Singapore, Vietnam commit to keeping trade flows open; to avoid restrictions on rice trade

SINGAPORE – Singapore and Vietnam will maintain unimpeded trade flows to keep their markets open and connected, the two countries said in a joint statement on May 29. 

They will also ensure that their airports, seaports and critical trade infrastructure remain operational to minimise trade disruptions.

The two ASEAN countries also pledged to enhance mutually beneficial cooperation in food security, through the swift implementation of an agreement signed in 2025 that ensures a stable and sustainable supply of rice during global supply chain disruptions.

The joint statement was issued by Singapore’s Minister-in-charge of Energy and Science & Technology Tan See Leng and Vietnam’s Minister of Industry and Trade Le Manh Hung.

It came during Vietnamese President To Lam’s four-day state visit to Singapore, where he also witnessed the exchange of a number of agreements to deepen collaboration between the two countries.

The two ministers said they recognised that the conflict in the Middle East has had significant repercussions beyond the region, including on global energy markets and supply chains.

Singapore and Vietnam then reaffirmed their commitment to work closely together to manage the impact of the developments on their region, in the light of a growing bilateral economic footprint.

Merchandise trade between the two countries was US$31.8 billion (S$40.6 billion) in 2025.

The joint statement on trade resilience follows earlier pacts that Singapore had committed to with Australia and New Zealand to keep essential goods flowing during crises.

In May, Singapore signed a legally binding agreement with New Zealand, the first of its kind, to keep goods such as food, fuel and healthcare products flowing. It has also concluded negotiations on a similar agreement with Australia.

Singapore, which imports 90 per cent of its food, had signed a memorandum of cooperation on rice trade with Vietnam in October 2025, one of several such agreements it signed in the past year with its ASEAN neighbours. 

The agreements provide a framework to maintain an open rice trade and to avoid unnecessary restrictions. 

“We acknowledge the importance of avoiding unnecessary restrictive measures to promote the trade of rice, which is an essential commodity,” Dr Tan and Dr Hung said in their joint statement on May 29.

The two ministers also emphasised the importance of keeping sea lanes open, including straits used for international navigation, global trade, energy flows and supply chains.

The issue of navigational rights has come under the spotlight since the start of the Middle East conflict and the effective closure of the Strait of Hormuz, a critical waterway off Iran’s coast.

Dr Tan and Dr Hung said: “We collectively reaffirm the importance of freedom of navigation and overflight, as well as the right of unimpeded transit passage, in accordance with the United Nations Convention on the Law of the Sea.”

The two ministers also pledged to do more to strengthen trade within ASEAN, including taking the next steps on various agreements for the bloc.

This includes pacts that would strengthen collective resilience to external economic disruptions while ensuring mutual support during crises, such as the ASEAN Framework Agreement on Petroleum Security, and Upgraded ASEAN Trade in Goods Agreement.