Deputy Prime Minister (DPM) and Coordinating Minister for National Security Teo Chee Hean visited Ho Chi Minh City (HCMC) and Binh Duong province from 13 to 14 September as part of his Official Visit to Vietnam. He was accompanied by Government Parliamentary Committee of Finance and Trade and Industry Chairman Mr Liang Eng Hwa and Deputy Chairman Mr Cedric Foo, as well as officials from the Ministry of Foreign Affairs.
In HCMC, DPM met Chairman of the People’s Committee of HCMC Nguyen Thanh Phong. They welcomed the strong business ties between Singapore and HCMC, and discussed ways to strengthen economic cooperation and promote investment flows, particularly in high-technology and innovation parks. Singapore is the largest investor in HCMC. Chairman Phong welcomed and reaffirmed HCMC’s support for more Singapore investments in HCMC. DPM also attended a reception hosted by the Singapore Consulate-General in HCMC for the Singaporean community in Vietnam.
In Binh Duong province, DPM met Secretary of the Party Committee of Binh Duong Tran Van Nam and Chairman of the People’s Committee of Binh Duong Tran Thanh Liem, and was the Guest-of-Honour for the 20th anniversary celebrations of the Vietnam-Singapore Industrial Park (VSIP) together with Vietnam Permanent Deputy Prime Minister Truong Hoa Binh. Initiated by the governments of Singapore and Vietnam and established in 1996, there are now five operating VSIPs and two under development. The VSIPs have attracted over US$9 billion in investments, with around 600 companies providing jobs for more than 170,000 workers. The full text of DPM’s speech at the VSIP 20th anniversary celebrations is appended.
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MINISTRY OF FOREIGN AFFAIRS
SINGAPORE
14 SEPTEMBER 2016
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SPEECH BY TEO CHEE HEAN DEPUTY PRIME MINISTER AND COORDINATING MINISTER FOR NATIONAL SECURITY AT THE 20th ANNIVERSARY CELEBRATIONS OF THE VIETNAM-SINGAPORE INDUSTRIAL PARK ON 14 SEPTEMBER 2016 IN BINH DUONG PROVINCE, VIETNAM
“Strengthening Vietnam-Singapore Relations”
Your Excellency DPM Truong Hoa Binh,
Former President of Vietnam Nguyen Minh Triet,
Chairman of the Central Propaganda Commission Vo Van Thuong,
Provincial Leaders of Binh Duong,
Party Committee Secretary Tran Van Nam,
People’s Committee Chairman Tran Thanh Liem,
Singapore Ambassador to Vietnam Catherine Wong,
Mr Nguyen Van Hung, Chairman Becamex IDC & VSIP Co-Chairman,
Mr Tang Kin Fei, Group President & CEO SembCorp Industries,
Mr Kelvin Teo, Chairman, SembCorp Development & VSIP Co-Chairman,
Partners in Progress and Development,
Distinguished guests,
Ladies and gentlemen,
1 I am happy to be with you this morning to celebrate the 20th Anniversary of the Vietnam-Singapore Industrial Park, or VSIP. Let me first thank DPM Truong Hoa Binh, for hosting me and my delegation and for joining us today in Binh Duong.
Regular High-Level Exchanges
2 Since the introduction of economic reforms or Doi Moi in 1986, Vietnam has made remarkable progress.[1] Then-Prime Minister Vo Van Kiet had asked Singapore’s founding prime minister, Mr Lee Kuan Yew, about our experience in attracting foreign investments.
3 I had accompanied Mr Lee on his visits to Vietnam since the early 1990s and experienced the warm exchanges over these years in my different portfolios ranging from the economy, defence, education to public security. For me, this visit is very meaningful as it is my 10th official visit and I am heartened to see the rapid transformation in Vietnam each time I visit.
4 The regular high-level visits enable our leaders to maintain close personal contacts. Last year, then-Prime Minister Nguyen Tan Dung was twice in Singapore[2] and Prime Minister Nguyen Xuan Phuc came as a Lee Kuan Yew Exchange Fellow. Just two weeks ago, President Tran Dai Quang made a very successful State Visit to Singapore, continuing a long tradition, and we had a good exchange of views in Hanoi earlier this week to further our bilateral cooperation. Singapore Prime Minister Lee Hsien Loong will also visit Vietnam and attend the APEC Summit next year.
Strong Bilateral Ties
5 Vietnam and Singapore share longstanding and multi-faceted ties, with substantive cooperation in many areas such as security and defence, trade and investment, finance, aviation and tourism, as well as education and training. We have elevated bilateral relations to a Strategic Partnership in 2013. I’ll highlight three areas of strong cooperation.
6 First, our good defence and security relations allow both countries to institutionalise regular exchanges, cooperate on the regional security architecture, and work on transnational issues such as maritime security and submarine safety and rescue.
7 I had signed our Defence Cooperation Agreement in 2009 as Defence Minister with then-Defence Minister General Phung Quang Thanh, and in 2010, worked with Vietnam on the inaugural ASEAN Defence Ministers’ Meeting (ADMM)-Plus in Hanoi. The Singapore Navy also makes regular port calls to Vietnam and in March this year, RSS Endurance was the first foreign navy ship to call at the new Cam Ranh International Port. The confidence and mutual cooperation between our defence and security forces will allow both countries to strengthen exchanges and address emerging issues such as counter-terrorism and cybersecurity.
