State President Truong Tan Sang and the First Lady arrived in Tehran on Sunday along with a senior delegation of Vietnamese officials as part of a state visit to Iran, whose trade sanctions have been lifted by the UN recently.

The president is scheduled to attend an official welcoming ceremony at the presidential residence on Monday, followed by a private meeting between the two heads of state and a high-level bilateral talk between the two sides.

President Sang is also expected to attend a courtesy greeting with the Iranian Speaker of Parliament, as well as a meeting with the Supreme Leader of Iran Ali Khamenei later the same day.

As part of the agenda of his visit, President Sang will discuss the recent socio-economic status and foreign policy of Vietnam, as well as focusing on promoting Vietnam-Iran bilateral cooperation in different sectors in order to raise their economic relations to new heights.

Vietnamese Deputy Minister of Foreign Affairs Vu Hong Nam told Tuoi Tre (Youth) newspaper that Vietnam and Iran are traditionally good trade partners.

However, Nam said, since Iran came under UN sanctions in 2006, Vietnam-Iran trade turnover has remained low, US$105 million in 2015, with the Southeast Asian country exporting $76.6 million in necessities and importing $29 million worth of asphalt, oil, and other commodities.

According to Nam, Iran has a population of around 82 million and is a prospective market for Vietnam’s staple exports of rice, tea, coffee, sea food, and textiles.

“Escorting the president in this visit are many Vietnamese businesses looking to make the most out of the upcoming Vietnam-Iran economic cooperation,” Nam stressed.

The State Bank of Vietnam and the Central Bank of the Islamic Republic of Iran will also sign a memorandum of understanding on cooperation in the banking industry.

“I hope this agreement will open new pathways for business. All things considered, I’m optimistic that with a watchful eye, because the market is so huge, we will create as many opportunities as there may be difficulties and challenges,” Nam said.

Vietnamese Ambassador to Iran Nguyen Hong Thach also told the Iran Times that the two countries will negotiate the establishment of a joint venture between the Iranian Ghadir Invesment Company and PetroVietnam in Vietnam to manufacture petrochemical products.

The UN Security Council began imposing sanctions on Iran in 2006 after the nation refused to suspend its uranium enrichment program.

The sanctions had negatively affected multiple sectors of Iran’s economy, until they were lifted in January this year, following the country’s agreement to limit its nuclear programs.

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