Speech by Mr Teo Chee Hean, Deputy Prime Minister and Minister for Defence, at the National Defence College of Vietnam

IntroductionGood morning, ladies and gentlemen. Thank you for the invitation and honour to speak today at the National Defence College of Vietnam, in front of such a distinguished audience. I am pleased to be back in Vietnam. My first visit was in 1993 with Mr Lee Kuan Yew, who was then our Senior Minister. I have now visited Vietnam eight times in an official capacity - for economic, education, and defence matters. As defence minister, this is my third visit. Apart from this, I am pleased to say, I have also enjoyed travelling to Vietnam with my family on vacation, to appreciate the rich history and natural beauty of Vietnam.

Over the last two days, I have met a number of senior Vietnamese leaders. I had the opportunity to learn more about their vision and plans for Vietnam, their commitment to development and progress, as well as improving the welfare of the Vietnamese people. My visit to Dien Bien Phu yesterday was also a reminder of the determination and resilience of the Vietnamese people. These same qualities, demonstrated by the Vietnamese people 55 years later today, give me confidence that Vietnam will continue to make much progress in the years ahead. The Geopolitical LandscapeThe past 50 years has seen a dramatic transformation in Asia. The first phase of this transformation was spearheaded by Japan's economic miracle rising from the ashes of war. From 1950 to 1970, Japan’s per capita income increased five-fold. Japan had achieved in 20 years what Europe and North America had taken more than a century to accomplish. By 1970, Japan was the 2nd-largest economy in the world.

Then, in the 70s and 80s, the four "Asian dragons" Korea, Taiwan, Hong Kong, and Singapore took off. Other countries in our region, such as Malaysia and Thailand pursued similar policies and also enjoyed development and growth.

The real test of this developmental model came in India and China. For many years, these two giant countries had been inwardly focused. But China in 1978, and then India from 1991, began to carry out economic restructuring, look outwards, and engage the world.

In China, Deng Xiaoping launched the era of market reform with the phrase, "It doesn't matter if a cat is black or white, so long as it catches mice." Starting with the coastal states, economic reforms and development have now spread to all parts of China, and there is no turning back.

In India, after a balance of payments crisis in 1991, Manmohan Singh, then Finance Minister, implemented a major economic reform package. State monopolies were abolished, import tariffs were slashed. In his maiden speech, he quoted Victor Hugo: "No power on earth can stop an idea whose time has come." Today, every major political party in India broadly accepts the need for continued economic reform. Both Congress and BJP-led governments have pursued reforms.

Vietnam launched its own reforms - Doi Moi - in 1986. Since then, Vietnamese per capita income has increased almost six-fold. Over the past ten years, Vietnam has averaged 7% annual growth, which has brought about a significant increase in the quality of life for the Vietnamese people. Access to education and healthcare has improved. Vietnam also became self-sufficient in rice, and is today the world’s 2nd-largest rice exporter. I have seen the transformation that has taken place since my first visit some 16 years ago. The results that Vietnam has achieved speak for themselves.

In 1980, Asia accounted for only about 17% of world GDP. Today, Asia accounts for nearly double that - 32% of world GDP, going by purchasing power parity. Asia is now at the forefront of future global opportunities. Ambitious young people once dreamed of making it big in New York or London. Today, they come to Asia.

Nevertheless, our journey has not been completely smooth sailing. The Asian financial crisis of 1997 brought difficulties for a number of Asian countries. We learnt from that crisis, and Asian countries have not been as seriously affected in the current financial crisis as Europe and America. We can now see the green shoots of growth returning. China, India, Indonesia, and Vietnam all expect positive growth in 2009. But there is still much work to be done before we return to sustained growth.

However, not all Asian countries have progressed. North Korea remains shut off from the rest of the world. Its people are missing a great opportunity and are being left behind while the rest of Asia moves confidently forward.