8 Second, Singapore has deep economic ties with Vietnam. Bilateral trade has also grown steadily, doubling over the past decade to reach US$16 billion in 2015. Singapore is Vietnam’s 6th largest trading partner, while Vietnam is Singapore’s 11th largest trading partner. Singapore is also the 3rd largest foreign investor[3] in Vietnam, with cumulative investments of over US$ 38 billion in more than 1600 projects. In south Vietnam, Singapore is also the largest source of foreign investments in Ho Chi Minh City.
9 Indeed, Vietnam continues to enjoy one of the highest economic growth rates in the world and in our region. Its young population, vibrant workforce, and rising middle class are Vietnam’s comparative advantages. The government has also progressively reformed and liberalised the economy. It has built up a strong network of bilateral and multilateral free trade agreements, and advocated for agreements connecting our region such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership. Such efforts will improve Vietnam’s business environment, facilitate investments and open up new opportunities for foreign companies, including those from Singapore. Next week, Singapore’s Trade Minister Lim Hng Kiang will co-chair the annual Connectivity Ministerial Meeting with Vietnam Minister for Planning and Investment Nguyen Chi Dung in Singapore to review our bilateral economic cooperation.
10 Third, we have extensive people-to-people links which bring our countries and people closer together. Over 16 000 Vietnamese officials[4] have participated in training courses under the Singapore Cooperation Programme, more than any other country. Every year, the Initiative for ASEAN Integration Vietnam-Singapore Training Centre in Hanoi also provides courses in popular areas such as English, economic development, trade and tourism management to over 600 Vietnamese officials. As Vietnam progresses, we will also update our programmes.
11 Our tourism flows have increased steadily with more flights and greater connectivity. In 2015, about 200, 000 Singaporeans visited Vietnam, while Singapore welcomed about 400, 000 Vietnamese visitors. With 142 weekly flights, and as many as 14 per day between Ho Chi Minh City and Singapore, it is convenient for us to visit eachother with our families and friends. Our tourism and business flows will grow even more strongly with even better flight connectivity.
12 Our strong bilateral ties help our people gain a better understanding of each other, and send a positive signal to Singapore-based multinationals and companies currently investing or looking to invest in Vietnam to tap on its strong growth potential.
Vietnam Singapore Industrial Parks
13 Singapore recognised Vietnam’s potential early. In 1994, when then-Prime Minister Goh Chok Tong visited Vietnam, then-Prime Minister Vo Van Kiet suggested to develop a Singapore-style industrial park. Mr Goh readily agreed and two years later, a Singapore consortium led by SembCorp cooperated with Becamex IDC Corporation to set up the first VSIP here in Binh Duong.
14 The success of this first VSIP paved the way for more VSIPs in other parts of Vietnam. 20 years later, we now have seven VSIPs in North, Central and South Vietnam. Two of them, in Hai Duong and Nghe An, were launched just last year. To date, the five VSIPs in operation have attracted investments worth over US$9 billion, with around 600 companies providing jobs for more than 170,000 workers. I am happy that Singapore and the VSIPs have been able to play a part in Vietnam’s economic development. And the MOUs between VSIP and the officials in Binh Duong and Bac Ninh will allow the VSIP to continue exploring new opportunities in these provinces.
15 The VSIPs have also evolved over the years to cater to Vietnam’s changing needs. From the initial industrial parks, the VSIPs today are integrated townships which attract higher value-added industries and skilled manpower. As Vietnam’s economy moves up the value chain, the VSIPs can be test-beds for new areas such as urban solutions and high-technology manufacturing.
Conclusion
16 Ladies and Gentlemen, bilateral relations between Singapore and Vietnam have grown from strength to strength, with regular exchanges between the leaders, and substantive cooperation in many areas such as security and defence, trade and the economy, and people-to-people linkages.
17 These seven VSIPs also reflect our close economic partnership. The strong support from the Vietnamese Central and Provincial governments over the past 20 years has been crucial for their success. I thank the Vietnamese government and I hope that the VSIPs will continue to receive the strong backing of the local Vietnamese authorities who provide good infrastructure, clear rules and favourable incentives to encourage investments.
18 I wish the VSIPs every success. And that they continue to contribute to Vietnam’s growth and prosperity, as well as to the strong cooperation between Singapore and Vietnam for many more years to come.
19 Congratulations and thank you very much.
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[1] World Bank, GDP per capita (current US$), National Accounts Data, Aug 2016. GDP increased by five times from 1986 to reach US$ 21000 in 2015.
[2] Then-PM Nguyen Tan Dung attended Mr Lee’s State Funeral Service in March and the Golden Jubilee National Day Parade.
[3] As of April 2016, Singapore was the 3rd largest foreign investor in Vietnam with cumulative investments of US$38.1 billion in 1,663 projects. Singapore is ranked after 1) South Korea (US$39.2 bil) and 2) Japan (US$37.7 bil). Source: Foreign Investment Agency, Vietnam Ministry of Planning and Investment.
[4] As of Aug 2016, over 16 700 Vietnamese officials have attended courses under the Singapore Cooperation Programme.