Singapore and Vietnam expand connectivity initiative to include Urban Development and Port & Logistics

Singapore and Vietnam expand connectivity initiative to include Urban Development and Port & Logistics

Singapore and Vietnam have agreed to build on the good progress achieved through the Singapore-Vietnam Connectivity framework by opening up two new areas of cooperation in urban development and port & logistics. This move was endorsed by Minister for Trade and Industry, Lim Hng Kiang, and Vietnamese Minister for Planning and Investment, Vo Hong Phuc, at the 2nd Connectivity Ministerial Meeting held in Singapore today.

Established in December 2005, the Connectivity initiative is the key platform for economic cooperation between Singapore and Vietnam. Its strategy is to build on each country’s strengths and competencies, and create conditions that will help accelerate Vietnam’s growth while ensuring that Singapore is an active participant in that growth.

Urban Development

The initiative to cooperate in urban development is timely given Vietnam’s urgent needs to plan and develop its city areas. Singapore has expertise in this field in its private and public sectors. Through this cooperation, Singapore will share its public sector experience in the planning, development and management of urban infrastructure projects with Vietnamese officials. This bilateral cooperation will also facilitate projects by Singapore companies that contribute to Vietnam’s urban development. Singapore-based developers, architects, consultants, contractors and facilities managers are already active in townships and other urban infrastructure developments across Vietnam. These include various residential projects in Ho Chi Minh City and Hanoi by CapitaLand and Keppel Land.

Port & Logistics

Both sides also agreed to collaborate in the development and integration of port and logistics facilities in Vietnam. The aim is to leverage on Singapore’s know-how, best practices and connectivity to optimally develop Vietnam’s ports and land-side logistics infrastructure. This will in turn create value for businesses by providing for the efficient transfer of goods, thereby enhancing Vietnam’s competitiveness. Singapore companies are already actively involved in Vietnam’s burgeoning port sector. PSA has formed a Joint Venture (JV) with Saigon Port to develop a container terminal in the Ba Ria-Vung Tau province while NOL Group has a stake in the Vietnam International Container Terminals (VICT), the first dedicated container port in Vietnam.

Finance Service

Cooperation in the area of financial services has been progressing well on a few key fronts. Regulators and exchanges from Vietnam and Singapore have inked various regulatory MOUs to facilitate cooperation in securities market development. Both sides are looking to sign an MOU in banking sector cooperation. There has been significant technology and know-how transfer between Singapore and Vietnamese regulators and financial sector professionals through targeted training programmes. Singapore and Vietnam are also cooperating to strengthen the participation and contribution of Singapore’s financial institutions in Vietnam and to support the interest by Vietnamese companies to raise capital on the Singapore Exchange.

Human Capital Development

Minister Lim and Minister Phuc also reviewed the progress of various ongoing Connectivity initiatives in other sectors such as transport, trade, investment, ICT and education. One common theme was the effort made to enhance Vietnam’s talent pool through training and capacity building efforts.

For example, IDA, AVA and CAAS have conducted various training programmes in their respective fields for Vietnamese officials. MOE also has a comprehensive programme with Vietnam covering English language training, staff exchanges and training, and scholarships for Vietnamese students. These training and scholarship programmes lend a human face to Connectivity between Singapore and Vietnam.

Minister Lim expressed satisfaction with the progress of Connectivity with Vietnam. The flow of trade, investments and tourists between Singapore and Vietnam has been increasing steadily. Through Connectivity, we are building a strong pipeline for business opportunities and people flows between our two economies,” he said.

Singapore and Vietnam enjoy a strong bilateral trade and investment relationship. In 2006, Singapore was Vietnam’s fourth largest trading partner. Between 2004 and 2006, bilateral trade grew by 47% to reach S$11.3 billion. Singapore is also the second largest foreign investor in Vietnam

[1]

, with over 509 projects in the country and more than US$9.6 billion in registered capital. Tourism relations also remain strong. Last year, more than 100,000 Singaporeans visited Vietnam, a 27.6% increase over 2005 figures. In the same period, Vietnamese arrivals to Singapore also hit a record 165,000.

Ministry of Trade and Industry
11 September 2007 

[1]As of August 2007. Source: Vietnam Investment Review