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Expansion of Singapore-Vietnam air services will benefit businesses

SINGAPORE — Opening up the skies to allow flights to and from Singapore, Vietnam and a third country will benefit businesses and is among the ways to grow economic ties between the two countries, said Prime Minister Lee Hsien Loong on Friday (March 24).

PM Lee Hsien Loong at the International Conference Centre to attend dinner hosted by Vietnamese PM Nguyen Xuan Phuc. Photo: Ming En/TODAY

PM Lee Hsien Loong at the International Conference Centre to attend dinner hosted by Vietnamese PM Nguyen Xuan Phuc. Photo: Ming En/TODAY

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SINGAPORE — Opening up the skies to allow flights to and from Singapore, Vietnam and a third country will benefit businesses and is among the ways to grow economic ties between the two countries, said Prime Minister Lee Hsien Loong on Friday (March 24).

Mr Lee and his Vietnamese counterpart Nguyen Xuan Phuc had agreed on Thursday to further discuss the liberalisation of bilateral air services and welcomed the progressive expansion of the air services agreement in January last year.

They also noted the potential to further enhance air connectivity, and grow passenger and cargo traffic movements between and beyond the two countries.

Speaking to the Singapore media on the last day of his four-day visit to Vietnam, 
Mr Lee said that given the growing relations between the two countries, the volume of air traffic has also been growing rapidly, with flights often full.

“I made the pitch to him that we should enhance the air services agreement, we should also look at fifth and sixth freedoms — that means beyond — between the two countries,” said Mr Lee.

“That will develop the traffic further and develop the business further. (Mr Phuc) was receptive, so we will talk to their officials.

“I hope we will make progress.”

Fifth freedom rights allow an airline to take passengers from its home country to one destination where more can be picked up before flying to a third country.

Sixth freedom rights allow an airline to carry passengers from a country to the airline’s home country before moving them to other countries.

During the trip, both leaders also witnessed the signing of five Memoranda of Understanding, including two to study the feasibility of an eighth Vietnam-Singapore Industrial Park in the Quang Tri Province and a software park in Da Nang.

UOB was also granted in-principle approval to set up a foreign-owned subsidiary bank licence by June.

Mr Lee said it was a “good sign” and would further promote investments from Singapore to Vietnam, he added.

In the joint statement released by both countries on Thursday, Mr Phuc said he welcomed further investments from Singapore and recognised the importance of creating a pro-business environment, strengthening business-to-business links and facilitating the expeditious resolution of challenges faced by businesses.

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