Vietnam, Singapore expand VSIP network, deepen next-generation economic cooperation

Vietnam and Singapore have agreed to deepen economic cooperation and expand the Vietnam-Singapore Industrial Park (VSIP) network, with five new VSIP projects receiving investment certificates during a state visit by Vietnam's top leader To Lam to Singapore.

The investment certificates were awarded in the presence of To Lam and Singapore Prime Minister Lawrence Wong during talks held as part of the Vietnamese Party chief and President's state visit and attendance at the Shangri-La Dialogue.

The new VSIP projects will be developed in Hue city, Nghe An province, Ninh Binh province, Hai Phong city, and Ho Chi Minh City, underscoring the continued expansion of one of the most successful symbols of bilateral economic cooperation.

The leaders also witnessed the exchange of agreements covering supply chain resilience, agricultural and food trade, the establishment of an advanced manufacturing research center between Becamex and Singapore's A*STAR, educational cooperation with Nanyang Technological University, and collaboration between the Communist Party of Vietnam and Singapore's People's Action Party.

The additional VSIP projects mark the latest phase in the development of the VSIP model, which is expected to reach 30 industrial parks by 2026.

Launched with VSIP I in Binh Duong province in 1996, the industrial park network has grown into a cornerstone of Vietnam-Singapore economic relations. As of 2025, Vietnam hosted around 20 VSIP projects covering approximately 12,000 hectares, attracting more than 1,000 companies from 30 countries and territories with total investment of about $23.4 billion.

Beyond serving as industrial parks, the VSIP projects have been viewed as a successful combination of Singapore's strengths in capital, management expertise, logistics and international connectivity with Vietnam's dynamic market, abundant workforce and increasingly important role in regional supply chains.

Technology and innovation drive future cooperation

During the talks, both leaders praised the strong performance of bilateral cooperation, particularly in trade and investment.

Two-way trade reached nearly $12 billion in 2025, while Singapore remained Vietnam's second-largest foreign investor with cumulative registered investment approaching $100 billion.

Building on these traditional pillars, the two countries agreed to expand cooperation into higher-value sectors, including technology, innovation and digital transformation.

The leaders reaffirmed their commitment to advancing the Vietnam-Singapore Green Economy-Digital Economy Partnership, particularly in areas such as clean energy connectivity, carbon credit trading, International Financial Center development and next-generation VSIP projects linked to high-tech industries and technology transfer.

Party General Secretary and President To Lam said science-technology, innovation and digital transformation are key drivers of economic growth and among Vietnam's priority areas for cooperation with Singapore.

The expansion of the VSIP network is expected to support a transition from traditional industrial parks toward greener, smarter and more technology-intensive industrial ecosystems.

Focus on resilient supply chains

The two sides also agreed to strengthen cooperation in supply chain resilience, including food security and energy security, while promoting greater connectivity in aviation, logistics and port infrastructure.

Alongside the VSIP agreements, the countries exchanged a joint declaration between Vietnam's Ministry of Industry and Trade and Singapore's Ministry for Energy and Science and Technology aimed at enhancing supply chain resilience.

The initiative comes as regional supply chains undergo restructuring and governments place increasing emphasis on economic security.

The expansion of the VSIP network is expected to reinforce these objectives by creating greater demand for integrated logistics, ports, aviation links, clean energy infrastructure and manufacturing support services across participating localities.

Officials said the broader cooperation framework would help elevate bilateral ties from a focus on investment attraction toward the development of more sustainable and resilient regional supply chains.

Following the talks, the two leaders agreed to direct ministries and agencies to accelerate implementation of the agreements reached, with the aim of deepening the Vietnam-Singapore Comprehensive Strategic Partnership and contributing to regional peace, stability and economic development.

Party chief and President To Lam invited Prime Minister Lawrence Wong to visit Vietnam in the near future, an invitation the Singaporean leader accepted.