Malaysia has great economic development potential. It is the world- famous producer and exporter of palm oil and rubber. The trade cooperation and investment relationship between Vietnam and Malaysia during recent years has made good progress. Important achievements are attributed to the determination and endeavours of the two governments, relevant agents and especially the business communities of Malaysia and Vietnam.
Malaysia currently ranks third among ASEAN trade partners and 9th among trade partners of Vietnam. The trade turnover between the two nations has witnessed rapid growth in recent years; over US$4 billion in 2009, US$5.5 billion in 2010 and over US$4 billion in 2011. Since 1988, Malaysia has accelerated rice import from Vietnam and become Vietnam’s large and stable rice import market. Malaysia’s average import volume ranges between 15,000 and 25,000 tonnes of rice.
Malaysia’s products exported to Vietnam are mainly chemicals, petrochemical, plastic, fertilizers, pharmaceutical products, steel and iron, electronic products and computers. In return, it imports crude oil, rice, garment and textile products, wooden products, interior decoration products, coffee and rubber. A number of importers and exporters of Vietnam have established long-term cooperation relations with Malaysian partners and managed to sign large contracts annually. Mr Shazryll Zahiran, Malaysian Consul General in Ho Chi Minh City, says that with current growth rate, the target of increasing bilateral trade turnover to US$10 billion will be realised soon based on the two nations’ strengths and many areas for potential further collaboration.
In the state visit to Malaysia in September 2011, Vietnamese President Truong Tan Sang proposed that Malaysia boost import of products Vietnam is strong at in order to help balance two-way trade turnover. President Truong Tan Sang also enthusiastically invited Malaysian enterprises to participate in processing rubber latex, providing credit for SMEs and manufacturing clean energy, since Vietnam is in need of these areas where Malaysia has strengths.
On such basis, leaders of the two countries have reached an agreement on proceeding with negotiations and signing agreements, such as the MoU on prevention and fighting against transnational crimes, agreement on establishing a common mechanism for sea patrolling and communications channel between the two nations’ naval forces, framework agreement on rice trading and agreement on agriculture. In the near future, the 5th meeting session of the Joint Committee for Economic, Technical and Scientific Cooperation will be organized so as to review and accelerate cooperation in all areas, especially in economic, trade and investment sectors.
Thanh Trung
Vietnamese
