Singapore and Vietnam strengthen cooperation across the board

MPI Minister Nguyen Chi Dung co-chairing the meeting

Yesterday afternoon (November 12), the 15th Vietnam-Singapore Connectivity Ministerial Meeting (CMM) took place under the co-chairship of Minister of Planning and Investment Nguyen Chi Dung and the Singaporean Second Minister for Trade and Industry and Minister for Manpower Tan See Lang.

The 15th CMM reviewed progress across the six sectors of economic cooperation under the Singapore-Vietnam Connectivity Framework Agreement, namely: (i) investment, (ii) ICT, (iii) finance, (iv) trade and services, (v) education and training, and (vi) transportation. During the meeting, both ministers acknowledged the challenges posed by the COVID-19 pandemic on both countries’ economies and reaffirmed their commitment to further strengthen the bilateral economic partnership in order to position both economies for recovery.

The ministers also discussed potential opportunities for bilateral cooperation in emerging areas, including renewable energy, digitalisation, innovation, sustainable development, and human resources. Tan See Lang noted that Singaporean companies’ expertise in renewable energy could support Vietnam’s transition towards a green economy, particularly given its vast potential in solar and wind power. Singaporean companies could also help provide digital solutions to support Vietnam’s shift towards high technology and higher value-added industries.

The ministers discussed the potential for Singapore and Vietnam’s fintech players and financial institutions to collaborate through platforms such as the annual Singapore FinTech Festival and the API Exchange. Recognising the rapid growth of the digital economy amidst the COVID-19 pandemic, the ministers discussed how Singapore and Vietnam could harness the opportunities arising from this by fostering close partnerships between both countries' innovation ecosystems via the Global Innovation Alliance network and open innovation platforms.

Singaporean Minister Tan See Lang highlighting Vietnam as one of the best investment destinations for Singaporean businesses

Singapore and Vietnam share strong bilateral economic ties, with bilateral trade growing steadily over the past decade, reaching $6.6 billion in the first 10 months of 2021, an increase of 21 per cent on-year. Singapore is the third-largest cumulative investor in Vietnam to date. There are around 2,700 approved projects by Singaporean companies across 45 of the 63 provinces in Vietnam totalling $63 billion. Singapore was the largest source of foreign investment in Vietnam with investments of nearly $9 billion in 2020 and $6.76 billion in the first 10 months of 2021, while Vietnam has already invested 117 projects and $350 million in Singapore.

Minister Nguyen Chi Dung said that after the meeting, the Ministry of Planning and Investment and other authorities of the two countries would collaborate closely to carry out cooperation plans to further strengthen bilateral economic relations, encourage Singaporean enterprises to invest in Vietnam, as well as level up the strategic partnership of the two countries.

The 15th CMM was also attended by officials from the Vietnamese ministries of Information and Communications, Education and Training, Transport, Finance, and the Civil Aviation Authority of Singapore, Enterprise Singapore, Infocomm Media Development Authority, Monetary Authority of Singapore, Singapore Food Agency, and Singapore Tourism Board.

Established in 2006 under the Singapore-Vietnam Connectivity Framework Agreement, the CMM is the cornerstone of bilateral economic relations between Singapore and Vietnam, strengthening bilateral ties and facilitating trade and investment flows between the two countries.