According to the Vietnam Trade Office in Singapore, Vietnam remained Singapore’s 10th-largest trading partner during the period, with bilateral trade reaching SGD23.3 billion, equivalent to about US$18.022 billion, up 43.4% from the same period in 2025.

Singapore’s exports to Vietnam reached SGD12.3 billion, up 4.8%, while its imports from Vietnam rose sharply by 142.9% to SGD 1 billion. Based on domestic exports alone, the island citty state recorded a trade deficit with Vietnam of nearly SGD7.3 billion.

Three product groups continued to post strong growth: electrical machinery, equipment and parts (HS 85); mineral fuels, oil and related products (HS 27); and nuclear reactors, boilers, machinery and mechanical appliances (HS 84).

For HS 85, Singapore’s exports to Vietnam declined slightly by 2.8%, while imports from Vietnam surged 161.8%. For HS 27, growth hit 28.8% and 244.9%, respectively, while HS 84 recorded increases of 49.7% and 268.7%.

This trend suggests that rising trade flows are not merely short-term growth in turnover, but also indicate increasingly close economic links in regional supply chains, particularly in electronics, machinery, energy and logistics.

A report released by Singapore’s Ministry of Trade and Industry (MTI) on June 17 showed that the country’s non-oil domestic exports rose 38.4%, with electronics exports surging 94.8%, largely due to demand related to artificial intelligence (AI), integrated circuits, data storage products and personal computers.

This has created favourable conditions for HS 85 and HS 84, while also reflecting Vietnam’s growing participation in regional supply chains for electronics, components, machinery and industrial equipment.

For HS 27, growth stemmed mainly from shifts in energy supply and Vietnam’s efforts to diversify import sources.

During the past four months of 2026, Vietnam’s imports of refined petroleum products soared 28.7%, while LPG imports increased 34.5%. In this context, Singapore continues to play a key role as a regional hub for fuel trading, storage, refining and distribution.

Overall, growth in HS 85, HS 84 and HS 27 further highlights increasingly close economic links between Vietnam and Singapore in industrial, technology and energy supply chains.

According to Cao Xuan Thang, Vietnam’s Trade Counsellor in Singapore, although the island city state’s economy is likely to maintain positive growth momentum in 2026, the overall outlook remains uncertain due to external volatility.

As a high-purchasing-power market, a major trade and financial hub, and a gateway to regional supply chains, Singapore is set to maintain strong demand for technology products, components, support services, construction-related goods, logistics, food and beverages, and essential consumer products.

However, Vietnamese businesses need to pay close attention to quality, standards, delivery reliability and price competitiveness, particularly as Singaporean importers and consumers may become more cautious amid rising inflation and living costs.

Source: VOV