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The Vietnam News

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Singapore sees ‘win-win' situation with Vietnam

HANOI - Singapore wants to help Vietnam accelerate its integration into the global economy, a move that will ultimately benefit the city-state, Singaporean Trade and Industry Minister Lim Hng Kiang said Tuesday.

"Vietnam is developing on its own, but at the same time if it links up with Singapore it can jump-start the process," Lim said in Hanoi on the final day of an official two-day visit by Prime Minister Lee Hsien Loong. "It is a win-win situation in the long term," he added. "We see huge benefits for Singapore being connected to the Vietnam dynamo."

His comments came a day after the two countries concluded bilateral negotiations for the communist nation's accession to the World Trade Organisation.Vietnam is hoping to join the Geneva-based body by the end of 2005. Under WTO rules, an applicant must reach an individual trade deal with any member that requests it and complete a package of reforms to bring it into line with international trade law.

Lim said the Singaporean premier's visit to Hanoi had provided an opportunity to flesh out the details of a joint cooperation pact signed in March to boost bilateral economic relations. He said this "Connectivity Concept" would help Vietnam tap into Singapore's infrastructure and expertise to improve its financial, transport, information technology, trade and services, investment and education sectors. This would enable Vietnam "to accelerate its growth" and also ensure Singaporean interests benefit in the long term once the Vietnamese economy surpasses that of the city-state, Lim added.

Singapore is Vietnam's second most important trading partner after the United States. Two-way trade reached US$3.9 billion last year, and totalled US$3.6 billion in the first six months of this year. The city-state is also the largest foreign investor in Vietnam, with total registered capital of around US$7.9 billion.

Agence France Presse - December 8, 2004


Connecting with Vietnam

HANOI - Even as Singapore and Vietnam went head-to-head on the football pitch last night in Ho Chi Minh City in the opening match of the Tiger Cup Asean Football Championship, leaders from both countries were in two-day talks on a framework trade agreement in Hanoi.

In an interview with the media yesterday following his introductory visit to Vietnam, Prime Minister Lee Hsien Loong said he expected trade ministers and officials from both countries to settle the connectivity framework agreement "within a couple of months". The pact would define the overall deal and include a timetable and action plan. Said Mr Lee: "All the leaders want to further strengthen our bilateral relations. Some say Singapore is a model for them, so I said we are very small but where our experience is relevant we are happy to share. I think they are serious about making the connectivity proposal work and we both stand to benefit."

The connectivity proposal was first broached by then-Prime Minister Goh Chok Tong during Vietnamese Prime Minister Phan Van Khai's visit to Singapore in March. At the time, the two countries inked a joint declaration for a "Comprehensive Cooperation Framework in the 21st Century".

On Monday, Mr Lee and his Vietnamese counterpart affirmed the potential of the project. He said Singapore had earlier submitted a more detailed proposal. "They have responded with a substantive and well thought-out position. My meetings with their prime minister, president, party secretary-general and the permanent deputy prime minister have shown that they all see this as the way forward," he said.

Elaborating on the area of tourism, Mr Lee said Singapore and Vietnam could "find a way to 'twin up' as destinations". With SilkAir flying to Danang in central Vietnam from Jan 3 next year, more tourism opportunities will open up. Around 35,000 to 40,000 Singaporeans visit Vietnam each year and vice-versa. Minister for Trade and Industry Lim Hng Kiang, who accompanied Mr Lee on the trip, said this figure is considered "very low" and has the potential to be "tripled or quadrupled".

Mr Lee also suggested another potential area for added connectivity: Education and, in particular, human resource development. He said: "We are suggesting the possibility that some of our commercial private schools could set up joint ventures in Vietnam, and run courses conducted partly in Singapore and partly in Vietnam. Demand is enormous because they want to learn English to link up with the rest of the world." Vietnam, which is trying to identify a promising company to list on the SGX, has also sent officials to learn from the Singapore Exchange.

Said Mr Lim: "Over time, the economy of Vietnam will grow to be bigger than Singapore's. Singapore would then be very happy to plug into Vietnam's development. It's a win-win situation in the long-term."

By Tor Ching Li - Today (.sg) - December 8, 2004