Vietnam-Kuwait trade: A foundation for sustainable cooperation, with prospects for expansion.

(Chinhphu.vn) - Having established diplomatic relations on January 10, 1976, Vietnam and Kuwait have built a stable foundation for cooperation in many fields, especially in economics, trade, and energy. In the context of the Middle East continuing to play a crucial role in ensuring global energy security, Vietnam-Kuwait relations are facing new opportunities to enhance cooperation effectiveness and move towards broader cooperation frameworks.

Delegates attending the ceremony commemorating the 30th anniversary of the signing of the Vietnam-Kuwait Trade Agreement - Photo: Vietnamese Embassy in Kuwait

According to the Foreign Market Department ( Ministry of Industry and Trade ), Vietnam and Kuwait have maintained a good political and diplomatic dialogue channel for nearly 50 years. Vietnam opened a trade representative office in Kuwait in June 1993 and upgraded it to an embassy in October 2003. Conversely, Kuwait opened an embassy in Hanoi in August 2007 and operated a consulate general in Ho Chi Minh City until 2023.

Exchange visits between the two countries are frequent, although the level of business interaction in the last five years has been modest. Most recently, Vietnam sent a delegation led by former State Auditor General Ho Duc Phoc to Kuwait (July 2019), while Kuwait had a delegation led by its Minister of Petroleum visit Vietnam (October 2021). The Vietnamese Ministry of Industry and Trade also organized a national trade promotion delegation to Kuwait in September 2022, contributing to maintaining contact between the business communities of the two countries.

The two countries have signed many important documents, creating a favorable legal framework for economic cooperation, investment, and transportation, including: the Trade Agreement (1995), the Air Transport Agreement (2001), the Agreement on Encouragement and Protection of Investment (2007), the Agreement on Avoidance of Double Taxation (2009), etc.

Bilateral trade has grown strongly thanks to the energy sector.

Trade between Vietnam and Kuwait maintained strong growth momentum during the 2020-2024 period, mainly due to the import of crude oil to supply the Nghi Son Refinery and Petrochemical Plant.

Total trade turnover increased from US$3.2 billion (2020) to US$7.3 billion (2024).

Kuwait is currently Vietnam's largest supplier of crude oil, reaching nearly $7.3 billion, accounting for approximately 90% of Vietnam's total crude oil imports.

In the first 10 months of 2025, bilateral trade reached US$5.6 billion, a decrease of 10.4% compared to the same period last year due to fluctuations in the crude oil market. Of this, Vietnam's exports reached US$71.7 million; imports exceeded US$5.5 billion.

Vietnam exports the following product groups to Kuwait: seafood, agricultural products (rice, coffee, cashew nuts, fruits and vegetables), automotive components, iron and steel, wood and wood products… Conversely, besides crude oil, Vietnam imports liquefied natural gas, raw plastics, and some other industrial products.

The Nghi Son Refinery and Petrochemical Project – one of the largest FDI projects in Vietnam with a total investment of $9 billion – is a symbol of Vietnam-Kuwait energy cooperation.

The project, launched in 2013 and commencing commercial operation in July 2017, supplies 5-7 million tons of products annually, meeting 35-40% of domestic petroleum demand. The joint venture comprises four parties: PVN (Vietnam), KPI (Kuwait), Idemitsu Kosan, and Mitsui Chemicals (Japan).

Vietnam views Kuwait as a highly promising partner in the Gulf region. In particular, Vietnam's desire to promote FTA negotiations with the Gulf Cooperation Council (GCC) is seen as a strategic step to expand economic relations with Kuwait, an important member of the bloc.

A Free Trade Agreement (FTA) with the GCC, if signed, would facilitate deeper access for Vietnamese goods to markets within the bloc with a high degree of trade openness. It would expand cooperation across multiple sectors such as industrial investment, finance, labor, tourism, culture, and education and training.

At the same time, it helps Kuwait enhance food security through a stable agricultural supply chain from Vietnam. It creates opportunities for the GCC and Kuwait to access Vietnam as an important link in the supply chain of industrial and high-tech products from the United States, Japan, and South Korea.

Anh Tho

Source: https://baochinhphu.vn/thuong-mai-viet-nam-kuwait-nen-tang-hop-tac-ben-vung-trien-vong-mo-rong-102251114211928386.htm