Aug 8, 2011

Vietnam - Singapore - Big building blocks for prosperity


The Vietnam-Singapore economic relationship has progressed rapidly since the two countries implemented a Connectivity Framework Agreement. On the occasion of Singapore's 46th National Day, Singaporean ambassador to Vietnam Simon Wong tells VIR about his hopes for the future progress of bilateral relations.


What is your assessment of the overall state of bilateral relations between Vietnam and Singapore?
Since the establishment of diplomatic relations between Vietnam and Singapore on  August 1, 1973, bilateral cooperation has progressed rapidly. Politically, there are frequent high-level exchanges by the leaders of both sides. Last year, Singapore Prime Minister  Lee Hsien Loong visited Vietnam on three occasions, once for an official visit and twice to attend ASEAN summits in Hanoi. Notably, PM Lee’s official visit in January 2010 helped showcase the achievements made by both countries in strengthening bilateral cooperation. PM Lee and Vietnam’s Prime Minister Nguyen Tan Dung co-witnessed the ground-breaking of the newest Vietnam-Singapore Industrial Park in Haiphong city and the award of a branch licence to the Development Bank of Singapore. 
Singapore and Vietnam enjoy a robust bilateral economic relationship underpinned by the Connectivity Framework Agreement. 

As of July 2011, Singapore is the third largest foreign investor with registered cumulative investments of $23.2 billion in over 930 projects. In addition, bilateral trade achieved an overall four-fold increase since 2000 to reach $10.1 billion in 2010.

Relations have extended beyond the political and economic spheres to include other important areas such as defence, education and human resource development. Defence ties received a boost with the signing of the Defence Cooperation Agreement by the leaders of both sides in September 2009. In the area of human resource development and training, the Ministries of Foreign Affairs of both countries signed a memorandum of understanding in November, 2010 to provide training for middle- to senior-level officials from the Communist Party of Vietnam.

I am delighted to note that the first run of the course was successfully conducted earlier this year. I will continue to play my part to build on the excellent bilateral relations and to explore new and creative opportunities to enhance the bilateral relationship.

The two countries have implemented a Connectivity Framework Agreement. What do you think are some of the notable achievements since the agreement took effect in early 2006?

The Connectivity Framework Agreement has achieved good progress in all six sectors of cooperation. Since its implementation in early 2006, the Connectivity Framework has contributed effectively to the bilateral trade and investment flows of both countries. In terms of investment, the Connectivity Framework has successfully facilitated several private sector projects into Vietnam, and directly or indirectly contributed to nearly $14 billion worth of Singapore’s registered investments into Vietnam. Some examples of notable private sector initiatives facilitated under the Connectivity include the development of the Vietnam-Singapore Industrial Parks, PSA’s joint venture project with Saigon Port to build and operate a deep-sea container terminal in southern Ba Ria-Vung Tau province and the establishment of branch offices by our banks in Vietnam.

In your opinion, how has the Connectivity Framework Agreement facilitated or helped Singaporean companies operating in Vietnam?

The Connectivity Framework Agreement has helped to facilitate numerous business missions to explore market opportunities in Vietnam in various sectors such as urban infrastructure and services, port and logistics, electronics and precision engineering, info-communication technology and agri-food. For instance, between the 6th Connectivity Ministerial Meeting in November 2010 and the 7th Meeting in July 2011, Singapore had undertaken a total of 14 business missions and seminars to explore market opportunities in Vietnam, in various sectors such as urban infrastructure, industrial development and healthcare. There are also regular dialogues and exchanges between both countries at the official and industry levels to explore ways to further enhance industry cooperation and linkages between both countries.

In the recent Connectivity Framework Agreement meeting between Vietnam’s Ministry of Planning and Investment and Singapore’s Ministry of Trade and Industry, both sides agreed to further strengthen the Vietnam-Singapore bilateral economic relationship. What do you think can be done in the next few years to further strengthen the bilateral economic relationship?

Despite the past achievements in the bilateral economic relationship, there remains considerable scope to further enhance economic relations between Singapore and Vietnam. For instance, with Vietnam’s rapid economic growth and aspirations to become a modern industrial market economy by 2020, there are considerable opportunities for Singaporean companies with competencies in modern services such as finance, information technology and telecommunications, transportation, healthcare and education. Vietnam can also leverage on Singapore’s expertise in the areas of quality residential development, integrated townships and land transport systems, as it continues to urbanise.

Besides broadening our investment outreach on a sectoral level, Singapore companies have also expanded their investments geographically into the up-and-coming growth corridors in Vietnam.  To grow bigger and faster, Singapore businesses have begun to look at central and northern corridors for new opportunities. Going forward, Singaporean companies recognise that this is an exciting time to be in Vietnam. The new five-year Socio-Economic Development Plan and 10-year Socio-Economic Development Strategy ratified by the 11th Communist Party of Vietnam Party Congress signal a clear resolve on the part of the Vietnamese leadership to take the country forward to the next stage of its development. Singaporean companies are happy to play their part to support Vietnam on its developmental path. I believe that the bilateral relationship is a mutually-beneficial one and that there is great potential for this relationship to be further enhanced. I pledge to do my best to support and to facilitate this.

vir.com.vn | Aug 08, 2011

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