Vietnam-Azerbaijan partnership accelerates with focus on energy and infrastructure PHOTO

The newly established framework for cooperation between Vietnam and Azerbaijan is actively progressing, paving the way for expanded trade, investment, strategic projects, and business opportunities for both nations.

The Vietnamese publication Vietnam Investment Review highlighted recent bilateral agreements that mark significant steps in this growing partnership.

The Ministry of Industry and Trade of Vietnam (MoIT) and the Ministry of Energy of Azerbaijan recently held the third meeting of the Vietnam-Azerbaijan Intergovernmental Commission on Economic, Trade, Scientific, and Technical Cooperation in Hanoi. This meeting was a key milestone in strengthening the ties between the two countries.

This meeting follows the state visit by To Lam, General Secretary of the Communist Party of Vietnam, to Baku in May 2025, during which Vietnam and Azerbaijan agreed to elevate their relationship to a strategic partnership.

During the intergovernmental commission session, both sides identified 17 key areas of cooperation and nearly 60 concrete initiatives for the period 2025-2027. Priority sectors include energy, trade, investment, agriculture, high technology, and transport.

"Both parties reaffirmed their commitment to deepen collaboration in the oil and gas sector, recognising it as a strategic, long-term priority. They agreed to effectively implement the Memorandum of Understanding on Energy Cooperation signed between their ministries," said the Department of Foreign Market Development of Vietnam’s Ministry of Trade and Industry.

Vietnam Investment Review emphasised Azerbaijan’s global reputation as a leading producer and exporter of oil and natural gas, noting Baku’s historic significance as the birthplace of mechanised oil production and transport.

The report also recalled the strategic cooperation agreement signed several years ago between Vietnam’s state oil and gas giant PetroVietnam and Azerbaijan’s State Oil Company (SOCAR).

The commission’s agenda included discussions on joint projects in renewable energy, energy transition, ICT, and artificial intelligence.

Both sides agreed to boost bilateral visits at various government levels, organise economic forums and seminars, and establish a Vietnam-Azerbaijan Business Council to foster direct business contacts.

Additionally, they proposed developing agreements aimed at improving legal conditions for mutual investment and trade. These include an investment protection agreement and accords on the recognition of standards and product certification, according to Vietnam’s development department.

Vietnamese Minister of Industry and Trade Nguyen Hoang Long highlighted that the two economies possess complementary strengths. He pointed out that Vietnam is ready to expand exports of agricultural products, textiles, and electronics, while Azerbaijan is a promising supplier of crude oil, cotton fiber, and raw materials for light industry.

Trade turnover between the two countries reached $702.5 million in 2022 — a 730% increase compared to 2011. Although trade dipped to $52 million in 2023, the first quarter of 2024 showed a rebound with bilateral trade surpassing $100 million.

Vietnam’s main exports to Azerbaijan include computers, mobile phones, spare parts, and aquaculture products, while Azerbaijan mainly exports crude oil and petroleum products to Vietnam.

Nguyen Hoang Long reiterated the complementary nature of the economies, noting Vietnam’s potential to export light industry and agricultural goods, while Azerbaijan could enhance its exports of textiles to Vietnam.

The joint statement from the meeting highlighted the countries’ commitment to intensifying efforts to help businesses utilise existing cooperation frameworks and mechanisms to develop bilateral investment and trade.

Transport cooperation was also emphasised, with plans to strengthen rail, sea, and air connectivity. A particular focus was placed on the Trans-Caspian International Transport Route, known as the Middle Corridor, as a key logistical artery.

By Tamilla Hasanova