Vietnam-Saudi Arabia: elevate bilateral ties to a new heights

By Kirtan Bhana – TDS

30 October 2024

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. Since they set up diplomatic ties on October 21, 1999, the relationship between Vietnam and Saudi Arabia has been consistently consolidated and developed across various fields. Therefore, the visit of Vietnamese Prime Minister Pham Minh Chinh to Saudi Arabia on October 29 and 30 opened a new page for this relationship, according to insiders.

Political-diplomatic ties developing well

The PM Chinh’s visit is the second visit since 2023. His lastest visit was in October 18-20, 2023- also being 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.
The visit continues to generate the momentum of growing bilateral trust as in recent years both sides have increased exchanges of delegations at all levels, especially at a high level.

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 in investment, trade, energy transition, sustainable growth, high-skilled labour, the Halal industry, agricultural and aquatic product exports, and tourism.

In addition, the two countries have coordinated and supported each other at multilateral and regional forums. Vietnam is willing to support Saudi Arabia in enhancing its cooperation with ASEAN and promoting collaboration between ASEAN and the GCC, commensurate 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.

Riyadh – Hanoi’s leading economic partner in Middle East

Besides the political and diplomatic fields, economic and trade cooperation is also a key area of bilateral relations. Saudi Arabia is currently one of Vietnam's key economic partners in the Middle East, with bilateral trade turnover reaching 2.68 billion USD in 2023 and 2.21 billion USD in the first nine months of this year.

In recent years, Saudi Arabian corporations and investment funds have effectively implemented numerous direct and indirect investment projects in Vietnam, particularly in real estate, energy, and steel. 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 181 million USD for 13 projects for Vietnam. To unlock investment capital in Vietnam, Saudi Arabia's 620-billion-USD Public Investment Fund has committed to providing more resources for major infrastructure development projects in Vietnam.

In addition, Saudi Arabian companies are also increasingly interested in promoting cooperation with Vietnamese partners in many areas, including trade, investment, energy, seaports, Halal food, tourism and innovation. As of September, Saudi Arabia ranked 79th out of the 148 countries and territories investing in the Southeast Asian nation, with eight projects totaling 8.57 million USD. 

Through the signed cooperation documents, the visit of the Vietnamese Prime Minister also marked the two countries' continued strengthening of cooperation in many areas such as energy, petrochemicals and green energy, investment, manufacturing, culture, Halal industry, tourism and sports.

In the context of the new Vietnamese project - issued to enhance international cooperation to build and develop the domestic Halal industry by 2030, the first initiative outlining key national orientations to open up the promising Halal market, as well as having just successfully organized the first Conference on Halal Industry Development in Vietnam, both countries have many opportunities to promote cooperation, as Saudi Arabia is one of Vietnam's priority partners and markets for this type of product.
Currently, there are about 5,000 Vietnamese workers in Saudi Arabia. The two countries are working towards finalising a new labour cooperation agreement to be signed in the near future, and help strengthen the bilateral relationship.

Continuing to elevate bilateral ties to new heights

With these impressive achievements, the desire and determination of both governments and peoples, bilateral cooperation will continue to be strengthened and developed across all areas, including diplomacy, economics, trade, investment, culture, and people-to-people exchanges, for the benefit of both peoples, and for peace, stability, cooperation, and development in regions and the world.

During a bilateral meeting between Crown Prince and Prime Minister of the host country Mohammed bin Salman bin Abdulaziz Al Saud and Vietnamese Prime Minister Pham Minh Chinh in Riyadh on October 29, both leaders highlighted the remarkable progress in the Vietnam-Saudi Arabia relations over the past 25 years and committed to close cooperation to elevate the bilateral relationship further. They agreed to strengthen exchanges at all levels, particularly high-level meetings in both bilateral and multilateral forums.

The leaders also pledged to prioritise economic cooperation as a key pillar in the bilateral relationship, aiming to position Saudi Arabia as a top investor in Vietnam and increase bilateral trade to over 10 billion USD by 2030.

The two sides defined that the “future cooperation” pillar between the two countries covers innovation, green transformation, digital transformation, making education, tourism, labour, and people-to-people exchange a solid foundation for bilateral relationship, and continuing to closely coordinate and support each other on regional and world issues at international forums, especially at the United Nations, so as to minimise risks, enhance dialogue and cooperation, for peace and development in the region and the world.

On the occasion of his participation in the 8th Future Investment Initiative (FII) Summit and his working visit to Saudi Arabia. PM Chinh also met with Egyptian Prime Minister Mostafa Madbouly and Crown Prince of Jordan Al Hussein bin Abdullah II.