Memoranda of understanding (MoUs) were signed at the Vietnam-Saudi Arabia Business Forum held in Riyadh today [October 19] during the visit paid by Prime Minister Pham Minh Chinh to this country for the first ASEAN-Gulf Cooperation Council Summit. 

Vietnam's Prime Minister Pham Minh Chinh and Saudi Arabia's business executives in Riyadh on Oct 19. Photo: VGP

The signing took place at the event, co-chaired by Vietnamese Prime Minister Pham Minh Chinh and Hassan Al-Huwaizi, Chairman of the Federation for Saudi Chambers of Commerce and Industry. Dozens of businesses from Vietnam and Saudi Arabia participated in the forum held by Vietnam's Ministry of Planning and Investment, the Vietnamese Embassy in Saudi Arabia, and the Federation for Saudi Chambers of Commerce.

The MoUs were made between the Vietnam Chamber of Commerce and Industry (VCCI) and the Federation for Saudi Chambers of Commerce; between Saudi Arabia-based Zamil Industrial Investment Company (ZIIC) and Zamil Steel Buildings Vietnam Co., Ltd (ZSV) on the expansion in Vietnam for 2023-2030; between Vietravel and Saudia Arabia’s ITL World on tourism; between the Embassy of Vietnam on Saudi Arabia and Data Management Cooperation for trade promotion.

Saudi-invested Zamil Steel Buildings Vietnam (ZSV) operates two manufacturing plants in Vietnam that produce pre-engineered steel buildings, structural steel, and other building components. Its Noi Bai plant in Hanoi began operations in 1997 and currently has a production capability of 5,000 MT of steel buildings per month, while the second one is located in Dong Nai, one hour's drive from Ho Chi Minh City, to meet the demand for high-quality steel in the Asia-Pacific region.

Apart from the agreements, the two sides exchanged information on the investment climate of each country, policies for foreign investment, and measures to boost economic ties with a focus on trade and investment in a substantive manner.

Hassan Al-Huwaizi said Saudi Arabia is seeking ways to boost trade with Vietnam as its exports in 2022 hit more than US$400 billion, including $84 billion worth of non-petroleum products.

In the first nine months of 2023, trade turnover between Vietnam and Saudi Arabia reached more than $2 billion, with Vietnam’s exports worth nearly $850 million.

Many large Saudi Arabian companies operate in Vietnam, including Zamil Steel, the diversified chemical company SABIC, and the Saudi Arabian sovereign wealth fund – Public Investment Fund, which provides preferential loans for 13 projects worth more than $180 million in Vietnam.

According to Hassan Al-Huwaizi, several potential projects await businesses of both sides in steel manufacturing, solar power, agriculture, the food industry, information and technology, garments and textiles, among others.

In addition, the two countries have laid a significant foundation for advancing trade, investment, and economic cooperation by formulating numerous legal frameworks and bilateral and multilateral cooperation mechanisms.

The Vietnam Chamber of Commerce and Industry (VCCI) and the Federation of Saudi Chambers signed a memorandum of understanding in Riyadh on October 19.

At the event, Prime Minister Pham Minh Chinh highlighted the strengthened relations between Vietnam and Saudi Arabia with a better understanding of politics, foreign affairs, and economic ties.

Vietnam, which prioritized a people-centered approach and independent diplomacy, vows to create stable, effective, and long-term conditions for investors. To improve its investment climate, the country focuses on three strategies: regulatory framework, manpower, and infrastructure.

In 2022, Vietnam’s imports reached more than $730 billion.

To date, Vietnam has established diplomatic relations with 192 countries, including strategic partnerships and comprehensive strategic partnerships with all permanent members of the United Nations Security Council. The country has signed 16 free trade agreements (FTAs), including new-generation ones such as CPTPP, EVFTA, and RCEP.

Chinh believed that there remains room for cooperation as the two countries’ 2030 socio-economic development strategies are similar, and their strengths could support each other in emerging fields, such as urban development, digital transformation, green growth, conclusive economy, and climate response.

He emphasized that Vietnam is committed to offering favorable conditions for Saudi Arabian investors. He expected each country to become a bridge for economic connectivity between the two countries and Southeast Asia and the Gulf countries.

Currently, Saudi Arabia is Vietnam’s leading partner in helping the country penetrate the Middle East market.  

Overview of the Vietnam-Saudi Arabia Business Forum.