Singapore and Vietnam forge Deeper Economic Ties under Connectivity Agreement amidst Financial Crisis, 17 Jul 09

SINGAPORE AND VIETNAM FORGE DEEPER ECONOMIC TIES UNDER CONNECTIVITY AGREEMENT AMIDST FINANCIAL CRISIS

Singapore and Vietnam agreed to forge deeper economic ties through the Singapore-Vietnam Connectivity Framework Agreement amidst the global economic downturn. This was reiterated when Singapore’s Minister for Trade and Industry Lim Hng Kiang met with Vietnam’s Minister of Planning and Investment Vo Hong Phuc today in Singapore, at the 4th Connectivity Ministerial Meeting to review the Connectivity Agreement.

Established in December 2005, the Singapore-Vietnam Connectivity Framework Agreement is an overarching bilateral economic cooperation framework between Singapore and Vietnam that covers six sectors of cooperation: (i) education and training, (ii) finance, (iii) information technology and telecommunications, (iv) investment, (v) trade and services, and (vi) transportation. The Connectivity initiative aims to build upon each other’s strengths and competencies, to accelerate Vietnam’s growth, while enabling Singapore’s active participation in that growth. In the last four years, the Connectivity Agreement has achieved good progress in all six sectors of cooperation, and facilitated projects by Singapore companies that contribute to Vietnam’s economic development, schools twinning programmes, English language courses, student exchange programmes, sharing of expertise on urban development, courses on e-Government, and information sharing financial issues.

Both sides agreed that there was a need to continue to press on to deepen economic ties amidst the economic downturn. Minister Lim highlighted that the commitment from both sides reflected the strength of bilateral relations and the confidence of both countries in the long term economic prospects of each other’s economies. Both Ministers also acknowledged that there remained good potential and opportunities to be seized despite the economic downturn.

Urban Development

Singapore’s public and private sectors’ active participation and sharing of expertise on urban development and planning continue to be very well received in Vietnam. Singapore's urban development training programme for Vietnamese officials has seen the completion of six out of a total eight sessions to date, with more than 90 Vietnamese officials trained. More recently, First Deputy Party Secretary Nguyen Van Dua of Ho Chi Minh City led a team of officials to Singapore for a second training programme that focused on “urban transportation, urban greenery, safari management – a Singapore experience” from 28 Jun to 5 Jul 2009.Overall, the training and familiarization programmes have left the Vietnamese leaders and officials with a deep impression of Singapore’s expertise in integrated township development.

Financial Services

The Ministers welcomed continued efforts in strengthening bilateral financial connectivity, supported by close regulatory cooperation and capacity building efforts. The financial crisis had underscored the importance of maintaining good regulatory cooperation and sound financial linkages between Singapore and Vietnam. The global financial crisis notwithstanding, Singapore banks and financial institutions remain committed to the growth of Vietnam’s financial sector, and the Singapore Exchange (SGX) continues to welcome Vietnamese corporates to list on the SGX as part of their internationalization efforts. Since the last review in October 2008, the Monetary Authority of Singapore (MAS) conducted a series of targeted training cooperation programmes in financial regulation and financial supervision for the various Vietnamese financial authorities. Significantly, bilateral relations have been further cemented by an MOU signed between Singapore’s Ministry of Finance and Vietnam’s Ministry of Finance in areas relating to government finance in Feb 2009.The Ministers agreed to further deepen bilateral financial collaboration as a means to support the growing economic and investment activities between the two countries.

Aviation Collaboration

Singapore and Vietnam agreed that it was even more timely under the current economic climate to liberalize air services between and beyond both our countries, to boost connectivity and enhance the flow of passengers and cargo. Both countries had accelerated the liberalization of passenger services in 2004 ahead of and beyond the ASEAN Roadmap for Integration of Air Travel Sector (or RIATS, which provides for a phasing in of unlimited passenger services among capital cities by Dec 2010) Singapore and Vietnam affirmed that there is further scope to enhance bilateral aviation linkages and facilitate greater commercial cooperation in the aviation sector.

Human Resource Development

Singapore and Vietnam have made further significant strides in their efforts to enhance Vietnam’s talent pool though training and capacity building efforts across all six sectors. In particular, there has been close collaboration between Singapore’s MOE and Vietnam’s Ministry of Education and Training (MOET), including high-level visits from both sides.In terms of training, the Southeast Asia Ministers of Education Organization (SEAMEO) Regional Language Centre in Singapore will provide English Language (EL) Training for Vietnamese trainers of EL teachers. Up to three classes of 30 participants per year for three years will be trained. This has already commenced, with the first batch of Vietnamese teachers coming to Singapore for their course from Sep 2008 to Jan 2009, and the second batch of participants currently undergoing the course since May 2009.

Information Technology and Telecommunications

There has also been a steady strengthening of ties in the Infocomm sector. Singapore's IDA hosted a delegation from the Hanoi Department of Information and Communications in Jan 2009 and the Danang Department of Information and Communications in Apr 2009 to exchange information and explore opportunities. In the area of capacity building, in Nov 2008, Vietnam sent two officials to participate in the e-Government Master planning and Implementation (eGPI) course at the Singapore e-Government Leadership Centre (eGL) under the ASEAN e-government Fellowships programme.In Jan 2009, the eGL also trained 16 Vietnamese senior government officials on e-Government Development under the MFA Singapore Cooperation Programme, and conducted a training course commissioned by Vietnam’s Ministry of Information and Communications (MIC) on IT project management for 16 Vietnamese government officials in June 2009

The Ministers agreed that the next meeting will be held in Vietnam by March next year
Ministry of Trade and Industry
17 July 2009