BANGKOK – Vietnam and Singapore have agreed to upgrade their relationship to the highest level of a Comprehensive Strategic Partnership, as Hanoi seeks to grow trade with ASEAN members, while facing criticism and risking tariffs because of its large trade surplus with the U.S.
The decision came as Communist Party of Vietnam General Secretary To Lam held talks with Singapore Prime Minister Lawrence Wong during a visit to the city state.
Lam told Wong the visit contributed to “opening up great opportunities for cooperation, deepening and raising the cooperation between the two countries to a new level, for the benefit of the people of the two countries, for peace, stability and development in the region and the world,” the state-run Vietnam News Service reported on Wednesday.
Bilateral trade rose to more than US$9 billion last year. Singapore’s government and companies have also invested more than US$80 billion in ventures such as Vietnam Singapore Industrial Parks, or VSIPs.
“Last year, Singapore was Vietnam’s top foreign investor. This reflects the high level of confidence that our businesses have in Vietnam’s potential,” said Wong during a speech.
“Vietnam’s exports to Singapore have also increased significantly over the same period, demonstrating the growing links between our two economies,” he added, citing the VSIPs, as “symbols of economic partnership” of the two nations.
VSIPs are a series of integrated industrial parks developed through a collaboration between Vietnam and Singapore. They are designed to attract foreign investment and provide a well-planned, modern industrial and business environment in Vietnam.
There are 20 VSIPs across 14 provinces in Vietnam, according to Wong.
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Lam arrived in Singapore from Indonesia where he also agreed to raise relations to the Comprehensive Strategic Partnership level with President Prabono Subianto. Indonesia was the first country in the Association of Southeast Asian Nations to forge a top-tier relationship with Vietnam.
Vietnam is Singapore’s first Comprehensive Strategic Partner in ASEAN.
Lam and Wong charged their governments with implementing the partnership by building political trust and expanding trade and investment. The two countries plan to focus on the digital and green economies and cooperate on defense, education and tourism.
Vietnam is keen to grow trade with ASEAN members, as it faces criticism and risks tariffs because of its large trade surplus with the U.S.
At the same time, Vietnam is being criticized by Europe for failing to live up to the human rights and environmental commitments made in the five-year-old EU-Vietnam Free Trade Agreement that has made it the biggest ASEAN trading nation with the 27 European Union members..
Edited by Taejun Kang.