Hanoi (VNA) – Vietnam remains an attractive destination for foreigninvestors, including those from Singapore, thanks to the Government’s concertedefforts and measures to improve business climate and the expansion of freetrade agreements, according to Singaporean Ambassador to Vietnam Jaya Ratnam.

In an interview granted to the Vietnam News Agency on the threshold of theLunar New Year, the diplomat highlighted that Singapore has been the leadingsource of foreign direct investment (FDI) into Vietnam for two consecutiveyears, with money injected into a wide range of areas such as financial andinsurance services, manufacturing, real estate, and whole sale and retailtrade.

The Vietnam – Singapore Industrial Parks (VSIP) are the cornerstone ofSingapore’s economic engagement with Vietnam, he said, adding they haveattracted some 14 billion USD and generated over 270,000 jobs in Vietnam overthe past 25 years.


Developing digital economy will be a key priority for both nations in thecoming decades, the diplomat added.

Singapore welcomes the deepening of digital economic collaboration withVietnam, particularly as Vietnam has identified the digital economy as one ofthe key drivers of its growth that will, in turn, propel the nation towards itsambitious goal of becoming a high-income country by 2045.

Cooperation across cross-border data flows, cybersecurity and AI governancewill provide the foundation for Vietnamese and Singapore start-ups andcompanies to transact with each other easily and securely, and enable them togrow their digital businesses, he underscored.

“COVID-19 has highlighted the crucial role ofdigital trade and e-commerce in ensuring supply chain resilience and transportconnectivity. Moving forward, we hope that Vietnam will join our network ofdigital alliances to foster interoperability of standards and systems,” thediplomat said.

He also stressed the importance of the resumption of commercial flights betweenthe two countries, describing it a vital step to recover safe travel supportingeconomic growth and people-to-people ties.

“We are working closely with Vietnam on mutual recognition of our vaccinecertificates, allowing us to further open up our borders in a safe andcalibrated manner.”

The ambassador also said Vietnam continues to consolidate its position as a keylink in global supply chains, and this presents opportunities for Singaporecompanies to collaborate with Vietnamese partners in the logistics ande-commerce industries.

Given the massive potential of the Vietnamese e-commerce market,Singapore-based companies like Grab and Shopee have been steadily expandingtheir presence in Vietnam.

“I have no doubt that Vietnam’s economy will not only recover this year, butalso recover strongly. I am fully confident that Singapore companies willcontinue to seize opportunities to plug themselves into Vietnam’s growth,” hesaid.  

On the bilateral ties, the diplomat said they are built on a strong foundationof mutual trust and support, have been further cemented over the past two yearsdespite numerous difficulties caused by the  raging COVID-19.

High-level bilateral engagements have been sustained, including an in-personmeeting between Prime Minister Pham Minh Chinh and Singaporean Prime MinisterLee Hsien Loong in Jakarta in April in 2021, and an official trip to Vietnam bySingaporean Foreign Minister Dr Vivian Balakrishnan in June last year. 


In Hanoi and Ho Chi Minh City, the Singapore community rallied to collect fundsto purchase and distribute essentials for the needy, mindful of Vietnam'stimely support to Singapore when the situation was difficult back in theircountry.

“For me, this crisis has once again underlined that Singapore and Vietnam arenot fair-weather friends. We can count on each other in both good times andbad,” the diplomat said, concluding that building on strong foundations,Vietnam and Singapore will further expand their cooperation into new areas ofdigital economy and sustainable development./.