Economic ties between Vietnam and Singapore hit historic highs in the first 11 months of 2025. The Vietnam Trade Office in Singapore released data showing a thriving partnership. Despite global challenges, the figures are record-breaking. Total two-way trade reached nearly 36 billion SGD. This achievement highlights the growing power of Vietnam export capabilities in the Southeast Asian supply chain.

Singapore imports a large value of mechanical equipment and parts from Vietnam. Source: VnEconomy

Breaking Historical Records

Performance in early 2025 was exceptional. Trade volume surged by 25.7% compared to the same period in 2024. Impressively, this 11-month figure already exceeds the 2024 full-year total of 31.67 billion SGD. This accelerated growth secures Vietnam’s spot as Singapore’s 10th largest trading partner. It reflects the deep economic bond between the two nations.

The Surge in Vietnam Export Volume

A detailed breakdown of the statistics highlights a dramatic shift in the flow of goods from Vietnam to the island nation. While trade flows both ways, the Vietnam export sector has outperformed expectations with a remarkable 47.2% increase, bringing the total value of goods shipped to Singapore to 11.5 billion SGD.

This growth is not evenly distributed but is heavily concentrated in high-value industrial sectors. The machinery and electrical equipment category has emerged as the absolute powerhouse of Vietnam export activities. This sector alone recorded an explosive growth rate of 105.5%, reaching a value of nearly 5.9 billion SGD. This single category now accounts for more than half of Singapore’s total imports from Vietnam, signaling a maturation in Vietnam’s manufacturing capabilities.

Following closely behind is the sector comprising reactors, boilers, and mechanical appliances, which saw a healthy increase of 68.3% to reach 2.7 billion SGD. Other sectors such as glass and glassware also contributed to the positive momentum, demonstrating that Vietnamese manufacturers are diversifying their portfolios and moving up the value chain.

Unveiling the “Real” Trade Balance

On the surface, the raw data suggests that Singapore maintains a significant trade surplus with Vietnam. Singapore’s exports to Vietnam reached 24.5 billion SGD, significantly higher than the import figure. However, a deeper analysis provided by the Vietnam Trade Office offers a crucial perspective that redefines the competitive landscape of Vietnam export goods.

The distinguishing factor lies in the nature of Singapore’s exports. The data indicates that a staggering 73% of the goods exported from Singapore to Vietnam are categorized as temporary imports for re-export. This amounts to 17.9 billion SGD worth of goods that are merely transshipped through Singapore from third countries, rather than being produced there. Only about 27% of the exports, valued at 6.6 billion SGD, originate from Singapore’s domestic production.

When these re-export figures are stripped away to reveal the trade of strictly domestic-origin goods, the balance shifts dramatically. Under this lens, Vietnam actually enjoys a significant trade surplus. In the first 11 months of 2025, the surplus of domestic Vietnamese goods over Singaporean domestic goods stood at 4.88 billion SGD. This insight proves that Vietnam export products are highly competitive and that the country is a net producer in the direct bilateral relationship.

Singapore’s Export Structure to Vietnam

While discussing the trade balance, it is important to note what Singapore is sending to Vietnam. The two largest categories are machinery and electrical equipment, followed by petroleum and distilled products. Together, these two groups account for over 67% of Singapore’s total exports to Vietnam.

However, the origin of these goods differs vastly. The machinery and electrical equipment group consists almost entirely of re-exports from third countries, with the re-export rate hitting 96.8%. In stark contrast, the petroleum and bituminous substances group is primarily produced within Singapore, with 99% of its value derived from domestic production. This distinction highlights Singapore’s dual role as both a manufacturing hub for petrochemicals and a logistics super-connector for electronics.

Source: VnEconomy

11/1/2026