Vietnam-Malaysia Bilateral Trade on the Rise

Vietnam-Malaysia Bilateral Trade on the Rise

Malaysia and Vietnam have had a long lasting relationship with a mutually beneficial history. In recent years, due to efforts by both countries, there have been significant improvements in relations, not only on trade but in other fields as well.

With regards to bilateral trade between the two countries in the past five years, Vietnam - Malaysia bilateral trade exchange has rapidly increased by 145.05 per cent, from US$ 565.83 million in 1999 to US$1.38 billion in 2003.

In the year 2003 in particular, bilateral trade between the two countries increased by 34.72 per cent compared to 2002. Of this total, Vietnam's exports to Malaysia and Vietnam's imports from Malaysia also increased by 31.31 per cent and 36.45 per cent accordingly.

In the first six months of 2004, Vietnam's export value to Malaysia reached US$231.44 million, an increase of 14.43 per cent compared to the same period last year. While, Vietnam's import value from Malaysia also increased 43 per cent over the same period last year.

Malaysia was the 10^th largest export destination for Vietnamese products. Among ASEAN member countries, Malaysia was the 3^rd largest export destination after Singapore and Thailand. Malaysia has 158 projects in Vietnam with the total investment capital of US$1.25 billion, in particular in Ho Chi Minh, Malaysia has 23 projects.

In past years, a series of trade and investment missions, visits by the leaders of both countries, conferences, forums and business promotion activities were carried out by the two governments. Moreover, promotion agencies, association and private sector of the two countries in the recent years were developed that proved both countries are very interested in doing business with each other.  Other sectors such as Oil and Gas, Informatic Communication Technology (ICT) and palm Oil Technology Training Programmes were also developed in co-operations between the two countries.

According to Mr A. Rashid Mohd Zain, Malaysian Trade Commissioner: "Vietnam is undergoing the process of industrialization and modernization. Both countries need to continue with trade promotion activities to improve trade. Moreover, to promote Malaysian investment in Vietnam, the investment policies, procedures and investment environment should be improved, simplified and made clearer so that it would motivate and  attract foreign investment from not only Malaysia, but also other foreign countries. In addition, the legal information/regulations on investment/encouragement investment policies should be sent regularly to each other, in order to help Malaysian investors to clearly understand about Vietnam's Government Policies on trade and investment".