Vietnam-Singapore Relations: "We expect the relationship to broaden and deepen"

Trade and economic relations form the strongest pillar in the bilateral relationship between Vietnam and Singapore. Singapore’s total trade with Vietnam for 2005 was S$10.39 billion, an increase of 34.3 percent from 2004. Singapore is Vietnam’s fourth largest trading partner. We hope to see continued growth and development in this healthy trade relationship. In terms of investment, Singapore remains one of the biggest investors in Vietnam. Vietnam continues to attract a lot of interest among Singaporean businesses because of its sound economic policies and huge economic potential.

With the recent coming into effect of the Connectivity Agreement between Vietnam and Singapore, we expect the trade and economic relationship to continue to broaden and deepen, particularly in key areas covered under the agreement, such as finance, information and communications technology, investment, trade and services, and transport. The agreement will benefit both countries and boost economic cooperation and exchanges between Singapore and Vietnam.

The economic relationship is a win-win situation for Vietnam and Singapore. The Connectivity Agreement will allow Vietnam to tap Singapore’s world-class business infrastructure to connect to the global market and accelerate its economic development. Singapore, in turn, can leverage on the business opportunities offered by Vietnam’s strong economic growth, competitive labor costs and natural resources. In the process, both countries can work together to develop Vietnam’s infrastructure and economy.

Vietnam is fulfilling the final procedures to be admitted into the WTO (World Trade Organization). How does this impact on Vietnam-Singapore trade, economic relations? Could you tell about development prospects for Vietnam-Singapore relationships after Vietnam becomes a WTO member?
Singapore welcomes Vietnam’s accession to the WTO. Accession would be helpful in Vietnam’s drive to transition into a market-oriented economy with a policy and regulator framework consistent with WTO rules. The current deadlock in negotiations of the current Doha Round notwithstanding, WTO membership is still important for economies that want to plug into the global trade network and benefit from it.

Vietnam’s entry into the WTO will enhance the linkages between Vietnam and Singapore, which are already strong - both bilaterally and within the context of ASEAN (the Association of Southeast Asian Nations) and other regional organizations such as APEC (the Asia Pacific Economic Cooperation Forum). As fellow members of the multilateral trading system, there will be opportunities for both countries to work together towards an open and transparent global trade system that will benefit us, as well as strengthen our bilateral trade relations.

A large number of Vietnamese students are studying in Singapore. What are development prospects for bilateral cooperation in education?
Education is a key component of the Connectivity Agreement. Singapore offers scholarships to Vietnamese students to study in Singapore, and the respective Ministries of Education have worked together to intensify cooperation at the school and university levels. Singapore welcomes students from Vietnam to study in Singapore. Aside from education, Singapore also provides and facilitates training for Vietnamese through our technical assistance programs. We will work towards expanding our educational ties by exploring further ways in which educational institutions in Vietnam can cooperate with their counterparts in Singapore