In a significant development, Vietnamese businesses are increasingly turning their attention to Saudi Arabia, aligning their strengths with the Middle Eastern nation’s market demands. Vietnamese Ambassador to Saudi Arabia, Đặng Xuân Dũng, highlighted that trade and investment have become pivotal in the bilateral relations between the two countries.
Trade Relations and Economic Indicators
Saudi Arabia has emerged as one of Vietnam’s key partners in the Middle East. Bilateral trade between the two nations surpassed US$2.82 billion in the first 11 months of 2024, with Vietnam achieving a trade surplus exceeding $152 million.
Strategic Investments and Corporate Ventures
In October 2024, FPT Corporation, a leading Vietnamese technology firm, inaugurated a regional office in Riyadh. This strategic move aims to tap into the burgeoning markets of information technology and artificial intelligence in Saudi Arabia.
Additionally, the Vietnam Oil and Gas Group (Petrovietnam) has entered into a cooperation agreement with Saudi Aramco, one of the world’s largest oil corporations. Both entities are expediting plans to operationalize this partnership, signaling a deepening of energy sector collaboration.
Vietnamese construction companies have also secured sub-contracts for major infrastructure projects in Saudi Arabia, with several firms actively participating in bids for upcoming ventures.
Diplomatic Engagements and Future Prospects
Prime Minister Phạm Minh Chính’s consecutive visits to Saudi Arabia in 2023 and 2024 underscore the commitment to elevating bilateral relations. Leaders from both nations have expressed intentions to upgrade their relationship, fostering optimism for enhanced cooperation in 2025 and beyond.
Expanding Horizons: Labor and Tourism
The ambassador anticipates a surge in skilled Vietnamese labor migrating to Saudi Arabia under contractual agreements, aligning with Saudi Vision 2030’s human resource requirements. Furthermore, there is an expected increase in Saudi tourists visiting Vietnam, combining leisure with business exploration.
Cultural Diplomacy and Mutual Understanding
The Vietnamese Embassy in Saudi Arabia, in collaboration with the Department of Cultural Diplomacy and UNESCO, recently organized the Vietnam Culture Day. This initiative aims to strengthen cultural and people-to-people exchanges between the two countries, fostering mutual understanding and goodwill.
Strategic Agreements and Future Initiatives
Ambassador Dũng advocates for the prompt finalization of agreements on investment protection, labor, and the establishment of a business council. Such frameworks are expected to lay a solid foundation for deepening economic and trade relations between Vietnam and Saudi Arabia.
Conclusion
The growing interest of Vietnamese enterprises in Saudi Arabia signifies a strategic alignment of economic interests and mutual benefits. With supportive diplomatic engagements and strategic investments, the bilateral relationship between Vietnam and Saudi Arabia is poised for substantial growth in the coming years.
