Singapore-Vietnam ties have grown from strength to strength since we first established diplomatic relations in 1973. Today, we enjoy wide-ranging cooperation in many areas, built on a foundation of mutual friendship and learning. There are three main reasons for this: the high level of trust at the political level, our long-standing win-win partnerships, and our strong people-to-people ties.
One, our leaders have built up a high level of political trust and understanding over generations.
We have frequent bilateral interactions, and meet each other often at regional and multilateral fora. Despite the disruptions caused by the COVID-19 pandemic, we have found ways to keep up the momentum of our engagements. Following the 13th Communist Party of Vietnam (CPV) Congress, Prime Minister (PM) Lee Hsien Loong telephoned President Nguyen Xuan Phuc and PM Pham Minh Chinh to congratulate them on their new appointments. The two PMs also met in person in Jakarta on the sidelines of the ASEAN Leaders’ Meeting in April 2021.
In June 2021, I was honoured to be the first Foreign Minister to visit Vietnam since the 13th Party Congress, as well as the first Singapore minister to visit Vietnam since the COVID-19 pandemic began. I had fruitful conversations with Vietnam’s leaders, including my counterpart Foreign Minister Bui Thanh Son, with whom I have interacted regularly since. Keeping up parliament-to-parliament relations, President of the National Assembly Vuong Dinh Hue met Speaker of the Singapore Parliament Tan Chuan-Jin via videoconference in July 2021. Meanwhile, on the trade and investment front, Minister of Planning and Investment Nguyen Chi Dung and Second Minister for Trade and Industry Dr Tan See Leng co-chaired the 15th Connectivity Ministerial Meeting in November 2021 virtually.
Singapore and Vietnam share a common strategic outlook. First, as ASEAN Member States, Singapore and Vietnam are firmly committed to regional peace and stability as well as ASEAN centrality. Our interests are better served when ASEAN is strong, independent, and united, and when we cooperate to achieve prosperity and development as a region. In this regard, Singapore appreciates the constructive role that Vietnam has played since joining ASEAN in 1995. This was evident during Vietnam’s ASEAN Chairmanship in 2020 which established important mechanisms to help our region cope with the COVID-19 crisis collectively. Second, we are firm supporters of a rules-based international order and international law. It is important for both small and medium-sized states to ensure that the “rules of the game” of the international system are adhered to, and that the principle of “might is right” does not prevail. Third, we are strongly committed to free trade. Singapore and Vietnam are both members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP). We are also the only two ASEAN countries with a free trade agreement (FTA) with the European Union.
Two, given our shared interests, our bilateral agenda is full and positive. I would like to highlight two areas in particular: our economic links, and our long-standing cooperation in human resource development.
Economic cooperation has been the cornerstone of our bilateral relationship. Singapore companies see Vietnam as an attractive investment destination. Vietnam has experienced rapid growth and development since it embarked on its Doi Moi programme in 1986. Vietnam has consistently enjoyed high GDP growth rates. With its young and hardworking population of nearly 100 million, Vietnam is well-placed to become a major engine for growth and economic integration in the region. Vietnam was one of the few countries in the world last year to achieve positive economic growth amidst the pandemic. This showcases the resilience of Vietnam’s economy, which is expected to be one of the region’s fastest-growing economies in 2022
Singapore companies are eager to participate in Vietnam’s growth story. Despite the pandemic, they see opportunities to diversify and expand their presence in Vietnam. Singapore has been the leading source of foreign direct investment (FDI) into Vietnam for two years running. With cumulative investment of US$62.55 billion in over 2,600 projects in 45 out of 63 provinces in Vietnam, Singapore is also the top ASEAN investor in Vietnam, and third overall, after Japan and South Korea. We rank consistently as one of Vietnam’s largest trading partners.
