Hanoi (VNA) – At a time when both Vietnam and Algeria are working to diversify markets and seek new growth drivers, Prime Minister Pham Minh Chinh’s official visit to the African country is expected to mark an important turning point, helping perfect the cooperation framework, create breakthroughs in trade and investment, and elevate bilateral relations in a more substantive and effective manner.
More than six decades after diplomatic ties were established (1962–2025), Vietnam and Algeria have achieved significant progress in economic and trade cooperation. In recent years, bilateral trade has grown strongly, with export structure expanded, and oil and gas collaboration seen as a success symbol of their partnership.
Important partners
According to the Vietnamese Department of Customs, between 2020 and 2024, bilateral trade averaged nearly 180 million USD per year, hitting a record 241 million USD in 2023. In the first 10 months of 2025 alone, two-way trade was estimated at 472 million USD, up 195% year-on-year. Of this, Vietnam’s exports reached 465 million USD, while imports from Algeria were estimated at 7 million USD.
Vietnam mainly exports coffee, cashew nuts, peppercorns, seafood, chemicals, footwear, garments, and steel to Algeria. In return, Algeria exports computers, electronic products and components, carob powder, chicken feet, and livestock feed to Vietnam.
Vietnam and Algeria have signed a bilateral trade agreement, most recently updated in 1994. The two countries have also expanded cooperation into oil and gas exploration and production in Algeria.
The tripartite joint venture between the Petrovietnam Exploration Production Corporation (PVEP), Algeria’s national oil company Sonatrach, and the Thai oil and gas giant PTT Exploration and Production (PTTEP) was established in 2009. Operating at the Bir Seba field in Hassi Messaoud, Ouargla province, over 600 km south of Algiers, the venture has produced nearly 57 million barrels of oil from the first commercial flow in August 2015 through the end of 2024. In early 2025, daily output has averaged around 17,500 – 18,000 barrels.
Vietnamese Ambassador to Algeria Tran Quoc Khanh stressed that Algeria is one of Vietnam’s key trade partners in Africa. With the strengths and potential of both sides, the two countries complement each other well. Algeria, Africa’s largest country – nearly eight times the size of Vietnam, is a gateway to the African continent with vast potential in energy and raw materials. Meanwhile, Vietnam has strong capabilities in manufacturing, agricultural processing and high-quality goods exports. Vietnam also serves as a strategic bridge for Algeria to access Southeast Asia and the Asia-Pacific.
However, bilateral cooperation, especially in business and investment, still faces obstacles. Geographic distance and logistics costs hinder the movement of goods. Businesses in both countries also lack information on each other’s legal frameworks, investment environments, and market needs. Language differences, business culture, legal systems, and technical standards remain barriers to cooperation.
Room for further growth
Vietnam’s Trade Counsellor in Algeria Hoang Duc Nhuan noted that the economic development of both countries is opening new opportunities for bilateral economic and trade cooperation. Vietnam and Algeria hold considerable potential to build a larger-scale cooperative relationship, expanding their reach into markets in Africa, Asia, and beyond.
However, the two sides need to improve their legal frameworks, strengthen trade and investment promotion, and encourage businesses to participate more actively in economic events held in both countries. It is also necessary to regularly disseminate information on trade regulations, investment policies, finance, customs procedures, and business opportunities.
A representative of the Vietnamese Ministry of Industry and Trade suggested that the two countries should enhance delegation exchanges at all levels, including business delegations, and boost trade promotion activities. Vietnam proposed that Algeria soon respond to its request to consider negotiating and updating the 1994 bilateral trade agreement. It also encourages the African side to increase imports which Vietnam has strong advantages in, such as rice, coffee, pepper, seafood, consumer goods, textiles, footwear, electricity, electronics, and construction materials.
The ministry also hoped that the Algerian side facilitate PVEP’s activities at ongoing projects, and support Petrovietnam in expanding exploration and development opportunities through bidding rounds or direct negotiations for potential oil and gas projects there./.
VNA
