Strategic Singapore tie-up is a win-win partnership

Vietnam and Singapore will lift their relationship to a “strategic partnership” next year from the current “comprehensive cooperation” to usher in new era of bilateral benefits. The move was announced during the visit of Vietnam’s  Party General Secretary Nguyen Phu Trong (pictured right) to Singapore last week.

Vietnam and Singapore have pledged to lift their relationship to “strategic partnership” status next year. The upgrade from “comprehensive cooperation” was announced during Party General Secretary Nguyen Phu Trong’s talks with Singaporean Prime Minister Lee Hsien Loong during Trong’s first visit to Singapore on September 12-14.

“Seeing that time is now ripe for the two nations’ bilateral relationship, the two leaders agree that Vietnam and Singapore will clinch a strategic partnership agreement in 2013 when they will celebrate the 40th anniversary of their bilateral diplomatic relationship,” said a joint press statement release.

“This agreement will sharpen the existing relationship between Vietnam and Singapore and usher in a new cooperation orientation in sectors of education, training, finance, national defense and security,” the statement said.

At present, Vietnam has strategic partnerships with India, the UK, Japan, Spain, South Korea and Germany. The US and Indonesia are also seeking such a relationship with Vietnam. Vietnam also has “comprehensive strategic partnerships” with China, Laos and Russia.

During this visit, the two leaders signed a memorandum of understanding (MoU) on finance cooperation, under which the two sides would exchange banking visits and share experiences in public financial management in such sectors as tax management and policy, one-door customs and electronic-based customs.

Moreover, the leaders also approved the second amended protocol on double taxation avoidance and a deal on research and training programmes for Vietnam Communist Party officials.

Also during Trong’s talks with Loong and his meeting with Singaporean President Tony Tan Keng Yam, the leaders also vowed to expand cooperation in education and training, science and technology, tourism, national defense and security.

Trong said Vietnam would give incentives to Singaporean investors in high technology, land management, urban management, supporting industries, oil and gas services and sea-based logistics projects.

The leaders underlined the need to improve the implementation of the Singapore-Vietnam Connectivity Framework Agreement established in 2005 that links the two economies.

The two sides also pledged to “closely cooperate with each other to realise the target of building the ASEAN Community by 2015 to ensure long-term growth and prosperity of the whole region.”

They expressed concerns on recent complications in the East Sea, saying that the concerned parties should aim to settle the disputes by peaceful means on the basis of the international law, the 1982 UN Convention on the Law of the Sea (UNCLOS) and the Declaration on Conduct of the Parties in the East Sea (DOC), proceeding to the Code of Conduct (COC) in the East Sea.

Vietnam’s Ministry of Planning and Investment reported the country was now home to 1,063 Singaporean investment projects worth $23.31 billion, ranking Singapore as Vietnam’s fourth largest foreign investor. In this year’s first eight months, Vietnam attracted 60 Singaporean investment projects, with total registered capital of $420.67 million. In 2011, the two countries’ bilateral trade rose 22 per cent to reach $15 billion and Singapore was Vietnam’s 8th largest trading partner. The two nations forged diplomatic relationship in August 1, 1973.