Vietnam and Saudi Arabia have pledged to examine the possibility of a free trade agreement (FTA) and upgrade their bilateral relations to a comprehensive partnership during Vietnamese Prime Minister Pham Minh Chinh's trip to the Middle Eastern country.

The Vietnamese government chief held a meeting with Saudi Arabian Minister of Industry and Mineral Resources Bandar Ibrahim Al-Khorayef in Riyadh on Wednesday as part of his trip to attend the eighth Future Investment Initiative Summit and for a working visit to Saudi Arabia. 

PM Chinh told Al-Khorayef that the two countries have maintained sound political and diplomatic relations over the past 25 years, while their economic relationship has developed rapidly and need reinforcement. 

He also noted that in his earlier talks with Crown Prince and PM of Saudi Arabia Mohammed bin Salman bin Abdulaziz Al Saud, the two sides focused on steps to realize the two countries’ long-term strategic visions.

As both countries have agreed to work toward elevating their relationship to a comprehensive partnership, Chinh suggested that the two sides designate agencies to proceed with negotiating a FTA.

Chinh also advised that the two countries consider agreements related to labor export, investment protection, culture, and education and training.

Such agreements, Chinh hoped, would help push trade between Vietnam and Saudi Arabia to US$5-10 billion, promote effective investment, connect the two cultures, and strengthen people-to-people exchanges.

While congratulating Al-Khorayef on his appointment as head of the Saudi Arabian sub-committee of the Saudi Arabia-Vietnam Intergovernmental Committee, Chinh expressed hope that the minister would continue to help strengthen the connectivity of the two economies for mutual interests.

Al-Khorayef pledged to collaborate closely with Vietnam’s Ministry of Industry and Trade to implement a series of pre-identified programs.

He expressed confidence that the upcoming upgrade in relations will open up new opportunities for cooperation and investment between businesses in both countries.

Admiring Vietnam’s industrial progress, Al-Khorayef shared his enthusiasm for partnerships in sectors such as automotive, high-tech, equipment, food processing, chemicals, pharmaceuticals and vaccine production, mining, and the Halal industry.

According to Al-Khorayef, Saudi Arabian Crown Prince and Prime Minister of Mohammed bin Salman bin Abdulaziz Al Saud had tasked him with upgrading the two countries’ relationship to a comprehensive partnership. 

The Vietnamese government chief expressed his confidence that Saudi Arabia’s Vision 2030 will be realized and that the eighth Future Investment Initiative Summit, known as ‘Davos in the Desert,’ will be a success.

PM Chinh said that he would assign the Ministry of Foreign Affairs and relevant agencies to coordinate with their Saudi Arabian counterparts to realize cooperation agreements. 

In terms of a future FTA, the premier urged Minister Al-Khorayef and Vietnam’s Minister of Industry and Trade Nguyen Hong Dien to make joint efforts to develop and sign a deal in the next six months.

Al-Khorayef said he was inspired by Chinh’s messages and affirmed that he would coordinate all stakeholders to speed up the progress of the accord.

He also extended an invitation to Vietnam to attend the Future Minerals Forum hosted by Saudi Arabia in January next year.

Currently, Saudi Arabia is Vietnam’s third-largest trading partner in the Middle East-North Africa region, with bilateral trade hitting $2.68 billion last year.

As of June 2024, Saudi Arabia had eight investment projects worth $8.57 million in the Southeast Asian country.

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