Singaporean Ambassador to Vietnam Jaya Ratnam. (Photo: baodautu.vn)
There remains plenty of room for Vietnam and Singapore to boost their economic, commercial, and investment ties on the back of the positive development of the strategic partnership that exists between both sides, says Singapore Ambassador Jaya Ratnam.
Singapore is one of the main financiers that has poured mammoth investment into the Vietnamese market over recent years. It now ranks second among foreign investors in the country, with a total registered investment capital of roughly US$70 billion.
This figure highlights the confidence of Singaporean investors in Vietnam’s economic potential, as well as in the Government’s efforts to improve its business and investment environment, Ambassador Ratnam told financial publication Dau Tu (Investment) on August 9.
Despite the disruption caused by the pandemic coupled with the current global economic downturn, he said that Singaporean companies continue to seek new opportunities in which to diversify and expand their operations in the country.
According to the diplomat, Singaporean businesses remain keen on investments in supply chains and logistics in the Vietnamese market, citing the Vinh Phuc ICD Logistics Centre as a primary example of this. The centre, jointly invested by YCH Group of Singapore and T&T Group of Vietnam, is anticipated to strengthen trade connectivity and supply chain resilience throughout the region.
Two other areas of interest for Singaporean businesses include developing a green economy and a digital economy in Vietnam. The Ambassador outlined that Singapore looks forward to working with Vietnam as it moves to increase investment in sustainable infrastructure and renewable energy, with the ambitious goal of achieving net zero carbon emissions by 2050. In line with this, Sembcorp Group of Singapore has partnered with Electricity of Vietnam Group in order to carry out this mission.
Sembcorp is also striving to develop a network of Vietnam – Singapore Industrial Parks (VSIP) in the country. In March, Singapore launched another VSIP in Binh Duong province that will host a carbon-neutral factory to be built and operated by Lego Group of Denmark.
The Ambassador also noted that both countries are among the Southeast Asian economies to strongly support trade liberalisation in the region. They both believe that ASEAN’s future prosperity and development will largely be dependent on the bloc’s ability to integrate into global supply chains and promote connectivity with other regions.
They have therefore both signed free trade agreements (FTA) with the EU, and members of other important trade pacts, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Comprehensive Economic Partnership (RCEP).
Singapore is proud of its sustainable partnership with Vietnam in facilitating two-way trade and investment, stressed the Ambassador, adding that the two countries support the upgrade of FTAs within the bloc to identify fresh areas of co-operation.
The two countries signed a memorandum of understanding (MOU) on digital economy co-operation during a State-level visit by President Nguyen Xuan Phuc to Singapore in February. A joint working group was later established in order to explore new areas of co-operation, such as cross-border data flows, cybersecurity, artificial intelligence governance, and electronic payments.
The diplomat affirmed that digital linkages will create a platform for Vietnamese and Singaporean companies to easily and securely connect with each other, as well as enabling them to grow their own digital businesses. This level of co-operation will also help to increase the adoption of safe and reliable emerging technologies, whilst spurring greater innovation.
According to the Ambassador, Vietnam remains the Singapore Cooperation Programme (SCP)’s number one partner. Indeed, Singapore trained the 20,000th Vietnamese official under the SCP in 2021 and will continue this programme in the future to meet Vietnam’s growing demands.
Moreover, the island state has been supporting Vietnam’s Industry 4.0 Agenda by sharing experiences in digital transformation across various areas, including governance, cybersecurity, e-commerce, investment, and judicial reform.
The Ambassador expressed hope that the Governments, businesses, and people of the two countries will make strong commitments in a joint effort to accelerate digitalization moving forward.
VOV
