Vietnam-Singapore relations poised for new heights

Speaking at the event, Professor Vu Minh Khuong from the Lee Kuan Yew School of Public Policy highlighted key milestones in Vietnam-Singapore relations, from the establishment of diplomatic ties in 1973 to the Strategic Partnership in 2013, noting that the two nations are working toward an even higher level for their relationship.

He pointed out that Vietnam’s rapid economic growth is fueled by industrialisation, AI-driven digital transformation, green growth, and deeper global integration. The country’s new era is defined by institutional reform as a competitive advantage, innovation and digital transformation as catalysts for growth, and speed as a strategic edge.

Elevating Vietnam-Singapore ties will further drive economic integration, investment, and cooperation in education, talent development, digital transformation, innovation, and sustainability, Khuong noted.

The online seminar on the Vietnam-Singapore Comprehensive Strategic Partnership. (Photo: VNA)

Singaporean Ambassador to Vietnam Jaya Ratnam stressed the need to enhance collaboration both bilaterally and within multilateral frameworks such as ASEAN, highlighting the resilience of the Vietnam-Singapore partnership, built on strong political trust and robust economic ties.

According to the ambassador, digital transformation and energy transition are reshaping the global and regional economies, including Vietnam and Singapore. The two countries have launched multiple initiatives, with two key pillars currently underway. The first is the Vietnam-Singapore Industrial Parks (VSIP), established in 1996, which will mark its 30th anniversary in 2026. To date, there are 18 VSIPs across Vietnam, attracting around 22 billion USD in investment and generating over 300,000 jobs.

The second pillar is energy cooperation. Singapore views Vietnam as a key player in ASEAN’s energy network, recognising its vast potential in renewable energy. Vietnam is not only capable of supplying clean energy to Singapore but also to other ASEAN nations. Both countries are committed to achieving net-zero emissions by 2050, with Vietnam’s energy exports playing a crucial role in reaching these targets. Beyond energy exports, Vietnam also has the capacity to develop energy production and service facilities, further strengthening its position in the regional energy landscape.

Singapore hopes to establish energy industrial parks between the two countries, similar to VSIP, creating a vital link between their economies. Both nations will strengthen cooperation, particularly in energy policy, with Singapore set to increase investments in energy infrastructure. Data connectivity is also emerging as a key area of collaboration, as Vietnam seeks to develop data centres to attract foreign investment. Additionally, the two countries aim to establish common frameworks and regulations for food imports, further enhancing economic ties.

Meanwhile, Vietnamese Ambassador to Singapore Tran Phuoc Anh highlighted the growing political trust between Vietnam and Singapore, reinforced by the annual meeting between the two Prime Ministers.

He reaffirmed Vietnam’s recognition of Singapore as a key partner in many areas and pointed to ample room for collaboration in science, technology, innovation, digital transformation, renewable energy, smart infrastructure, and financial services.

Strengthening bilateral ties is expected to further boost economic cooperation. Vietnam is currently Singapore’s fourth-largest trade partner in ASEAN, with two-way trade reaching approximately 23 billion USD. Singapore is also Vietnam’s second-largest investor, just behind the Republic of Korea.

With economic collaboration on the rise, bilateral trade is projected to grow by around 10% annually over the next three years, while increased investment from Singaporean enterprises is anticipated, particularly in manufacturing, technology, energy, and services.