Building on decades of successful cooperation, the two countries are now looking to expand collaboration in high technology, digital transformation, green energy, and innovation-driven growth.
VSIP – A symbol of economic cooperation
More than five decades after establishing diplomatic relations, Singapore has become not only one of Vietnam’s leading economic partners but also a model of effective strategic cooperation within ASEAN.
In recent years, economic ties between the two countries have remained a bright spot, with the “Lion City” consistently ranking among the largest foreign investors in Vietnam.
According to Vietnamese Ambassador to Singapore Tran Phuoc Anh, Singapore is currently the second-largest investor in Vietnam, with more than 4,500 valid projects and a total registered capital of nearly US$97 billion.
In the first four months of 2026 alone, Singapore led newly registered foreign direct investment (FDI) into Vietnam with US$6.05 billion, accounting for 49.8 percent of the country’s total newly registered capital. In 2025, bilateral trade turnover between the two nations reached a record high of more than US$31.3 billion, up nearly 25 percent compared to 2024.
One of the most successful examples of Vietnam-Singapore economic cooperation is the Vietnam-Singapore Industrial Park (VSIP) network, described by leaders of both countries as a “beacon” of bilateral relations and a vivid symbol of effective economic connectivity.
Since the first VSIP project was launched in former Binh Duong Province, now part of Ho Chi Minh City, in 1996, the network has expanded to more than 20 industrial parks across 15 provinces and cities in Vietnam. Bac Ninh Province alone is home to two VSIP industrial parks, attracting hundreds of domestic and foreign investment projects.
Chairman of the Bac Ninh People’s Committee Pham Hoang Son said that the province currently hosts 236 active Singaporean projects with nearly US$18 billion in registered capital and is seeking to develop a third VSIP project.
Singaporean Ambassador to Vietnam Rajpal Singh expressed high expectations for the outcomes of General Secretary and President To Lam’s visit, saying Singapore aims to elevate bilateral economic relations with two key priorities: cooperation in the digital space and sustainable, green development. A special technology connectivity forum will also be held during the visit to connect digital enterprises from both countries and facilitate the signing of new agreements and projects.
Similarly, in Nghe An Province, VSIP Nghe An 1 has reached an occupancy rate of over 91 percent. At the end of May, local authorities approved the second phase of the Tho Loc Industrial Park project, developed by VSIP Nghe An with total investment capital of nearly VND688 billion (US$26 million). The province is also accelerating land clearance for VSIP Nghe An 3.
Meanwhile, authorities in Ninh Binh Province recently approved an investment policy allowing VSIP to develop infrastructure for the Ha Nam High-Tech Park project, covering 628 hectares with total investment of nearly VND5.99 trillion (US$228 million).
During a phone conversation with Vietnamese Prime Minister Le Minh Hung in April, Singaporean Prime Minister Lawrence Wong affirmed plans to expand the VSIP network, aiming to increase the total number of VSIP industrial parks in Vietnam to 30 by 2026, marking the 30th anniversary of the VSIP brand in Vietnam.
Alongside VSIP, major Singaporean corporations such as CapitaLand Group continue to expand their presence in Vietnam through large-scale residential and mixed-use projects in Hanoi and Ho Chi Minh City.
Promoting high-tech and green energy cooperation
According to Deputy Foreign Minister Nguyen Manh Cuong, General Secretary and State President To Lam’s state visit to Singapore carries special significance in concretizing the Comprehensive Strategic Partnership between the two countries.
As both nations seek to renew their growth models, the visit is expected to focus on deepening cooperation in science and technology, innovation, and digital transformation. Vietnam and Singapore are looking to expand collaboration in artificial intelligence, big data, semiconductor technology, smart cities, the digital economy, digital government and green transition, all strategic areas for Vietnam’s long-term development.
Technology and innovation connectivity initiatives, such as “Tech Connect,” are expected to lay a new foundation for broader and more effective bilateral cooperation.
Ambassador Tran Phuoc Anh noted that Singapore is one of Asia’s leading startup and innovation hubs. In recent years, many Singaporean investment funds have expanded their search for cooperation opportunities in Vietnam’s high-tech sectors.
Areas such as semiconductor chips, artificial intelligence, new materials, and space technology are attracting growing attention from both countries. At the same time, energy security and green transition have become key shared priorities.
Currently, an offshore wind power cooperation project between Vietnam and Singapore is being promoted to diversify energy supplies and support both countries’ commitments to achieving net-zero emissions.
