Blog

[SINGAPORE] Singapore has upgraded its bilateral relations with Vietnam to the highest tier of Comprehensive Strategic Partnership (CSP) on Wednesday (Mar 12), marking the first such tie between the city-state and an Asean member state.

“It reflects the high level of trust between Singapore and Vietnam, the good work that we have done together, and the potential to do even more,” said Prime Minister Lawrence Wong.

The much-anticipated CSP was announced at a joint press conference by PM Wong and Communist Party of Vietnam General Secretary To Lam, during the latter’s three-day official visit to Singapore that began on Tuesday.

Building on earlier commitments, the CSP will expand cooperation into new and emerging areas, including the digital economy, renewable energy, subsea cable connectivity and carbon credits.

The upgrade comes more than a decade after Singapore and Vietnam established their Strategic Partnership in 2013, guiding cooperation in traditional key sectors such as trade and investment, finance, security and defence, and training.

Deeper, broader mutual support

In a joint statement, both sides highlighted six pillars that would form the basis for the implementation of the CSP.

First, they will enhance cooperation for international peace, security and stability, covering various areas from army, naval and air force cooperation and exchanges to combating transnational crimes, including scams and money laundering.

Second, they will reinforce economic cooperation in “mutually beneficial areas”. This includes the development of Vietnam-Singapore Industrial Parks (VSIPs), as well as improving collaboration in food safety and security, in capital market initiatives and facilitating cross-border QR code payments.

Third, the countries will strengthen energy and green cooperation, including facilitating offshore wind electricity exports from Vietnam to Singapore and developing power transmission infrastructure.

Fourth, they will build capacity and connect people, with stronger cooperation in talent development, especially for strategic-level officials.

Fifth, they will strengthen cooperation in digital domains and emerging technologies, such as in cybersecurity and artificial intelligence.

Finally, Singapore and Vietnam aim to work closer in multilateral forums regionally and internationally, supporting each other on issues of common interest and concern, especially to develop Asean.

The statement added that the leaders have assigned their ministries to develop a Plan of Action covering all the cooperation areas to implement the CSP.

The leaders also discussed Asean’s consistent position on the South China Sea and the need to manage disputes in accordance with international law.

“The CSP will spur innovation-driven and green growth in our two countries,” PM Wong said. “It will put in place the building blocks for the Asean Digital Economy Framework Agreement and the Asean Power Grid – both of which will strengthen the resilience of our region.”

Lam added: “This new framework will contribute to further strengthen political trust and open up a new, broader space for economic cooperation between Vietnam and Singapore, making our relationship a model in international relations in a new era.”

In line with the CSP, the two leaders also witnessed the exchange of eight memoranda of understanding and agreements.

These were for areas such as combating transnational crime, digital transformation, offshore wind power trade, fintech innovation, capital markets regulatory frameworks and the development of VSIPs.

The Monetary Authority of Singapore (MAS) and the State Bank of Vietnam agreed to enhance their existing framework agreement to further cooperate on financial innovation.

The upgraded agreement will facilitate an expanded scope of cooperation on joint digital innovation projects, promote payment connectivity between Singapore and Vietnam, and support fintech operations in both markets, MAS said.

Separately, MAS and the State Securities Commission of Vietnam also agreed to collaborate on building capacity to protect the integrity and stability of, and promote connectivity between, the capital markets of both countries.

Meanwhile, Sembcorp Development (a wholly owned subsidiary of Sembcorp Industries) and Vietnam’s Becamex IDC – joint venture partners who execute VSIPs – were also awarded two new VSIP projects.

An investment registration certificate was issued for a new VSIP in Nam Dinh province, “the fastest growing economic zone where large electronics, machinery and automotive companies, as well as their supply chains are established”, they said in a joint media statement.

The other project is a third VSIP in Nghe An province, which is among the top 10 foreign direct investment destinations in Vietnam. Each project is expected to span 180 hectares.

The joint venture partners will also explore the development of the first VSIP in Ha Nam province.

Growing bilateral relationship

Lam was also hosted to an official lunch by PM Wong on Wednesday at the Conrad Centennial Singapore hotel. In his toast speech, PM Wong noted that regular interaction across generations of leaders have nurtured the two nations’ relationship.

Trade between the two countries has grown steadily, with bilateral trade in goods reaching S$31.6 billion in 2024.

As at December last year, Singapore was Vietnam’s second-largest foreign investor by cumulative investments. It was also the largest foreign direct investor of Vietnam, with such investments at US$10.2 billion.

The VSIPs are key to the states’ economic engagement. With the addition of the two new projects announced on Wednesday, there are now 20 VSIPs across 14 provinces in northern, central and southern Vietnam.

“They have evolved from traditional industrial parks to integrated developments with high value-added industries,” PM Wong noted.

These have helped to create close to 320,000 jobs and attracted more than US$23 billion of foreign investment to Vietnam.

The countries also engage for technical cooperation, through the Singapore Cooperation Programme. More than 22,000 Vietnamese officials have attended courses under the programme, on topics such as economic development and trade, public administration, governance and law.

A Vietnam-Singapore training centre in Hanoi offers capacity-building courses, and Singapore’s foreign affairs ministry has hosted senior officials on 20 study visits since 2011 – with the most recent one occurring last month. Some 25,000 Vietnamese also work and live in Singapore.

Lam delivered a policy lecture at the Lee Kuan Yew School of Public Policy.

He also called on President Tharman Shanmugaratnam, where they reaffirmed ties and recognised the complementary nature of Singapore and Vietnam’s economies.

The Vietnamese leader and Senior Minister Lee Hsien Loong exchanged views on global and regional issues of mutual concern, while he and Speaker of Parliament Seah Kian Peng looked forward to strengthening inter-parliamentary exchanges.

In turn, PM Wong will be making his introductory visit to Vietnam in two weeks’ time.