Looking ahead, the rapid growth of India and China will alter the strategic dynamics in the Asia-Pacific. The US will remain the strongest power globally and in the region. In spite of the battering that the US economy has taken during this economic crisis, the US is remarkably resilient and entrepreneurial and will bounce back. But we can expect that rising powers such as China and India will want to play a greater role.

During the Cold War, the countries of Southeast Asia were lined up against each other, in opposing blocs. South East Asia was divided. Today, all ten South East Asian countries have come together under the ASEAN roof, working towards our aspiration of an ASEAN community, as spelt out in the ASEAN Charter.

Amidst the strategic shifts in the region, the challenge is how to create a regional security architecture that accommodates the interests of all the major powers - the US, China, India, and Japan - as well as the interests of the countries in ASEAN. It is important that the major powers feel they have a stake in maintaining peace and security, and fostering social and economic development, as our partners in progress. ASEAN and the Regional Security Architecture Ideally, the regional security architecture would have three key attributes. Firstly, it would be open and inclusive. Countries, big and small, should be able to have a place. Secondly, it would be flexible. It is useful to have an overlapping web of bilateral and multilateral networks, as well as formal and informal structures. Thirdly, ASEAN should be the fulcrum of the regional security architecture. ASEAN is uniquely placed to play this role, because of its strategic location, and function as neutral interlocutor for powers whose interests intersect in Asia.

When ASEAN was founded in 1967, the region was rife with conflict. Even the five founding members of ASEAN had their differences. Singapore had just separated from Malaysia. Indonesia had just ended armed Confrontation against Malaysia and Singapore. And the Philippines was claiming Sabah, in East Malaysia. Despite all this, ASEAN was able to maintain peace and stability among themselves and develop new areas of cooperation. The "ASEAN way" of encouraging dialogue, searching for consensus and avoiding conflict certainly helped. What ASEAN created was a habit of working together.

The end of the Cold War brought into ASEAN the rest of Southeast Asia, including Vietnam. The day when ASEAN finally embraced all of Southeast Asia - when Cambodia joined in April 1999 - was truly a momentous occasion. ASEAN has learnt through hard experience, how to forge cooperation out of conflict.

We have also learnt, over the years, how to speak with one voice when dealing with the larger powers. Collectively, ASEAN has greater strategic resonance than any of our member states individually. Over the years, ASEAN has worked hard to build up constructive relations with key partners such as the US, China, India and Japan.

ASEAN has also helped catalyse wider regional forums. ASEAN is at the core of the ARF or ASEAN Regional Forum and the East Asia Summit. ASEAN provides a neutral ground where the major powers and other countries can meet together to forge dialogue, understanding and cooperation. In recent years, we have gone beyond dialogue and confidence-building. Today, ASEAN and the ARF undertake practical cooperation - in areas such as maritime security and humanitarian assistance and disaster relief.

In the coming years, ASEAN will have to do more. We each have to strengthen the resilience of our own countries, and we all have to press ahead together to build the ASEAN Community so that ASEAN will continue to maintain its relevance and core role in the wider regional architecture.

Vietnam's Role in ASEAN and the Regional Security Architecture Vietnam is playing an increasingly important role in ASEAN since it became ASEAN's seventh member in 1995. Vietnam's population of almost 90 million is the third largest in ASEAN.

Vietnam has taken on a higher profile on the world stage. Since the launch in 1988 of Vietnam's "multi-directional foreign policy", Vietnam's links with partners in the region and beyond have increased. Today, Vietnam enjoys growing ties with major countries such as the US, China, Japan, India, the European Union, and Russia. Vietnam's ties with these countries will continue to strengthen in the coming years. For example, Vietnam is currently in negotiations for a Partnership and Cooperation Agreement with the European Union that will deepen economic integration, as well as in discussions with the United States on a Bilateral Investment Treaty.

