Singapore, Vietnam discuss joint action to enter European markets

06:00 | 23/03/2022 Cooperation

(VEN) - Despite the impact of the Covid-19 pandemic, trade turnover between Singapore and Vietnam reached US$8.3 billion in 2021, an increase of 23.3 percent compared to the previous year. The figures were released ahead of a three-day visit to Singapore last month by State President Nguyen Xuan Phuc.

singapore vietnam discuss joint action to enter european markets
State President Nguyen Xuan Phuc meets with Singaporean Minister for Manpower, and Second Minister for Trade and Industry Tan See Leng

Positive results

According to the Vietnam Trade Office in Singapore, Vietnamese and Singaporean businesses should take advantage of signed trade deals to strengthen cooperation, take advantage of import partner networks, and develop logistics and e-commerce cooperation mechanisms for the processed food sector to jointly enter the EU and the UK markets.

Investment is also a highlight in bilateral ties. By February 2022, Singapore had 2,860 valid projects in Vietnam with total registered capital of US$66 billion, making it Vietnam’s largest ASEAN investor. Last year, Singapore also took the lead among all the countries and territories investing in Vietnam, with investment capital of more than US$10.7 billion, accounting for 34.4 percent of the total.

The Vietnam-Singapore Industrial Parks (VSIP) have become a symbol of successful cooperation between the two countries, generating annual export value of about US$35 billion and creating jobs for nearly 300,000 Vietnamese workers.

singapore vietnam discuss joint action to enter european markets
Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Singaporean Minister for Manpower, and Second Minister for Trade and Industry Tan See Leng

Promoting trade cooperation

In their talks, Vietnamese President Nguyen Xuan Phuc and Singaporean Prime Minister Lee Hsien Loong agreed to expand ties in innovation, digital transformation, digital economy, and green and sustainable development, encouraging the connection of the two economies through digital platforms. In addition, the two countries will work together to develop VSIPs into high-tech, smart and environmentally friendly industrial parks, and make good use of new-generation free trade agreements to which both are parties, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).

During the visit, President Phuc also received executives of leading Singaporean energy, urban development, real estate and industrial park infrastructure firms, encouraging them to continue expanding investment in Vietnam. President Phuc pledged favorable conditions for Singapore in doing business in the country.

Accompanying State President Nguyen Xuan Phuc, Minister of Industry and Trade Nguyen Hong Dien’s talks focused on tightening trade and investment relations between the two countries. Minister Dien and Singaporean Minister for Manpower, and Second Minister for Trade and Industry Tan See Leng spoke highly of the signing of a memorandum of understanding (MoU) on economic and trade cooperation between their ministries.

The two ministers also discussed measures to further strengthen cooperation in developing the digital economy and making good use of free trade agreements, with a focus on encouraging investment in electronics, telecommunications, furniture and agro-fishery processing in order to boost exports to CPTPP and RCEP member countries. In addition, the officials underlined the need for mutual support in making inroads into the EU and the UK markets as Vietnam and Singapore are the only two regional countries having comprehensive trade and investment agreements with the EU and the UK.

Vietnam’s exports to Singapore include computers, electronic products and components, vehicles and spare parts, phones and accessories, glass and glass products. Meanwhile, Vietnam’s imports from Singapore consist of computers, electronic products and components, phones and accessories.

Thu Thuy