Uptrend Ties between Vietnam and Singapore

On the occasion of the 45th Singapore National Day, Vietnam Economic News’ Hai Yen talked with Pong Kok Tian, the Consul General of the Republic of Singapore in Ho Chi Minh City.

What’re your comments on consular activities and plans in 2009 and 2010? Your overview of the future development and cooperation between Vietnam and Singapore?

What we see is a continuum of efforts from 2009 to 2010 and beyond to strengthen the links between Singapore and Vietnam at various levels. In terms of political exchanges, we were very happy to facilitate a working visit by H.E. Nguyen Van Dua, the First Deputy Party Secretary of Ho Chi Minh City to Singapore in July 2009. It complemented many high-level visits both ways in the same year, such as those by Minister Mentor Lee Kuan Yew (to Hanoi and Ho Chi Minh City) in April and Minister for Foreign Affairs George Yeo in May, as well as Vietnamese Deputy Prime Minister Hoang Trung Hai’s very successful trip to Singapore in July 2009. This year, I am delighted that Singapore and Ho Chi Minh City had continued the momentum of such high-level exchanges. H.E. Le Hoang Quan made a very fruitful visit to Singapore in June for the World Cities Summit and Singapore International Water Week, while Singapore Senior Minister of State for Foreign Affairs Dr Balaji Sadasivan attended the World Economic Forum in Ho Chi Minh City in May. Given that this is Vietnam’s ASEAN Chairmanship year, the Consulate-General has also been facilitating several high-level ministerial and senior official visits to Vietnam.

Another important aspect of our work has been to keep up the pace of promotion and facilitation of economic link-ups between Singapore and Vietnam. Singapore is now the fifth largest foreign investor in Vietnam. We are also Vietnam’s fifth largest trading partner. Singaporean businessmen remain bullish about Vietnam. They continue to explore investment and trading opportunities in various parts of the country, such as Ho Chi Minh City, Binh Duong, Dong Nai, Ba Ria – Vung Tau and Can Tho in the South, Hanoi, Bac Ninh, Hai Phong in the North and Hue, Da Nang and Quang Nam in the central region. Carrying over from 2009, their areas of interest continue to focus on real estate development, industrial parks and logistics. Increasingly, we also see more interest in the provision of urban solutions. These are areas where many Singaporean companies have developed expertise and a good track record, and which are important for Vietnam’s push towards sustainable development. They feel they can contribute towards Vietnam’s development for long-term mutual benefits.

One other key area of the Consulate-General’s focus is the promotion of people-to-people links between Ho Chi Minh City and Singapore. We are fortunate to have very supportive working partners in the Ho Chi Minh City Union of Friendship Organizations (HUFO) and the Vietnam-Singapore Friendship Association (VSFA). Together, we have and will continue to work on events to create greater understanding of Singapore. We will also maintain the Singapore Cooperation Program (SCP) alumni network that preserves the links between Vietnamese who have previously attended courses in Singapore with the Consulate-General. We will also continue to identify and send deserving students to Singapore on the Singapore and ASEAN Scholarships. To date, 163 Vietnamese students have studied in Singaporean universities under the Singapore Scholarship, while more than 270 Vietnamese have received our ASEAN scholarship awards for secondary and pre-university education. We also continue to work with the Singapore Business Group (SBG) in Ho Chi Minh City on events such as Celebrate Singapore and the Singapore National Day Charity Golf. Besides promoting better understanding and networking among Singaporeans and Vietnamese, the proceeds from the Charity Golf also go towards an education fund to provide scholarships for bright and needy Vietnamese students to pursue their education locally. The SBG was recently awarded the Certificate of Merit by the Ministry of Education and Training and the Ho Chi Minh City Services of Education and Training for their effort as 1,550 students have benefited from the scheme. All these events are very important. The Vietnamese have shown us that they are gracious hosts. Likewise, Singaporeans in Ho Chi Minh City (and Vietnam as a whole) want to be good guests and friends.

We see a continuing momentum of improving relations across all levels and sectors, carrying over from 2009 to 2010. Looking at the trajectory of development in Vietnam, Singapore and the region as a whole, it is fair to assume that this trend would continue. Both Singapore and Vietnam are dynamic economies in ASEAN. We share a common regional outlook and recognize the importance of working together closely both bilaterally and within the region for mutual long-term benefits.

What’re your opinions about Singapore’s investment in Ho Chi Minh City and Southern region over the past years especially since Vietnam became a member of ASEAN? What’re advantages and disadvantages of Singapore’s businesses when investing and working in Vietnam?