Vietnam is also participating actively in multilateral organisations and fora. Vietnam was present at the inception of the ASEAN Regional Forum, as one of its founding members in 1994. In 2006, Vietnam hosted the APEC Summit, and recently hosted the Asia-Europe Foreign Ministers' Meeting in May. Another significant achievement was Vietnam becoming a non-permanent member of the UN Security Council for the 2008-2009 term. And in 2010, Vietnam will assume the Chair of ASEAN, at an important time for ASEAN.

In May this year Vietnamese Minister of National Defence GEN Phung Quang Thanh attended the 8th Shangri-La Dialogue in Singapore - an annual gathering of defence ministers and senior officials organised by the International Institute for Strategic Studies. This was the first time that Vietnam had been represented at the Dialogue at the Defence Minister level. GEN Thanh's speech on "Strengthening Defence Diplomacy in the Asia-Pacific" was well received by the ministers and delegates attending the Dialogue.

As Chairman of ASEAN in 2010, Vietnam will host the 4th ASEAN Defence Ministers' Meeting or ADMM in 2010. The ADMM has emerged as an important element in our regional security architecture, and plays a key role in building an integrated ASEAN Community. The ADMM will forge greater practical cooperation amongst the ASEAN militaries. The ADMM will also allow ASEAN countries to foster more active engagement of countries beyond the ASEAN region through the establishment of the ADMM-plus. Vietnam and Singapore agree that, as the geostrategic environment shifts, it is critical that we have in place robust mechanisms, such as the ADMM and the ADMM-plus, to anchor peace and stability in South East Asia.

Vietnam and Singapore share similar strategic perspectives - we desire a calm and secure neighbourhood, so that our citizens can enjoy the fruits of growth and development. Both our countries also seek warm and stable relations with the major powers, while maintaining our freedom of action and our independence. With Vietnam as Chair, we look forward to an energised ASEAN that is able to play a confident and constructive role in building ties with the major powers and our other partners. Vietnam-Singapore Bilateral Relations Vietnam and Singapore enjoy excellent bilateral relations, and have good cooperation in many areas ranging from trade and education, to defence, and the arts and culture.

In particular, there is close economic cooperation between Vietnam and Singapore. Bilateral trade has grown steadily over the past 10 years. Singapore is among Vietnam's top 5 trading partners and top 5 investors, having invested close to a total of US$17 billion in Vietnam so far. These commitments demonstrate the confidence that Singapore investors have in Vietnam's continued economic success.

In 2005, Vietnam and Singapore signed the Connectivity Framework Agreement, which provides a framework for stronger cooperation, and has brought our two countries even closer together. In recent years, we have expanded cooperation beyond education and training, and investment and trade, to new areas. These include urban infrastructure development, as well as ports and logistics. The agreement allows us to leverage on each other's strengths, so that we can both achieve even higher levels of growth and success.

Our bilateral flagship project, the Vietnam-Singapore Industrial Park in Binh Duong was built in 1996, and is performing very well. Since then, similar industrial parks have grown up in Bac Ninh and Haiphong. Over 60,000 workers are now employed in the Vietnam-Singapore Industrial Parks. And just last month, Singapore's premier resort group, Banyan Tree, announced the first phase of a US$900 million resort project in Hue in Central Vietnam.

There are also strong bonds of friendship and ties across all levels. The exchange of high-level visits between our two countries continues. In April this year, our Minister Mentor Lee Kuan Yew made one of his many visits to Vietnam. And last month, Deputy Prime Minister Hoang Trung Hai visited Singapore. We look forward to the upcoming State Visit to Singapore by President Nguyen Minh Triet in conjunction with the APEC Economic Leaders' Meeting in November. And our Prime Minister Lee Hsien Loong intends to make an official visit to Vietnam in early 2010.

