As Vietnam’s Party General Secretary To Lam prepares for an official state visit to Azerbaijan, anticipation is mounting for a new era of bilateral cooperation—one that promises to be more strategic, diversified, and impactful than ever before.
A Long-Standing Friendship, Ready to Evolve
Since establishing diplomatic relations in 1992, Vietnam and Azerbaijan have cultivated a strong foundation of friendship and mutual respect. Though separated by geography, both countries have consistently expressed a desire to deepen their ties—not just in words, but through tangible action.
High-level engagements, including the Vietnam-Azerbaijan Intergovernmental Committee on Economic, Trade, Scientific and Technical Cooperation, have helped institutionalize collaboration. The committee has convened twice—first in Hanoi (2016), then in Baku (2018)—with a third session now in planning. A draft agenda from Azerbaijan was sent to Hanoi in March 2024 and is currently under review.
Trade Relations: A Mixed Picture
Bilateral trade has seen dramatic fluctuations. According to Vietnam Customs, trade volume surged to $687.7 million in 2023—a 712.5% year-on-year increase—before dropping sharply to just $52.6 million in early 2024. Despite the downturn, Vietnam’s exports to Azerbaijan climbed 23.9% to $49.2 million, led by mobile phones, machinery, and electronics. Imports, largely crude oil, plummeted by 98.3%.
Investment between the two countries remains modest. Azerbaijan currently has a single registered project in Vietnam, valued at $2.5 million, focusing on energy-related technical services. Vietnamese enterprises, on the other hand, are eyeing opportunities in Azerbaijan’s logistics, agriculture, and renewable energy sectors—areas where Baku has expressed a strong interest in growing ties.
Room for Expansion
While current trade and investment figures reflect only a fraction of the two nations’ potential, recent business-to-business (B2B) events have spotlighted emerging areas of collaboration.
From agriculture and food processing to petrochemicals, logistics, construction, and tourism, both sides are exploring new frontiers for growth. The digital economy, mining, and light industry are also on the radar.
Mai Thi Dieu Huyen, Vice Chairwoman of the Women Entrepreneurs Council under VCCI, pointed out that trade has yet to meet expectations despite the growing number of cooperation agreements. Sakina Babayeva, President of the Azerbaijan Women’s Entrepreneurship Development Association, proposed creating a platform to share best practices from women-led enterprises to strengthen bilateral engagement.
Looking Ahead
Experts agree: the partnership between Vietnam and Azerbaijan is underutilized—but full of promise. To unlock this potential, both countries must ramp up efforts in market intelligence sharing, trade fairs, and direct business engagement.
Vietnam’s Ministry of Industry and Trade has pledged to actively support bilateral initiatives, committing to deeper coordination with Azerbaijani counterparts to drive more meaningful and results-oriented cooperation.
With General Secretary To Lam’s upcoming visit, both nations are well-positioned to turn goodwill into growth—and chart a bold new course in their diplomatic and economic relationship.
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Source: Vietnam Insider