Vietnam Strengthens Trade and Investment Ties with ASEAN Foreign Businesses

Vietnam’s trade and investment relations with ASEAN countries have become a cornerstone of its economic strategy, contributing significantly to regional integration and growth. In 2024, Vietnam’s total trade with ASEAN nations reached a substantial $83.6 billion, reinforcing the region as Vietnam’s fourth-largest export market and third-largest import source.

ASEAN Investment: A Catalyst for Vietnam’s Development

ASEAN countries have established themselves as pivotal investors in Vietnam’s economy. Singapore leads with 3,946 projects valued at $84.3 billion, showcasing strong investment in high technology, real estate, and manufacturing sectors. Thailand and Malaysia follow with investments worth $14.3 billion and $12.9 billion, respectively, contributing to a diverse and robust economic landscape. Vietnam’s reciprocal investments from the region, particularly in Laos, Cambodia, and Myanmar, underline the nation’s ambition to expand its regional footprint, with nearly $12.1 billion invested across 871 projects.

Promoting Economic Connectivity and Sectoral Growth

In a recent dialogue with ASEAN businesses, Prime Minister Pham Minh Chinh highlighted Vietnam’s commitment to fostering an environment conducive to business growth. He emphasized institutional reform, infrastructure development, and human resource training as critical to sustainable operations. These efforts align with ASEAN businesses’ calls for enhanced legal frameworks, tax transparency, simplified customs procedures, and streamlined investment licensing.

These enterprises are increasingly looking to boost investments in Vietnam’s key sectors, including high technology, semiconductors, artificial intelligence (AI), aviation, energy, agriculture, finance, and logistics. Such investments enhance Vietnam’s supply chains and contribute to the country’s ambitions of achieving 8% economic growth in 2025 and double-digit expansion in subsequent years.

Strategic Initiatives to Boost Vietnam-ASEAN Trade

The Vietnamese government is actively working on strategic initiatives to strengthen bilateral trade with individual ASEAN nations. With Singapore, there is a focus on digital transformation, clean energy, and evolving Vietnam-Singapore Industrial Parks (VSIPs) into smart, green, and sustainable zones. The goal is to maintain Singapore as Vietnam’s top ASEAN investor, particularly in high-tech industries and the digital economy.

For Thailand, the emphasis is on enhancing trade to $25 billion through balanced trade structures and cooperation in supply chains, tourism, and the green economy. Malaysia is another key partner, with Vietnam targeting $18 billion in trade by reducing trade barriers, easing Halal certification, and promoting imports of Vietnamese Halal products. Similar strategies are in place with Indonesia and the Philippines, aiming to elevate trade volumes and broaden investment in emerging sectors.

Prime Minister Pham Minh Chinh and delegates at the dialogue

A Stable and Competitive Business Environment

Prime Minister Chinh reiterated Vietnam’s dedication to maintaining a fair, transparent, and competitive investment environment. This commitment ensures political and social stability, offering a consistent legal and regulatory framework that fosters investor confidence. The government’s approach to “harmonizing interests and sharing risks” creates a strong foundation for collaborative growth, benefiting both Vietnam and its ASEAN partners.

Vietnam’s active engagement with ASEAN businesses and its strategic reforms underline its role as a strategic production hub within the region. As Vietnam strengthens its trade ties and enhances economic connectivity, it is well-positioned to support ASEAN’s vision of a dynamic, innovative, and growth-centered economic bloc that benefits all member countries.

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Source: Various Sources

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