In the first 6 months of 2024, trade between Vietnam and Singapore has witnessed strong growth, especially in the field of goods exports. According to statistics, Vietnam’s export turnover to Singapore has achieved a significant growth of 2.49 billion USD, up 23.87% over the same period, thanks to the continuous efforts of both sides in promoting economic cooperation and expanding bilateral trade relations. Vietnam’s main exports to Singapore include computers, electronic products and components; machinery, equipment, tools, spare parts… In the opposite direction, Vietnam’s imports from Singapore reached 2.48 billion USD, down 0.79% over the same period last year with key import items including: petroleum of all kinds, computers, electronic products and components; cosmetic; Chemical…
In particular, information technology and electronic products have recorded impressive growth, demonstrating the increasing competitiveness of Vietnamese enterprises in this field. Many Vietnamese technology companies have made significant strides in accessing the Singapore market through the development of new products, the adoption of advanced technologies and the strengthening of research and development (R&D) activities.
In this context, Singapore has become one of Vietnam’s most important trading partners in Southeast Asia. Efforts to improve the business environment and strengthen diplomatic relations between the two countries have created a solid foundation for this development. The two countries have made the most of free trade agreements to minimize trade barriers, promote trade liberalization and create favorable conditions for Vietnamese goods to enter the Singapore market. In the first 6 months of 2024, the proportion of Vietnam’s goods exports to Singapore will account for 1.31% of Vietnam’s total goods export turnover to the world; the proportion of Vietnam’s imports of goods from Singapore accounts for 1.39% of Vietnam’s total import turnover of goods from the world.
In the context of deepening international economic integration, the prospect of exporting goods from Vietnam to Singapore in the second half of 2024 is forecast to continue to be positive. With a solid economic foundation, effective business support policies and a deepening strategic partnership, Vietnam and Singapore promise to continue to promote trade cooperation, open up new opportunities for businesses and contribute positively to the economic development of both countries.
Total bilateral trade turnover between Vietnam and Singapore in the period 2020-2023
Unit: Billion USD
Source: General Department of Customs
Singapore’s largest import markets for goods in the first 5 months of 2024 (Vietnam ranked 19th)
Unit: %
Source: Trademap.org
According to statistics from Trademap, in the first 5 months of 2024, Vietnam is Singapore’s 19th largest supplier of goods, accounting for 1.3% of Singapore’s total import turnover of goods, an improvement compared to the proportion of 1.13% in the same period in 2023. At the top of this list are Taiwanese markets, China, the United States, Malaysia, South Korea, Japan…
Meanwhile, according to data from the General Department of Vietnam Customs, the total two-way trade turnover between Vietnam and Singapore in 2023 will reach 9.09 billion USD, down 0.66% compared to 2022. In which, exports reached 4.38 billion USD, up 1.59% compared to 2022; imports reached 4.71 billion USD, down 2.66% compared to 2022. With this result, Singapore is currently the 20th largest export market of Vietnam in the world and the 6th largest in the ASEAN region.
Vietnam’s export turnover to Singapore in the period 2013 – 2023
Unit: Billion USD, %
Source: General Department of Customs
In 2023, export turnover to Singapore will reach 4.38 billion USD, accounting for 1.24% of Vietnam’s total export turnover. In which, the top are commodity groups such as: computers, electronic products and components (830.65 million USD); machinery, equipment, tools and other spare parts (781.48 million USD); other goods (432.56 million USD); means of transport and spare parts (372.75 million USD); glass and glass products (372.75 million USD); phones of all kinds and components (243.29 million USD)…
Monthly growth of goods exports from Vietnam to Singapore in 2024
Unit: Million USD, %
Source: General Department of Customs.
Particularly in June 2024, our country’s export turnover to Singapore reached 403.54 million USD, down 16.5% over the previous month but up 5.16% over the same month last year. Accumulated in the first 6 months of 2024, export turnover to Singapore reached 2.49 billion USD, up 23.87% over the same period last year.
Export turnover of some Vietnamese products to Singapore in the first 6 months of 2024
Source: General Department of Customs.
In the past 6 months, computers, electronic products and components are the items with the largest export turnover to Singapore, with a turnover of 503.83 million USD, up 39.97% over the same period in 2023, accounting for 20.2% of our country’s total export turnover to Singapore. In addition, crude oil, although it has a low export proportion of only 4.4% in the first 6 months of 2024, is a commodity with remarkable export growth in the first 6 months of 2024 with an export turnover of 109.64 million USD, up 316.47% over the same period. On the other hand, in 2023, Vietnam’s import turnover of goods from Singapore will reach 4.71 billion USD, down 2.66% compared to the previous year. In which, the main import groups include: petroleum of all kinds (1.82 billion USD); computers, electronic products and components (422.43 million USD); aromatics, cosmetics and hygiene products (398.41 million USD); other petroleum products (392.79 million USD); other food products (270.1 million USD)…
In June 2024, Vietnam imported from Singapore a total of 343.54 million USD, down 8.87% compared to the previous month and down 21.47% over the same month last year. Accumulated in the first 6 months of 2024, Vietnam imported from Singapore a total of 2.48 billion USD, down 0.79% over the same period in 2023. In which, petroleum of all kinds is the leading commodity in terms of import turnover of our country from Singapore in the first 6 months of the year with the import value in June 2024 reaching 116.58 million USD, up 15.9% over the previous month but down 49.11% over the same month last year; the import value of this item in the first 6 months of 2024 will reach 1.06 billion USD, down 4.42% over the same period last year, accounting for 42.69% of our country’s total import turnover of goods from Singapore.
Import turnover of some Vietnamese products from Singapore in the first 6 months of 2024
Source: General Department of Customs.
