The Bilateral Relationship Between Singapore and Vietnam in 2024

The year-on-year increase in the non-oil domestic exports, driven mostly by the surge in electronics like integrated circuits, media, and personal computers has contributed substantially towards the bilateral relationship of Singapore and Vietnam. The global chip and data center demand, accompanied by the increase in medical equipment exports and aerospace component exports to the Asian region and Middle Eastern markets has led to increasing stability of both the nations. The booming agro-exports and the diversified manufacturing and electronics surge of Vietnam have catered to the increasing stability of both nations.

The modification of the Economic Connectivity Framework signed in 2005 and the expansion of Vietnam-Singapore industrial parks via the Plans for VSIP 2.0 with new parks launched in provinces has led to a facilitation of bilateral relations. The Vietnam trade data has reported that the country has exported goods worth 12 billion US dollars to Singapore in 2024. Import Globals Vietnam Customs Data provides brief information on the valuable commodities exchanged within the region: catering to the specific acquisitions of the business holders who are looking for potential marketing investment areas for a positive trajectory in their business expansion.

FACTORS CONTRIBUTING TO THE BILATERAL RELATIONSHIP OF VIETNAM IN 2024

The expansion of smart, sustainable Vietnam-Singapore industrial parks featuring smart technologies, renewable energy, and green infrastructure in different provinces across the region has been attracting high-value manufacturing capacities, which have generated local jobs and strengthened supply chain integration. The upgrade of the Economic Connectivity Framework has enhanced the agreement in 2024, broadening cooperation in areas like digital trade, cross-border payments, and smart infrastructure.

The surge in FDI and trade via VFI-IPS and FDI utilization has solidified Singapore’s position as a leading investor in the Vietnamese economy, with over 4,000 projects. Bilateral trade has surged by 2.8% from the previous year, with significant contributions from the electronics, agro-products, and other sectors.

THE TOPMOST GOODS EXPORTED BY VIETNAM TO SINGAPORE

The continuity in the bilateral relations of Singapore and Vietnam has attained a hike due to the valuable pricing strategies offered. According to the Vietnam Export Data, the top 10 leading variants of goods exported to Singapore in 2024 are,

  1. Refined petroleum products — The valuation of Refined petroleum products exported to Singapore from Vietnam 2024–3.8 billion US dollars
  2. Electronics- The valuation of Electronics exported to Singapore from Vietnam 2024–2.65 billion US dollars
  3. Pharmaceuticals — The valuation of Pharmaceuticals exported to Singapore from Vietnam 2024–2.21 billion US dollars
  4. Chemical products — The valuation of Chemical products exported to Singapore from Vietnam 2024–1.89 billion US dollars
  5. Mechanical appliances — The valuation of Mechanical appliances exported to Singapore from Vietnam 2024–1.42 billion US dollars
  6. Medical devices- The valuation of Medical devices exported to Singapore from Vietnam 2024–1.31 billion US dollars
  7. Computers- The valuation of Computers exported to Singapore from Vietnam 2024–1 billion US dollars
  8. Aerospace components — The valuation of Aerospace components exported to Singapore from Vietnam 2024–876 million US dollars
  9. Plastics and articles- The valuation of Plastics and articles exported to Singapore from Vietnam 2024–654 million US dollars
  10. Iron and steel — The valuation of Iron and steel exported to Singapore from Vietnam 2024–478 million US dollars

GOVERNMENT INITIATIVES SUPPORTING THE BILATERAL RELATIONSHIP BETWEEN SINGAPORE AND VIETNAM

  1. Enhanced economic connectivity framework upgrade — The Government Authorities of Vietnam and Singapore have all together upgraded the 2005 Implemented Connectivity Framework during the 18th Connectivity Ministerial Meeting in 2024. The initiative outsourced by both the Government Authorities has now been enhancing the overall export structure covering energy, digital trade, sustainability, innovation, and smart infrastructure. All these factors have introduced diversity of cooperation techniques within the trade regulations for a strategic alignment with the international standards. It has come up with broader foundations for economic integration and cooperation.
  2. Introduction of the Vietnam-Singapore Innovation Talent Exchange Program — According to Vietnam Import Data, the 18th Ministerial Meeting of 2024 has been revolutionary enough to impact the entire export economy. Accompanied by the Enhanced Economic Connectivity Framework upgrade, an MOU was also signed which has further established the Innovation Talent Exchange Program within Vietnam and Singapore. This initiative was structured to allow 600 skilled professionals for their employment in innovation-driven sectors. This has led to a hike in the technical sector with entrepreneurship collaboration with the emerging authorities.
  3. Singapore Desk and Enterprises Singapore MoU — Another MoU between Enterprise Singapore and the Vietnam Foreign Investment Agency has been signed in the ministerial meeting. The initiative aims to take the investment projects of Singapore to the next level, streamlining the cross-border operations. It was subjected to technological evolution and the modern trade demands in the exported and imported categories of both nations. The initiative implemented has promoted higher quality foreign direct investment into the region of Vietnam, contributing to a substantial share of the country’s economy.

FUTURE OUTLOOK

The ASEAN region introduced a five-year strategic plan aimed at harmonizing the trade rules contributing to the financial integration of Vietnam and Singapore. Both countries are positioned at a closer geographic location for a proper acknowledgment of this trade momentum. The cross-border flow and supply chain resilience across the ASEAN region is benefiting from the regional integration offers. The expansion of the Vietnam-Singapore industrial park network to over 20 sites is also undergoing its next phase, with an utmost focus on sustainable energy.

While following the Green Digital Economic Partnership of Singapore and Vietnam, both countries are accelerating their cooperation in carbon trading too, to take the bilateral relationship to the next level. The high-level CSP and institutional synergies have coordinated action on digital trade, green energy, and maritime security. The navigation of geopolitical and global trade shocks has aligned the trade standards of the cross-border regions with the international trade norms, working as a shield for the bilateral trade from external authorities.

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