Strengthening relations with Singapore helps boost investment environment in Vietnam

The Prime Minister's visit to Singapore opens up opportunities to enhance cooperation in many areas such as the digital economy, regional and global supply chain connectivity, energy and carbon credits.

Prime Minister Pham Minh Chinh and Singaporean Prime Minister Lee Hsien Loong take a photo together. (Photo: VNA)

Singapore's sbr.com.sg news site recently published an article stating that strengthening relations with Singapore will have a positive impact on Vietnam's investment and business environment.

According to the article, Vietnam has been, is and will continue to be an attractive destination for foreign companies. Vietnam has also become the center of foreign electronics manufacturing projects.

Companies want to shift production to Vietnam to benefit from exporting goods from many different markets, especially when Vietnam is an important partner in many free trade agreements (FTAs).

In the context of countries like Singapore shifting production, analysts say this will have many benefits for Vietnam.

The strategic partnership between the two parties opens up new opportunities in the green and digital economy.

The article also emphasizes that Vietnam is a dynamic market with great potential as spending in Vietnam increases steadily thanks to rising incomes.

Vietnam has business-friendly conditions and policies that make it an attractive destination for foreign companies, such as stable economic and market growth, a young and skilled workforce, and proximity to other emerging economies in East Asia.

All these factors attract a large amount of foreign capital and make Vietnam a prominent destination among Southeast Asian countries.

Sembcorp Group's Vietnam-Singapore Industrial Park (VSIP) is one of Singapore's first and most successful projects in Vietnam and has become a symbol of Vietnam-Singapore relations.

According to the article, through Prime Minister Pham Minh Chinh's visit to Singapore, Vietnam hopes to strengthen economic relations with Singapore.

The visit could also open up opportunities to enhance cooperation in other areas such as the digital economy, regional and global supply chain connectivity, energy and carbon credits.

To date, government-level memorandums of understanding (MoUs) signed between the two countries have helped Singapore and Vietnam seize new opportunities in the green and digital economy amid the COVID-19 pandemic, and both countries can benefit from bilateral cooperation.

Both countries share the common goal of achieving net zero emissions. Singapore is committed to contributing to the implementation of the Paris Agreement goals, in line with Vietnam's goal of promoting climate action.

In the context of Vietnam's rapid urbanization and growth, increased investment also helps promote the development of urban areas, ports, highways and green energy.

Prime Minister Pham Minh Chinh and Singaporean Prime Minister Lee Hsien Loong witnessed the signing of a Memorandum of Understanding between the Vietnamese Ministry of Industry and Trade and the Singaporean Ministry of Industry and Trade on the Economic and Trade Cooperation Plan. (Photo: VNA)

According to the article, Vietnam and Singapore need to cooperate in many areas to deepen the economic partnership between the two sides.

These sectors can serve the common purpose of promoting economic growth through technology and innovation, especially as both countries are developing startup ecosystems.

However, while the two countries pursue new opportunities in areas such as innovation, energy and sustainability, there is also a need to enhance people-to-people exchanges and multifaceted connectivity in trade and investment, finance, transport and tourism as these areas help consolidate the positive progress made in these areas./.

Source: vietnamplus.vn