Promoting activities to promote our country’s exports to the Singapore market
For state management agencies, in order to promote Vietnam’s trade promotion to the Singapore market, state management agencies need to implement a series of strategic and synchronous measures. First of all, it is essential to develop a clear and flexible trade policy. The Government needs to develop and implement policies to support Vietnamese businesses in expanding the export market to Singapore, especially focusing on industries with great potential such as agricultural products, processed foods, textiles and garments, and information technology. Policies need to be designed to suit the trends and requirements of the Singapore market, thereby making it easier for Vietnamese businesses to access and maintain a presence in this market.
In addition, the establishment of trade representative offices in Singapore will play an important role as a bridge between Vietnamese businesses and Singaporean partners. These offices will be the place to provide market information, support administrative procedures, and solve problems arising in the process of trading. In addition, state management agencies need to regularly organize trade promotion events, fairs and exhibitions in Singapore to introduce Vietnamese products and services. Through these events, Vietnamese businesses have the opportunity to directly meet, exchange and find business partners, thereby promoting long-term and sustainable cooperation.
Another important measure is to strengthen cooperation with international trade organizations and industry associations in Singapore. State management agencies should promote the signing of memorandums of understanding, bilateral trade agreements, and strategic cooperation agreements with these organizations. This not only helps to reduce trade barriers but also opens up more opportunities for Vietnamese businesses to access the Singapore market more favorably. In particular, training programs and seminars on quality standards, food safety and legal regulations in Singapore will help Vietnamese businesses raise awareness and better prepare for exporting to this market.
In addition, state management agencies need to promote the application of information technology in the management and administration of trade promotion activities. Building an official e-commerce portal will help businesses easily look up information, connect with Singaporean partners and make online transactions effectively. In addition, state management agencies need to strengthen market research, thereby providing in-depth reports and analysis on consumer demand, trends and tastes in Singapore. This information will be an important basis for Vietnamese enterprises to build appropriate business strategies and optimize export activities.
Finally, strengthening dialogue, information exchange and close coordination between state management agencies, industry associations and businesses will create a favorable business environment and strongly support trade promotion activities. With strategic and drastic measures, state management agencies can fully contribute to improving the efficiency and performance of Vietnam’s exports to the Singapore market, thereby promoting sustainable economic development and enhancing Vietnam’s position on the international trade map.
For businesses, in order to grow Vietnam’s exports to the Singapore market, businesses also need to apply a series of strategic and innovative solutions to optimize their competitive advantage and expand market share in this market. First of all, businesses need to focus on improving product quality through improving production technology and applying international standards for safety and quality. Singapore is a demanding market with consumers who are highly conscious of the quality and origin of their products. Therefore, investing in technology and quality management systems will help Vietnamese businesses meet the strict requirements of this market, thereby creating trust and satisfaction from customers.
Next, businesses need to promote research and development (R&D) to launch new products in line with modern consumer trends in Singapore. This not only helps businesses maintain competition but also opens up many opportunities to access potential market segments. In particular, for industries such as agricultural products, processed foods, textiles and electronics, businesses need to focus on developing environmentally friendly products, with attractive packaging and suitable for the tastes of Singaporean consumers. Constant innovation will help businesses create added value for products, thereby increasing competitiveness and occupying the market.
Besides, building and developing a strong brand is an indispensable factor in the export growth strategy. Businesses need to invest in marketing and promoting their products through modern communication channels, trade events and international fairs in Singapore. This not only helps to enhance brand recognition but also differentiates itself from competitors. In addition, businesses need to actively seek and establish strategic partnerships with major distributors, supermarket chains and retail stores in Singapore to expand their distribution networks and bring products closer to consumers.
Another important solution is to optimize logistics processes and supply chain management to minimize transportation costs and delivery times. Businesses need to choose reputable shipping partners and apply information technology in warehouse management, thereby improving business efficiency and customer service. At the same time, taking advantage of free trade agreements between Vietnam and Singapore will help businesses reduce trade barriers, thereby creating favorable conditions for Vietnamese goods to access the Singapore market at a more competitive cost.
Finally, businesses need to focus on developing high-quality human resources, especially employees with international trade skills and good English communication skills. Organizing training, coaching and upskilling courses for employees will make it easier for businesses to build business strategies and carry out effective trade promotion activities in Singapore. With comprehensive and flexible solutions, Vietnamese businesses can completely improve their competitiveness, expand their export scale and achieve sustainable success in the Singapore market.
Regarding the orientation to promote trade relations between the two countries in the coming time: Within the framework of his visit and working visit to Vietnam in March 2024, Singapore’s Minister of Industry and Trade Tan See Leng had a meeting with Deputy Prime Minister Tran Luu Quang. At the meeting, Deputy Prime Minister Tran Luu Quang highly appreciated Singapore’s role as Vietnam’s leading investment and trade partner and also an important partner in efforts to achieve the net zero emission target by 2050.
In order to contribute to bringing the Vietnam-Singapore strategic partnership to continue to develop more deeply and substantively, the Deputy Prime Minister proposed that the two sides promote cooperation in new fields in line with world trends, such as: semiconductors, artificial intelligence, etc innovation, building free trade zones, developing the digital economy, green economy, carbon credits and the ability to establish legal support channels for investors.
Over the past time, Vietnam-Singapore relations have developed rapidly, achieving many good and comprehensive results. In 2023, on the occasion of the 50th anniversary of the establishment of diplomatic relations and the 10th anniversary of the establishment of the Strategic Partnership, the two countries signed a series of important cooperation agreements, including upgrading the Framework Agreement connecting the two economies and establishing the Vietnam-Singapore Digital Economy – Green Economy Partnership, etc opening up new opportunities to promote sustainable development cooperation between the two countries, especially cooperation in new fields such as energy transformation, digital economy, digital transformation, and green economy.
Source: thongtincongthuong.vn
