBF), celebrating the milestones in Vietnam-Singapore cooperation.

This issue is timely as we mark a very significant achievement in Singapore-Vietnam relations on 1 August 2023 – 50 years since the establishment of diplomatic relations and 10 years of our Strategic Partnership, or what we like to call, our “50/10 Anniversary”. Over the course of 2023, we hope to not only take stock of the tremendous progress which we have made in our relationship over this time, but also chart a path to bring our relationship to even greater heights over the next 50 years and beyond. As such, VBF’s initiative to publish this special edition is much appreciated.

Over the last 50 years, relations between Singapore and Vietnam have blossomed into a steadfast and substantive partnership. This did not come about by chance. Instead, it is the result of sustained dialogue and interactions between our governments, businesses, and peoples.

Robust cooperation on economic issues is the cornerstone of our bilateral ties. Singapore has long recognized Vietnam’s economic strengths and potential and is pleased to play a part in supporting Vietnam’s aspirations to improve the lives and livelihoods of its people. Despite the COVID-19 pandemic, Singapore has been Vietnam’s top source of foreign investment for the last three years and has become Vietnam’s second-largest cumulative source of foreign direct investment. Bilateral trade has grown steadily over the past decade, reaching US$20 billion in 2021, an 18.7% increase year-on-year. This reflects the strong confidence that Singapore businesses have in Vietnam’s economic prospects and potential. Singapore-based companies invest in a wide range of sectors and are encouraged by Vietnam’s workforce and pro-business climate. The clearest symbols of this cooperation are the Vietnam-Singapore Industrial Parks (VSIPs) that span Northern, Central and Southern Vietnam. Collectively, the VSIPs have attracted US$17 billion in investments and created more than 300,000 jobs in Vietnam. 

Vietnamese President Vo Van Thuong (R) and Singaporean President Halimah Yacob meet in London, the UK, May 2023, on the sidelines of the coronation of King Charles III

Building upon what we have already achieved together, we are now exploring opportunities to collaborate in new growth areas, including the digital economy, renewable energy, carbon credits, cybersecurity, and sustainable infrastructure. Over the last year, Singapore and Vietnam have signed a series of agreements and established bilateral frameworks to implement these agreements, which will serve to deepen our partnership in the green and digital economies. Our respective commitments to achieve zero carbon emissions targets by 2050 present a challenging endeavor, but also an opportunity for greater bilateral collaboration in developing renewable energy sources and carbon credits markets. Beyond the bilateral relationship, our collaboration also has the potential to strengthen energy security in the wider Southeast Asian region and realize our collective vision of building an ASEAN Power Grid. Meanwhile, digitalization is changing the way we trade. COVID-19 has highlighted the crucial role of digital trade and e-commerce in ensuring supply chain resilience and business continuity. With our common goal of driving further economic growth through technology and innovation, there is scope for Singapore and Vietnam to tap on each other’s innovation eco-systems for partners, funding and talent.

The new opportunities I have highlighted above represent only the tip of the iceberg of the potential that our bilateral relations possess. However, the achievements that we have made over the last 50 years and the potential that we hope to realize in the future, would not have been possible and cannot be achieved only through the efforts of the governments of our two countries. Instead, we will need to rely on people-to-people relationships developed between individuals, businesses, alumni networks, and others committed to building better relations between our two countries.

Based on what I have seen during my time as Singapore’s Ambassador to Vietnam, I am confident that working together, we can create a brighter, more prosperous future not only for Singapore and Vietnam, but also for the wider Southeast Asian and Asia-Pacific region.

Jaya Ratnam

Singapore Ambassador

Source: Vietnam Business Forum