The Vietnam-Singapore Industrial Parks (VSIPs) are iconic projects in our bilateral relationship. In the 25 years since the first VSIP was established, VSIP’s footprint has grown to ten Industrial Parks in seven localities. Collectively, they have attracted US$14 billion in investments and created over 270,000 jobs in Vietnam. VSIP is also working to stay relevant, by integrating innovation and sustainable development to accommodate industries of the future. As Vietnam develops into a middle-income country, our companies continue to look for new opportunities in sectors like e-commerce, logistics, education, food and lifestyle services, and urban solutions.
Singapore and Vietnam are also longstanding partners in human resource development. We share a common belief that this is the key to our sustainable development and progress. Vietnam remains the top partner of the Singapore Cooperation Programme (SCP) with more than 20,000 Vietnamese officials having participated in our courses since 2002. In 2021, we commemorated the 20th anniversary of the establishment of the Vietnam-Singapore Cooperation Centre. I am especially proud that amid the disruptions posed by the pandemic, our training programmes never wavered. Over the past two years, we have upgraded the Centre to pivot to delivering courses virtually and conducted 36 online courses for over 600 officials.
Three, there is strong grassroots support for the relationship and frequent interaction between our peoples. Over the years, our people have forged lasting links through educational exchanges and tourism.
Many Vietnamese are interested in studying in Singapore. Singapore hosts many Vietnamese students who have done well in our schools and universities, some of whom have won scholarships. Singapore educational institutions are likewise keen to have study visits and exchange programmes with their Vietnamese counterparts to deepen the knowledge and mutual understanding that our people have for each other.
Tourism has also strengthened our people-to-people links. Vietnam is one of the favourite destinations for Singaporeans. The interest is mutual, as surveys conducted by the Singapore Tourism Board in 2021 showed that Singapore was among the top destinations that the Vietnamese most wanted to visit once travel restrictions were lifted.
The pandemic has fostered stronger bonds among our people. The Singaporean community in Vietnam stepped up to contribute to Vietnam’s efforts to fight its fourth COVID-19 wave last year. On the government-to-government level, we supported each other with critical medical supplies and equipment at key junctures in our fight against the pandemic. We also supported the return of our nationals living in each other’s countries, and ensured their access to vaccines and healthcare. As both sides learn to live with COVID-19, we hope to take the next step by resuming safe travel between our countries.
During my visit to Vietnam in June 2021, we agreed to establish a bilateral working group on COVID-19 public health and border measures to facilitate knowledge sharing on COVID-19 management and the eventual resumption of business and personal travel between our countries. Singapore is honoured to be in the first group of countries with which Vietnam resumed international commercial flights this year. Similarly, we welcome Vietnam’s plans to remove travel restrictions by mid-March this year.
Singapore looks forward to keeping our partnership forward-looking by expanding into emerging areas, and partnering Vietnam in the next chapter of its development.
In 2023, we will celebrate the 50th anniversary of our bilateral relations, and the 10th anniversary of our Strategic Partnership.
Looking ahead, I want to highlight two areas in particular. First, we need to accelerate our cooperation in the digital economy. This is a priority for both Singapore and Vietnam, and encompasses many new areas such as cybersecurity, smart cities, innovation, artificial intelligence, and digital payments. COVID-19 has highlighted the crucial role of digital trade and e-commerce in ensuring supply chain resilience and business continuity. During my visit to Vietnam last year, we agreed to establish a Digital Economy Working Group to identify useful areas of cooperation. I am confident that the Working Group will serve as a launchpad for many concrete collaborations between our governments, businesses, and other institutions. Second, sustainable development. Like COVID-19, climate change is a global issue that can only be tackled through the collective efforts of governments and people worldwide. Singapore is keen to work with Vietnam as it increases investments in sustainable infrastructure and renewable energy, with the ambitious goal of achieving net zero carbon emissions by 2050.
We warmly welcome President Nguyen Xuan Phuc to Singapore. This is the first State Visit that Singapore is hosting since the onset of the COVID-19 pandemic. It is an opportunity to reaffirm our strong bilateral ties, take stock of our cooperation and discuss ways to advance our relationship as we work together towards a post-pandemic recovery.
DR VIVIAN BALAKRISHNAN
Singapore Minister for Foreign Affairs
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