Vietnam and Egypt Strengthen Bilateral Cooperation Amid Enhanced Economic Relations

Strategic Insights -

The state visit by State President Luong Cuong to Egypt is a significant milestone in deepening bilateral cooperation between the two nations, potentially elevating their relationship to a comprehensive partnership. Egypt was one of the first Arab and African nations to establish diplomatic relations with Vietnam in 1963, marking the beginning of a long-standing partnership. Since then, the two countries have made strides in trade and investment, with notable advancements such as Egypt's recognition of Vietnam as a full market economy in November 2013.

Key Takeaways:

  • Vietnam and Egypt offer complementary strengths, with Egypt serving as a vital hub for goods moving across continents and Vietnam being a gateway for Egyptian products entering Southeast Asia and the broader Asia-Pacific.
  • Egypt is Vietnam's largest trade partner in North Africa and its second-largest market in Africa after South Africa, with two-way trade growing at an average annual rate of 6.7% from 2018 to 2022.
  • Vietnam's major exports to Egypt include electronics, phones and accessories, coffee, seafood, textiles, cashew nuts, fruit and vegetables, and various industrial goods, while imports from Egypt are mainly fruit, scrap metal, plastic materials, DAP fertiliser, and raw materials for the textile and footwear industries.
  • Both countries are discussing the possibility of negotiating a Free Trade Agreement (FTA) to enhance Vietnam's ability to export to not only Egypt but also to the wider Middle East, North Africa, and Southern Europe.
  • Vietnam's Minister of Industry and Trade Nguyen Hong Dien proposed holding the 6th meeting of the Vietnam-Egypt Joint Committee soon and encouraged Egypt to consider initiating FTA talks, as well as opening a direct air route between the two countries to facilitate trade and investment.
  • Minister Rania Al-Mashat welcomed these proposals and pledged to work closely with Vietnamese counterparts to address existing issues and explore the feasibility of negotiating an FTA.
  • The inauguration of the EuP Egypt plastic filler masterbatch plant, a significant step forward in Vietnam's first manufacturing investment project in Egypt, marks an opportunity for cooperation and growth in trade and investment.

Statistics:

  • Trade between Vietnam and Egypt reached $472.6 million in 2024, up 9.4% from the previous year.
  • In the first half of 2025, trade hit $266.9 million, up 8% year-on-year.
  • Two-way trade between 2018 and 2022 grew at an average annual rate of 6.7%.
  • Vietnam's exports to Egypt include electronics (34%), phones and accessories (21%), coffee (15%), and seafood (10%), among others.
  • Imports from Egypt are mainly fruit (23%), scrap metal (21%), plastic materials (15%), and DAP fertiliser (12%), among others.

Sources:

  • Vietnam Ministry of Industry and Trade
  • Egyptian Ministry of International Cooperation
  • EuP Egypt plastic filler masterbatch plant
  • State President Luong Cuong
  • Minister Nguyen Hong Dien
  • Minister Rania Al-Mashat