Hanoi (VNA) – Since the establishment of diplomatic ties in 1992, Vietnam and Azerbaijan have witnessed increasingly positive developments in their bilateral relations, with economic and trade cooperation emerging as a highlight.
Beyond traditional areas of cooperation, the two countries are now exploring opportunities in new sectors to enhance exports. Acknowledging that bilateral collaboration has yet to reflect both nations' full potential, the governments of Vietnam and Azerbaijan are working to advance their partnership to a new level.
The upcoming state visit to Azerbaijan by Party General Secretary To Lam is expected to pave the way for significant breakthroughs, helping to foster more substantive and effective cooperation.
Traditional partners
Vietnam and Azerbaijan share a long-standing friendship spanning decades. Despite geographical distance, the two countries have maintained close ties, with a mutual desire to deepen and expand cooperation for mutual benefit.
Bilateral mechanisms have been gradually strengthened, particularly through the Intergovernmental Committee on Economic, Trade, Scientific and Technical Cooperation, which held two successful sessions—one in Hanoi (2016) and the other in Baku (2018).
Most recently, on March 24, Azerbaijan sent a draft record of the committee’s third session to Vietnam for review. The Vietnamese Ministry of Industry and Trade is currently collecting from relevant ministries and agencies in the document.
Data from Vietnam Customs show that bilateral trade in 2023 reached 687.7 million USD, a surge of 712.5% year-on-year.
However, in 2024, trade turnover dropped to 52.6 million USD, down 78.4% from the previous year. Vietnam’s exports to Azerbaijan rose 23.9% to 49.2 million USD, while imports fell sharply by 98.3% to just 3.4 million USD.
Key Vietnamese exports included mobile phones and components, machinery, electronic products, and spare parts, while crude oil remained the primary import from Azerbaijan.
In terms of investment, Azerbaijan has one registered project in Vietnam worth approximately 2.5 million USD, focused on technical services and energy. Meanwhile, Vietnamese businesses are exploring investment opportunities in Azerbaijan, particularly in logistics, processed agricultural products, and renewable energy, the areas where Azerbaijan has expressed strong interest in expanding cooperation.
However, experts note that trade and investment flows remain modest and have yet to match the potential of the two countries. Bilateral trade accounts for a small share of each country’s total foreign trade, and the structure of traded goods is still limited.
To address this, experts said stronger efforts are needed in market information exchange, and in facilitating participation in trade fairs and exhibitions to boost connectivity and trade promotion.
Ample room for growth
At a recent B2B networking event between Vietnamese and Azerbaijani enterprises, business leaders highlighted the untapped potential for expanded cooperation, particularly in key sectors such as agriculture and food processing, construction, petrochemicals, renewable energy, transportation, trade and logistics, mining, digital economy, tourism, and light industry.
Mai Thi Dieu Huyen, Vice Chairwoman in charge of the Women Entrepreneurs Council under the Vietnam Chamber of Commerce and Industry, noted that despite multiple cooperation agreements, bilateral trade remains below expectations.
Sakina Babayeva, President of the Azerbaijan Women's Entrepreneurship Development Association, suggested that the establishment of a mechanism for sharing information on successful women-led projects would support and encourage cooperation, contributing to the promotion of bilateral relations.
Experts highlighted Azerbaijan’s past support for Vietnam’s oil and gas sector and urged stronger business exchanges and greater market access.
The Vietnamese Ministry of Industry and Trade has affirmed its full support for bilateral initiatives and pledged close coordination with Azerbaijani ministries and agencies to foster more practical and productive partnerships./.
