Remarks by PM Lee Hsien Loong at the Vietnam-Singapore Industrial Park Event: "Conference to Accelerate The Implementation of Investment Cooperation Approach between Vietnam and Singapore" on 29 August 2023. PM Lee was on an official visit to Hanoi, Vietnam from 27 to 29 August 2023.
Prime Minister Chinh
Ladies and Gentlemen
A very good morning to everyone. I am very happy to be here at today’s conference.
This year marks two special milestones for Singapore and Vietnam. First, we are celebrating 50 years of our diplomatic relations between our two countries. And secondly, we are marking the 10th year of our strategic partnership.
Successful VSIP collaboration over the years
Singapore is happy and honoured to be able to play a role in Vietnam’s economic development over many years. 10 years ago, I visited Vietnam for the 40th anniversary of our diplomatic relations. At that time, I attended the groundbreaking ceremony of VSIP Quang Ngai in Central Vietnam. That was the fifth VSIP at that time. Since then, VSIP has grown from strength to strength. Now, there are a total of 13 industrial parks across nine provinces in Northern, Central and Southern Vietnam. Altogether, the VSIP projects span over 11,000 hectares, with more than 900 tenants, US$18 billion worth of capital investments and close to 300,000 jobs. Today, we witness the addition of new VSIP projects to the expanding portfolio and the groundbreaking of several further VSIP projects. This reflects the strong partnership between Singapore and Vietnam, and our shared confidence in Vietnam’s growth and future.
Indeed, the VSIP is a story of continuous innovation and progress. For example, the first VSIP in Binh Duong focused on light manufacturing. Then, Binh Duong II featured modern logistics facilities. And now, Binh Duong III will be a smart and green industrial park, with an onsite solar farm. It will also incorporate smart technology across the farm’s operations, and meet Singapore’s Green Mark for industrial districts. I’m happy to note that Binh Duong III will be home to LEGO group’s first carbon-neutral factory in the world. It is my hope that the VSIP projects continue to contribute and stay relevant to Vietnam’s economic development and its industrial transformation.
Strong and Substantive Bilateral Economic Relationship
The continued strength of our VSIP projects reflect the strong bilateral and economic relationship between Vietnam and Singapore. Our bilateral merchandise trade grew at 7.2% per annum over the last decade from S$17 billion in 2013 to S$31 billion in last year. As of end 2022, Singapore was Vietnam’s second-largest foreign investor, with a cumulative investment of US$71 billion. In fact, many Singapore companies are early investors in Vietnam. They have ventured into sectors ranging from urban development to logistics to lifestyle and consumer products, and found good partners in Vietnam, just like in the case of Sembcorp and Becamex.
As Vietnam’s economy moves up the value chain and transits towards a net-zero future, there is much scope for us to exchange experiences and work together, especially in the emerging areas of green economy and digital economy. Prime Minister Chinh and I witnessed the signing of the MOU on the Green-Digital Economic Partnership when the Prime Minister visited Singapore in February. We also witnessed yesterday the upgrade of the Singapore-Vietnam Connectivity Framework to include new and emerging areas of energy, sustainability and innovation, and we have started go beyond agreements to realise actual projects. A consortium comprising Sembcorp Utilities Pte Ltd and PetroVietnam Technical Services Corporation have developed a proposal to export offshore wind energy to Singapore. Today, the consortium will be receiving a permit from the Vietnamese Ministry of National Resources and Environment, which will allow the consortium to conduct a marine survey of offshore sites spanning about 200,000 hectares to be surveyed for their energy potential. Singapore’s Ministry of Trade and Industry will also be presenting the consortium a Letter of Intent as a strong signal of support for the project. We welcome the import of low-carbon energy into Singapore. We look forward to the award of Conditional Approval to the consortium and the commencement of the marine survey in the next few months. These agreements reflect our commitment to work hand-in-hand to deepen our bilateral cooperation in Vietnam’s next stage of economic development.
The success of the VSIPs through the years would have not been possible without the unwavering support of Vietnam central and local authorities. I would like to thank Prime Minister Chinh as well as all the stakeholders who have contributed to VSIP’s development. I wish the VSIP every success and a fruitful partnership between Sembcorp and Becamex, and look forward to the strengthening of Singapore-Vietnam economic relationship for many more years to come. Thank you very much.
Explore recent content
Explore related topics