On 28 August 2023, the Singapore Ministry of Trade and Industry ("MTI") announced the conclusion of several agreements between Singapore and Vietnam which will further deepen their collaboration in the green economy, digital economy and innovation.
Upgrading of Bilateral Economic Partnership
Singapore and Vietnam have exchanged Side Letters effecting the Upgrade of the Framework Agreement on Singapore-Vietnam Connectivity ("CFA"). The Upgraded Connectivity Framework Agreement ("CFA") expands the scope of the bilateral economic cooperation between the two countries. This is the first upgrade of the CFA since its signing in 2005. The previous six sectors of cooperation have now been expanded to cover five pillars of cooperation in 11 areas, including (i) Energy Connectivity; (ii) Sustainability; (iii) Infrastructure; (iv) Digital and Innovation; and (v) Connectivity (Education, Finance, Information Technology and Telecommunications, Investment, Tourism, Trade and Services, and Transport).
Supporting Innovation Talent Exchange
Singapore and Vietnam also signed a Memorandum of Understanding on the Innovation Talent Exchange ("ITX") Programme. This will enable Singaporean professionals to be employed in eligible innovation-related work areas in Vietnam, and vice-versa. The qualifying criteria, application process and launch date of the ITX Programme will be circulated in due course.
Addressing Climate Change Challenges
In their bid to address climate change challenges, Singapore and Vietnam exchanged a letter of intent which emphasised the substantive conclusion of the negotiation of the Implementation Agreement pursuant to Article 6 of the Paris Agreement ("Implementation Agreement"). Both countries undertake to agree on the text of the legally binding Implementation Agreement and submit recommendations for the signing of this agreement. As stated in the Press Release, "[t]he Implementation Agreement seeks to unlock additional climate mitigation activities and will facilitate the transfer of Article 6-compliant carbon credits that are correspondingly adjusted between Singapore and Vietnam. This will enable both countries to meet their Nationally Determined Contribution (NDC) and open up a new stream of trading activity in Article 6-compliant credits."
