(VOVWorld) - Singapore’s President began a state visit to Vietnam on Monday at the invitation of Vietnamese President Truong Tan Sang. During the 4-day visit, the two leaders will discuss specific measures to further boost Vietnam-Singapore relations.
Singapore has long been the country with the highest economic development in the region and the world. The country is leading the process of restructuring the world economy towards a knowledge-based economy. Its aim is to turn itself into a diversified economy by 2018 when it will become a hub for the global economic network.
In its external policy, Singapore prioritizes strengthening relations with large countries in the region and the world with an aim of creating a peaceful and stable environment in the Asia-Pacific region. Vietnam and Singapore established diplomatic relations in 1973 but when Vietnam joined the Association of Southeast Asian Nations, ASEAN, in 1995, their bilateral ties shifted into a new phase of development. Singapore values its relationship with Vietnam, which has become one of its major trade and investment partners. In 2004, the countries signed a Joint Declaration on a Comprehensive Co-operation Framework in the 21st century, which creates a legal foundation and favorable conditions to boost their multifaceted co-operation. Through regular high-level visits, the two foreign ministries have increased mutual understanding and trust. On a state visit to Singapore last September, Vietnamese State President Truong Tan Sang said:“Vietnam and Singapore share an increasing level of political trust, which opens up a new chapter of comprehensive co-operation in all fields. Both honor a principle of mutual benefit but Singapore is willing to share experiences of its strengths. With Singapore’s favorable geopolitics and geo-economics, and its well-developed relations with Vietnam, the two countries aim to leverage bilateral ties and their level of political trust in order to further boost economic and trade co-operation”.
In 2004, Vietnam and Singapore agreed to concretize an initiative to connect their two economies in production, trade, investment, and consumption, creating favorable policy environment for their businesses. The initiative was advanced when the two countries signed a Framework Agreement on Vietnam-Singapore Connectivity, which connects 6 areas: finance, investment, trade and services, transport, telecommunication and information technology, and education and training. Under the agreement, regular meetings Investment and Planning meetings at the ministry level will be held every August and rotated between the two countries to review implementation of agreements and work out future plans. As a result of this close co-operation, Singapore has become Vietnam’s leading investment and trade partner. Two way trade increases every year, reaching 8.7 billion USD last year, 2.5 billion USD more than the previous year. Singapore’s direct investment in Vietnam has also seen a steady increase. As of this March, Singapore had over 1,000 investment projects in Vietnam worth 24 billion USD. The projects focus mostly on real estate, the processing industry, manufacturing, and construction.
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| The Vietnam-Singapore Industrial Zone is regarded of the the leading industrial zones in Vietnam for its high efficiency. Photo: Internet |
The Vietnam-Singapore Industrial Park symbolizes the efficiency of Singapore’s projects in Vietnam and is now operating in 4 industrial zones in Binh Duong, Bac Ninh and Hai Phong. During his visit, Singaporean President Toni Tan Keng Yam will witness the handover of the investment license to a 5th zone in Quang Ngai. Singaporean investors appreciate Vietnam’s business environment for its political stability and economic strength. Mr. Lim Heng Keng, Singaporean Minister of Industry and Trade said: “I first visited Vietnam in 1994 and every year I come back to Vietnam sometimes two visits sometimes three visits a year. Changes in Vietnam from 1994 to now are absolutely remarkable. Singapore’s enterprises look every potential in Vietnam, they see opportunities and they know that when they go to Vietnam is not for the short term, but the long term to participate in the economic transformation of Vietnam. And we look forward to greater cooperation and greater joint ventures of partnerships between companies and between the two governments.”
Vietnam and Singapore have signed 14 co-operation agreements and MoUs, which serve as a basis for ministries and sectors to work more closely. During this visit, the Singaporean President and Vietnamese leaders will discuss ways to strengthen co-operation in all fields and work more closely in international and regional forums, particularly within ASEAN./.
Anh Huyen