Cooperation between Singapore and Vietnam would make Vietnam not just a land that attracts 'birds' but also 'phoenixes,' Pang Te Cheng, Consul General of Singapore in Ho Chi Minh City told Tuoi Tre News recently.

On March 12, Vietnam and Singapore elevated their bilateral ties to a comprehensive strategic partnership, opening more immersive opportunities for cooperation.

On this occasion, Consul General Pang sat down for an interview with Tuoi Tre News about his opinions and visions on the future of Vietnam and Singapore.

What does it mean for the Vietnam-Singapore relationship to upgrade in this context, and how do partnership models like this contribute to regional economic stability and peace?

Some observers regarded Southeast Asia as “only as a theater for great power contestation.” However, while small and middle powers may often feel there is nothing they can do in the face of great power competition, this is not true. Small and middle powers do have agency and can work together to influence and shape great power behavior through reinforcement norms, advocating principles, and diplomatic efforts.

In this context, ASEAN has a role, and ASEAN member states must work even closer together. For that, the model of the bilateral relationship between Vietnam and Singapore can spur on cooperation among other ASEAN states, and act as building blocks toward wider ASEAN cooperation.

We are both committed to upholding ASEAN centrality and strengthening ASEAN’s role in promoting a rules-based order, deepening regional economic integration and enhancing regional security.

For example, bilateral cooperation in the energy sector can contribute toward the construction of an ASEAN power grid, to create greater resilience in terms of regional energy security.

With growing concerns over tariffs affecting key export markets, many ASEAN countries are facing new trade challenges. In your opinion, is this the right time for ASEAN to prioritize and expand intra-regional trade?

ASEAN has always been pro-trade. As of 2024, intra-ASEAN trade accounts for approximately 22-25 percent of the region's total trade value, reflecting both significant growth and persistent limitations.

In absolute terms, trade within ASEAN has expanded dramatically, reaching approximately US$700 billion annually compared to just $38 billion in 1993. However, this proportion remains lower than other regional trading blocs such as the European Union, where intra-regional trade exceeds 60 percent of total trade.

And for now, we are at another inflexion point in world history. ASEAN’s convening power will remain important in the years ahead to ensure our region becomes a safe harbor able to bring all key players together, even when they don’t necessarily get along. To do so, ASEAN must continue to do well economically and to remain useful to external powers.

In my view, ASEAN should focus on taking advantage of the advances of e-commerce, in the context that the block is aiming to conclude the Digital Economy Framework Agreement (DEFA) this year.

Moreover, the recent global developments have highlighted the importance of supply chain resilience. These circumstances present an opportunity for ASEAN to deepen intra-regional trade integration as companies seek to diversify their supply chains and reduce dependency on any single market.

Following up with the global trends, the transition toward greener economies also presents opportunities for new forms of intra-regional trade, including in renewable energy technologies, sustainable agricultural products, eco-tourism services, and environmental goods and services.

Statistics show that bilateral trade between Vietnam and Singapore continues to grow year after year. What do you expect in this tendency? And what do you think about the potential for Vietnam to become a global manufacturing hub?

For Vietnam and Singapore, our robust economic collaborations form the cornerstone of our bilateral relationship. In 2024, Singapore was Vietnam’s top foreign investor, accounting for almost 30 percent of FDI inflow. This reflects the high level of confidence that Singapore businesses have in Vietnam’s economic potential.

During the period of January to August 2024, Vietnam’s exports to Singapore increased by nearly 60 percent year on year, demonstrating the growing interdependence of our economies.

Amid various global influences, trade relations between Vietnam and Singapore continue to grow. This demonstrates that the increase in trade is not only driven by the internal strengths of both countries but also by the advantage taken from international factors, such as the 'China + 1' strategy.

The Vietnam-Singapore Industrial Parks (VSIPs) stand as enduring symbols of our economic partnership. There are now 18 VSIPs across 13 provinces/cities in Vietnam. The VSIPs have helped to create more than 300,000 jobs and attracted more than $21.5 billion of foreign investment to Vietnam. 

For almost 30 years, the VSIPs have evolved from traditional industrial parks to integrated developments attracting high value-added industries, aligning with General Secretary To Lam’s vision of high-quality, sustainable development and Vietnam’s dual transition toward green growth and digital transformation.

All the above will help Vietnam enhance its competitiveness and attract the manufacturing companies from those regions with large manufacturing sectors, like Japan, South Korea, Taiwan, China, and even the EU and the U.S..

It is said that when the land is attractive, the birds will nest. But Singapore’s investment can help attract not just birds, but also phoenixes.

And it is expected that the upgrading of the bilateral relationship into a comprehensive strategic partnership will provide an enhanced framework to further broaden and strengthen cooperation between our two countries. 

How do you view Ho Chi Minh City's ambition to become a global port and logistics hub? Do you see this as competition with Singapore, or is there room for collaboration?

I applaud the ambitious, comprehensive, and strategic plans for Ho Chi Minh City to not only become an international port and logistics hub, but also an international financial hub. Over decades or even centuries, Ho Chi Minh City has played these hub roles for the regions in the current southeast of Vietnam and the Mekong Delta given its many advantages. It is a natural progression to extend its hub role internationally.

For the possibilities of competitiveness, Singapore has never been afraid of competition from other hubs like Hong Kong, Shanghai, Tokyo, and Shenzhen, among others. In fact, if the economic pie in Asia continues to grow, be it fast or slow, I can see greater synergy between Singapore and Ho Chi Minh City, creating more win-win situations.

Of course, Ho Chi Minh City will also have to compete with the other Asian hubs that I have mentioned, but each will compete on its unique strengths.

There are three key parts that can develop the city’s ecosystem as a whole for all three ambitions. First is hardware – the physical infrastructure like container ports, airports, and central business districts for financial institutions. 

The second – and more critical and challenging – factor is software, meaning manpower. The third is a policy overhaul, which involves optimizing every part of the value chain, streamlining customs clearance, adjusting foreign ownership caps, and more.

The city must prioritize a clean and green living environment while fostering coordination and recognition from the international community.

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