RCEP creates momentum for Vietnam - Singapore trade breakthrough

Trade Breakthrough

In the picture of bilateral cooperation between Vietnam and Singapore , trade has always been one of the main pillars, reflecting the depth and real effectiveness of the Comprehensive Strategic Partnership. In recent years, despite the volatile global economic context, the two-way trade turnover between Vietnam and Singapore has maintained a positive growth trend with outstanding highlights in both the structure of goods and cooperation potential.

In 2024, Vietnam will be Singapore's 11th largest trading partner with two-way import and export turnover reaching more than 31.67 billion SGD, equivalent to about 23.55 billion USD (at the beginning of 2025). Of which, Vietnam's export turnover to Singapore will reach about 20.8 billion SGD and imports from Singapore to Vietnam will reach about 10.87 billion SGD.

In the first 8 months of 2025, Vietnam's export turnover to Singapore reached 3.87 billion USD, up 11.7% over the same period. Notably, the group of computers, electronic products and components took the lead with 982.3 million USD, up 46.5% and accounting for 25.3% of the total turnover. The group of machinery, equipment, tools and spare parts reached 631.8 million USD, up 14.2%, accounting for 16.3%.

*Computers, electronic products and components lead Vietnam's export turnover to Singapore - Photo: An Dat*

According to Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade , Vietnam and Singapore have many advantages to promote trade relations. Vietnam is a diversified manufacturing country, supplying many products, while Singapore plays the role of a regional and world trade center. This complementarity helps Vietnamese goods easily access large markets through Singapore's modern distribution and logistics system.

The close geographical distance is also an important plus point that helps reduce transportation costs and shorten delivery times, increasing competitiveness for businesses on both sides. In addition, both Vietnam and Singapore are members of new generation free trade agreements such as the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership ( RCEP ). Participating in these FTAs opens up opportunities to exploit tariff incentives, expand markets and enhance the ability to deeply integrate in the global value chain.

In particular, preferential tariff policies and simplified customs procedures have significantly reduced transaction costs, shortened customs clearance times, and created a favorable business environment. Thanks to this, businesses from both countries have taken advantage of existing competitive advantages and have more motivation to expand the scale of cooperation.

"With strong growth momentum in recent times, and support from FTAs, Vietnam - Singapore trade relations in 2025 are forecast to continue to break through, opening up more development space for businesses of the two countries in the volatile global economic environment," Mr. Tran Thanh Hai emphasized.

"Springboard" for Vietnamese goods to access international markets

Previously, at the "Export Promotion Workshop to the Singapore Market" organized by the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) in collaboration with the Vietnam Trade Office in Singapore and the Singapore Business Association in Vietnam, Mr. Cao Xuan Thang, Trade Counselor, Head of the Vietnam Trade Office in Singapore, emphasized the special role of Singapore as a transit market and global trade hub. This is considered an important gateway for Vietnamese goods to access the system of international importers and retail groups, especially in the groups of agricultural products, frozen and processed seafood.

According to Mr. Thang, Singapore imports goods worth 400-500 billion SGD each year, but goods from Vietnam only reach about 8-9 billion SGD. Although Vietnamese rice and seafood are highly appreciated, many other products still face difficulties in terms of price, packaging as well as lack of Halal certification, a mandatory condition to penetrate the Muslim market.

In addition, Singapore applies a very strict control mechanism to imported food, testing samples on each shipment. However, overcoming this barrier means that Vietnamese goods can enter and expand their position in the global market.

*Ribbon cutting ceremony to open the Vietnam Pavilion at the Seafood Expo Asia Exhibition Fair at MBS Singapore - Photo: Vietnam Trade Office in Singapore*

To successfully and sustainably export to Singapore, Mr. Cao Xuan Thang believes that export enterprises need to proactively research market information, closely monitor fluctuations and new requirements from the importer to develop appropriate strategies. Change the approach to trade promotion , focusing on participating in international fairs in Singapore, strengthening connections with the Vietnam Trade Office and actively participating in global B2B connection programs to expand cooperation opportunities.

To accompany the business community, the Vietnam Trade Office in Singapore affirms that it will continue to regularly update the situation, mechanisms and policies of the locality, helping businesses to promptly grasp changes. At the same time, it will support businesses in connecting trade, organizing product displays, promoting product brands and business brands, thereby enhancing the presence of Vietnamese goods in Singapore.

In addition, the Trade Office also coordinates to support the export of goods to this market, and acts as a bridge for working delegations from Singapore to Vietnam to seek sources of goods and promote investment in the fields of industry, trade and services.

RCEP - The mega trade deal between all 10 ASEAN member states and five partners, China, Japan, South Korea, Australia and New Zealand, has created a free trade area covering nearly one-third of the world's population (2.3 billion people) and a cumulative GDP equivalent to about 30% of global GDP, making it the largest free trade area in the world in terms of population size.

Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/rcep-tao-dong-luc-but-pha-cho-thuong-mai-viet-nam-singapore.html

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