Vietnam-Saudi Arabia relations on the rise

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)

Vietnam and Saudi Arabia have a close friendship and cooperation relationship, vividly demonstrated by the fact that the two countries have become important regional partners of each other.

That relationship has been continuously strengthened and developed in many fields over the past 25 years, since the two countries established diplomatic relations on October 21, 1999.

Political and diplomatic relations develop well.

Vietnam and Saudi Arabia have many similarities. Both peoples have long-standing cultures and pride in their national history. Both countries are located in important strategic locations, are two dynamically developing economies in the Southeast Asia and Middle East regions, and are in the process of strongly transforming their economic structures towards modernity and sustainability.

25 years is not a long time, but it has fostered the friendship between the two countries to develop deeper and more substantial every day. The two countries have built a relationship of trust and become leading partners of each other in the region.

In recent years, the two sides have increased the exchange of high-level delegations, delegations from ministries and sectors, as well as opened investment forums to contribute to promoting economic, trade cooperation and people-to-people exchange.

Immediately after the COVID-19 pandemic was brought under control, delegation exchanges between the two countries took place very actively. Notably, the first visit to Vietnam by Saudi Arabia's Minister of Foreign Affairs, 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.

Saudi Arabian Foreign Minister Faisal Bin Farhan Al Saud writes in the guestbook. (Photo: Van Diep/VNA)

Most recently, the visit of Vietnamese Prime Minister Pham Minh Chinh and the Vietnamese high-ranking delegation to Saudi Arabia (from October 18-20, 2023) contributed to elevating the relationship between the two countries, actively contributing to connecting the two regional organizations, the Gulf Cooperation Council (GCC) and the Association of Southeast Asian Nations (ASEAN). This is the first working trip of a Vietnamese Prime Minister to Saudi Arabia and the second visit of a Vietnamese high-ranking leader after 13 years since the first visit in 2010.

Prime Minister Pham Minh Chinh's working trip has created a breakthrough in seeking new cooperation opportunities, expanding the market for Vietnamese goods and services in Saudi Arabia and the Gulf Cooperation Council (GCC) market, especially in attracting investment capital, expanding trade, energy conversion, sustainable growth, skilled labor, developing the Halal industry, exporting agricultural and aquatic products and tourism.

During 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.

Prime Minister Pham Minh Chinh witnessed the signing ceremony of a Memorandum of Understanding between Zamil Industrial Investment Company (ZIIC) and Zamil Vietnam Steel Construction Company (ZSV) on the ZSV expansion project in Vietnam (2023-2030 period). (Photo: Duong Giang/VNA)

In addition, the two countries coordinate and support each other at multilateral and regional forums. Vietnam is willing to support Saudi Arabia in strengthening its cooperative relationship with ASEAN as well as promoting cooperation between ASEAN and the GCC, in accordance 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.

Saudi Arabia - Vietnam's leading economic partner in the Middle East

Besides the political and diplomatic fields, economic and trade cooperation is also a bright spot in the Vietnam-Saudi Arabia relationship.

Saudi Arabia is currently one of Vietnam's leading economic partners in the Middle East, 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.

In recent years, more and more Saudi Arabian businesses have shown interest and desire 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 and a total registered capital of 8.57 million.

Production of structural steel at Zamil Steel Vietnam Co., Ltd. in Noi Bai Industrial Park, Hanoi. (Photo: Huy Hung/VNA)

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... In particular, the Zamil Steel factory project, Sabic Group establishing Sabic Vietnam Company Limited 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 issuing the Project “Enhancing 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 large desert area and an unfavorable climate for agricultural development. This is an opportunity for Vietnamese exporters. Up to now, many Saudi Arabian enterprises are interested in Vietnamese goods, especially agricultural products and food, at a time when the Middle Eastern country is trying to diversify its supply sources to ensure food security.

Regarding development cooperation, the Saudi Fund for Development (SFD) in Vietnam has made important contributions to the strong cooperative relationship between Saudi Arabia and Vietnam over the past 25 years.

To date, the Saudi Arabian Fund for Development has provided Vietnam with preferential loans totaling over 181 million USD for 13 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 and Relief Center.

In order to open up investment capital to Vietnam, Saudi Arabia's $620 billion Public Investment Fund has committed to devoting more resources to major infrastructure development projects in Vietnam.

Many large corporations from Saudi Arabia have affirmed that they will consider expanding their investment activities in Vietnam in areas 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 5,000 Vietnamese workers in Saudi Arabia in various sectors such as construction, engineering, hospitality and housekeeping. Furthermore, Vietnam and Saudi Arabia are working to approve a new labor cooperation agreement which is expected to be signed in the near future. This labor agreement will further promote the relationship between the two countries.

Continue to take the relationship to new heights

2024 marks an important milestone in Vietnam-Saudi Arabia relations as the two countries celebrate the 25th anniversary of establishing diplomatic relations (October 21, 1999 - October 21, 2024).

With the impressive achievements and the desire and determination of the Governments and peoples of the two countries, the bilateral cooperation will be continuously strengthened and developed in all areas such as diplomacy, economy, trade, investment, culture, people-to-people exchange..., for the common interests of the peoples of the two countries, making practical contributions to maintaining peace, stability, cooperation and development in the two regions and in the world.

At the ceremony to celebrate the 94th anniversary of Saudi Arabia's National Day (1930-2024) and the 25th anniversary of the establishment of Vietnam-Saudi Arabia diplomatic relations (1999-2024) organized by the Saudi Arabian Embassy in Vietnam on September 23, 2024 in Hanoi, Deputy Foreign Minister Nguyen Minh Hang affirmed that the 25-year journey of Vietnam-Saudi Arabia relations has fostered the friendship and multifaceted cooperation between the two countries to develop more deeply and substantially.

Deputy Foreign Minister Nguyen Minh Hang speaks at the ceremony. (Source: World and Vietnam Newspaper)

According to Deputy Foreign Minister Nguyen Minh Hang, Vietnam and Saudi Arabia have many similarities as the world is moving to the digital age and green economy.

Both countries' long-term plans, such as Vietnam's Vision 2030 and 2045, and Saudi Arabia's Vision 2030, are aligned with these global trends.

Deputy Minister Nguyen Minh Hang said that Vietnam and Saudi Arabia need to continue to deepen their cooperative relationship, turn mutual admiration into tangible results, and turn each country's development aspirations into motivation and opportunities to open up new areas of cooperation, and jointly promote growth for both countries and the two regions.

Also at the ceremony, Saudi Arabian Ambassador to Vietnam Mohammed Ismaeil A. Dahlwy affirmed that Saudi Arabia and Vietnam have many similarities and these things highlight the strong relationship between the two countries.

Both countries are strategically located and focus on development with visions for the future. The Ambassador said that the two countries have nurtured their relationship on the basis of mutual respect, cooperation and mutual benefit and look forward to deeper cooperation between the two countries in areas such as technology, energy, sustainable development and people-to-people exchanges.

The Ambassador stressed that Saudi Arabia and Vietnam play a constructive role in regional and global issues with foreign policies aimed at promoting stability through dialogue, cooperation and multilateralism.

Looking to the future, Saudi Arabia looks forward to deeper cooperation with Vietnam in areas such as technology, energy, sustainable development and people-to-people exchange.

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./.

Source: https://baodaknong.vn/quan-he-viet-nam-saudi-arabia-tren-da-phat-trien-manh-me-232067.html