Vietnam, Singapore agree to expand VSIP network, boost cooperation on international financial center

The commitments were made during phone talks on Tuesday between Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong, as the two sides sought to further advance the comprehensive strategic partnership established in March last year.

During the talks, Chinh proposed prioritizing the expansion and upgrading of VSIPs toward a second-generation model integrating industry with services, high technology and eco-urban development.

The two leaders set a target of having 30 VSIPs in operation by 2026, marking the 30th anniversary of the launch of the first park under the model in Vietnam.

Wong reaffirmed Singapore’s confidence in Vietnam’s growth prospects and said Singaporean businesses would continue expanding investment in the country, including through additional VSIP projects.

He stressed that Singapore remains a reliable, long-term partner in the country’s development.

Another major topic of discussion was the recently established international financial center, comprising two facilities in Ho Chi Minh City and Da Nang.

Chinh called for closer cooperation in developing and operating the center in a practical and mutually beneficial manner, leveraging each side’s strengths to mobilize resources and promote shared development within ASEAN.

He suggested Singapore share its experience and policy expertise, and called for stronger coordination in developing financial and banking infrastructure, particularly digital systems, payment and cross-border settlement platforms, digital identification and cybersecurity.

He also encouraged Singaporean banks, investment funds and fintech firms to expand their long-term operations in Vietnam.

Welcoming Vietnam’s move, Wong said the success of an international financial center depends not only on physical infrastructure but also on sound institutions and a robust legal framework.

He affirmed that Singapore stands ready to support Vietnam in developing the center in an effective and sustainable manner.

Beyond industrial parks and financial cooperation, the two leaders noted strong growth in bilateral trade, with two-way trade in 2025 rising 12 percent from 2024.

Chinh suggested Singapore increase imports of Vietnamese agricultural products and effectively implement the memorandum of understanding on rice trade to help safeguard food security.

The two sides also agreed to step up cooperation in clean energy and advance joint projects under bilateral cooperation mechanisms, contributing to the ASEAN Power Grid initiative.

They pledged to enhance collaboration in carbon credit exchange as part of efforts to strengthen the Vietnam–Singapore green and digital economy partnership.

Defense and security ties were also discussed, particularly in combating transnational crimes such as drug trafficking, fraud, financial crime and cybercrime.

Chinh called on Singapore to continue supporting Vietnam in human resource development, particularly in training strategic-level leaders, expanding scholarships for Vietnamese students and promoting people-to-people exchanges.

He also suggested adding more direct air links between Singapore and major Vietnamese cities to boost tourism.

Both leaders underscored the importance of maintaining ASEAN unity and centrality in addressing regional challenges.

They also pledged close coordination in 2027, when Vietnam will host APEC and Singapore assumes the ASEAN chairmanship, to further deepen the comprehensive strategic partnership between the two countries.