Ample room remains for Vietnam – Singapore trade

Quyen said that Vietnam and Singapore are two complementary economies, and also members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP). These frameworks facilitate cooperation for common development.

Particularly, HCM City's goals of achieving robust growth and becoming a smart city as well as a leading digital economy and digital society hub in Southeast Asia are similar to those of Singapore, which is the largest foreign investor in the city at present.

Cao Xuan Thang, head of the Vietnam Trade Office in Singapore, highlighted that Singapore is the world's most expensive market. With a population of just over 6 million, it is home to more than 427,000 millionaires. It is known as a regional trade hub, not only importing for domestic consumption but also serving as a transit point for goods globally.

Out of the 400–500 billion SGD (299–374 billion USD) worth of goods imported into Singapore each year, about 60% is re-exported to third countries. However, the city state's imports from Vietnam stand at only around 8–9 billion SGD per year, indicating significant potential for increased exports to this market.

Thang said in addition to industrial products, Singapore also imports a substantial amount of rice and aquatic products. Vietnamese rice is highly regarded for its quality but also priced high. Meanwhile, Vietnamese companies' large-scale trade promotion activities are still limited, resulting in Vietnamese rice primarily distributed under Singaporean brands.

Similarly, aquatic products of Vietnam are popular and meet the consumption needs of various ethnic groups. To increase their export market share, businesses should prioritise products with Halal certification, invest adequately in packaging, and provide sufficient product information.

Singapore is a demanding market with strict quality requirements and intense price competition. Food products will undergo sampling and quality control before entering the market, he added.

Thang noted that with a small population, high ethnic diversity, and being considered a global trade centre, Singapore is often chosen as a trial market for new products and services. Therefore, Vietnamese businesses can leverage the export opportunity by meeting Singapore's standards, actively participating in trade promotion and business matching programmes, and using e-commerce to enhance their brand recognition.

Meanwhile, Wesley Chua from the Singapore Business Association in Vietnam suggested that in addition to boosting exports, Vietnamese businesses should also consider investing in Singapore to export to third markets. Singapore is a preferred location for many international companies to start up and establish headquarters in due to its developed infrastructure, abundant financial resources, clear tax policies, and low risk.

He said Singapore's economy acts as a gateway for growth and expansion into new markets and regions. Products manufactured in this country can easily reach global customers through the network of free trade agreements of which Singapore is a member. Vietnamese businesses can capitalise on Singapore’s existing advantages to enhance their creativity and improve export efficiency in the future./.