Our leaders have set the pace for Vietnam-Singapore relations, and deeper people-to-people relations have followed. Since 1992, over 10,000 Vietnamese officials have participated in the Singapore Cooperation Programme. As part of this programme, they have undertaken courses in Singapore in English language, finance, trade promotion, IT, and public administration. A large number of Vietnamese students also pursue their education in Singapore, many of whom are outstanding students doing very well. I believe that both Singapore and Vietnam share the common view that our people are our greatest resource. Both our countries are also committed to developing our people to their utmost through education and training.

There is also a great deal of interest in Singapore in the culture and history of Vietnam. Last year, Singapore's National Heritage Board organised a four-month-long Vietnam Festival to celebrate the 35th anniversary of diplomatic relations. It featured a major exhibition of Vietnamese contemporary art and a special exhibition titled "Vietnam! From Myth to Modernity" which chronicled over 2,500 years of Vietnamese history. More Singaporeans are also visiting Vietnam as tourists and for business. Over time, the people-to-people links between our two countries can only grow. Vietnam-Singapore Defence TiesLet me turn now to defence relations. Defence relations between Singapore and Vietnam are warm and have grown in recent years. Two days ago, Vietnamese Minister of National Defence GEN Phung Quang Thanh and I signed the Defence Cooperation Agreement, one of the highlights of my trip. The agreement marks a significant milestone in our defence relationship - it formalises existing interactions and reflects our commitment to enhancing defence cooperation. My colleagues told me that the negotiation process was very straightforward and smooth - this is an indication of how closely aligned our views are. With this agreement, Singapore looks forward to greater defence cooperation with Vietnam in areas ranging from education and training, to humanitarian assistance and disaster relief, and maritime security.

In recent years, there has already been a growing number of high-level defence visits, as well as increasing interactions between the Singapore Armed Forces and the Vietnam People's Army. In fact, GEN Phung Quang Thanh and I have met for the third time this year already. We have been happy to invite Vietnamese officers to attend our military courses, as well as undertake postgraduate studies at the S. Rajaratnam School of International Studies. On our part, we have been sending officers to study Vietnamese at the Army Language Centre in Hatay. The Republic of Singapore Navy ship RSS Endeavour received a warm welcome when she called at Danang last month as part of its midshipman sea-training deployment.

Besides exchanges of visits, port calls, and cross attendance of courses, our defence relationship has grown in depth. Last year we began annual defence policy dialogues, chaired at the Deputy Minister level, to exchange views on issues of common interest and discuss future areas for cooperation. In a reflection of our increased defence engagement with Vietnam, we decided last year to post a full-time, resident Defence Attaché in Hanoi.

Looking ahead, we hope to further strengthen bilateral defence relations with Vietnam, and are ready to work together with Vietnam in useful and practical ways. We are confident that the relationship between our two armed forces will continue to grow, underpinned by our shared strategic perspectives and commitment to regional peace and stability. ConclusionLet me conclude by returning to an earlier point, about the dramatic transformation in Asia in the past 50 years. Vietnam and Singapore have both overcome much to arrive where we are today. We are enjoying the fruits of progress and development that are the product of not only our own hard work, but also a peaceful and stable environment in the region, which has allowed us both to thrive. The coming years will be filled with opportunity, but also uncertainty and challenges.

Amidst the strategic developments in our region, ASEAN must continue to work together to shape a robust regional security architecture that takes into account the interests of the larger powers, but also our own interests in ASEAN. Like Vietnam, Singapore is committed to ASEAN and we expect ASEAN to be at the fulcrum of the regional security architecture. As Chair of ASEAN in 2010, Vietnam will play a key role in shaping the future direction of security cooperation within ASEAN during this important time of change.

Singapore sees Vietnam as an important friend and strategic partner. Our strong ties and friendship are rooted in a bilateral relationship based on a deep mutual respect, common interests and shared perspectives. Together, Vietnam and Singapore can work to advance our interests in shaping a peaceful and secure region, that allows both our countries to grow and progress, for the benefit of our people.

I am confident that Vietnam's future prospects are brighter than ever before, as you play your part in the continued transformation of Asia.