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Vietnam-Singapore Comprehensive Strategic Partnership: Sustainability, Investment, and Trade
Vietnam and Singapore have upgraded their bilateral ties to a Comprehensive Strategic Partnership (CSP), focusing on sustainable economic cooperation, legislative collaboration, and emerging sectors like green logistics and clean energy. This move reflects a shared commitment to regional stability, mutual growth, and innovation.
On March 12, 2025, Vietnam and Singapore officially upgraded their relationship to a Comprehensive Strategic Partnership (CSP), making it Singapore’s first CSP with an ASEAN nation. This milestone establishes a foundation for deeper cooperation between the two countries, particularly in business and investment sectors.
This elevation in ties marks the culmination of over five decades of diplomatic relations, established in 1973, and a decade of strategic partnership initiated in 2013. As both nations look ahead, they seek to deepen political trust, expand economic cooperation, and strengthen collaboration across emerging industries to meet the demands of a rapidly evolving global economy.
Key targets of Vietnam-Singapore Comprehensive Strategic Partnership
As Vietnam and Singapore begin a new chapter in their enduring diplomatic and economic partnership, the two governments aim to strengthen political trust, broaden cooperation in trade, investment, and economic growth, and drive advancements in digital transformation, green energy, and emerging industries.
They pledged to enhance collaboration in defense, security, culture, education, tourism, and people-to-people exchanges while also expanding the Vietnam-Singapore Industrial Park (VSIP) network, with a focus on innovation and low-carbon development. In addition to their bilateral efforts, both nations have worked closely together at regional and international forums, particularly within ASEAN and the UN.
In terms of economic collaboration, the economies of Vietnam and Singapore complement each other, and both countries have effectively utilized free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) to enhance their bilateral ties. This partnership has significantly contributed to post-pandemic economic recovery, benefiting not just Vietnam and Singapore, but also the wider region.
Singapore among top investors in Vietnam
As of January 2025, Singapore maintained its position as Vietnam’s largest investor in ASEAN and the second-largest overall, following South Korea. With 3,951 active projects amounting to US$84.14 billion, the investments primarily target the manufacturing, real estate, and energy sectors. Singapore’s investments encompass 18 of the 21 sectors and extend to 54 of Vietnam’s 63 provinces and cities.
Singapore’s overall position as Vietnam’s second-largest foreign investor illustrates the depth of their economic relationship. Prominent Singaporean companies heavily invested in Vietnam include Keppel (real estate and infrastructure), CapitaLand (real estate), Grab Holdings (ride-hailing), United Overseas Bank (financial services), Kingsmen (communication design and production), and Mega Textile Singapore (textile manufacturing). Their investments focus on key sectors such as real estate, manufacturing, and technology.
VSIP: Reflecting on a legacy of cooperation
Vietnam and Singapore’s bilateral relations have grown stronger over the years, underpinned by mutual respect and shared objectives. The Vietnam-Singapore Industrial Parks (VSIP) network stands as a symbol of this partnership. Established nearly three decades ago, the VSIP network now includes 18 industrial parks across 13 provinces in Vietnam, collectively generating employment for over 300,000 workers.
The VSIP initiative has demonstrated the potential for combining modern infrastructure with targeted foreign investment. During a visit to Singapore in December 2024, NA Chairman Tran Thanh Man lauded VSIP as a model of successful economic cooperation and reaffirmed Vietnam’s commitment to expanding this collaboration. Discussions with Sembcorp, the developer behind VSIP, revealed plans to transition these parks into low-carbon, high-tech industrial hubs, aligning with Vietnam’s aspirations for sustainable development.
A sustainable vision under VSIP 2.0
Sembcorp’s vision for VSIP extends beyond industrial development to include green infrastructure and smart urban planning. The next phase, VSIP 2.0, aims to integrate sustainable energy solutions, advanced manufacturing technologies, and innovative logistics systems. These upgrades are expected to enhance Vietnam’s attractiveness as a hub for international investors seeking eco-friendly and efficient operations. The Vietnamese government affirms that they would continue to prioritize the development of smart industrial parks and facilitate projects that contribute to the country’s long-term economic goals. The collaboration reflects Vietnam’s broader strategy of combining economic growth with environmental sustainability.
Elevating bilateral economic cooperation
The decision to upgrade the Vietnam-Singapore strategic partnership signals a shared intent to enhance economic cooperation further. Both nations aim to leverage their strengths to create new growth opportunities, particularly in emerging sectors. Among the areas identified for collaboration are semiconductor manufacturing, clean energy, green logistics, data center development, carbon credit markets, and green finance.
