Door wide open to Vietnam – Saudi Arabia cooperation ahead

Important regional partners

Vietnam considers Saudi Arabia as one of its leading trading partners in the Middle East, while the latter regards the former as a priority partner in its Look East policy and wants to promote comprehensive cooperation with the Southeast Asian nation.

According to experts, Saudi Arabia is the largest economy in the Persian Gulf that holds great potential for stronger cooperation with Vietnam.

Currently, many Saudi Arabian businesses show their interest in Vietnamese goods, especially agricultural products and food, given the fact that the Middle Eastern country is trying to diversify its supply sources to ensure food security. In addition, some Saudi Arabian investors are also eyeing Vietnamese projects in the fields of food processing, agricultural product processing, and garment making.

Vietnam can therefore promote the export of agricultural and aquatic products such as rice, cashew nuts, tea, pepper, coffee, frozen fish, canned fish, food, construction materials, interior decoration products, agarwood, and garments to this market, say experts.

Statistics show that two-way trade turnover between Vietnam and Saudi Arabia last year reached more than US$2.7 billion, an increase of 32.4% year on year. Many large corporations and investment funds of Saudi Arabia have been effectively undertaking direct and indirect investment projects in Vietnam in the fields of real estate, energy and steel.

However, Vietnam-Saudi Arabia trade exchanges are still modest and yet to meet both sides’ expectations. The total import-export turnover between the two countries last year was equal to 0.4% of Vietnam’s total trade value and 0.61% of Saudi Arabia’s total trade value.

Both Vietnam and Saudi Arabia have signed a number of important cooperation documents, including those on economic, trade, investment and technical cooperation, agricultural cooperation, double tax avoidance, petroleum cooperation, employment, and air transport cooperation. They are currently negotiating an agreement on investment promotion and protection.

It’s noteworthy that more and more Saudi Arabian businesses are increasingly keen to promote cooperation with Vietnam in the fields of trade, investment, energy, seaports, Halal food, tourism, and innovation. Vietnam has approved a masterplan on Halal industry development till 2030 which is opening up opportunities to boost cooperation with potential Halal markets, including Saudi Arabia.

Goods access to Saudi Arabia market

In September 2023 the Trade Office of the Vietnamese Embassy in Saudi Arabia in collaboration with Lulu supermarket chain launched a week called Amazing ASEAN 2023 in Riyadh to promote the grouping’s agricultural products and foods. At this event, Vietnam introduced 20 new items, including agricultural products, fresh fruits, and processed products from coconut, cashew nuts, and seafood that were all appreciated by local consumers.

During a working trip to Riyadh in September 2023 by a delegation from the Ministry of Industry and Trade, the Vietnamese Trade Office in Saudi Arabia and the Al-Kharj Saudi Chambers of Commerce and Industry signed a memorandum of understanding to connect and provide information in seven of trade, agriculture-industry, information technology, tourism, energy, infrastructure development and education.

The Vietnam – Saudi Arabia inter-government committee is scheduled to hold its fifth session in Hanoi in December 2023 to sketch out future cooperation plans between the two countries.

To prepare for the session, the Ministry of Industry and Trade has held meetings to address business concerns regarding trade policies, corporate culture, food safety and hygiene regulations, and projects calling for investment in each country. It has also dispatched business delegations to the Riyadh Chamber of Commerce, and Lulu and Carrefour supermarket chains to promote business connectivity and learn about local consumers’ tastes.

The Trade Office of the Vietnamese Embassy in Saudi Arabia has opened a showroom displaying high-quality products of 140 Vietnamese businesses, along with marketing the products in 10 localities of Saudi Arabia, in an effort to popularize the products among local consumers. It has annually launched the Vietnamese Goods Week at Lulu supermarket chain to introduce new products to consumers.

Vietnamese Prime Minister Pham Minh Chinh left Hanoi on October 18 for Riyadh to attend the first summit between the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council, (GCC) and visit Saudi Arabia. The working visit is expected to unlock potential for stronger cooperation in various areas between Vietnam and Saudi Arabia.