Vietnam and Singapore’s Vision for Green, Smart, and AI-Based Industrial Parks

Overview of the Initiative

Vietnam and Singapore are embarking on an ambitious journey to create the next generation of Vietnam-Singapore Industrial Parks (VSIPs) that emphasize sustainability, digital transformation, and social responsibility. This initiative was highlighted by Vietnamese Prime Minister Pham Minh Chinh during the inauguration of the VSIP Thai Binh project on March 26. The endeavor aims to foster mutual sustainable economic growth while leveraging the complementary strengths of both nations.

Inauguration of VSIP Thai Binh

At the groundbreaking ceremony for the 333-hectare VSIP Thai Binh, which has attracted an investment of over VND4.9 trillion (approximately US$193 million), Prime Minister Chinh praised the success of prior VSIP projects. The establishment is seen not just as an industrial area but as a shining example of the solid partnership between Vietnam and Singapore. Chinh expressed a desire for future projects to be innovative, environmentally friendly, and fully optimized for modern demands.

Importance of High International Standards

Prime Minister Lawrence Wong of Singapore characterized the VSIP initiative as a “cornerstone” of bilateral cooperation over the past three decades. These industrial parks have consistently adhered to high international standards, particularly concerning their infrastructure. Wong emphasized that this is a reflection of Singapore’s confidence in Vietnam’s future economic potential. He noted that the successful cooperation in trade and investment has significantly reinforced the growing relationship between the two countries.

Comprehensive Strategic Partnership

The upgraded Comprehensive Strategic Partnership between Vietnam and Singapore extends beyond traditional cooperation to include vital emerging fields such as innovation, digital economy, green economy, and high technology. Both leaders discussed the need to develop smarter industrial parks that optimize costs while prioritizing renewable energy and environmental sustainability. Wong cited the Lego factory in VSIP Binh Duong as a successful example of green production, powered by solar energy, aligning well with global shifts toward sustainable practices.

Future Connectivity and Economic Opportunities

Once linked by an expressway to Lach Huyen Port in Haiphong, VSIP Thai Binh is poised to attract high-tech investments and support large factories in the region. With a strategic focus on industries like electronic components, precision engineering, and renewable energy, the park is designed to meet stringent environmental standards and develop an efficient manufacturing ecosystem.

Strengthening Bilateral Relations

During talks, Chinh and Wong committed to deepening political trust and achieving breakthroughs in their strategic partnership. They agreed to finalize the 2025-2030 Action Plan, which outlines new areas of cooperation and enhances existing mechanisms, particularly through annual ministerial meetings. This collaboration is especially significant as defense and security ties are also set to improve, focusing on cybersecurity and regional stability.

Economic Connectivity Framework

The two leaders emphasized the importance of their economic ties, leveraging frameworks such as the Vietnam-Singapore Economic Connectivity Agreement and the Green Economy-Digital Economy Partnership. Their objective is to make the Vietnam-Singapore partnership a regional reference in terms of economic cooperation and innovation. To this end, a unified approach—dubbed the “six better” approach—was proposed to enhance political trust, strengthen economic connectivity, and promote technological innovation.

Collaborative Agreements

Significant cooperation documents were signed during the meeting, marking a new phase in collaboration between the two nations. These included a letter of intent for an Action Program for the Comprehensive Strategic Partnership and additional agreements addressing cross-border electricity trade, digital innovation, and various investment initiatives. Notably, MoUs were established for enhancing QR code payment systems and developing integrated agricultural value chains by partnering with institutions like Nanyang Technological University.

Symbol of Long-term Partnership

Vietnam’s rapid adoption of Singapore’s industrial model has resulted in 20 successful VSIPs, showcasing effective cooperation between the two governments and their business ecosystems. This partnership serves as an emblem of long-term collaboration driven by mutual interests, facilitated by innovative industries that boost economic activity and societal benefits.

Commitment to Regional Cooperation

In terms of broader regional affiliations, both prime ministers reaffirmed their commitment to ASEAN unity and sustainable development in sub-regions like the Mekong Delta. They agreed on maintaining a cohesive stance regarding the East Sea (South China Sea) to ensure freedom and maritime safety, reflecting shared regional responsibilities and adherence to international law.

The partnership between Vietnam and Singapore is not just about economic growth; it’s about building a sustainable, smart infrastructure that resonates in the local and global context. Through these efforts, both countries are poised to set a benchmark for collaborative innovation that enhances their positions in the international arena.