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Cabinet officials

Vietnam and Pakistan Launch Negotiations on Preferential Trade Agreement

Strategic Insights

— 1 min read

Vietnam and Pakistan have taken a significant step in deepening their economic cooperation, as Minister Nguyen Hong Dien and Mr. Jam Kamal Khan, Minister of Commerce of Pakistan, officially signed a Joint Statement to launch negotiations on the Vietnam - Pakistan Preferential Trade Agreement (VPPTA). This development marks a turning point in the economic and trade cooperation between the two countries, with a focus on removing trade barriers and increasing investment. Despite the potential for growth, the current trade turnover of $705 million in 2023 and $850 million in 2024, and nearly $600 million in the first 9 months of 2025, remains below expectations. The negotiation process aims to address issues related to quarantine regulations, technical standards, and import licensing procedures, which have hindered the expansion of bilateral trade.

Key Takeaways:

  • Minister Nguyen Hong Dien emphasized Vietnam's recognition of Pakistan as a leading partner in South Asia, with a strategic position connecting Southeast Asia to South Asia and the Middle East.
  • The two-way trade turnover in 2023 was approximately $705 million, which is expected to reach $850 million in 2024, and nearly $600 million in the first 9 months of 2025.
  • The Vietnamese government proposed removing tariff barriers, promoting transport and logistics connections, and encouraging businesses to cooperate in investing in the textile, garment, and footwear industries, as well as Halal agricultural products and food.
  • Pakistan's Minister of Commerce, Jam Kamal Khan, acknowledged the Vietnamese side's straightforward opinions and goodwill, and expressed a desire for the two countries to strengthen cooperation in areas such as trade in services, investment, and Halal industry.
  • The two countries agreed to start negotiations on the VPPTA and aim to sign it by the end of 2023, with the goal of increasing competitiveness and opening a new chapter for Vietnam - Pakistan economic cooperation.
  • Minister Nguyen Hong Dien and Jam Kamal Khan emphasized the importance of addressing issues such as quarantine regulations, technical standards, and import licensing procedures, which have hindered the expansion of bilateral trade.

Statistics:

  • Two-way trade turnover in 2023: approximately $705 million
  • Two-way trade turnover in 2024: expected to reach $850 million
  • Two-way trade turnover in the first 9 months of 2025: nearly $600 million
  • Target for 2025: complete negotiations and sign the Vice Vietnam - Pakistan Preferential Trade Agreement in 2025

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