Speech And Toast By Singapore President S R Nathan At The State Banquet Hosted By His Excellency Tran Duc Luong, President Of The Socialist Republic Of Vietnam At The Presidential Palace, Hanoi,

Your Excellency Mr President Tran Duc Luong & Madam Luong

Distinguished Ladies and Gentlemen

Thank you Mr President for your very kind words and the expressions of friendship and goodwill to my country and my people.

Indeed, my visit is taking place at the auspicious time of the Lunar New Year celebrations in your great country - a time when you visit friends and relatives to share the joy of the occasion and to wish each other good fortune and prosperity. This is indeed a time for new hope for a better future. As a visitor during this period of celebration, I bring to you much good wishes in abundance for your growth, prosperity and success in your efforts at national construction. This, I do, on behalf of the Government and people of Singapore - to you, Mr President, and through you, to the Government and people of Vietnam.

Permit me to also take this opportunity to thank you and the Government of Vietnam for the warm welcome and gracious hospitality extended to myself, my wife and members of my delegation.

Excellencies

Ladies and Gentlemen

Vietnam and Singapore have had very different histories. Vietnam has had to struggle long and hard for its independence, repeatedly and oftentimes bitterly, during its long history of more than 2000 years. For Singapore, independence was thrust upon us unexpectedly, 35 years ago. Our two countries have, both by choice and because of our different circumstances, taken different paths of political and economic development.

But despite our different pasts, Vietnam and Singapore share a common aspiration - to give our people a better future. We can and must work together to better confront the many common challenges of a fast changing world.

Since opening up to the international economy with the doi moi policy, Vietnam has achieved significant economic progress. It has brought about encouraging signs of moving towards a more market-oriented and efficient economy which international investors are monitoring closely.

Still, the struggle is not over. Economic development is a marathon with no end, more so in a globalised world. A continuing challenge is how to remain relevant in the rapidly evolving international economy. We cannot foretell, nor prevent, a future regional crisis. But we can take steps to better withstand one. We must press on with economic re-structuring and reforms. Above all, we must find ways of constantly enhancing our economic growth, in what will be a highly competitive world.

As fellow members of ASEAN, we must also help each other, and help ASEAN succeed in this new era of globalisation and rapid techological change. The key challenge facing us is one of adaptation within increasingly unforgiving time frames. Reaction times have been drastically shortened as the flow of information and capital becomes ever more fluid.

Strong and determined political leadership will therefore be needed to persevere with economic reform under these ever more complex new global conditions. Yet the New Economy requires a more flexible approach to governance. Opening up to the world economy inevitably changes the nature of state authority. Herein lies the paradox and challenge of the age of IT and globalisation. But there is no alternative if we are to harness globalisation for the benefit of our peoples. We must be bold, or we risk being bypassed.

A major political challenge for all of us will therefore be to plug into the global economy, while preserving the strength and stability of domestic institutions. Maintaining this balance will not be easy. But I am confident that Vietnam will succeed. With a robust, hardworking and talented people eager to learn, your battle is already half won. By working together, Singapore and Vietnam can increase the odds in our favour.

Excellencies

Ladies and Gentlemen

Relations between our countries have indeed expanded rapidly over the last decade. As you have said, Mr President, regular exchanges of visits between our leaders and officials have forged close links. It demonstrated our willingness and even determination to promote mutually beneficial co-operation for the prosperity of our countries and peoples. Besides endeavouring to do so bilaterally, we have also worked well together within ASEAN and other international fora. My visit is an affirmation of this fact and the warm and growing ties between our two countries.

Vietnam is an important investment destination and trading partner of Singapore. We are one of your top investors and trading partners. Bilateral trade increased by sixty percent in just the last two years to hit S$5 billion in 2000.

Singapore is a small country. But we will, within our limited capabilities, continue to share our developmental experience with Vietnam and intensify bilateral technical cooperation, especially in IT, education, skills development and worker training - the key factors of competitiveness in the New Economy. This is to our mutual benefit.

ASEAN is the foundation upon which the partnership between Singapore and Vietnam stands. Both of us have much at stake in a cohesive Southeast Asia.

But ASEAN is itself under stress. Political and economic difficulties in several Southeast Asian countries continue to fuel negative perceptions of ASEAN. This is a reality that we cannot ignore. By contrast, Northeast Asia is now a more attractive destination for investors. ASEAN must take bigger and bolder steps forward to remain competitive.

At the 4th ASEAN Informal Summit in Singapore last November, our leaders agreed on a clear long-term direction for closer regional integration. We must integrate our markets, narrow the divide between old and new members, and intensify our cooperation, particularly in sectors critical to our competitiveness, such as transport and telecommunications.

Our leaders also agreed at the Informal Summit on an Initiative for ASEAN Integration. It will be a framework to accelerate the integration process, with the more developed ASEAN members as well as our dialogue partners helping the other members. Under this Initiative, my Prime Minister has committed to a five-year programme to provide assistance in human resource development to Vietnam and the other newer ASEAN members.

It was in Hanoi that ASEAN launched the Hanoi Plan of Action in 1998 to implement the ASEAN Vision 2020. Vietnam, as current Chairman of the ASEAN Standing Committee, has identified integration as a key priority for ASEAN. Vietnam is therefore in a position to play an important leadership role to help move this integration process forward and demonstrate tangible progress in the Hanoi Plan of Action.

It is with such aims that we seek to work together with Vietnam in a strategic partnership - Vietnam, a newer ASEAN member on the Southeast Asian mainland, and Singapore, an older ASEAN member in archipelagic Southeast Asia - to push ASEAN integration forward. This partnership is good for Vietnam, good for Singapore and good for our entire region.

My visit to Vietnam, coming at this time, and as my first State Visit, is therefore also an affirmation of Singapore's commitment to the ASEAN integration process, and a reflection of the priority that Singapore attaches to ASEAN, and its growth and prosperity, in which we both have a stake. By working together, our two countries can achieve significant progress in reviving positive perceptions of ASEAN and accelerate the integration process. We know that Vietnam stands ready to do so, and Singapore stands committed to this task.

Excellencies

Ladies and Gentlemen

May I now invite you to rise and join me in a toast

- to the success and prosperity of Vietnam;

- to the friendship and close relationship between Vietnam and Singapore;

- to the prosperity, stability and progress of all ASEAN nations; and

- to the good health and well-being of Your Excellency Mr President and Mdm Luong.

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