Vietnam and Pakistan to Negotiate Preferential Trade Agreement

Strategic Insights -

Pakistan and Vietnam are set to deepen economic cooperation through a Preferential Trade Agreement (PTA), with Vietnam's ambassador to Pakistan, Pham Anh Tuan, hinting at the beginning of negotiations. The agreement aims to significantly enhance bilateral trade, which has been growing steadily, with a trade volume of $850 million in 2024 and projected to reach $1 billion in 2025. The two countries have been diplomatic allies for 53 years, with their cooperation expanding across politics, trade, culture, and people-to-people exchanges.

Key Takeaways:

  • Vietnam and Pakistan have agreed to launch negotiations for a Preferential Trade Agreement (PTA) to deepen economic cooperation and enhance bilateral trade.
  • The bilateral trade volume stood at $850 million in 2024 and is projected to cross the $1 billion mark in 2025.
  • Pakistan's exports to Vietnam stood at $357 million in 2023-24, while imports stood at $285 million, with a significant decline in exports to $227 million in 2024-25.
  • Vietnam's Ambassador to Pakistan, Pham Anh Tuan, highlighted the country's impressive trade performance, with global exports reaching nearly $520 billion in 2024, while imports stood at $382 billion.
  • Pakistan should focus on boosting exports to reduce its long-standing trade deficit, with Vietnam's model being a good example.
  • Key Pakistani exports to Vietnam include corn, cotton fabrics, leather, and cotton yarn, while Vietnam mainly exports electronic equipment, synthetic filament yarn, natural rubber, and tea to Pakistan.
  • There is a need to diversify Pakistan's export basket, targeting sectors such as seafood, processed meat, pharmaceuticals, fruits, and vegetables, as well as building cooperation in Information Technology and Tourism.

Statistics:

  • Bilateral trade volume: $850 million (2024) and projected $1 billion (2025)
  • Pakistan's exports to Vietnam: $357 million (2023-24) and $227 million (2024-25)
  • Pakistan's imports from Vietnam: $285 million (2023-24) and $374 million (2024-25)
  • Vietnam's global exports: nearly $520 billion (2024)
  • Vietnam's global imports: $382 billion (2024)

Sources:

  • [1] A statement by Ambassador of Vietnam to Pakistan Pham Anh Tuan at the Lahore Chamber of Commerce and Industry.
  • [2] Data from the State Bank of Pakistan regarding Pakistan's exports and imports from Vietnam.
  • [3] Figures quoted by LCCI President Mian Abuzar Shad from the State Bank of Pakistan.
  • [4] Report by the Lahore Chamber of Commerce and Industry on the occasion of Ambassador Pham Anh Tuan's speech.