During the Prime Minister's working visit to Saudi Arabia, it is expected that it will create new momentum for traditional cooperation areas between the two countries, creating new breakthroughs to promote potential areas.

On the morning of October 20, 2023, in Riyadh city, Saudi Arabia, Prime Minister Pham Minh Chinh met with Prime Minister and Crown Prince of Saudi Arabia Mohammad bin Salman. (Photo: Duong Giang/VNA)

Following the official visit to the United Arab Emirates (UAE), Prime Minister Pham Minh Chinh and his wife, along with a high-ranking Vietnamese delegation, will attend the 8th Future Investment Initiative Conference and pay a working visit to the Kingdom of Saudi Arabia at the invitation of Crown Prince and Prime Minister of the Kingdom of Saudi Arabia Mohammed Bin Salman. The working visit to Saudi Arabia takes place in the context of the positive development of the bilateral relationship in recent times with many substantive results. 2024 is the year the two countries will have many activities to celebrate the 25th anniversary of the establishment of diplomatic relations (October 21, 1999 - October 21, 2024). This working visit to Saudi Arabia is expected to create new momentum for traditional cooperation areas between the two countries, create new breakthroughs to promote potential areas and, above all, firmly build political trust to pave the way for a new phase of cooperation between Vietnam and Saudi Arabia.

Friendship and multi-faceted cooperation are constantly strengthened and developed.

Vietnam and Saudi Arabia are two countries with many similarities in culture, life and society. Both countries are dynamically developing economies in Southeast Asia and the Middle East, and are in the process of strongly transforming their economic structures towards modernity and sustainability. The friendship and multifaceted cooperation between the two countries have been continuously strengthened and developed since the establishment of diplomatic relations (October 21, 1999). Over the past 25 years, the two countries have built a strong relationship, becoming important regional partners of each other. The two sides have increased the exchange of high-level delegations, delegations of ministries and branches, as well as opened investment forums to contribute to promoting economic cooperation, trade and people-to-people exchange. Immediately after the COVID-19 pandemic was controlled, the exchange activities between the two countries took place very actively.

On March 17, 2022, at the Government Office, Prime Minister Pham Minh Chinh received Mr. Faisal Bin Farhan Al Saud, Minister of Foreign Affairs of the Kingdom of Saudi Arabia. (Photo: Duong Giang/VNA)

Notably, the first visit to Vietnam by Saudi Arabian Foreign Minister, Prince Faisal Bin Farhan Al-Saud in March 2022; the first Political Consultation between the two Foreign Ministries in Saudi Arabia in February 2023 helped further strengthen bilateral relations. Most recently, the visit of Vietnamese Prime Minister Pham Minh Chinh and a high-ranking Vietnamese delegation to Saudi Arabia (from October 18 to 20, 2023) contributed to elevating the bilateral relationship, actively contributing to connecting two regional organizations, the Gulf Cooperation Council (GCC) and the Association of Southeast Asian Nations (ASEAN). Prime Minister Pham Minh Chinh's working trip in 2023 created a breakthrough in seeking new cooperation opportunities, expanding the market for Vietnamese goods and services in Saudi Arabia and the GCC market, especially in attracting investment capital, expanding trade, energy transition, sustainable growth, skilled labor, developing the Halal industry, exporting agricultural and aquatic products and tourism. Within the framework of the visit, 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, thereby perfecting the legal framework and creating favorable conditions for bilateral cooperation in the coming time. In addition, the two countries coordinate and support each other at multilateral and regional forums. Vietnam is ready to support Saudi Arabia in strengthening its cooperative relations with ASEAN as well as promoting cooperation between ASEAN and the GCC, in line with the potential and strengths of each side and on the principle of mutual benefit. Saudi Arabia continues to support the stance of ASEAN and Vietnam in resolving regional and global issues.

Economic and trade cooperation has many bright spots and prospects.

In addition to the political-diplomatic field, economic-trade cooperation is also a bright spot in the Vietnam-Saudi Arabia relationship. Saudi Arabia is currently Vietnam's third largest trading partner in the Middle East-North Africa region, with bilateral trade turnover reaching 2.68 billion USD in 2023. In the first 9 months of 2024, two-way trade turnover reached 2.21 billion USD. Some Vietnamese products with strengths, such as rice, tea, pepper, coffee, rubber, garments, seafood, etc., are very popular with Saudi Arabian consumers. Meanwhile, Vietnam's demand for petrochemical products and raw materials from Saudi Arabia is also increasing, contributing to maintaining stable trade turnover between the two sides.