Vietnam has firmly established itself to Singapore companies as an attractive market with good long-term potential over the past years. From the early 1990s, just a few years before Vietnam joined ASEAN in 1995, Singapore had begun investing in Vietnam. We were consistently ranked among Vietnam’s top investment partners. As of the end of 2009, we were the 5th largest in terms of registered capital in Vietnam, with a cumulative investment of US$17 billion from 776 investment projects (Source: Vietnam Investment Review). I would say that of these, quite a number are established in Ho Chi Minh City and the South. We are proud of these investments because many of them have played a significant role in contributing to Vietnam’s economic growth. A very good example is the Vietnam-Singapore Industrial Park (VSIP) projects by SembCorp Industrial Parks. It is a successful Singapore investment, which has helped anchor other foreign investments in Vietnam. Sembcorp Industrial Parks had since expanded its 1996 inaugural project in the southern province of Binh Duong to two, and is now setting up projects in the north in Bac Ninh Province and Hai Phong City. VSIP now has four industrial park projects across Vietnam.

Vietnam’s geographical proximity makes her an attractive market for Singaporean investors and companies. So, Singaporean investments will continue to grow. However, language is an area of difficulty as Vietnamese is still the official and preferred medium of communication in Vietnam. Going ahead, there is significant potential for further economic collaboration between both countries. As Vietnam continues to open up its economy, it is important to foster a pro-business environment and streamline complexities in the regulatory environment.

Could you tell several programs on Singapore’s official development assistance (ODA) for Vietnam?

Singapore supports Vietnam’s efforts to bridge its development gap with other ASEAN countries through technical assistance in the area of human resource development. The Singapore Cooperation Program (SCP) is Singapore’s technical assistance program administered by the Ministry of Foreign Affairs. Since its launch in 1992, more than 70,000 government officials from 169 developing countries have attended the SCP programs, which spanned various fields such as English Language, Civil Aviation, Finance, Trade Promotion, Information Technology, Public Administration, Law and Tourism. We are very happy to see Vietnam actively participating in the SCP. More than 11,000 Vietnamese have already participated in various SCP courses, workshops and study visits. The courses have been conducted through various channels, such as the Initiative for ASEAN Integration (IAI), ASEAN Training Awards (ATA), Singapore Cooperation Program Training Awards (SCPTA) and Third-Country Training Program (TCTP).

Of note, under the IAI, Singapore has pledged US$119 million worth of technical assistance to Cambodia, Laos, Myanmar, and Vietnam for the period 2001 to 2011. Under the IAI, we have set up the Vietnam-Singapore Training Center (VSTC) in Hanoi in November 2001. More than 4,000 Vietnamese officials have been trained at the center. An annual average of 30 courses are conducted at the VSTC covering six key training areas – English Language and Communications, Trade and Finance, Information Technology, Public Administration and Governance, Tourism and Hospitality, and Environment and Health. These courses have been carefully tailored to suit the needs of Vietnam and are geared towards narrowing the development gap for an integrated ASEAN Community.

Another key technical assistance channel is through the Singapore Scholarship, of which Vietnam is again a major participant. The Scholarship is awarded to bright students from ASEAN member countries to pursue their undergraduate studies in Singapore. The benefits accrue to individual ASEAN countries as the students are expected to return to serve in their home countries after their studies. At a broader level, it also benefits the region as the scholarship provides the opportunity for the next generation of leaders to form bonds of friendship and network as they study together. As mentioned earlier, 163 scholarships have been awarded to Vietnamese students since the Scholarship’s inception (in 1999). The value of these scholarships is US$18.42 million.

Another important area of technical assistance is the provision of English language training to Vietnamese officials under the SCP. Singapore provided eight customized three-month English language courses to senior Ho Chi Minh City and also Hanoi officials between 2002 and 2006. This program was further extended for another three years and also offered to officials from other provinces. The final run of the course concluded in May 2010, and 378 Vietnamese officials have benefited from this program. Singapore also runs a six-week customized SCP English language course for senior officials from Hanoi and Ho Chi Minh City of vice-ministerial or equivalent level positions. Besides English language training, the participants are also exposed to Singapore’s public policies.

Singapore has also provided technical assistance to Vietnam under the auspices of the Vietnam-Singapore Bilateral Connectivity Framework Agreement signed in 2006. Through the SCP, 126 senior Vietnamese leaders and officials from Vietnamese cities and provinces visited Singapore to learn about Singapore’s experience in urban development from 2008 to 2010. – VEN

Tags: Vietnam-Singapore cooperation