Singapore (VNA) – Singaporean news site asiainvest.com.sg has described the upcoming state visit to Singapore by General Secretary of the Communist Party of Vietnam (CPV) Central Committee and State President To Lam as an important opportunity to further deepen bilateral cooperation and economic connectivity between the two countries in the years ahead.
In an article published on May 25 titled “Singapore and Vietnam: Strengthening Economic Cooperation in a Changing Global Environment,” the publication said the visit, scheduled for May 29–31, takes place amid rapid changes in the global economic landscape, including supply chain restructuring, economic uncertainties, energy market volatility and evolving regional dynamics that continue to reshape business activities across Asia and ASEAN.
Against that backdrop, the article noted, relations between Vietnam and Singapore are becoming increasingly significant not only for bilateral economic cooperation but also for ASEAN’s broader connectivity, resilience and long-term growth.
According to the article, over the past decade the two countries have steadily expanded cooperation in such areas as trade, investment, digital transformation, green growth and regional connectivity. Singapore and Vietnam are seen as possessing complementary strengths within ASEAN, with Singapore serving as a leading regional hub for finance, logistics and innovation, while Vietnam has emerged as one of Asia’s fastest-growing manufacturing and digital economies.
Economic cooperation continues to serve as a key pillar of bilateral ties. Singapore is currently one of Vietnam’s leading economic partners and among the largest foreign investors in the country. As of early 2026, Singaporean investors maintained approximately 4,463 active projects in Vietnam with total registered capital of around 91.6 billion USD, accounting for more than 17% of Vietnam’s total foreign direct investment inflows.
The article noted that the momentum has continued into 2026, with Singaporean companies registering more than 1.48 billion USD in new investments in Vietnam during the first two months of the year, up nearly 28.5% year-on-year. This, it said, reflects growing confidence among Singaporean businesses in Vietnam’s long-term growth prospects, manufacturing capabilities and improving investment environment.
One of the most prominent symbols of bilateral economic cooperation highlighted in the article is the Vietnam-Singapore Industrial Park (VSIP) network. After nearly three decades of development, the VSIP system has expanded to 22 industrial parks across Vietnam and is expected to increase to 30 by the end of 2026.
Covering approximately 12,000 hectares, the VSIP network has attracted more than 1,000 companies and generated around 23.4 billion USD in investment capital. Beyond functioning as major FDI hubs, the industrial parks have contributed to technology transfer, industrial upgrading, workforce development and the broader industrialisation process in many Vietnamese localities.
Trade ties between the two countries have also recorded strong growth in recent years. In 2025, bilateral trade reached nearly 40 billion SGD (31.3 billion USD), up 26.2% from 2024, making Vietnam Singapore’s 10th-largest trading partner globally. Notably, Singapore’s imports from Vietnam rose by more than 53% to around 13.1 billion SGD.
The upward trend has continued this year. In the first quarter of 2026, two-way trade reached approximately 13.6 billion SGD, up 38.3% year-on-year. Singapore’s imports from Vietnam surged by nearly 129%, driven by rising demand for electrical machinery, energy products, petroleum, advanced manufacturing and mechanical equipment.
According to the article, these sectors are increasingly linked to high-tech manufacturing, artificial intelligence infrastructure and the ongoing restructuring of global supply chains. The growing economic relationship between Singapore and Vietnam also reflects a shared ambition to play a greater role in ASEAN’s next phase of economic transformation, particularly in the digital economy, green transition, advanced manufacturing, smart logistics and emerging technologies.
Beyond economic cooperation, the article stressed that both countries continue to support regional openness, ASEAN connectivity and international cooperation. It concluded that as ASEAN navigates a more uncertain global environment, partnerships between forward-looking member states such as Singapore and Vietnam will play an increasingly important role in promoting regional resilience, integration and sustainable growth./.
