Vietnam - Algeria relations are facing a turning point opportunity.

Photo caption — Mr. Goumiri, Algerian Economic and Political Expert.

Sharing about the significance of the visit, the expert emphasized that this is not only an opportunity to strengthen the traditional friendship but can also become a milestone to open a period of accelerating deeper cooperation between the two countries at the political, economic , trade, investment, cultural and people-to-people exchange levels. He assessed that Vietnam and Algeria have "a good foundation of relations but have not been properly exploited".

The expert emphasized the special foundation of the relationship that not every pair of countries has: it is a friendship formed during the revolutionary struggle period, strengthened over many decades by political sympathy, close international stance, and mutual support in many historical periods. Both countries value national independence, strategic autonomy and diversifying partnerships.

However, according to him, the current level of cooperation, especially in economics and trade, is still "very low compared to the actual potential". Bilateral trade turnover in recent years has fluctuated around 300 - 400 million USD, a figure that, according to experts, is "very modest compared to the advantages of population, production capacity and open market of each country". He believes that the real potential of Vietnam and Algeria has not been exploited systematically and with long-term strategy from both sides.

Wide open market, strong complementary product structure

Experts analyze that the product structure between the two countries is ideally complementary. Vietnam has strengths in high-quality agricultural products: coffee, pepper, cashew nuts, tea, rice; seafood; textiles, footwear; electronics - components; construction materials, light equipment, industrial machinery; consumer products; digital technology and technical services.

Meanwhile, Algeria has great advantages in energy (crude oil, LNG, LPG); fertilizers, chemicals; industrial raw materials; iron, steel and metal products; some typical North African food lines; tourism, services and transportation markets.

These items can not only be directly exchanged between the two countries but can also become important inputs for processing, manufacturing and assembly industries if the two sides establish a stable supply chain.

Investment - Joint Venture: A sustainable direction and suitable for the development strategies of both countries
According to experts, Vietnamese enterprises are fully capable of opening direct investment projects or joint ventures in Algeria, a country that is promoting industrialization, diversifying its economy and reducing its dependence on oil.

He analyzed that many specific industries are suitable for the capacity of Vietnamese enterprises such as mechanics - assembling motorbikes, small cars, light trucks. Experts commented that the Algerian market is very large, the demand for personal vehicles, commercial vehicles and spare parts is increasing rapidly, while Vietnam has experience in operating efficient assembly models at reasonable costs.

The pharmaceutical and chemical production sector also opens up many prospects as Algeria focuses on developing the pharmaceutical industry to reduce imports. With experience in building GMP-standard factories, Vietnamese enterprises can enter into joint ventures to produce common drugs and medical equipment.

In addition, the expert emphasized the potential of agricultural processing and high-tech agricultural development in desert areas - where Algeria owns a large Sahara region, with abundant underground water resources, creating favorable conditions for implementing high-tech farming and livestock models, which are Vietnam's strengths.

Light industries and supporting industries, from electrical equipment, household appliances, and small and medium-sized industrial machinery, are all assessed to have good consumer markets.

In the field of information technology, digital transformation and software solutions, the expert emphasized that Algeria sees Vietnam as “an emerging technology model in Asia”, especially in financial technology (fintech), e-government and cybersecurity.

In the opposite direction, Algeria can expand investment in Vietnam in the energy, maritime transport, services and trade sectors.

The biggest obstacle

Despite the huge potential for cooperation, experts believe that the biggest barrier at present is not legal or procedural but the lack of information, lack of connection channels and lack of market access strategy. He pointed out a series of limitations that are hindering cooperation such as the low presence of Vietnamese enterprises in Algeria; lack of large-scale trade promotion delegations; no Vietnamese product introduction center or permanent trade representative; lack of stable distribution channels outside the capital; language and cultural differences in business have not been properly supported.

He emphasized that “many Vietnamese products are very suitable for the market but cannot find partners simply because businesses do not know where to start”. To overcome this bottleneck, the expert proposed establishing a Vietnamese trade and investment center in Algeria, increasing the number of fairs, exhibitions, Vietnamese goods weeks and expanding the distribution network.

Direct flights: “The factor that can change the whole game”

According to experts, the lack of direct flights between the two countries has significantly affected trade, tourism and investment. Businessmen from both countries have to transit 1-2 times, resulting in high costs and a long time.

Experts say that if there were direct flights: trade turnover could double in a few years; two-way tourism would increase sharply; business delegations would visit the market more frequently; Vietnamese goods would enter Algeria faster and at lower costs; investors from both countries could implement projects quickly instead of having to go through France, Türkiye or Qatar.

Algeria – a strategic gateway for Vietnam to enter Africa

One of the important highlights that the expert shared is the special position of Algeria. This is not only a market of nearly 45 million people with great purchasing power but also a commercial and logistics gateway to: the entire North Africa (Morocco, Tunisia, Libya, Egypt); more than 25 countries of West and Central Africa; the Mediterranean region and Southern Europe.

With its large seaport system, Algeria is an “ideal place” to set up distribution centers for Vietnamese goods across Africa. He stressed that if Vietnam sets up production or logistics facilities in Algeria, products can be exported to many countries in just 1-3 days.

Experts believe that the cautious mentality of Vietnamese enterprises is understandable. To overcome this barrier, he proposed to increase support for market information; provide legal advice and investment protection mechanisms; build a list of reputable partners; organize specialized business delegations with support from the embassy; and accompany the first joint venture projects to build trust. He emphasized that successful pioneering projects in the field of assembly, pharmaceuticals or agricultural processing will pave the way for other waves of enterprises.

According to experts, the world's restructuring of supply chains has created an opportunity for Vietnam and Algeria to move closer together. Vietnam has an increasingly important role in Asia, while Algeria is emerging as the economic and industrial center of North Africa.

“Vietnam-Algeria cooperation not only adds economic benefits but also helps each country expand its strategic space, diversify foreign relations and increase autonomy,” he emphasized.

Source: https://baotintuc.vn/thoi-su/quan-he-viet-nam-algeria-dang-dung-truoc-co-hoi-chuyen-minh-mang-tinh-buoc-ngoat-20251117225454942.htm