Azerbaijan–Vietnam: A bet on strategic partnership Caliber.Az review

Due to its geopolitical position and market accessibility, Azerbaijan's foreign economic orientation since the early years of independence has been primarily directed towards post-Soviet states and the European Union. However, over the past fifteen years, this established framework has undergone a significant shift: today, China, Middle Eastern countries, and Southeast Asian nations rank among our country’s leading trade partners. Judging by the results of the two-day state visit of General Secretary of the Communist Party of Vietnam, To Lam, Azerbaijani-Vietnamese business cooperation is also set to gain new momentum in the fields of energy, transport, digital development, and tourism.

"Among the documents signed today, I would like to specifically mention the Joint Declaration on a Strategic Partnership between Azerbaijan and Vietnam. This is a very serious political document. In fact, it is a document that will elevate Vietnamese-Azerbaijani relations to a higher level. I am convinced that these high-level relations will play a very important role in our bilateral cooperation in the future. As you can see, the documents signed today cover a number of areas," said President of Azerbaijan Ilham Aliyev during a joint press statement with General Secretary of the Communist Party of Vietnam, To Lam.

The head of state emphasised that the signed documents and the discussions held on the energy sector provide a solid basis to affirm that the two countries will further expand cooperation in this area in the near future.

Commenting on the outcome of the talks, the President of Azerbaijan also noted that joint transport infrastructure projects were discussed: “We can encourage mutual trade through both the North-South and East-West transport corridors.”

The head of state recalled that the rapid development of the renewable energy sector will enable Azerbaijan to generate 6,500 megawatts of “green” energy within five years. In this context, Vietnamese companies were invited to participate in the development of Azerbaijan’s renewable energy sector, while the Azerbaijani side also expressed its readiness to invest in Vietnam’s renewable energy industry.

For his part, as President Ilham Aliyev emphasised, both countries have significant potential in the defence industry, and collaboration in this area, the creation of joint ventures, and cooperation could prove beneficial.

“It is important to increase trade and investment, bring together the business communities of both countries, and cooperate in all areas — in addition to energy, oil, and gas — by exploring opportunities in railways, maritime transport, and agriculture,” stated General Secretary of the Communist Party of Vietnam, To Lam, to the media. “We will consider the issue of holding the next meeting of the intergovernmental commission soon. We look forward to the outcomes of this meeting, which will be held under the new framework of a strategic partnership.”

When discussing the prospects for Azerbaijani-Vietnamese business cooperation, it is important to highlight that the two countries share long-standing and resilient friendly ties. It is no surprise that this foundation has become a strong basis for developing relations in the new century. The first successful steps in this direction were taken at the end of 2008, when the State Oil Company of Azerbaijan (SOCAR) began oil shipments through its subsidiary SOCAR Trading in Singapore to terminals leased in South Korea. As part of its new strategy to enter the Asian market, in 2009, SOCAR and the Vietnamese Petrovietnam Oil Corporation signed a memorandum of understanding in the oil and gas sector and concluded a long-term contract for the supply of Azerbaijani oil to Vietnamese refineries. It is worth noting that in 2019, an agreement was also signed between the Vietnamese state-owned company Binh Son Refinery and Petrochemical Company and SOCAR.

In the following years, cooperation in the energy sector served as the stable foundation for the bilateral trade and economic relations between the two countries. However, by progressively expanding the commercial track, the two nations began to increase the supply of non-oil sector products. It is worth noting that the optimised import duties for suppliers to Vietnam and the country's high level of regional integration make it an ideal base for Azerbaijan to access the promising markets of Southeast Asia.

The success of this cooperation is reflected in the statistics: for comparison, in 2009, trade turnover between the two countries amounted to a relatively modest $12.6 million. According to information provided by Caliber.Az to the Ministry of Economy of Azerbaijan, the Azerbaijani-Vietnamese trade turnover for 2024 reached $224 million, indicating that over the years, trade between the two nations has increased nearly twentyfold. Today, Vietnam exports to Azerbaijan computers, smartphones, other electronics and components, as well as various agricultural products such as seafood and tropical fruits. Another segment of imports includes fabrics, clothing, and accessories. 

On the other hand, Azerbaijan’s exports are predominantly crude oil and petroleum products. However, in recent years, the country has successfully diversified its supply portfolio. Vietnamese markets now receive Azerbaijani industrial products, including energy and electrical equipment, precision instruments, tobacco raw materials, and processed agricultural products.

According to recent data published in the Vietnamese newspaper Vietnamplus, the peak of trade and economic cooperation between the two countries was reached in 2022, when, amidst the global energy crisis, trade turnover between Vietnam and Azerbaijan reached a record high of $702.5 million. However, the subsequent decline in global oil prices and the global recession in the year before last significantly reduced trade dynamics. As a result, in 2023, the trade turnover between the two countries amounted to $250 million, slightly lower than the previous year’s figures. Nevertheless, in the first quarter of 2025, the trade turnover between Vietnam and Azerbaijan exceeded $100 million, clearly indicating an improvement in market conditions and an activation of trade.

Today, Baku and Hanoi are determined to diversify and expand their trade and economic relations, and the documents signed in Baku serve as clear evidence of these efforts. Specifically, a "Memorandum of Understanding on Cooperation in the Energy Sector" was signed between the relevant ministries and agencies of the two countries, as well as a "Memorandum of Understanding between SOCAR and the Vietnam National Oil and Gas Group (PetroVietnam)," and a "Memorandum of Understanding between SOCAR Trading Singapore PTE LTD and Binh Son Refining and Petrochemicals JSC."

Vietnam and Azerbaijan plan to broaden their cooperation in areas such as tourism, high technologies, and transport logistics, for which corresponding memoranda were signed between the relevant authorities.

"We signed an MOU with Dr. Dinh Hoa, President of Vietnam’s National Association of Entrepreneurship (VINEN), to establish the Azerbaijan–Vietnam Joint Business Council. This milestone paves the way for deeper economic ties, dynamic business collaboration, and a stronger partnership between our nations,” noted Orkhan Mammadov, Chairman of the Board of the Small and Medium Business Development Agency of Azerbaijan (KOBİA), in his recent post on the social media platform X.