As General Secretary and President To Lam prepares to visit Singapore from 29–31 May, the visit takes place amid a rapidly evolving global economic environment. Supply chain adjustments, economic uncertainties, energy market volatility and evolving regional dynamics continue to reshape the business landscape across Asia and ASEAN.
Against this backdrop, the relationship between Singapore and Vietnam has become increasingly important not only for bilateral economic cooperation, but also for ASEAN’s broader connectivity, resilience and long-term growth.
Over the past decade, Singapore and Vietnam have steadily expanded cooperation into areas such as trade, investment, digital transformation, green growth, and regional cooperation. Today, the two countries represent complementary strengths within ASEAN: Singapore as a leading financial, logistics and innovation hub, and Vietnam as one of Asia’s fastest-growing manufacturing and digital economies.
Economic cooperation remains a key pillar of bilateral relations.
Singapore is currently one of Vietnam’s leading economic partners and among the largest foreign investors in the country. As of early 2026, Singaporean investors maintained approximately 4,463 active projects in Vietnam with total registered capital reaching around US$91.6 billion, accounting for more than 17 per cent of Vietnam’s total foreign direct investment inflows.
The momentum has continued into 2026. In the first two months of the year alone, Singaporean companies registered more than US$1.48 billion in new investments in Vietnam, an increase of nearly 28.5 per cent year-on-year, reflecting continued confidence in Vietnam’s long-term growth prospects, manufacturing capabilities and evolving investment environment.
A defining symbol of bilateral economic cooperation is the Vietnam-Singapore Industrial Park (VSIP) network. After nearly three decades of development, the VSIP system has expanded to 22 industrial parks across Vietnam with the number expected to rise to 30 by the end of 2026.
Covering approximately 12,000 hectares, the VSIP network has attracted more than 1,000 companies and generated around US$23.4 billion in investment capital. Beyond serving as major FDI hubs, the industrial parks have played an important role in technology transfer, industrial upgrading, workforce development and the broader industrialisation of Vietnam’s provinces.
Trade relations between the two countries have also strengthened considerably in recent years.
In 2025, bilateral trade has continued to expand, reaching nearly S$40 billion, up 26.2 per cent compared with 2024, making Vietnam Singapore’s 10th-largest trading partner globally. Particularly notable was Singapore’s imports from Vietnam, which rose by more than 53 per cent to around S$13.1 billion.
The upward trajectory has continued this year. In the first quarter of 2026, bilateral trade reached approximately S$13.6 billion, an increase of 38.3 per cent year-on-year. Singapore’s imports from Vietnam surged by nearly 129 per cent during the same period, supported by growing demand in sectors such as electrical machinery, energy, petroleum products, advanced manufacturing and mechanical equipment. These industries are increasingly linked to high-tech manufacturing, artificial intelligence infrastructure and the ongoing restructuring of global supply chains.
The growing economic relationship between Singapore and Vietnam reflects a shared ambition to play an increasingly important role in ASEAN’s next phase of economic transformation, particularly in sectors such as digital economy, green transition, advanced manufacturing, smart logistics and emerging technologies.
Beyond economics, both Singapore and Vietnam continue to support regional cooperation, openness and ASEAN connectivity. In an increasingly interconnected and uncertain world, stronger partnerships among ASEAN member states will remain important for sustaining regional resilience and long-term economic development.
Singapore and Vietnam also share strong interests in maintaining open trade, supporting international cooperation and encouraging stable business environments that facilitate investment and cross-border economic activity.
As ASEAN moves through a more uncertain global environment, partnerships among forward-looking member states will become increasingly important. Through economic complementarities, pragmatic cooperation and long-term strategic engagement, Singapore and Vietnam are well positioned to contribute positively to ASEAN’s future growth and regional integration.
General Secretary and President To Lam’s upcoming visit therefore represents an important opportunity to further strengthen bilateral cooperation and deepen economic connectivity between the two countries in the years ahead.
Note: This article is based on publicly available information and market observations. It is intended solely for general business and market commentary purposes and does not constitute political, legal or investment advice.