Strategic partnership to pave way for deeper economic relations: PM Lee
By Terrence Voon, The Straits Times, 12 Sep 2013
SINGAPORE and Vietnam are now strategic partners, a move that paves the way for deeper economic ties in areas such as air traffic and financial services, Prime Minister Lee Hsien Loong said yesterday.
He said Singapore banks are already keen to expand into Vietnam's finance sector, long dominated by state-owned banks.
PM Lee, who arrived here on an official visit yesterday, formally upgraded bilateral ties to a strategic partnership with his Vietnamese counterpart Nguyen Tan Dung. This is only the Republic's third such partnership following similar agreements with the United States and France.
Following an hour-long discussion between the two leaders at the Grand Hall in Hanoi's Office of Government, Mr Lee spoke of how the strategic partnership will "provide the framework for continued high-level exchanges".
These cover broad areas such as political ties, international relations, defence, security and training. But economic links, characterised by the four existing Vietnam-Singapore Industrial Parks (VSIPs), are still the cornerstone of bilateral ties.
Singapore is Vietnam's second-largest investor, and with a fifth VSIP to be launched tomorrow, Mr Lee said there is potential to do more.
"We have envisaged progress in air services, we can increase air traffic between our countries, and also from our countries to the rest of the world," Mr Lee told the media. On the cards are a further liberalisation of air services, in order to support growing links in tourism, trade and investment.
In financial services, Mr Lee said "Singapore will be happy to provide technical assistance to Vietnamese officials, while Singapore banks hope to set up subsidiaries here and contribute to Vietnam's financial sector".Vietnam's banking system has recently been battered by bad loans that have curbed lending. But there is still much promise for the country with more than half of its 88 million population under the age of 30.
PM Dung, who noted that his government would support the expansion of Singapore banks here, paid tribute to the Republic's contributions in trade and investment. "The effective economic cooperation with Singapore has contributed remarkably to the achievements recorded in Vietnam's economic reform," he said during an official dinner he hosted for Mr Lee last night.
In the area of defence, both countries have agreed to step up military and training exchanges. For a start, both navies signed a memorandum of understanding on submarine rescue last week.
In politics, direct communications between the two leaders will be established, while there will also be increased exchanges between government agencies.
On the ongoing territorial dispute in the South China Sea between China and four Asean member states including Vietnam, Mr Lee said it "should be handled with restraint, peacefully in accordance with international law", and that Asean should "exert a constructive influence".
Mr Lee, who will be here until tomorrow, was greeted at the Presidential Palace by Mr Dung yesterday, with 200 personnel from Vietnam's armed forces forming an honour guard.
Singapore in good position to tap Vietnam's industries: Grace Fu
By S Ramesh, Channel NewsAsia, 12 Sep 2013
Singapore sees challenges and opportunities in moving forward the Strategic Partnership Agreement with Vietnam.
These are in the areas of political, economic and people-to-people ties, said Ms Grace Fu, Minister in the Prime Minister's Office and Second Minister for Foreign Affairs.
Ms Fu, who is in Prime Minister Lee Hsien Loong's delegation to Vietnam, added that Singapore is in a good position to tap Vietnam's industries especially as Vietnam has links to other countries through its various free trade agreements.
There have been many high-level exchanges between Singapore and Vietnam at the leaders' level.
And Ms Fu said Singapore would like to keep up the momentum under the strategic partnership, an agreement that paves the way for new areas of economic cooperation including in the banking sector.
She said: "They would like to seek our help in having a more robust regulatory framework. They recognise that's our strength. We are very happy to share whatever experiences we have.
"That is a good starting point for us to help build a stronger banking system that would be important to the health of the Vietnamese economy."
The minister notes that Vietnam has gone through a difficult period of time with its fiscal policies as well as its currency management.
"They have recognised the problem. They want to arrest and rectify the problem and they are taking concrete steps to build a stronger governance structure," said Ms Fu.
Singapore is Vietnam's second largest investor.
As for trade, Singapore is Vietnam's seventh largest trading partner.
Prime Minister Lee noted during his bilateral discussions with Vietnamese leaders that two-way trade has tripled over the past decade to almost US$12 billion last year.
Another area of cooperation that is set to grow under the Singapore-Vietnam Strategic Partnership is people-to-people ties, through growth in the aviation and education sectors.
Ms Fu said Vietnam is a very important country involved in the Singapore Cooperation Programme since it started in 1992.
Close to 14,000 Vietnamese officials have received different forms of training under this programme.
Singapore in good position to tap Vietnam's industries: Grace Fu
By S Ramesh, Channel NewsAsia, 12 Sep 2013
Singapore sees challenges and opportunities in moving forward the Strategic Partnership Agreement with Vietnam.
These are in the areas of political, economic and people-to-people ties, said Ms Grace Fu, Minister in the Prime Minister's Office and Second Minister for Foreign Affairs.
Ms Fu, who is in Prime Minister Lee Hsien Loong's delegation to Vietnam, added that Singapore is in a good position to tap Vietnam's industries especially as Vietnam has links to other countries through its various free trade agreements.
There have been many high-level exchanges between Singapore and Vietnam at the leaders' level.
And Ms Fu said Singapore would like to keep up the momentum under the strategic partnership, an agreement that paves the way for new areas of economic cooperation including in the banking sector.
She said: "They would like to seek our help in having a more robust regulatory framework. They recognise that's our strength. We are very happy to share whatever experiences we have.
"That is a good starting point for us to help build a stronger banking system that would be important to the health of the Vietnamese economy."
The minister notes that Vietnam has gone through a difficult period of time with its fiscal policies as well as its currency management.
"They have recognised the problem. They want to arrest and rectify the problem and they are taking concrete steps to build a stronger governance structure," said Ms Fu.
Singapore is Vietnam's second largest investor.
As for trade, Singapore is Vietnam's seventh largest trading partner.
Prime Minister Lee noted during his bilateral discussions with Vietnamese leaders that two-way trade has tripled over the past decade to almost US$12 billion last year.
Another area of cooperation that is set to grow under the Singapore-Vietnam Strategic Partnership is people-to-people ties, through growth in the aviation and education sectors.
Ms Fu said Vietnam is a very important country involved in the Singapore Cooperation Programme since it started in 1992.
Close to 14,000 Vietnamese officials have received different forms of training under this programme.