Speech By Mr Lee Hsien Loong,Prime Minister, at Official Dinner hosted in honour of the Prime Minister of Socialist Repulic of Vietnam, Mr Nguyen Tan Dung, 13 August 2007

Your Excellency Prime Minister Dung,
Distinguished guests,
Ladies and Gentlemen

1. Let me extend a very warm welcome to Prime Minister Dung and his delegation to Singapore. I am delighted to have the opportunity to reciprocate the warm hospitality I received during my visits to Vietnam last year. I understand that you have been to Singapore many times before. But this is your first visit as Prime Minister and your presence this evening underscores the strong friendship between our two countries.

2. First, I would like to congratulate Prime Minister Dung on your re-election. Under your leadership, Vietnam has continued to make significant progress. The economy is growing rapidly and being transformed day by day. In January this year, after almost 12 years of negotiations, Vietnam joined the World Trade Organisation (WTO). This will open up many investment opportunities, and provide a further boost to Vietnam's growth and development.

3. Singapore and Vietnam enjoy close economic cooperation. We are one of the top trading partners of Vietnam, and its second largest investor. This afternoon, Prime Minister Dung and I had a comprehensive and fruitful discussion on how we can further strengthen the relationship. It has been two years since we signed the Connectivity Agreement, which provides the overarching framework for cooperation in six broad sectors - finance, education, transport, IT, investment, and trade and services. But as Vietnam moves ahead, and our scope of cooperation widens, we need to keep the Connectivity Agreement updated and relevant. I am therefore happy that both sides have agreed to broaden the Connectivity Agreement to cover two new sectors - port and logistics, and urban infrastructure - where there is significant potential for our private sectors to work together, and leverage on each other's strengths. Prime Minister Dung also suggested establishing a Joint Steering Committee, led by our Ministers, to oversee and provide high-level political support for our cooperation projects. I fully support this idea, and am encouraged by his commitment to accelerate the approval of our investments in Vietnam.

4. Besides new areas of cooperation, we are strengthening existing areas, especially in the development of industrial parks. Our flagship project, the Vietnam-Singapore Industrial Park (VSIP), is doing very well, and has since spawned an offspring in VSIP II. This second industrial park is not yet ready, but nearly all of the space has already been taken up by investors. This afternoon, Prime Minister Dung and I witnessed the launch of another industrial park in Bac Ninh province. All these activities reflect our companies' confidence in Vietnam's potential.

5. We also have good cooperation in other fields. Cultural exchanges are increasing. The "Duyen Dang Vietnam" (or Charming Vietnam Gala) will be held at the Esplanade this weekend, with performances that highlight Vietnam's unique and rich culture. People-to-people ties are on the rise with a steady increase in two-way travel. Our educational interactions are also set to grow after the recent signing of the MOU on Education Cooperation. Singapore is happy to share our experience in teacher training for English, which will help Vietnam further plug itself into the international community. We will also increase the number of ASEAN scholarships awarded to Vietnam. 200 Vietnamese students are currently studying in our universities on scholarships, and we look forward to welcoming more of them here.

6. Beyond our bilateral relationship, Vietnam and Singapore also cooperate in regional and international forums such as ASEAN, APEC, ASEM and the UN. Within ASEAN, there is scope for Singapore and Vietnam to do more together to promote closer regional integration. Singapore has just taken over the Chairmanship of ASEAN. We hope to work closely with Vietnam as we prepare for the ASEAN Summit in November, especially on major initiatives like the ASEAN Charter and the blueprint for the ASEAN Economic Community.

7. Prime Minister, the strong and dynamic partnership between Singapore and Vietnam is an ongoing success story. Our strong ties are rooted in common interests and shared perspectives. The bonds of friendship and understanding between our leaders and our peoples have grown significantly over the years. Let us keep up the momentum and nurture this relationship for mutual benefit.

8. Distinguished guests, ladies and gentlemen, may I now invite you to rise and join me in a toast to the good health and success of Your Excellency Prime Minister Dung, the peace and prosperity of Vietnam, and the continued friendship between our countries.