More Vietnam-Singapore industrial parks set to be built

The construction of three Vietnam-Singapore Industrial Parks (VSIPs) commenced today [August 28], with four others receiving approval for investment procedures and agreements for cooperation being signed for another 12 projects. 

Prime Minister Pham Minh Chinh and his Singaporean counterpart Lee Hsien Loong attend the ceremony. Photos: Nhat Bac/VGP

The decision was made at the Announcement Ceremony of Vietnam-Singapore Investment Cooperation Documents held on the same day under the attendance of Vietnam’s Prime Minister Pham Minh Chinh and his Singaporean counterpart Lee Hsien Loong.

At the ceremony, the two leaders observed the announcement of a memorandum of cooperation, encompassing the development of 10 VSIP projects in various localities (Nam Dinh, Khanh Hoa, Ninh Binh, Haiphong, Tay Ninh, Hai Duong, Thanh Hoa, Thua Thien Hue, Binh Phuoc, and Quang Ngai); the approval of VSIP's investment policy in four localities (Lang Son, Thai Binh, Ha Tinh, Binh Thuan); and the decision to greenlight marine resource survey by Vietnam's Ministry of Natural Resources and Environment, along with the Letter of Intent from Singapore's Energy Market Authority, regarding the proposed development of Vietnam's electricity export to Singapore, a collaborative effort between the joint venture PTSC and Sembcorp.

The two prime ministers and senior officials from both countries attend the commencement ceremony for the construction of three VSIPs.

Both also participated in the commencement ceremony for the construction of three industrial parks under the VSIP umbrella, situated in Bac Ninh, Cantho, and Nghe An. Additionally, they inaugurated the Vietnam-Singapore Innovation Center located in Binh Duong.

"Singapore takes great pleasure in contributing to Vietnam's development," stated Prime Minister Lee Hsien Loong during the conference. He pointed out that the VSIPs are a clear testament to this commitment.

Reflecting on his visit to Vietnam a decade ago, Prime Minister Lee recollected attending the groundbreaking ceremony for the fifth VSIP in Quang Ngai. Presently, the tally of industrial zones has reached 14, spanning 10 provinces and cities, boasting a combined investment of $18.7 billion and generating employment for 300,000 individuals. This figure is slated to rise further following the present developments.

"This fresh addition underscores the robust and continually evolving relationship built on mutual trust between our two nations," he affirmed.

Signing of investment cooperation documents between the two countries.

The Prime Minister of Singapore also emphasized that both countries possess abundant prospects for cooperation, particularly in the realms of green economy, digital economy, and innovation. During Prime Minister Pham Minh Chinh's visit to Singapore in February, the two sides inked several agreements in this vein.

At the meeting held on August 28, the two Prime Ministers agreed to explore the possibility of elevating their bilateral relationship to a Comprehensive Strategic Partnership shortly.

In response, Prime Minister Pham Minh Chinh asserted that the conditions and foundation are in place for both sides to enhance their ties, especially following Prime Minister Lee Hsien Loong's visit. Currently, economic cooperation occupies a pivotal position within this strategic partnership, consistently advancing toward comprehensive growth.

Vietnam stands as the 12th largest trading partner for Singapore, while Singapore holds the 15th position in terms of trading partnership with Vietnam. The combined bilateral trade volume in 2022 stood at approximately $9.15 billion, reflecting an 11.57% increase in comparison to 2021.

Within Vietnam, Singapore emerges as the foremost investor among ASEAN nations and secures the second spot globally, with an impressive tally of 3,273 projects spanning diverse sectors, boasting an aggregate investment capital of $73.4 billion.

Concurring with his counterpart, Prime Minister Pham Minh Chinh underscored the shared focus on pivotal areas like digital transformation, green and circular economies, innovation, and human resource development. These domains align with Vietnam's requirements and aspirations to glean insights from Singapore's experiences.

Addressing the business community, the Chinh committed to fostering strategic breakthroughs encompassing institutional improvements, infrastructural enhancements, and optimizing human resources for enhanced effectiveness. Measures will be taken to streamline administrative processes and reduce compliance costs.

"In the spirit of harmonizing benefits and sharing risks, your triumphs are inherently intertwined with our successes. I hold the belief that enterprises investing in Vietnam will flourish, thus fostering the flourishing growth of our nations' relationship, akin to flowers blooming and bearing fruit," articulated Prime Minister Chinh.