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Since 2020, Singapore has consistently ranked first among countries and territories investing in Vietnam. Its investors registered more than $8.994 billion in 2020, followed by $10.7 billion in 2021, $6.455 billion in 2022, $6.8 billion in 2023, $10.2 billion in 2024, nearly $9.4 billion in 2025 and $7.477 billion in the first four months of 2026.

Cumulatively, Singapore is Vietnam’s second-largest foreign investor, with more than 4,500 valid projects and total registered capital of $97 billion across various sectors including manufacturing, logistics, finance and high technology. The overall largest foreign investor in Vietnam is South Korea.

More than five decades since establishing diplomatic relations in 1973, Vietnam and Singapore have developed increasingly trusted political ties, closely aligned interests and dynamic cooperation, according to the Ministry of Foreign Affairs.

Political trust has been translated into practical cooperation, notably through the establishment of a Strategic Partnership in 2013 and its upgrade to a Comprehensive Strategic Partnership in 2025. This was reinforced by General Secretary of the Communist Party of Vietnam Central Committee and President To Lam’s visits to Singapore in 2025 and 2026, and Singaporean Prime Minister Lawrence Wong’s trip to Vietnam in 2025.

The official visit to Singapore by Politburo member and Standing Member of the Party Central Committee’s Secretariat Tran Cam Tu from Aug. 24 to 25, at the invitation of Singapore’s People’s Action Party, and his co-chairmanship of the first Vietnam–Singapore Strategic Dialogue further demonstrate the high level of political trust between the two parties and countries, providing a strong stepping stone for deeper bilateral cooperation.

The network of 28 Vietnam–Singapore Industrial Parks (VSIP) nationwide is a prominent symbol of successful cooperation. The latest one was the VSIP Da Nang project, which was approved by Da Nang city in July, covering nearly 250ha with total capital of about VND3.73 trillion (US$138 million) and a 50-year operating term.

Beyond VSIP, major Singaporean investors such as Mapletree, Keppel Land, CapitaLand, Banyan Tree, Grab, Shopee, UOB and KinderWorld have also established a strong presence in Vietnam and continued expanding their investments.

The strong investment flow also reflects close bilateral relationship, particularly since the two countries upgraded ties to a Comprehensive Strategic Partnership in March 2025.

Vietnam remained Singapore’s 10th-largest trading partner in the first seven months of 2026, with bilateral trade reaching nearly S$33 billion (US$26 billion), up 43.1% year on year, according to Enterprise Singapore.

Singapore’s exports to Vietnam, meanwhile, rose 9% to S$17.8 billion while its imports surged 126.8% to S$15.1 billion, highlighting the role of transshipment and re-export activities in their trade ties.

Economic experts said Vietnam’s appeal is also linked to Singapore’s role as a regional financial, logistics and investment hub where numerous investment funds and multinational corporations are based. Some capital registered as Singaporean investment is in fact international capital managed, channeled or invested through the city-state.

Economist Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy, noted that the two economies share a high degree of international integration and are among ASEAN’s leading economies in negotiating and signing bilateral and multilateral free trade agreements, creating a favorable framework for trade and investment.

An increasing number of Singaporean SMEs and startups are also entering Vietnam. While their projects may be smaller in scale, Singapore’s average investment capital is generally higher than the overall average for FDI projects in Vietnam, potentially creating opportunities for Vietnamese businesses.

Deputy Minister of Foreign Affairs Nguyen Manh Cuong said Tu’s visit is expected to generate substantive progress in three areas: strategic exchanges and coordination between the two parties, technological connectivity, and personnel training cooperation.

“We firmly believe that the visit by the Standing Member of the Party Central Committee’s Secretariat and the first Strategic Dialogue will provide fresh momentum, making the Vietnam–Singapore Comprehensive Strategic Partnership deeper, more effective and more sustainable, for the benefit of the peoples of both countries and a united and prosperous ASEAN,” Cuong said.