Elevating bilateral relations to new heights
On November 21, 2024, a significant milestone was reached in bilateral relations when Vietnam and Malaysia officially upgraded their relationship to a Comprehensive Strategic Partnership. This event holds special significance as Malaysia becomes Vietnam's 9th comprehensive strategic partner, joining major powers such as France, Australia, Japan, the United States, South Korea, India, Russia, and China. This strategic advancement reflects the trust and determination of both countries to elevate their cooperative relationship to new heights.
According to statistics, China is currently the largest trading partner with export turnover of $61.3 billion and imports of $110.7 billion, followed by the United States with exports of $97.01 billion and imports of $3.82 billion. Notably, Malaysia ranks 7th among Vietnam's strategic partners with export turnover of $4.7 billion and imports of $7.4 billion, demonstrating significant potential for enhanced bilateral trade cooperation.
50 Years of diplomatic relations development
Looking back on the 50-year journey since establishing diplomatic relations in 1973, Vietnam-Malaysia relations have continuously developed and achieved remarkable accomplishments. Particularly from 2000 onwards, bilateral cooperation has expanded across multiple sectors from politics and economics to culture. 2015 marked a crucial milestone when both countries signed numerous cooperation agreements within the ASEAN framework, focusing on regional security, agriculture, and information technology.
The upgrade to Comprehensive Strategic Partnership opens new opportunities for both nations. The countries aim to achieve bilateral trade turnover of $18 billion through enhanced economic connectivity. New sectors such as green economy, innovation, and digital transformation are emphasized, alongside strengthening cooperation in education, training, culture, and tourism. This development not only brings economic benefits but also promotes cultural exchange and mutual understanding between the peoples of both countries.
Economic and trade cooperation potential
Malaysia is currently one of Vietnam's crucial trading partners within ASEAN, with numerous potential cooperation areas. Bilateral trade turnover has steadily increased in recent years despite COVID-19 impacts, reaching nearly $15 billion in 2022, a 17% increase from 2021. Notably, Malaysia is ASEAN's second-largest investor in Vietnam, ranking 10th among 140 investing countries and territories with total capital of $13 billion. In the palm oil sector, as one of the world's largest producers, Malaysia can promote palm oil exports and processed products to Vietnam, meeting demands in food, cosmetics, and food processing industries.
Strengthening cooperation in key sectors
Energy cooperation is another significant highlight, marked by the signing of a Memorandum of Understanding on renewable energy cooperation between PetroVietnam and Petronas. As a major regional oil and gas exporter, Malaysia can expand energy cooperation, including liquefied natural gas (LNG) imports, crude oil, and renewable energy project development in Vietnam. This not only ensures energy security but also promotes green energy transition in both countries.
In agriculture and fisheries, both countries have great potential in developing key products such as rice, coffee, seafood, and processed products. This cooperation will help both nations enhance their international market competitiveness. Simultaneously, as trade between the two countries strengthens, the logistics and transportation sector will have opportunities for robust development, facilitating maritime transport, warehousing, and logistics service businesses' expansion.
Future prospects
The relationship upgrade not only expands economic cooperation but also enables both countries to enhance their competitiveness and deeper participation in regional and global value chains. Founded on friendly neighborly relations, sharing many cultural similarities and historical struggles for national independence, Vietnam-Malaysia relations have become a model of effective and sustainable cooperation in Southeast Asia. This event holds significance not only bilaterally but also contributes to building a united, self-reliant, and prosperous ASEAN Community.
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