Vietnam and Singapore have agreed to deepen cooperation in subsea cable infrastructure, finance, and energy, further elevating their bilateral ties. The agreement was reached during the visit of Vietnam’s Communist Party Chief, Tô Lâm, to Singapore on Wednesday, marking an upgrade to Vietnam’s highest level of diplomatic relations with the city-state.
Singapore is now the third Southeast Asian country—after Malaysia and Indonesia—to establish a comprehensive strategic partnership with Vietnam, reflecting their strengthened economic and technological collaboration.
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Expanding Cooperation in Digital Connectivity
According to a joint statement, Tô Lâm and Singaporean Prime Minister Lawrence Wong oversaw the exchange of six agreements, with a key focus on undersea cable development, digital connectivity, and cross-border data flow.
Southeast Asia is a crucial hub for submarine cable networks linking Asia and Europe. As demand for AI-driven services and data centers surges, regional countries are expanding their infrastructure to support digital growth. Vietnam, in particular, has ambitious plans to roll out 10 new submarine cables by 2030.
The Vietnam Singapore Industrial Park, which is one of the largest integrated townships and industrial parks co-initiated by the Singapore and Vietnam governments, and jointly developed by Sembcorp Development and Becamex.PHOTO: SEMBCORP DEVELOPMENT
In December, Reuters reported that Singapore-based asset manager Keppel and Vietnam’s Sovico Group were in discussions to develop new undersea fiber-optic cables, aiming to bolster the region’s data center industry. Meanwhile, Vietnam’s state-owned telecom firm Viettel and Singapore’s Singtel signed a preliminary agreement in April last year to build a direct undersea cable link between the two nations, though no construction contract has been finalized yet.
Broader Economic and Investment Cooperation
Beyond digital infrastructure, the two leaders also discussed green development, industrial park expansion, and regional stability. Singapore reaffirmed its commitment to supporting Vietnam in developing international financial centers, a key initiative for Vietnam’s economic growth.
Singapore remains one of Vietnam’s largest foreign investors, pouring in $10.21 billion in 2023, which accounted for 27% of Vietnam’s total foreign investment, according to official data.
With these new agreements, Vietnam and Singapore continue to strengthen their strategic partnership, paving the way for deeper economic, technological, and financial collaboration in the years ahead.
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