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| A view of Vietnam-Singapore Industrial Park in Binh Duong (Photo: VSIP) |
Over the years, even in the context of the complicated developments of the COVID-19 pandemic, Vietnam-Singapore relations continued to develop well. Exchanging delegations and contacts at all levels between the two sides has been maintained, contributing to both tightening the solid political relationship and promoting cooperation with the signing of many documents, contracts, and written records. On that basis, economic cooperation continued to develop, which is considered a bright spot in the two countries' relations.
Despite being heavily affected by the COVID-19 pandemic, the trade turnover between the two countries in 2021 still reached USD8.3 billion. Bilateral trade turnover in 2022 reached more than USD9 billion, an increase of 10.1% compared to 2021. As two complementary economies, Vietnam and Singapore have promoted the implementation of trade agreements that the two countries have joined, in order to strengthen bilateral economic cooperation. As a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), Vietnam and Singapore have strived to effectively exploit the benefits that the new-generation free trade agreements bring, contributing to the economic recovery of each country, as well as of the post-pandemic region.
Singapore has maintained its leading position in the Association of Southeast Asian Nations (ASEAN) and ranked second among countries and territories investing in Vietnam. Singapore has 3,095 valid investment projects, with a total registered capital of USD70.8 billion. Singapore has many investment projects in 51 of 63 Vietnamese provinces and cities, led by Ho Chi Minh City, followed by Hanoi and Bac Ninh. Singapore's investment projects focus on the processing and manufacturing industries; real estate business; production and distribution of electricity, gas, water and air conditioners. Meanwhile, Vietnam has 140 valid investment projects in Singapore with a total registered capital of more than USD586 million, focusing on science and technology, wholesale and retail, information and communication.
The Vietnam-Singapore Industrial Parks (VSIP) are symbols of successful economic cooperation between the two countries, making an important contribution to the socio-economic development of Vietnam. There are currently 12 VSIPs in nine provinces and cities of Vietnam. VSIPs have attracted USD17.6 billion in total investment capital, creating jobs for nearly 300,000 direct workers. The two sides are promoting the development and expansion of the VSIP model in the direction of green, high-tech and innovative industrial parks, making positive contributions to the cooperation of the two countries.
Singapore is one of the important aviation markets for Vietnam. As soon as the COVID-19 pandemic was basically controlled, the two countries gradually lifted restrictions on travel together. Airlines of Vietnam and Singapore have basically restored commercial passenger flights between the two countries. In the first 11 months of 2022, Vietnam welcomed more than 134,000 Singaporean visitors, while Singapore welcomed more than 285,000 Vietnamese visitors. These positive signals will contribute to promoting tourism and trade between the two countries. In addition to the traditional areas of cooperation, the leaders of the two sides also emphasized the importance of deepening and elevating the partnership between the two countries by promoting cooperation in new fields, such as the digital and green economy.
The year 2023 marks the 50th anniversary of diplomatic relations and the 10th anniversary of the strategic partnership between the two countries. Therefore, the two sides are actively coordinating to effectively implement cooperation agreements and projects, and organize practical commemorative activities. The achievements from this effort will contribute to making Vietnam-Singapore relations develop more substantively and effectively, becoming a model of cooperation in Southeast Asia./.