Egypt was one of the first Arab and African nations to establish diplomatic relations with Vietnam in 1963. Since the establishment of diplomatic ties, the relations between the two countries have made strides, particularly in trade and investment. Notably, it was also the first North African country to officially recognize Vietnam as a full market economy in November 2013.
Complementary strengths
Experts highlight that Vietnam and Egypt offer significant complementary advantages. With a population of over 100 million and a strategic location connecting Asia, Africa, and Europe, Egypt serves as a vital hub for goods moving across the continents. Meanwhile, Vietnam, as a member of numerous regional free trade agreements (FTAs), can be a gateway for Egyptian products entering Southeast Asia and the broader Asia-Pacific.
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Egyptian artists perform traditional dances in a special art program by the Egyptian national folk dance troupe at the Hanoi Opera House on January 22, 2014. |
Conversely, Egypt's membership in the African Continental Free Trade Area (AfCFTA) could help Vietnamese goods access African and Middle Eastern markets more efficiently.
According to the Ministry of Industry and Trade, Egypt is currently Vietnam's largest trade partner in North Africa and its second-largest market in Africa after South Africa. Despite the COVID-19 pandemic, two-way trade between 2018 and 2022 grew at an average annual rate of 6.7%, from 471.8 million USD in 2018 to 612 million USD in 2022.
In 2024, bilateral trade reached 472.6 million USD, up 9.4% from the previous year. In the first half of 2025, trade hit 266.9 million USD, up 8% year-on-year.
Vietnam’s major exports to Egypt include electronics, phones and accessories, coffee, seafood, textiles, cashew nuts, fruit and vegetables, and various industrial goods. Imports from Egypt are mainly fruit, scrap metal, plastic materials, DAP fertilizer, and raw materials for the textile and footwear industries.
Laying the groundwork for a free trade agreement
To strengthen cooperation, both countries are discussing the possibility of negotiating an FTA. Such an agreement would enhance Vietnam’s ability to export to not only Egypt but also to the wider the Middle East, North Africa, and Southern Europe. Likewise, Egyptian products would gain better access to the Vietnamese market and other countries with which Vietnam has signed FTAs.
At a recent meeting with Egypt’s Minister of International Cooperation Rania Al-Mashat, Vietnam’s Minister of Industry and Trade Nguyen Hong Dien emphasized the importance of Egypt as a key African partner.
He proposed holding the 6th meeting of the Vietnam – Egypt Joint Committee soon and encouraged Egypt to consider initiating FTA talks.
Dien recommended opening a direct air route between the two countries to facilitate trade and investment. He called for continued efforts to resolve trade barriers and help businesses on both sides connect more easily.
Minister Al-Mashat welcomed these proposals and affirmed that the Egyptian government treasures and enhances its economic ties with Vietnam. She pledged to instruct relevant agencies to work closely with Vietnamese counterparts to address existing issues and explore the feasibility of negotiating an FTA.
Ample room for cooperation
In a significant step forward, Vietnam’s first manufacturing investment project in Egypt - the EuP Egypt plastic filler masterbatch plant - was recently inaugurated by the European Plastics Joint Stock Company.
With a planned investment of 30 million USD, the plant covers more than 34,000 sq.m. and is designed to produce 300,000 tons annually, serving both the domestic Egyptian market and export destinations in the Middle East, Africa, Europe, and the Americas. Once operational, it will employ over 300 local workers.
To boost Vietnam's exports to Egypt, the Vietnamese Ministry of Industry and Trade has advised exporters to familiarize themselves with local customs, business culture, and legal systems. Understanding these factors is crucial to avoiding unnecessary disputes and ensuring compliance with regulations.
The ministry also encouraged Vietnamese companies to identify products that are in high demand in Egypt, improve the competitiveness of their goods, and focus on quality and international standards. Eye-catching packaging, strong branding, and participation in trade fairs in Egypt or Africa will help businesses seek partners and enter new markets.
Source: VNA