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.