Vietnam’s exports to Singapore surge 124.2% in eight months

Statistics show two-way trade between Vietnam and Singapore reached SGD37.6 billion (US$13.4 billion) in the reviewed period, representing a year-on-year rise of 44.9% and keeping the former as the latter's 10th-largest trading partner.

Of the total, Singapore imported SGD17.1 billion worth of goods from Vietnam, up 124.2%, while its exports reached SGD20.5 billion, an increase of 11.8%, giving it a trade surplus of SGD3.3 billion.

In August alone, two-way trade hit nearly SGD4.6 billion, up 59% year on year, with Singapore’s imports amounting to nearly SGD2 billion, up 106.3%.

Machinery, electrical equipment and parts were Vietnam’s largest export category to Singapore, bringing back SGD8.6 billion, up 121.1% and accounting for 50.1% of Singapore’s total imports from Vietnam.

In the opposite direction, machinery, electrical equipment and parts, together with fuels, petroleum and distillation products, continued to be Singapore’s two leading export groups to Vietnam.

Vietnamese Trade Counsellor to Singapore Cao Xuan Thang attributed the growth in bilateral trade to Singapore’s positive economic performance.

Singapore’s Ministry of Trade and Industry has raised its full-year GDP growth forecast from 2-4% to 4.5-5.5%, citing positive first-half performance and a more favourable outlook driven partly by global investment in artificial intelligence (AI).

According to Thang, global AI investment is boosting electronics exports, re-exports, specialised machinery and regional trade. In this context, Vietnam is both a major destination for electronics and machinery transshipped through Singapore and an increasingly important supplier to the market.

Vietnamese businesses were also advised to pay close attention to customs declaration requirements. On September 10, Singapore Customs reminded traders and importers to ensure accurate and complete declarations for seafood, fruit and vegetables after detecting cases of undervaluation.

Individuals making inaccurate declarations may face fines of up to SGD10,000 or an amount equivalent to the total import duty and Goods and Services Tax payable, whichever is higher, as well as possible imprisonment of up to 12 months.

The Vietnam Trade Office also advised businesses to comply with import licensing, quarantine and food safety requirements to reduce the risk of customs clearance delays and additional costs.

Vietnam witnesses surge in Singapore investment inflows

Alongside growing strategic trust between the two countries, Singaporean investment in Vietnam has surged in recent years, giving the city state the first place among 69 countries, territories investing in Vietnam over the past seven months with US$7.5 billion, accounting for 35.6% of total registered investment.