Singapore and Vietnam strengthen ties with new deal

According to a joint statement, Singapore and Vietnam will reinforce economic cooperation and foster collaboration in mutually beneficial areas. Both countries will implement the framework agreement on Singapore–Vietnam Connectivity, upgraded in 2023, to support joint business projects such as the development of innovative and sustainable low-carbon Vietnam-Singapore Industrial Parks (VSIPs) in Vietnam. Efforts are also made to strengthen cooperation in food safety and security, including supply chain resilience.

Another area is to facilitate cross-border QR code payments, support further collaboration in the capital market initiatives, including stock market and depository receipt connectivity initiatives, and encourage intellectual property cooperation. Singapore will exchange experiences with Vietnam in financial sector development, including to support Vietnam in its efforts in building and operating an international financial centre.

Focus is also given to strengthening air connectivity through the expansion of the bilateral Air Services Agreement. Besides encouraging infrastructure cooperation, including urban solutions, Singapore will also support Vietnam’s maritime and port infrastructure developments, via digital and operational transformation.

In addition, Singapore and Vietnam will utilise the Green-Digital Economic Partnership from 2023 to cooperate in energy connectivity and transmission, sustainability, infrastructure, digital, and innovation for the common goal of achieving net-zero emissions by 2050. Both countries exchange knowledge on smart and sustainable cities while working together on the facilitation of regulatory approvals for cross-border electricity trading, starting with offshore wind electricity exports from Vietnam to Singapore.

The comprehensive strategic partnership also highlights the development and transit of power transmission infrastructure as well as financing mechanisms as building blocks towards an ASEAN power grid. The two sides will also collaborate on carbon credits as aligned with Article 6 of the Paris Agreement.

Partnerships in digital connectivity, such as cross-border data flows, the establishment of data sandboxes, and emerging technologies including AI and cybersecurity, are also part of the deal, including collaborative efforts on subsea cables in the region.

Singapore and Vietnam are also committed to promoting consumer and business trust in the digital economy, including fostering data-driven innovation. Both countries will encourage the responsible use and transmission of data through the adoption of regional guidelines and frameworks such as the ASEAN Model Contractual Clauses and the ASEAN Guide on AI Governance and Ethics.

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