Singapore and Vietnam seek to enhance supply chain resilience

Photo: Shutterstock

On May 29, Tan See Leng, Minister-in-charge of Energy and Science & Technology, Singapore and Le Manh Hung, Minister of Industry and Trade, Vietnam released a joint statement on supply chain resilience.

The two ministers express serious concern over the ongoing situation in the Middle East and its implications for global peace and stability. Accordingly, the conflict has significant repercussions beyond the Middle East, including on global energy markets and supply chains. In this regard, the two ministers reaffirm commitment to work closely together to manage the impact of these developments on the region, particularly in light of Vietnam and Singapore growing bilateral economic footprint, which reached $31.8 billion in merchandise trade in 2025.

"It is of critical importance for the global economy that sea lanes for global trade, energy flows and supply chains, including straits used for international navigation, are kept open. We collectively reaffirm the importance of freedom of navigation and overflight, as well as the right of unimpeded transit passage, in accordance with the United Nations Convention on the Law of the Sea," the statement noted.

The two sides also reinforced ASEAN’s commitment to strengthening intra-ASEAN trade and supply chain connectivity through improved trade facilitation and reduced logistical costs. Commitments were made to keeping markets open and connected, including through maintaining unimpeded trade flows, and will ensure that airports, seaports, and critical trade infrastructure remain operational to minimise disruptions to trade flows.

Vietnam and Singapore also reaffirmed commitment to diversify sources of trade and investment to support ASEAN businesses, including Micro, Small, Medium Enterprises, by leveraging ASEAN agreements, including through the full and effective implementation of the ASEAN+ FTAs and the Regional Comprehensive Economic Partnership Agreement, and the timely conclusion and signing of the ASEAN Digital Economy Framework Agreement within the year.

In addition, efforts will be made to swiftly approve/ratify relevant ASEAN Agreements such as the ASEAN Framework Agreement on Petroleum Security, and Upgraded ASEAN Trade in Goods Agreement (ATIGA) within this year when possible, that will strengthen collective resilience to external economic disruptions, while ensuring mutual support in times of crises.

Commitments under the Upgraded ATIGA are reaffirmed, including but not limited to refraining from imposing trade-restricting non-tariff measures (NTMs), and committing to the rollback of all NTMs on essential goods that are inconsistent with rights and obligations under the World Trade Organization Agreements and relevant trade agreements both countries are parties to.

Where export prohibitions or restrictions on essential goods are instituted in accordance with GATT 1994, due consideration will be given to their potential effects on the domestic supply of essential goods in importing countries. Timely information sharing and consultations will be facilitated, alongside close coordination on joint mitigation strategies such as providing assistance for emergency procurement and transportation of essential goods and energy supplies upon request and where possible, to enhance the resilience of economies.

The two sides resolved to enhance mutually beneficial cooperation in food security. Bilaterally, both countries are committed to the expeditious implementation of the Memorandum of Cooperation on Rice Trade. The importance of avoiding unnecessary restrictive measures to boost the rice trade was also acknowledged.

In the face of heightened global uncertainty, both sides remain resolute in their commitment to work together in solidarity to uphold regional stability, strengthen economic resilience, and encourage an international order based on international law, including the UN Charter.

Southeast Asian e-commerce market hit $157 billion in 2025 Southeast Asia’s e-commerce gross merchandise value (GMV) grew 22.8 per cent on-year in 2025 to reach $157.6 billion, as leading platforms returned to growth while continuing to improve infrastructure, fulfilment, and customer experience, according to Momentum Works.

Singapore to expand VSIP presence in Vietnam to 30 parks Singapore will increase the number of Vietnam-Singapore Industrial Parks to 30 this year, Singaporean Prime Minister Lawrence Wong said during phone talks with his Vietnamese counterpart.

Amata City Halong welcomes new project in semiconductor supply chain On May 25, Thai-backed developer Amata City Halong signed an agreement with Mutek Technology Vietnam to develop a manufacturing project serving the semiconductor industry, reinforcing the appeal of Song Khoai Industrial Park as a destination for high-tech foreign direct investment in Quang Ninh province.