Hanoi: Prime Minister Pham Minh Chinh’s visit to Saudi Arabia from October 18-20 is expected to create a new impetus for bilateral ties and open up new prospects for future cooperation.
Saudi Arabia boasts the largest economy in the Gulf region and is one of Vietnam’s leading economic partners in the Middle East. At present, a significant number of Saudi Arabian firms are showing interest in Vietnamese goods, especially agricultural and food products, as the Middle East country is diversifying its supply to ensure food security.
Statistics showed that two-way trade surpassed 2.7 billion USD last year, up 32.4% annually. Many Saudi Arabian conglomerates and investment funds are effectively deploying direct and indirect investment projects in Vietnam in sectors like real estate, energy and steel.
However, the trade relationship between Vietnam and Saudi Arabia remains modest and is yet to meet expectations of both sides. Last year, two-way trade was equivalent to just 0.4% of Vietnam’s total foreign trade and 0.61% of Saudi Arabia’s.
In the first seven months of this year, Vietnam’s exports to Saudi Arabia exceeded 608 million USD, marking a 60% increase year on year, the most impressive figure so far.
Notably, more and more Saudi Arabian enterprises wish to step up cooperation with Vietnam in trade, investment, energy, seaports, Halal food, tourism and innovation. Vietnam also already introduced a scheme on enhancing international cooperation to build and develop the Halal industry in Vietnam by 2030, the first of its kind with a national-scale vision, to open up the potentially lucrative Halal market in collaboration with Saudi Arabia.
Saudi Arabian Ambassador to Vietnam Mohammed Ismaeil A. Dahlwy said over the past 24 years, Saudi Arabia and Vietnam have built a strong and amicable relationship, becoming a significant regional partner of each other. Despite global uncertainties in the wake of the COVID-19 pandemic, both Vietnam and Saudi Arabia have made remarkable recoveries and achieved significant milestones.
The Vietnam Trade Office in Saudi Arabia said the office has successfully established a showroom for Vietnamese products in Saudi Arabia, featuring samples from 140 businesses, including farm produce, food, canned fish, sauces, beverages, confectionery, cosmetics, apparel, interior décor, construction materials, household appliances, medical supplies, coal, agarwood, among others.
The office has also brought samples of Vietnamese products to 10 Saudi Arabian localities to introduce them to local companies, held an annual Vietnamese Product Promotion Week in the Lulu supermarket chain, and worked for the removal of the ban on the import of Vietnamese aquatic products.
Head of the trade office Tran Trong Kim noted that Saudi Arabia has stringent requirements for food quality and safety. Therefore, imported meat, frozen and chilled food, beverages, confectionery, milk and dairy products, cooking oil, and fat must have Halal certification while other goods require SASO certification (equivalent to ISO).
Furthermore, it is advisable for firms to provide product samples for partners with clear product information and contact in English, he said, adding that they should proactively plan the establishment of representative offices or joint ventures in the market, thus making it easier for their partners to actively expand the market that meets customer needs and preferences./.
Source: Vietnam News Agency