Enhancing VN-Singapore ties makes positive effect on investment environment: VSIP III in Binh Duong. (Photo: VNA)

Over the past year, Vietnam has become an attractive destination for foreign firms seeking to start production in the country, and this positive change is set to continue. It has also turned into a hub for foreign electronics manufacturing projects, the article said.

Companies that wish to shift to Vietnam benefit from continued exports from various markets, especially since it is an important partner in many free trade agreements (FTAs), it noted.

“With countries such as Singapore shifting, Vietnam is expected to benefit greatly,” the article stressed. “The strategic partnership between both countries allows new opportunities to open up in the digital and green economies.”

Vietnam is a dynamic market with a lot of potential especially since the country is seeing a steady increase in consumer expenditure, thanks to rising incomes.

Some business-friendly conditions and policies in Vietnam allow it to be a hotbed for foreign firms, including its consistent track record of economic and market growth, a young and skilled workforce, and close proximity to other emerging economies in East Asia.

Vietnam-Singapore Business Forum in Singapore, on February 10, 2023. (Photo: WVR/Nguyen Hong)

According to the article, these all encourage a healthy amount of foreign capital and make Vietnam stand out amongst Southeast Asian countries.

Vietnam-Singapore Industrial Park (VSIP) by Sembcorp, one of the earliest and most successful Singaporean projects in Vietnam, has become an icon in Vietnam-Singapore relations.

Regarding the ongoing visit to Singapore by Prime Minister Pham Minh Chinh, the article said through the visit, Vietnam is looking forward to strengthening its economic relations with Singapore.

This may also give way to expansion in other areas of cooperation such as the digital economy, regional and global supply chain connectivity, energy, and carbon credits.

Previous government-level MoUs signed between the two countries have so far enabled Singapore and Vietnam to seize new opportunities in the digital and green economy amidst the pandemic, and both countries can expect to benefit from this continued bilateral cooperation.

Prime Minister Pham Minh Chinh and Singaporean Prime Minister Lee Hsien Loong witness the signing of the Memorandum of Understanding between the Ministry of Industry and Trade of Vietnam and the Ministry of Industry and Trade of Singapore. (Photo: WVR/Nguyen Hong)

They both have a common goal when it comes to achieving net-zero emissions. It can be noted that Singapore is committed to doing its part in fulfilling the goals of the Paris Agreement, which is in line with Vietnam's goal of accelerating climate action, the article continued.

Given Vietnam's rapid urbanisation and growth, more investments would also allow for further development of urban areas, ports, expressways, and green energy.

The author suggested the two countries cooperate in different sectors to deepen their economic partnership, and step up people-to-people exchanges and multi-faceted connectivity in trade and investment, finance, transport, and tourism, as these ensure the continuous good progress that has already been achieved in existing industries.