The agreement 'enhances bank supervisory cooperation between the two authorities, and deepens banking sector linkages between the two economies,' a statement by the Monetary Authority of Singapore (MAS) said.

In late 2005, both countries signed an agreement to develop 'economic connectivity' in various areas, including finance.

Under that agreement, MAS said it was working closely with relevant Vietnamese authorities to support the efforts of Vietnamese companies to tap international capital markets.

Almost a year ago, the two countries signed a memorandum of understanding to foster closer ties between their stock exchanges. -- AFP