Pakistan and Vietnam are both growing economies, and cooperation between the two countries is essential. Both countries are committed to enhancing trade relations and struggling to reach an Agreement of Preferential Trade (PTA).
Pakistan and Vietnam established diplomatic relations on 8 November 1972. The relations are largely based on mutual trade and international political cooperation between the two countries. However, relations greatly warmed up in the 2000s, and Pakistan reopened its embassy in Hanoi in October 2000. Vietnam also reopened its embassy in Islamabad and trade office in Karachi in December and November 2005, respectively. Relations between the two countries have continued to remain friendly, with Vietnam expressing an interest in increased economic and military cooperation with Pakistan. The heads of both nations have in recent times paid official visits to each other, with Pakistani President Pervez Musharraf visiting Vietnam in May 2001 and Vietnamese President Trần Đức Lương also paying an official visit to Pakistan in March 2004. Throughout the following decade, several visits were made by various Vietnamese and Pakistani ministries to each other. A major part of Pakistan’s pursuit to enhance its relationship with Vietnam is outlined in Pakistan’s “Vision East Asia” strategy. Vietnam is an active member of ASEAN, and Pakistan always tends to establish close ties with ASEAN.
Recently Vietnam’s Ambassador to Pakistan, Mr. Pham Anh Tuan, speaking at the Lahore Chamber of Commerce and Industry (LCCI), revealed his country’s strong will and ensured all possible support. Pakistan is also in dire need of expanding its trade with Vietnam, and Vietnam is one of the rapidly growing economies of the region and can assist Pakistan in reviving its economy.
Although bilateral trade reached $850 million in 2024 and was expected to cross $1 billion in 2025. But the real potential is much more than this, and the strong will from both sides will definitely bring fruits in the coming years. Both countries have set a target of 5 billion US dollars.
Vietnam is a country hard-hit by the Trump tariff and also needs to explore diversified trading partners. In fact, Trump’s tariffs have destabilized the global trading patterns, partners, routes, etc. It might have effect on the US itself, but, to many other countries of the world has adverse impact. Definitely, a few countries might be beneficiaries too. Like Pakistan, it was facing tough challenges from many other countries while exporting textile products to the US, but after Trump tariffs were imposed on some of Pakistan’s competitors, Pakistan has leverage over them in exporting textile products to the US.
Pakistan’s strengths in textiles, agriculture, and pharmaceuticals may be beneficial for Vietnam. Currently, Pakistan’s exports are corn, raw cotton, yarn, leather, pharmaceutical products, and textiles. But a huge workforce, cheaper labor, and rich natural resources may attract Vietnam. Pakistan is offering enabling environments and attractive packages for foreign investors. The establishment of SIFC to facilitate foreign investors and ease of doing business in Pakistan may become fruitful initiatives of Pakistan.
At the same time, rapid industrialization and export expertise of Vietnam are significant for Pakistan. Currently, Vietnam exports to Pakistan electrical and electronic equipment, coffee, tea, spices, and man-made filaments. But definitely it is to broaden in the near future.
Vietnam is interested in attracting Pakistani investment in its manufacturing and technology sectors, while Pakistan seeks to encourage Vietnamese investment. PTA is essential to achieve higher goals for both countries.
Trust, strong political will, and the highest-level support from both governments will enable the set target of USD 5 billion to be achieved soon conveniently. The Pakistani business community is ready and already in touch with their counterparts in Vietnam.
The aim is to improve the living standard of common people in both countries, eradicate poverty, and promote peace, stability, and prosperity mutually. Both countries can contribute to the regional and global economy. Both are peace-loving nations and cooperate in regional peace, stability, and security. It is to emphasize that the close ties are not against any third country, and there should be no concern from any other country in the region.