Singapore, Vietnam plan to connect ' resources

Singapore, Vietnam plan to connect ' resources

Associated Press, Hanoi, Vietnam

Singapore and Vietnam are hammering out an agreement that would allow each country to tap into the other's resources, an official said on Tuesday.

The proposal would initially benefit Vietnam more by allowing the communist country to use Singapore's well-established infrastructure in areas such as transportation, telecommunications and finance, said Singapore Minister of Commerce and Industry Lim Hng Kiang.

But he said Singapore also sees a lot of potential gains from such a deal with Vietnam, which has a country of 82 million people and posted 7.6 percent growth this year, according to government figures.

"We recognize that Singapore is very small and over time the economy of Vietnam will grow much bigger ... and if the economy here attracts more investments and develops, then Singapore would be very happy to plug into the Vietnamese economy," he said.

The proposal was first discussed in March this year, and Lim said the plan could begin soon.

He said the two countries have agreed to increase air links, including the possible addition of Singaporean budget airlines that are keen on adding Ho Chi Minh City to their routes.

Lim's comments come as Singapore Prime Minister Lee Hsien Loong pays a two-day visit to Hanoi.

On Monday, Singapore negotiated a bilateral agreement with Vietnam in its bid to enter the World Trade Organization (WTO) by the end of next year. Vietnam must iron out agreements will all 147 members of the global trading body before it can join.

Singapore is Vietnam's largest investor and has pumped US$7.8 billion into the communist country since 1998.

Two-way trade is also rapidly growing, totaling $3.6 billion for the first half of this year, compared to $3.9 billion for all of last year.