Some Vietnamese products that are strong, such as rice, tea, pepper, coffee, rubber, garments, seafood... are very popular with Saudi Arabian consumers. (Photo: Vu Sinh/VNA)

In recent years, more and more Saudi Arabian enterprises have been interested in and want to promote cooperation with Vietnam in the fields of trade, investment, energy, seaports, Halal food, tourism, innovation, etc. As of September 2024, Saudi Arabia ranked 79th out of 148 countries and territories investing in Vietnam with 8 projects, total registered capital of 8.57 million. Many large corporations and investment funds of Saudi Arabia have been effectively implementing many direct and indirect investment projects in Vietnam in the fields of real estate, energy and steel, etc. In particular, the Zamil Steel factory project, Sabic Group establishing Sabic Vietnam Limited Liability Company is a clear demonstration of the mutually beneficial economic cooperation relationship between the two countries. Vietnam and Saudi Arabia are continuing to promote cooperation in areas such as energy (petrochemicals, green energy), investment, manufacturing industry, culture, Halal industry, especially cooperation in tourism and sports development. With Vietnam's promulgation of the Project "Strengthening international cooperation to build and develop Vietnam's Halal industry by 2030," the first Project to provide major national orientations to open up the potential Halal market, the two countries have many opportunities to promote cooperation as Saudi Arabia is one of Vietnam's priority partners and markets for Halal. In addition, Vietnam and Saudi Arabia have great potential to promote agricultural cooperation. Saudi Arabia is a country with a very large desert area and an unfavorable climate for agricultural development. This is an opportunity for Vietnamese exporters. To date, many Saudi Arabian businesses have shown interest in Vietnamese goods, especially agricultural products and food, as the Middle Eastern country is making efforts to diversify its supply sources to ensure food security. With a foundation of good friendship, many similarities, and the ability to complement and support each other in the process of economic restructuring and implementing long-term development goals, Vietnam and Saudi Arabia are facing many opportunities for breakthrough development in the coming time. Regarding development cooperation, the Saudi Arabian Development Fund (SFD) in Vietnam has made important contributions to the close cooperation between Saudi Arabia and Vietnam over the past 25 years. As of June 2024, the Saudi Arabian Development Fund has provided preferential loans to Vietnam with a total value of more than 164.10 million USD for 12 projects. During the COVID-19 pandemic, Saudi Arabia also shared with Vietnam by providing medical aid worth 500,000 USD through the King Salman Humanitarian Relief Center. In order to open up investment capital to Vietnam, Saudi Arabia's 620 billion USD Public Investment Fund has committed to devoting more resources to major infrastructure development projects in Vietnam. Many large Saudi Arabian corporations affirmed that they will consider expanding investment activities in Vietnam in fields such as steel, pre-engineered steel, retail, agriculture and clean energy and hope to expand their business networks to ASEAN countries through Vietnam. There are currently about 4,000 Vietnamese workers in Saudi Arabia in many fields such as construction, engineering, hotels and housekeeping. In addition, Vietnam and Saudi Arabia are working to approve a new labor cooperation agreement that is expected to be signed in the near future. This labor agreement will further promote the relationship between the two countries.

Creating new breakthroughs in bilateral relations

With a solid foundation built over the past 25 years, the strengths and potentials of each country, and the commitment of the leaders and people of the two countries, the Vietnam-Saudi Arabia relationship will certainly reach new heights in the future, meeting the aspirations and interests of the people of the two countries, for peace, cooperation and development in the region and the world. And the visit to Saudi Arabia by Prime Minister Pham Minh Chinh this time continues to be an important milestone in the relationship between the two countries, demonstrating Vietnam's respect and desire to develop relations with Saudi Arabia, an important partner in the Middle East. According to Deputy Foreign Minister Nguyen Minh Hang, this is the first visit by the head of the Vietnamese Government to Saudi Arabia since the two countries established diplomatic relations and is also the first time the Prime Minister is the main guest and the only Asian leader to speak at the 8th Future Investment Initiative Conference organized by Saudi Arabia.

Prime Minister Pham Minh Chinh’s working visit to Saudi Arabia this time is of great significance, contributing to consolidating political trust, elevating relations, creating breakthroughs in economic-trade-investment relations and new fields; creating momentum to open a new phase of cooperation between Vietnam and Saudi Arabia.

Therefore, the working visit of Prime Minister Pham Minh Chinh to Saudi Arabia this time is of great significance, contributing to strengthening political trust, elevating relations, creating breakthroughs in economic-trade-investment relations and new fields; creating momentum to open a new phase of cooperation between Vietnam and Saudi Arabia. According to Deputy Minister of Foreign Affairs Nguyen Minh Hang, the Gulf is one of the most dynamically developing regions in the world, leading in oil reserves, having leading financial centers, taking the lead in transforming the new development model towards economic diversification and embracing new trends in green transformation, digital transformation and innovation. And Saudi Arabia is one of the countries with the largest economic scale and the most important role in the Middle East. Prime Minister Pham Minh Chinh's visit to Saudi Arabia is expected to create a breakthrough in the relationship between the two countries in attracting investment, promoting cooperation in new fields, especially innovation, digital transformation, green transformation, energy transformation, cooperation in developing Vietnam's Halal industry, opening the door for Vietnamese goods and services to access the Saudi Arabian market in particular and the Gulf countries' markets in general.

Vietnamplus.vn

Source: https://www.vietnamplus.vn/tao-dot-pha-trong-quan-he-huu-nghi-hop-tac-viet-nam-saudi-arabia-post987866.vnp