Việt Nam, Azerbaijan see potential for stronger trade ties

Since the establishment of diplomatic ties in 1992, Việt Nam and Azerbaijan have witnessed increasingly positive developments in their bilateral relations, with economic and trade cooperation emerging as a highlight.

Cái Mép Port. There is an ample room for Việt Nam and Azerbaijan to enhance cooperation, especially in trade and investment. — VNA/VNS Photo Đoàn Mạnh Dương

HÀ NỘI — Since the establishment of diplomatic ties in 1992, Việt Nam and Azerbaijan have witnessed increasingly positive developments in their bilateral relations, with economic and trade cooperation emerging as a highlight.

Beyond traditional areas of cooperation, the two countries are now exploring opportunities in new sectors to enhance exports. Acknowledging that bilateral collaboration has yet to reflect both nations' full potential, the governments of Việt Nam and Azerbaijan are working to advance their partnership to a new level.

The upcoming state visit to Azerbaijan by Party General Secretary Tô Lâm is expected to pave the way for significant breakthroughs, helping to foster more substantive and effective cooperation.

Traditional partners

Việt Nam and Azerbaijan share a long-standing friendship spanning decades. Despite geographical distance, the two countries have maintained close ties, with a mutual desire to deepen and expand cooperation for mutual benefit.

Bilateral mechanisms have been gradually strengthened, particularly through the Intergovernmental Committee on Economic, Trade, Scientific and Technical Cooperation, which held two successful sessions—one in Hà Nôi (2016) and the other in Baku (2018).

Most recently, on March 24, Azerbaijan sent a draft record of the committee’s third session to Việt Nam for review. The Vietnamese Ministry of Industry and Trade is currently collecting from relevant ministries and agencies in the document. Data from Việt Nam Customs show that bilateral trade in 2023 reached US$687.7 million, a surge of 712.5 per cent year-on-year.

However, in 2024, trade turnover dropped to $52.6 million, down 78.4 per cent from the previous year. Việt Nam’s exports to Azerbaijan rose 23.9 per cent to $49.2 million, while imports fell sharply by 98.3 per cent to just $3.4 million.

Key Vietnamese exports included mobile phones and components, machinery, electronic products, and spare parts, while crude oil remained the primary import from Azerbaijan.

In terms of investment, Azerbaijan has one registered project in Việt Nam worth approximately $2.5 million, focused on technical services and energy. Meanwhile, Vietnamese businesses are exploring investment opportunities in Azerbaijan, particularly in logistics, processed agricultural products, and renewable energy, the areas where Azerbaijan has expressed strong interest in expanding cooperation.

However, experts note that trade and investment flows remain modest and have yet to match the potential of the two countries. Bilateral trade accounts for a small share of each country’s total foreign trade, and the structure of traded goods is still limited.

To address this, experts said stronger efforts are needed in market information exchange, and in facilitating participation in trade fairs and exhibitions to boost connectivity and trade promotion.

Ample room for growth

At a recent B2B networking event between Vietnamese and Azerbaijani enterprises, business leaders highlighted the untapped potential for expanded cooperation, particularly in key sectors such as agriculture and food processing, construction, petrochemicals, renewable energy, transportation, trade and logistics, mining, digital economy, tourism, and light industry.

Mai Thị Diệu Huyền, Vice Chairwoman in charge of the Women Entrepreneurs Council under the Vietnam Chamber of Commerce and Industry, noted that despite multiple cooperation agreements, bilateral trade remains below expectations.

Sakina Babayeva, President of the Azerbaijan Women's Entrepreneurship Development Association, suggested that the establishment of a mechanism for sharing information on successful women-led projects would support and encourage cooperation, contributing to the promotion of bilateral relations.

Experts highlighted Azerbaijan’s past support for Việt Nam’s oil and gas sector and urged stronger business exchanges and greater market access. The Vietnamese Ministry of Industry and Trade has affirmed its full support for bilateral initiatives and pledged close coordination with Azerbaijani ministries and agencies to foster more practical and productive partnerships.