New thinking, new vision for Vietnam - Singapore relations

Overview of the Conference. Photo: Duc Trung (MPI)

Within the framework of the Conference, the two sides reviewed and re-evaluated the implementation of cooperation agreements in 6 areas connecting Vietnam - Singapore, including: investment, finance, information and communication technology, education and training, transportation, trade and services. Of these, trade and investment are two areas that have achieved positive results.

Specifically, in the field of trade, in recent years, Vietnam - Singapore trade relations have continuously developed with positive growth, reaching an average of 12%/year. In 2013, the relationship between the two countries was upgraded to become a strategic partnership. Currently, Singapore has become Vietnam's 2nd largest trading partner in ASEAN (after Thailand) and Vietnam's 6th largest trading partner worldwide (after China, Japan, the United States, South Korea, and Taiwan). Currently, Vietnam has also risen to become Singapore's 11th largest trading partner (from 13th position in previous years).

In the first 7 months of 2017, two-way trade between Vietnam and Singapore increased again, reaching 5 billion USD, up 16.4% over the same period in 2016. Of which, Vietnam's exports to Singapore reached 1.7 billion USD, up 28.9% over the same period in 2016. Imports from Singapore reached 3.3 billion USD, up 10.6% over the same period in 2016. period 2016.

Regarding investment, by the end of August 2017, Singapore had 1,918 valid investment projects with a total registered capital of more than 41.38 billion USD, ranking 3rd out of 122 countries and territories investing in Vietnam, after South Korea and Japan. The average registered investment capital scale is about 21.6 million USD/project, higher than the average level of a foreign investment project in Vietnam which is 12.9 million USD/project. Singapore has invested in 18/21 industries according to Vietnam's industry classification system, of which the manufacturing and processing industry ranks first with 548 projects, total registered investment capital reaching about 17.99 billion USD, accounting for 44% of total investment capital.

In the first 8 months of 2017, Singapore had 3.93 billion USD of registered investment capital in Vietnam, of which 2.84 billion USD of newly registered capital, 718 million USD of additional registered capital and 370 million USD of capital contribution and share purchase value.

Regarding Vietnamese investment in Singapore, to date there are 93 projects invested by Vietnam in Singapore with a total capital of 235 million USD, ranking 12th out of 72 countries and territories with Vietnamese investment projects abroad. Vietnam's projects focus on the following fields: oil and gas, mining, retail, services, information technology, and logistics.

In addition to the fields of trade and investment, Vietnam - Singapore cooperation in the fields of information and communication, education and training, transportation, tourism and services has made progress, but is still not commensurate with the potential and need for cooperation between the two countries.

>Minister of Planning and Investment Nguyen Chi Dung spoke at the Conference. Photo: Duc Trung (MPI)

Concluding the Conference, Minister Nguyen Chi Dung highly appreciated the efforts and straightforward working spirit of the two sides. However, the achieved results are not commensurate with the potential and advantages. Minister Nguyen Chi Dung hopes that the two sides will continue to coordinate closely, find opportunities, overcome difficulties and challenges, and cooperate in a frank and open spirit to implement cooperation agreements in 6 areas of economic connection between Vietnam and Singapore.

In particular, realizing that the potential in the tourism field of the two countries is still very large, Minister Nguyen Chi Dung emphasized the role of connectivity in tourism, the two countries not only connect directly, but can also connect through a third country. In order to promote economic cooperation in the fields of culture, sports and tourism, the Vietnamese side requested the Singaporean side to coordinate in organizing promotion programs, introducing investment in cultural services, entertainment, cinema, etc. for potential investors.

At the Conference, the two Ministers agreed on the time and location of the 14th Ministerial Conference on Vietnam - Singapore Economic Connection. The conference will take place in Singapore in 2018./.