These industries align closely with global trends and the priorities of both nations. Vietnam’s ongoing digital transformation and commitment to reducing carbon emissions complement Singapore’s expertise in technology, finance, and sustainable development.
During his meetings with Singaporean leaders last December, NA Chairman Man emphasized Vietnam’s readiness to support foreign investors and resolve administrative challenges. His message resonated with Singaporean corporations, which expressed optimism about Vietnam’s economic potential and willingness to adapt its policies to attract sustainable investment.
Strengthening legislative and political ties
Economic cooperation is just one aspect of the Vietnam-Singapore partnership. The official visit also highlighted the importance of legislative collaboration in addressing contemporary challenges. Both countries agreed to enhance their legislative frameworks to foster investment, streamline governance, and create a more conducive business environment.
Meetings between NA Chairman Man and Singapore’s Speaker of Parliament Seah Kian Peng emphasized the need for deeper cooperation between legislative bodies. Both sides agreed to share experiences and best practices, particularly in legal and institutional reforms, to address socio-economic challenges effectively.
This collaboration is expected to lay the foundation for Vietnam’s ongoing administrative reforms, which aim to create a more efficient and transparent government. Experts see this as a critical step for Vietnam, enabling it to build a robust civil service capable of leading the nation through its next phase of development.
Expanding beyond economics
An upgraded partnership would also broaden cooperation in areas such as education, culture, and defense. Both nations agreed to strengthen people-to-people exchanges, which have played a crucial role in enhancing mutual understanding and trust. With around 25,000 Vietnamese people living and working in Singapore, the Vietnamese community serves as a bridge between the two nations.
During a meeting with NA Chairman Man, Singaporean Prime Minister Lawrence Wong expressed appreciation for the contributions of the Vietnamese diaspora and assured continued support for their well-being. NA Chairman Man, in turn, urged the Singaporean government to create favorable conditions for Vietnamese businesses and professionals in the city-state.
Defense and security cooperation are also on the agenda, with both nations recognizing the importance of maintaining stability in the region. They pledged to enhance collaboration in these areas to address common challenges and safeguard their shared interests.
Growing trade ties
Trade continues to be a key element in the relationship between Vietnam and Singapore. Since 1996, Singapore has been one of Vietnam’s top trading partners. In 2024, the two countries’ trade volume was approximately US$9.6 billion during the first 11 months, reflecting a year-on-year increase of 17.5 percent. Furthermore, in the initial two months of 2025, the bilateral trade turnover reached US$1.77 billion.
In the first two months of 2025, Vietnam was Singapore’s ninth largest trading partner, with bilateral trade surpassing US$4.9 billion, marking a year-on-year increase of 27.15 percent. Notably, exports from Vietnam to Singapore for this period experienced a double-digit growth, totaling over US$1.15 billion and reflecting a 23.21 percent rise compared to the previous year.
This growth reflects the complementary nature of their economies. Vietnam’s strengths in manufacturing and agriculture align with Singapore’s expertise in logistics, finance, and technology. The two nations aim to capitalize on these synergies to boost trade further and diversify their economic partnership.
Regional and global impact
Vietnam and Singapore’s collaboration extends beyond bilateral relations to regional and global platforms. As key members of ASEAN, both countries are committed to maintaining the bloc’s centrality in addressing strategic issues, including territorial disputes in the East Sea (South China Sea).
Their shared commitment to ASEAN’s solidarity and central role underscores their dedication to regional stability and prosperity. Both nations also collaborate closely in multilateral forums, advocating for open trade policies and sustainable development initiatives.
The elevated partnership marks a turning point in Vietnam-Singapore relations, reaffirming their shared vision for the future. With plans to deepen economic ties, enhance legislative collaboration, and explore new areas of cooperation, the partnership is poised to reach new heights.
The official visit to Vietnam by PM Wong, from March 25 to 26, 2025, further highlights the strong momentum behind this relationship. As both nations celebrate over 50 years of diplomatic ties, their renewed focus on innovation, sustainability, and mutual trust promises to unlock new opportunities for growth and development.
Conclusion
The evolving partnership between Vietnam and Singapore reflects the dynamic nature of modern diplomacy. By combining economic ambition with social and environmental responsibility, both nations are setting an example for regional and global cooperation.
As they work together to address emerging challenges and seize new opportunities, Vietnam and Singapore’s relationship is not just a testament to their shared history but also a blueprint for a prosperous and sustainable future.
This article was first published December 9, 2024, and was last updated March 25, 2025.
(With inputs from Vu Nguyen Hanh)
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