PM Lawrence Wong at the Virtual Groundbreaking of Vietnam-Singapore Industrial Park Thai Binh (Mar 2025)

Your Excellency Prime Minister Pham Minh Chinh
Excellencies and distinguished guests
Ladies and gentlemen

PM Chinh and I just had an excellent bilateral meeting earlier today where we witnessed the exchange of several MOUs that showcase the excellent ties between our two countries.

Now, we are delighted to witness the virtual groundbreaking of the Vietnam-Singapore Industrial Park, or VSIP, in Thai Binh province.

VSIPs – The Evolution

The VSIPs have been the cornerstone of our bilateral cooperation for almost three decades.

From the beginning, they have set the benchmark for industrial park development in Vietnam – providing international-standard infrastructure to investors and enabling them to operate seamlessly.

Over the decades, the VSIPs have continued to grow from strength to strength and it reflects Singapore’s confidence in Vietnam’s development potential.

Cumulatively, as you heard from the Prime Minister just now, Singapore is Vietnam’s second largest foreign investor, just behind Republic of Korea.

But last year, 2024, we were the largest foreign investor in Vietnam with over 10 billion US$ in foreign direct investments. So we may become number one cumulatively too. In the same year, our bilateral trade has been increasing, and all this reflects the increased cooperation we have with Vietnam economically.

In fact, two weeks ago, we elevated our bilateral relations to a Comprehensive Strategic Partnership, which encompasses not only the existing areas of the cooperation, but also emerging areas like digital innovation, the green economy, and high-tech value-added industries.

We will take reference from the CSP to evolve and update the next phase of visit development, or as PM Chinh says, to upgrade our VSIPs 1.0 to VSIPs 2.0. We just discussed (it) this morning and we agreed that we will look at how we can upgrade the VSIPs so that they are not just about industrial parks alone, but we will also cover other area including science and technology and even possibly urban areas.

VSIPs – The Next Phase

Let me share some ideas on what we can do as we think about the next phase of VSIPs.

First, we can build smarter VSIPs.

They will incorporate technology and innovation to better manage energy, water, waste, and traffic. This can lead to better efficiencies, better cost savings, and will also be better for the environment.

In fact when General Secretary To Lam visited Singapore, we had an exchange of an MOU on the development of technology-enabled industrial parks. This will be one key enabler for us to achieve smarter VISPs.

Second, we can build greener VSIPs.

We can strive to power our VSIPS with renewable energy.

In fact I heard that the toy company LEGO has a factory in VSIP Binh Duong III which will draw power from solar panels on its roof, as well as a nearby solar project. All of the factory’s energy requirements will be met by renewable power. This will be the first factory in VSIP Binh Duong III, and it will be carbon neutral. And this sets a good model for how we can develop greener factories, greener industrial parks. I’m sure there will be many more examples to come because companies everywhere want to decarbonise their supply chains and there is a great demand for green factories and green industrial parks which we are able to meet through upgraded VSIPs.

Thirdly, we can build more connected VSIPs.

Now we have 20 VSIPs, they form a useful network of industrial parks in Vietnam, which can be mutually supporting and have synergistic effect.

The key is to have good connectivity between the VSIPs.

For example, Thai Binh province is being linked by a highway to Lach Huyen Port. Once the highway is completed, this VSIP (Thai Binh) – which we are breaking ground for today – will be well-positioned to serve as a satellite industrial park, supporting existing large manufacturers in other surrounding VSIPs, while attracting investments in high-tech and advanced manufacturing industries.

So these elements of smarter VSIPs, greener VSIPs and a more connected VSIPs, can form part of our overall vision for upgraded VSIPs 2.0 which we will work closely with the Vietnam Government on.

VSIPs and Beyond

Beyond VSIPs, both PM Chinh and I agreed that there is still significant scope for us to work together to pursue sustainable and resilient growth.

For example we welcome the import of low-carbon energy into Singapore, which will be made possible through our renewable energy projects and the laying of subsea cables.

We also have been discussing an Implementation Agreement on Carbon Credits Collaboration between our countries.

We hope that these mutually beneficial collaborations will be able to make advancements in good time and will have the support of Vietnam’s central and local authorities.

Through these projects, we can also pave the way for wider initiatives like the ASEAN Power Grid (APG), which will improve the collective energy resilience of our region.

Finally, let me take this opportunity once again to thank PM Chinh and all stakeholders who have contributed to the development of the VSIPs, and the strong partnership between Vietnam and Singapore.

I am confident that our VSIPs will evolve with the times, and will continue to be centres of innovation, champions of sustainability, and strong pillars of the Singapore-Vietnam CSP.

So I wish VSIP Thai Binh every success and look forward to the continued fruitful partnership between Sembcorp and Becamex, and the flourishing of Singapore-Vietnam ties for many more years to come.

Thank you very much.