Strengthening Vietnam-Venezuela Economic Cooperation

The enduring and fine friendship between Vietnam and Venezuela forms a solid foundation for nurturing economic partnerships. Despite the current bilateral trade volume being relatively modest, there exists an immense potential for collaboration across a wide array of sectors, including but not limited to energy, mining, agriculture, and tourism.

VCCI President Pham Tan Cong ( R) and Venezuelan Ambassador Juan Carlos Ferrandes Juarez 

Vietnam and Venezuela have nurtured their relationship over decades. Formally establishing diplomatic ties in 1989, these two nations have forged a robust partnership based on mutual trust and shared values. Their collaboration extends across a diverse spectrum, encompassing politics, diplomacy, defense, culture, education, and healthcare.

According to the General Statistics Office (GSO), the economic collaboration between Vietnam and Venezuela remains modest, despite their considerable potential. In 2023, the bilateral trade value amounted to a mere US$31.5 million.

At a meeting with President of the Vietnam Chamber of Commerce and Industry (VCCI) Pham Tan Cong on March 13, Venezuelan Ambassador to Vietnam Juan Carlos Ferrandes Juarez said that Venezuela values its relationship with Vietnam and wishes to promote economic cooperation with Vietnam.

Venezuela is on the path to recovery in the wake of adversities, he said. Venezuela's economy grew by 12% in 2022 and 5% in 2023. The Venezuelan government is making efforts to improve the investment environment and attract foreign investment capital. Its five new special economic zones were established with many attractive incentives for investors. He said that Vietnam is an important partner of Venezuela in the Asia-Pacific region and the Venezuelan government is committed to creating a favorable investment environment for foreign investors, including Vietnamese businesses.

In response, VCCI President Pham Tan Cong said that VCCI also suggested a number of potential areas of cooperation such as energy, mining, agriculture and tourism.

Venezuela reportedly has the largest oil reserves in the world and Vietnam has a huge demand for energy imports. Therefore, energy cooperation is potential and likely beneficial to both countries.

Regarding the mining industry, Venezuela is rich in mineral resources, including gold, diamond, iron and bauxite ores. Vietnam has many experienced mining businesses. Therefore, cooperation in this field is also very potential.

In agriculture, Venezuela has a large area of agricultural land and favorable climatic conditions for agricultural development. Vietnam has a lot of experience in crop cultivation and animal farming. Therefore, the two countries can forge agricultural cooperation for mutual development.

Tourism is another sphere of potential cooperation between the two countries. Venezuela has many beautiful, unique landscapes while Vietnam also has a strongly developed tourism industry. Therefore, the two countries can attract visitors from both countries and in the world.

To boost economic cooperation, according to Ambassador Juan Carlos Ferrandes Juarez, the two sides need to increase information exchanges on business and market opportunities, support businesses in seeking partners and investments, and organize business delegations to visit and promote trade and investment. In addition, encouraging cooperation in culture, education, science and technology plays an important role in strengthening relations and creating a foundation for sustainable economic development between the two countries.

VCCI President Pham Tan Cong highly agreed with the Venezuelan Ambassador's opinions, pledging that VCCI is always willing to support Vietnamese businesses in searching for investment opportunities in Venezuela. At the same time, he also proposed increasing information exchanges on business and market opportunities of both countries as well as organizing online seminars and trade fairs to connect their businesses.

With traditional friendship and great cooperation potential, Vietnam and Venezuela are committed to bolstering economic cooperation in the coming time. There needs to be close coordination between authorities and businesses of both sides to effectively implement measures to boost cooperation and bring Vietnam-Venezuela economic relations to new highs.

By Giang Tu, Vietnam Business Forum