New impetus for Vietnam-Singapore trade relations hinh anh 1Fish processing for exports (Illustrative image. Source: VNA)
Hanoi (VNA) President Tran Dai Quang’s visit to Singapore from August 28-30 is expected to give an added impetus to the already thriving trade and investment relations between Vietnam and Singapore.

Singapore is currently the largest ASEAN trade partner of Vietnam with two-way trade turnover almost reaching 2.5 billion USD in the first five months of this year, nearly 1.8 billion USD of which was Vietnam’s imports. Bilateral trade is expanding at an average 12 percent a year.

At the same time, the island state is the third largest among 114 foreign investors in Vietnam with 1,600 valid projects worth nearly 36.3 billion USD. Singaporean investors operate in most economic sectors in Vietnam but the bulk of investment is in infrastructure, services and real estate.

Industry insiders said most Singaporean investment projects are operating effectively, with the Vietnam-Singapore Industrial Park (VSIP) joint venture as a typical example.

At a meeting in May this year with Singaporean Prime Minister Lee Hsien Long in Hanoi, Prime Minister Nguyen Xuan Phuc asked Singapore to facilitate the export of more Vietnamese goods to improve the trade balance between the two countries.

Experts said in order to fully exploit the strategic partnership between the two countries to benefit both sides, urgent measures are needed to bring into play the strength of each side. As Singapore has advantages in terms of capital, development research, technology and market, the two sides should create a suitable mechanism to encourage Singaporean firms to support Vietnamese partners in participating further into global production and supply chains.

The two countries should also upgrade their economic mechanisms to further foster business and investment ties between their firms.-VNA