Political-diplomatic ties developing well
Over the recent years, both sides have stepped up high-level and all-level delegation exchanges. Right after the COVID-19 pandemic was brought under control, delegation exchanges were resumed, reflected by the first visit to Vietnam by Saudi Arabia's Minister of Foreign Affairs Prince Faisal Bin Farhan Al-Saud in March 2022, the first Political Consultation between the two Foreign Ministries in the Middle East country in February 2023, and most recently the trip by Vietnamese Prime Minister Pham Minh Chinh from October 18-20, 2023 - the first working visit by a Government leader of Vietnam to Saudi Arabia and the second by a high-ranking leader after 13 years since the first in 2010.
Prime Minister Pham Minh Chinh’s trip made a breakthrough in seeking new cooperation opportunities, expanding the market for Vietnamese goods and services in Saudi Arabia and the Gulf Cooperation Council (GCC), and boosting collaboration in various fields, particularly investment, trade, energy transition, sustainable growth, high-skilled labor, the Halal industry, agricultural and aquatic product exports, and tourism.
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Prime Minister Pham Minh Chinh meets with Saudi Arabia’s Prime Minister Crown Prince Mohammed bin Salman in Riyadh on October 20, 2023. |
Within its framework, the two sides successfully organized the Vietnam-Saudi Arabia Business Forum and signed five cooperation documents in the fields of justice, diplomacy, crime prevention and control, tourism, and trade promotion.
In addition, the two countries have coordinated and supported each other at multilateral and regional forums. Vietnam is ready to support Saudi Arabia in enhancing its cooperation with ASEAN and promoting collaboration between ASEAN and the GCC, in line with each side's potential and strengths and based on the principle of mutual benefit. Meanwhile, Saudi Arabia continues to support the stances of ASEAN and Vietnam in addressing regional and global issues.
Saudi Arabia – Vietnam’s leading economic partner in Middle East
Besides the political and diplomatic sphere, economic and trade cooperation is also a highlight in bilateral relations. Saudi Arabia is currently one of Vietnam's key economic partners in the Middle East, with bilateral trade reaching USD 2.68 billion in 2023 and USD 2.21 billion in the first nine months of this year.
In recent years, more and more Saudi Arabian companies have shown interest in and sought to promote cooperation with Vietnam in various fields, including trade, investment, energy, seaport, Halal food, tourism, and innovation. As of September, Saudi Arabia had ranked 79th out of the 148 countries and territories investing in the Southeast Asian nation, with eight projects totaling USD 8.57 million. Many large corporations and investment funds from Saudi Arabia have effectively implemented numerous direct and indirect investment projects in Vietnam, particularly in real estate, energy, and steel.
The two countries are continuing to strengthen cooperation in various fields such as energy like petrochemicals and green energy, investment, manufacturing, culture, the Halal industry, and tourism and sports. With Vietnam issuing its project to enhance international cooperation for building and developing the Halal industry in the country by 2030, the first initiative to outline major national directions aimed at opening up the promising Halal market, both countries have numerous opportunities to promote collaboration, as Saudi Arabia is one of Vietnam's priority partners and markets for this kind of product.
Furthermore, Vietnam and Saudi Arabia have significant potential to enhance agricultural cooperation. Saudi Arabia, with its vast desert area and unfavorable climate for agriculture, presents an opportunity for Vietnamese exporters. Many of its companies are currently interested in Vietnamese goods, particularly agricultural products and food, as the Middle Eastern nation is striving to diversify its supply sources to ensure food security.
Regarding development cooperation, the Saudi Fund for Development (SFD) in Vietnam has played a crucial role in strengthening the bilateral partnership over the past 25 years. To date, it has provided preferential loans totaling over USD 181 million for 13 projects for Vietnam.
To unlock investment capital in Vietnam, Saudi Arabia's 620-billion-USD Public Investment Fund has committed to allocating more resources for major infrastructure development projects in Vietnam. Many large groups have expressed their intention to expand their investment activities in Vietnam across various sectors, including steel, precast steel, retail, agriculture, and clean energy, with the aim of using Vietnam as a gateway to extend their business networks into other ASEAN countries.
Currently, there are about 5,000 Vietnamese workers in Saudi Arabia. The two countries are working towards finalizing a new labor cooperation agreement to be signed in the near future, and help strengthen the bilateral relationship.
Continuing to lift bilateral ties to new height
The year 2024 marks an important milestone in the Vietnam-Saudi Arabia relations as the two countries celebrate the 25th anniversary of the establishment of their diplomatic ties. With the impressive achievements and the desire and determination of both governments and peoples, bilateral cooperation will continue to be strengthened and develop across all areas, including diplomacy, economics, trade, investment, culture, and people-to-people exchanges, for the common benefits of both peoples, and for peace, stability, cooperation, and development in both regions and the world.
Speaking at a ceremony to celebrate the 94th National Day of Saudi Arabia (1930- 2024) and the 25th anniversary of the establishment of Vietnam-Saudi Arabia diplomatic relations, held in Hanoi on September 23, Deputy Foreign Minister Nguyen Minh Hang said that the 25-year journey of the bilateral relations has fostered friendship and multifaceted cooperation between the two countries in a deeper and more substantial manner.
She proposed the two sides continue to deepen their cooperative relationship, turn mutual admiration into tangible results and each country's development aspirations into motivation and opportunities to open new areas of cooperation, and jointly promote growth for both countries and the two regions.
Saudi Arabian Ambassador to Vietnam Mohammed Ismaeil A. Dahlwy affirmed that his country and Vietnam have many similarities and these are highlights in the strong relationship between the two countries.
Looking to the future, Saudi Arabia looks forward to deeper cooperation with Vietnam in areas such as technology, energy, sustainable development, and people-to-people exchange, the diplomat added.
Source: VNA