New momentum for Vietnam–Singapore relations

With significant potential for further collaboration between the two nations, the Business Forum Magazine, under the Vietnam Chamber of Commerce and Industry (VCCI), conducted an interview with Mr. Tan Quee Peng, President of Singapore Chamber of Commerce Vietnam (SingCham Vietnam) to discuss this topic.

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• How do you assess the significance of Prime Minister Lawrence Wong's visit to Vietnam in strengthening bilateral cooperation, particularly in trade, economic, and investment relations?

Prime Minister Lawrence Wong's visit to Vietnam marked another pivotal moment in the longstanding relationship between Singapore and Vietnam following the visit of General Secretary To Lam to Singapore in early March 2025. This visit, aiming to lay out a clear path to implement the Vietnam-Singapore Comprehensive Strategic Partnership, was a testament to the commitment of both nations to deepen their bilateral cooperation, particularly in the realms of trade, economic, and investment relations.

One of the key areas of focus during the visit was the enhancement of trade relations between Singapore and Vietnam, where both countries have enjoyed robust trade ties. Trade turnover between the two countries has increased over the years, reaching SGD 31.67 billion for the year 2024. The visit was expected to further streamline trade processes, reduce barriers, and explore new avenues for trade expansion. By fostering a conducive environment for trade, both nations stand to benefit from increased market access and mutual growth.

Economic collaboration was also a pivotal aspect of the discussions. Prime Minister Lawrence Wong and his Vietnamese counterparts explored various sectors where economic ties could be strengthened. The emphasis was on leveraging each nation's strengths to create synergies that would drive economic progress. Through bilateral agreements such as the Vietnam–Singapore Connectivity Framework Agreement and the Green Economy-Digital Economy Partnership, Vietnam can strengthen economic collaborations with Singapore to boost economic resilience and innovation, thereby contributing to the overall prosperity of both countries.

Lastly, investment relations formed a crucial part of the agenda. Singapore is one of the largest foreign investors in Vietnam, with substantial investments in real estate, infrastructure, and industrial parks. Prime Minister Lawrence Wong's visit would hopefully help identify new investment opportunities and encourage Singaporean businesses to further invest in Vietnam's burgeoning economy. This is envisaged to not only generate economic benefits but also foster closer business ties and shared development goals.

Which sectors are currently of the greatest interest to Singaporean businesses when investing in Vietnam, especially in the context of digital transformation and sustainable development?

As Singaporean businesses look towards Vietnam, sectors such as manufacturing, real estate, and energy remain of paramount interest. These sectors offer substantial growth potential, especially in the contemporary context marked by digital transformation and sustainable development.

The manufacturing sector in Vietnam is a robust investment destination for Singaporean businesses. With Vietnam's strategic location, cost-effective labor, and improving infrastructure, it serves as an ideal hub for manufacturing activities. Singaporean firms are keen on leveraging advanced manufacturing technologies, including automation and Industry 4.0 practices, to enhance productivity and efficiency. The focus on digital transformation in manufacturing not only improves operational workflows but also ensures better quality control and supply chain management.

On the other hand, Vietnam's real estate market has been burgeoning, driven by rapid urbanization and a growing middle class. Singaporean investors find lucrative opportunities in commercial, residential, and industrial real estate projects. Smart city developments and green building initiatives are particularly appealing, aligning with global trends towards sustainable urban living. Furthermore, Singaporean investors are expected to maintain high interest in the industrial real estate market, with projects such as Vietnam Singapore Industrial Park (VSIP) 2.0 which extends beyond industrial development to include green infrastructure and smart urban planning.

The energy sector in Vietnam also presents significant opportunities. Singaporean businesses are actively exploring investments in clean energy projects to support Vietnam's sustainable development goals. The digital transformation in the energy sector includes the adoption of smart grids and energy management systems, which optimize energy usage and reduce carbon footprints. This development aligns with Singapore's commitment to sustainability and green energy revolution.

In your opinion, what should Vietnam do to attract more Singaporean investors, particularly in high technology, green finance, and logistics?

In 2024, Singapore maintained its leading position as the biggest investor out of 114 countries and territories investing in Vietnam, with the investment capital reaching nearly USD 10.21 billion, making up of 26.7% of the total foreign investment capital in Vietnam and growing 31.4% year-on-year. To attract more Singaporean investors, specifically in high technology, green finance, and logistics, Vietnam should prioritize the following:

Firstly, creating a dynamic and investor-friendly environment. This involves simplifying administrative procedures, ensuring regulatory transparency, and maintaining stable investment policies to foster confidence among foreign investors. These measures will position Vietnam as a competitive destination for Singaporean businesses seeking opportunities in technology, sustainability, and logistics.

Secondly, developing a highly skilled workforce. Singaporean businesses value expertise in technology and sustainable industries, so Vietnam should establish partnerships with educational institutions and create training programs specifically tailored to high-tech, green finance, and logistics sectors. Investment in human capital will ensure that Vietnam can meet the workforce demands of these forward-looking industries.

Lastly, supporting infrastructure modernization. To support logistics, Vietnam should enhance transportation networks, expand smart logistics systems, and improve digital connectivity. These advancements will enable foreign businesses to operate efficiently and seamlessly in Vietnam. 

By implementing these strategies, Vietnam can align with global investment trends, attract capital, foster long-term economic growth, and position itself as an ideal partner for Singaporean investors.

In the near future, what initiatives and activities will SingCham Vietnam undertake to enhance connectivity and foster more effective collaboration between businesses in both countries?

In the near future, SingCham Vietnam is poised to roll out initiatives aimed at enhancing bilateral connectivity and fostering effective collaboration between businesses in Singapore and Vietnam. 

Our primary focus will be on organizing prominent business forums and networking events. These gatherings will provide platforms for direct interaction among business leaders, investors, and policymakers, allowing them to discuss market trends, investment prospects, and updates on regulations. Such dialogue and events aim to strengthen the economic partnership between the two countries and unlock new avenues for trade and investment.

We are also dedicated to advancing educational initiatives that support talent development. Emphasizing education as a long-term investment, SingCham Vietnam seeks to cultivate a new generation of skilled professionals who can drive innovation and industry growth. By partnering with institutions, we aim to offer scholarships and vocational training programs to support the cultivation of a highly skilled workforce to meet the evolving demands of businesses.

Furthermore, SingCham Vietnam is committed to promoting digital transformation and sustainability initiatives. By advocating for policies that support innovation, green finance, and smart logistics, the chamber aligns with the priorities of both nations to drive economic growth in emerging sectors. This commitment is evident in our participation in events such as the ASEAN Business Roundtable, where we engage with key stakeholders to address pertinent issues and explore collaborative opportunities.

Through these strategic initiatives, SingCham Vietnam aims to solidify its role as a catalyst for business collaboration, unlocking new opportunities and fostering a dynamic and thriving business ecosystem between Singapore and Vietnam.​

Sincerely, thank you!