Vietnam and Singapore have agreed to advance cooperation in the green and digital economies between the two countries following an overreaching framework set out during Prime Minister Pham Minh Chinh's visit in February 2023.

Vietnam's Prime Minister Pham Minh Chinh has a phone talk with Singapore's Prime Minister Lawrence Wong on May 29. Photo: Nhat Bac/VGP

The view was shared on May 29 during a phone talk between Vietnamese Prime Minister Pham Minh Chinh and Singaporean Prime Minister Lawrence Wong, who took office on May 15, 2024, as Singapore's 4th Prime Minister.

The bilateral Green-Digital Economic Partnership makes Singapore the first country with which Vietnam established this kind of relationship. It’s the framework to strengthen economic relations on energy, digital economy, carbon credits, and innovation.

The Green-Digital Economic Partnership will fuel cooperation in energy connectivity, sustainability, infrastructure, digitalization, innovation, education, finance, information technology, telecommunications, tourism, transport, trade and services.

Singapore will assist Vietnam in creating digital platforms and advancing digital transformation in critical sectors like banking and finance, e-commerce, and land and population management, with a focus on energy transition.

Additionally, both nations intend to build a grid connection that will serve as a role model for ASEAN cooperation in electricity connectivity.

PM Chinh and his counterpart Lawrence Wong expressed their delight at the partnership centered on the operation of the Vietnam-Singapore Industrial Park (VSIP) network across Vietnam.

The two government leaders agreed to lift the relations to new heights in the coming time with comprehensive and strategic coverage.

PM Chinh pointed out that Singapore is Vietnam’s important partner in the region and the world. The Government of Vietnam will work with the Government of Singapore to solidify the Strategic Partnership so that it serves as an example of a dynamic relationship in ASEAN, thereby encouraging other cooperative mechanisms within the 10-member bloc.

He said Vietnam is keen to replicate the VSIP model and will set up the necessary frameworks so that more of the country’s newer VSIPs can function successfully.

The Prime Minister thanked the Singapore Government for training Vietnamese officials at all levels. He urged both sides to work together more closely to step up defense and security cooperation, which includes the construction of the National Data Center.

At the same time, they should increase collaboration in education, training, tourism, and people-to-people exchanges to improve mutual understanding between the citizens of the two countries.

The Singaporean Prime Minister reaffirmed his commitment to fostering high-level contacts at all levels, including the annual meeting of the prime ministers of the two nations and the exchange of delegations in order to foster friendship and trust.

He said Singapore is keen to work with Vietnam in order to successfully carry out the Framework Agreement linking the two economies as well as the Vietnam-Singapore Green-Digital Economy Partnership, especially in the areas of clean energy and carbon credits. This will lay the groundwork for Vietnam-Singapore cooperation to reach an unprecedented level of comprehensive and strategic cooperation.

Specifically, Lawrence Wong agreed to promote the new generation of VSIPs, which are greener and better suited to Vietnam’s development trends and priorities. He described the VSIP network as a shining example of bilateral economic cooperation.

He declared that he would ask cabinet ministers to keep an eye on these matters and encourage companies to enhance the standard of foreign direct investment (FDI) capital flows, prioritize technology, and advance the digital, circular, clean, semiconductor, and AI economies.

Regarding regional matters, the two nations agreed to fortify ASEAN unity, assist Laos in effectively exercising the ASEAN Chairmanship 2024, and give due consideration to the sustainable development of the region’s sub-regions, particularly the Mekong Sub-region. By doing so, they actively supported ASEAN’s independence, prosperity, and sustainable development, advancing its centrality in the region.

Prime Minister Pham Minh Chinh took the opportunity to formally invite the Singaporean Prime Minister and his spouse to visit Vietnam in the near future. Lawrence Wong gladly accepted the invitation. 

Vietnam Singapore Industrial Park (VSIP) Bac Ninh. Photo: VSIP

VSIP – highlight of bilateral economic relations

In 1996, the Vietnam Singapore Industrial Park (VSIP) came into being thanks to the support and cooperation between the two governments of Vietnam and Singapore.

Its main shareholders are Vietnamese Becamex IDC, which owns 49% of the company. Sembcorp Development Ltd, Ascendas Investment Pte Ltd, UOL Overseas Investments Pte Ltd, MC Development Asia Pte Ltd, and KMP Vietnam Investment Pte Ltd are the next largest owners with 40.44%, 4.26%, 2.67%, 1.89% and 1.74%, respectively.

As Vietnam has sought t to draw businesses from around the globe to expand its manufacturing base, these initiatives have been essential to the country’s economic growth.

These factories serve a wide range of industries and generate a vast quantity of goods for both domestic and international markets.

At the moment, there are roughly 800 companies operating in VSIPs throughout Vietnam.