HANOI, VIETNAM â Singapore and Vietnam on Wednesday agreed to enhance cooperation in subsea cables, finance, and energy, marking an upgrade in their relations to Vietnams highest level, during a visit by its Communist Party Chief To Lam to the city-state.
Singapore is the third Southeast Asian nation, after Malaysia and Indonesia, with which Vietnam has established a comprehensive strategic relationship.
In a joint statement released following the upgrade, Lam and Singapores Prime Minister Lawrence Wong witnessed the exchange of six agreements and discussed cooperation in undersea cable development, digital connectivity, and cross-border data flows.
Southeast Asian countries, a major junction for cables connecting Asia to Europe, aim to expand their networks to meet the surging demand for AI services and data centers. Vietnam alone plans to launch 10 new submarine cables by 2030.
In December, Reuters reported that Singaporean asset manager Keppel and Vietnamese conglomerate Sovico Group were discussing plans for new undersea fiber-optic cables to boost the regions data center industry, according to sources familiar with the matter.
In April last year, Vietnams state-owned telecom company Viettel and Singapores Singtel announced a preliminary agreement to develop an undersea cable linking Vietnam directly to Singapore, although no construction contract has been announced yet.
The two leaders also discussed green development, industrial parks expansion, and peace and stability in the region. Singapore pledged to support Vietnam in developing international financial centers, the joint statement said.
Singapore ranks among Vietnams top foreign investors, having invested $10.21 billion last year, which accounted for 27% of Vietnams total foreign investment, official data showed.