Singapore, Vietnam ink slew of MOUs in boost to ties

HANOI — Economic ties between Vietnam and Singapore are strong, and both countries are doing more to take them forward, including through further discussions over the liberalisation of bilateral air services, said Prime Minister Lee Hsien Loong on Thursday (March 23).

Companies from both countries also signed five Memoranda of Understanding (MOUs), including one that would explore the feasibility of setting up an eighth Vietnam-Singapore Industrial Park (VSIP) in a province in central Vietnam.

Speaking at a joint press conference with Vietnamese Prime Minister Nguyen Xuan Phuc at the Office of the Government in Hanoi, Mr Lee noted that Singapore is Vietnam’s top foreign investor this year.

“Our economic ties are strong, as you can see from the MOUs which we signed this morning, we are doing more in order to take them forward,” he added. 

For closer economic collaboration through better air connectivity, Mr Lee and Mr Phuc have agreed that there should be further discussions on the liberalisation of air services between the two countries.

Last year, about 257,000 Singaporeans visited Vietnam, an 8.7 per cent jump from the previous year. Likewise, some 469,000 Vietnamese visited Singapore in 2015, a 12.2 per cent year-on-year increase. 

“Our flights in both directions are full and I think if we can have more flights, we will be able to have more connectivity, more economic opportunities and more investments and trade,” Mr Lee added. 

The Prime Minister, who arrived in Hanoi on Wednesday for the second leg of his four-day official visit to Vietnam, also witnessed the signing of five MOUs with Mr Phuc.

Three of the MOUs were signed between Sembcorp subsidiaries and the People’s Committee of Da Nang, People’s Committee of Quang Tri Province (Vietnam) and Ministry of Industry and Trade of Vietnam, respectively.

The first involved exploring the feasibility of developing a software park in Da Nang, a coastal city in central Vietnam, which is in line with Vietnam’s economic plan to promote higher value-added economic activities, noted Mr Lee. 

Under the second MOU, the joint venture of Sembcorp — Becamex IDC (Vietnam) and the People’s Committee of Quang Tri Province will look into the feasibility of developing an eighth VSIP in the Quang Tri Province. Sembcorp Utilities’ agreement with the Vietnam Ministry of Industry and Trade will be for a power plant project. 

A fourth MOU was between Keppel Land and Vietnam’s State Capital Investment Corporation to collaborate on investment opportunities in Vietnam.

The last MOU was signed between the Singapore International Foundation and social organisation Vietnam-Singapore Friendship Association to work together on projects and initiatives in the areas of social innovation and entrepreneurship, arts and cultural exchange and volunteer cooperation over the next two years.

Apart from these agreements, Mr Lee also announced that the State Bank of Vietnam has agreed to grant in-principle approval for UOB to set up a foreign-owned subsidiary bank by this June — the first Singapore bank to be granted a foreign-owned subsidiary bank licence.

Under the licence, UOB will be able to expand its branch network in Vietnam, extend financial support to consumers and businesses beyond Ho Chi Minh City, among other things. 

Other issues discussed between the leaders include the South China Sea, where Mr Lee said that as fellow members of the Association of South-east Nations (Asean), there should be an interest in a “rules-based international order” in resolving issues according to international law.

Both parties agreed to continue to work together on the “full and effective implementation” of the Declaration on Conduct of Parties on the South China Sea and the “expeditious conclusion” of the Code of Conduct in the South China Sea. 

Prime Minister Phuc noted that Vietnam “highly values” Singapore’s role in coordinating China-Asean dialogue partnership and affirmed its close collaboration with Singapore in promoting Asean-China ties.

Vietnam is also committed to working closely with Singapore to promote the connectivity between the two countries in the areas of trade, investments in transport, infrastructure, among others. 

On Thursday, Mr Lee also laid wreaths at the Ho Chi Minh Mausoleum and the Monument of Heroes and Martyrs and attended a dinner hosted by Mr Phuc.

In his toast speech, Mr Lee said Vietnam remains the top participant in the Singapore Cooperation Programme. 

He added that people-to-people ties are deep and strong, such as having Singaporean students helping out with projects in the provinces.