Vietnam-Singapore Relationship Prospects in 2025 and the Following Years
The relationship between Singapore and Vietnam is on an upward trajectory, with both countries deepening cooperation across various sectors. The recent upgrade to a Comprehensive Strategic Partnership in March 2025 marks a significant milestone in their collaboration[1][5].
Trade and Investment
Bilateral trade between Singapore and Vietnam is thriving, with a 28.5% year-on-year increase in the first half of 2025, surpassing SGD 19.5 billion (USD 15.3 billion). Singapore's exports to Vietnam amounted to SGD 13.9 billion (up 24.4%), while imports from Vietnam reached SGD 5.5 billion (up 40.1%). Singapore remains one of Vietnam's top economic partners, with approximately USD 84.14 billion in total registered investment capital from nearly 4,000 projects[5].
The growth of the Vietnam-Singapore Industrial Parks (VSIPs) has been a cornerstone of bilateral cooperation for almost three decades. The VSIP network now spans 20 parks across 14 provinces, hosting close to 1,000 projects and providing around 300,000 jobs[5]. The VSIPs are evolving into VSIP 2.0, emphasizing high-tech and green development, reflecting the shared focus on green growth and digital transformation[5].
Cooperation in Renewable Energy and Carbon Credits
While specific details on carbon credit trade or renewable energy projects under the bilateral agenda were not found, the emphasis on green development and the Digital-Green Economic Partnership suggests a strategic priority on sustainable energy and carbon reduction initiatives[5]. The VSIP 2.0 upgrade focusing on green development signals Singapore and Vietnam’s joint commitment to integrating renewable energy and environmental sustainability in their industrial and economic collaboration.
Subsea Cable Connectivity and Digital Economy
Although direct mentions of subsea cable projects were not found, the partnership's move towards deepening digital economy cooperation and high-tech development under VSIP 2.0 and broader digital-green economic collaboration implies plans to enhance digital infrastructure, which likely includes subsea cable connectivity enhancements to support data flow between the countries[5].
Defense and Strategic Cooperation
The Comprehensive Strategic Partnership extends significantly into defense, with enhanced bilateral visits, defense policy dialogue, military cooperation, maritime security, and specialized training for Vietnamese personnel hosted by Singapore[1]. This robust defense collaboration creates a solid foundation for political trust underpinning broader economic and strategic ties.
Future Direction
The future direction of Singapore-Vietnam relations is geared toward deepening economic integration with a strong spotlight on green growth, digital transformation, and infrastructure development, alongside continued strategic and defense cooperation. These trends collectively aim to strengthen both countries' roles in ASEAN and the broader regional economy[1][3][5].
Other Developments
Singapore is set to be the sixth-largest source of tourists in Vietnam, with a steady flow of people traveling between the two countries for tourism, work, and studies. Singapore's Innovation Talent Exchange Programme will enable young Vietnamese professionals to seek working stints in eligible innovation-related areas of work in Singapore, and vice versa[6].
Vietnam, under Party General Secretary Lam's leadership, is focusing on sustainable development, green growth, and digital transformation. Singapore continues to play a significant role in supporting Vietnam's human resource development, with over 22,000 officials having attended Singaporean courses, many of them conducted in Hanoi[7].
The two countries are finalizing an Implementation Agreement on Carbon Credits collaboration, aiming to unlock additional climate mitigation activities and enable both countries to meet their Nationally Determined Contribution[8]. During talks in Hanoi on March 26, Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong agreed on measures to enhance political trust and create new breakthroughs for the two countries' comprehensive strategic partnership[9].
Sources: 1. Vietnam-Singapore Comprehensive Strategic Partnership 2. Vietnam-Singapore Industrial Parks 3. Singapore-Vietnam Bilateral Trade 4. Singapore Remains Vietnam's Largest Source of FDI 5. Singapore-Vietnam Digital-Green Economic Partnership 6. Singapore-Vietnam Innovation Talent Exchange Programme 7. Singapore Supporting Vietnam's Human Resource Development 8. Singapore-Vietnam Carbon Credits Collaboration 9. Singapore-Vietnam Enhancing Political Trust
- Despite the focus on the growing economic partnership between Singapore and Vietnam, both countries also share a mutual interest in sports, with Singaporean professionals participating in sports-related activities in Vietnam and Vietnamese athletes training in Singapore.
- The upgraded Comprehensive Strategic Partnership between Singapore and Vietnam brings opportunities not only for economic collaboration but also for sports diplomacy, potentially leading to more athletic exchanges and cooperative sports initiatives.
