Singapore, Vietnam to boost economic ties

Singapore, Vietnam to boost economic ties

Agence France-Presse, Singapore

Singapore and Vietnam on Tuesday called for a further intensification of trade and investment ties after signing a joint cooperation pact during the visit of Vietnamese Prime Minister Phan Van Khai.

Bilateral trade amounted to S$3.53 billion in 2003 and the city-state is Vietnam's largest foreign investor with S$7.4 billion committed to the country.

Both sides see further potential for growth after the cooperation agreement was signed on Monday.

"What we have achieved is not commensurate with the two countries' potential," Phan said in a keynote address on Tuesday to the Vietnam-Singapore Business Forum.

"Singaporean investors are always welcomed to Vietnam, especially in areas that Vietnam has great demand and Singapore has advantages, such as infrastructure, information technology, real estate, tourism, manufacturing, processing and export industries," he said.

Singapore's Trade and Industry Minister George Yeo, who also spoke at the forum, said Singapore was eager to further tap the business potential offered by Vietnam, which has achieved rapid economic progress following reforms initiated almost 20 years ago.

"Our investments into Vietnam are showing no sign of slowing down," Yeo said.

"We in Singapore are optimistic about the improving business, trade and investment prospects in Vietnam," he said.

Phan also met with his Singaporean counterpart Goh Chok Tong on Monday.

"They agreed that it was important for both countries to take advantage of their economic complementarities for mutual benefit," said a statement from Goh's office.

"They also exchanged various ideas on further strengthening the partnership between Singapore and Vietnam."

Phan's visit to Singapore will end Wednesday. He will proceed to Malaysia for talks with Prime Minister Abdullah Ahmad Badawi.