Vietnam and Pakistan launch negotiations on preferential trade agreement

During his working trip to Pakistan from October 13 to 15, Minister of Industry and Trade Nguyen Hong Dien and his Pakistani counterpart Jam Kamal Khan agreed to launch negotiations on a Preferential Trade Agreement (VPPTA), opening up new cooperation opportunities between the two dynamic economies of Asia.

Strengthening Vietnam - Pakistan trade cooperation

On October 14 in Islamabad, Minister Nguyen Hong Dien held talks with Pakistani Minister of Commerce Jam Kamal Khan to discuss measures to promote bilateral economic and trade cooperation towards substantial and sustainable development.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Pakistani Minister of Commerce Jam Kamal Khan

Minister Nguyen Hong Dien emphasized that Vietnam considers Pakistan a leading potential partner in South Asia, with a strategic position in the production and trade network connecting Southeast Asia to the Middle East. However, two-way trade turnover is still modest compared to its potential.

In 2023, two-way trade turnover will reach about 705 million USD. In 2024, it will reach about 850 million USD, and in the first 9 months of 2025, this figure will only reach nearly 600 million USD.

Overview of the meeting

To soon achieve results in economic and trade cooperation between the two countries, Minister Nguyen Hong Dien suggested that the two countries quickly remove tariff barriers on each other's goods; promote transport and logistics connections...

He also encouraged both sides to expand investment in areas with complementary strengths such as textiles, footwear, agricultural products and Halal food, mechanical engineering, energy industry, pharmaceuticals, digital technology and innovation.

However, the Minister pointed out that many Vietnamese enterprises still face difficulties due to high tax rates, strict quarantine regulations and technical standards. Vietnam hopes that Pakistan will consider reducing taxes and simplifying import procedures to make it easier for Vietnamese goods to access the market.

Negotiations for the Vietnam-Pakistan Preferential Trade Agreement (VPPTA) began

Minister of Industry and Trade Nguyen Hong Dien

Minister Nguyen Hong Dien affirmed that the two countries' initiation of negotiations and signing of the VPPTA is an extremely important step, of profound strategic and practical significance, demonstrating the strong political determination of the two countries' leaders in gradually elevating bilateral political, economic, trade and investment cooperation.

According to the Minister, the VPPTA will bring four outstanding benefits. First , it will resolve tariff and non-tariff barriers, paving the way for goods from both countries to penetrate each other's markets faster and more effectively.

Second, increase the competitiveness of Vietnamese and Pakistani goods, helping businesses of the two countries not to be disadvantaged compared to products from third markets.

Third, create a stable and transparent legal framework to help businesses feel secure in investing, expanding production, and participating more deeply in the regional supply chain.

Fourth , diversifying import and export markets helps the two economies reduce dependence on traditional markets and increase resilience to global fluctuations.

Pakistan's Commerce Minister Jam Kamal Khan

Agreeing with the proposals of the Vietnamese side, Minister Jam Kamal Khan highly appreciated the cooperation efforts of the two countries, saying that Pakistan wishes to expand cooperation not only in trade of goods, but also in services, investment, Halal industry, banking, civil aviation and healthcare.

He also expressed his impression of Vietnam's economic and industrial achievements, considering them a "source of inspiration" for developing economies, and affirmed that Pakistan is ready to promote business exchanges, promote trade and take advantage of market opportunities between the two sides.

At the meeting, the two Ministers agreed to start negotiations on the VPPTA in October 2025, striving to sign it before the end of the year. At the same time, strengthen business connections, especially in textiles, Halal industry, agriculture, fisheries, energy, minerals and logistics. Coordinate to remove trade barriers, especially in transportation, quarantine and technical standards.

Vietnam – Pakistan Business Forum: Towards Substantive Cooperation

On the same afternoon, the two Ministers co-chaired the Vietnam - Pakistan Business Forum.

Speaking at the Forum, Minister Nguyen Hong Dien emphasized that Vietnam and Pakistan are two dynamically developing economies, with a population of over 350 million people and a strategic location connecting Southeast Asia and South Asia. However, bilateral trade turnover has not reached 1 billion USD/year, still very small compared to the potential.

“If we connect the value chain, establish direct shipping routes and flights, and take advantage of tax incentives in the VPPTA, trade turnover can increase 5-10 times in just a few years,” said the Minister.

He proposed five strategic cooperation directions in the following fields: Textiles and footwear; Halal agricultural products and food; industry, materials and energy; pharmaceuticals; digital technology and innovation...

Agreeing with the proposal of Minister Nguyen Hong Dien, Minister Jam Kamal Khan commented that the two economies have diverse and complementary structures, opening up great opportunities for cooperation in textiles, pharmaceuticals, agriculture, food processing, seafood, construction materials and information technology.

Minister Nguyen Hong Dien and Minister Jam Kamal Khan signed a Joint Statement to launch negotiations on the VPPTA.

At the Forum, witnessed by the Ministers and delegates of the two countries, Minister Nguyen Hong Dien and Minister Jam Kamal Khan signed a Joint Statement launching negotiations for the VPPTA, marking a turning point in the economic and trade cooperation between Vietnam and Pakistan.

According to the plan, the two sides will begin negotiations in the fourth quarter of 2025 and strive to complete the signing within the year, aiming to expand to a comprehensive Free Trade Agreement (FTA) in the future.

Strategic significance of the VPPTA agreement

According to the Ministry of Industry and Trade, the Vietnam-Pakistan Preferential Trade Agreement (VPPTA) has profound strategic significance as it helps create a stable and transparent legal corridor for businesses, promoting import-export and bilateral investment.

The VPPTA will especially facilitate the strengths of both sides such as textiles, agricultural products, seafood, Halal food, wooden furniture, construction materials and pharmaceuticals. At the same time, the agreement also opens up the possibility of cooperation in the fields of technology, energy and innovation, supporting the two countries to increase their resilience to global fluctuations and move towards independent, self-reliant and sustainable economic development.

The launch of the VPPTA negotiations is expected to bring Vietnam-Pakistan trade relations to a new level, effectively exploiting the complementary strengths of the two economies, and increasing bilateral trade turnover by 5-10 times in the next few years.

Both sides affirmed their strong political commitment to building a substantive, effective and mutually beneficial economic partnership, contributing to strengthening peace, cooperation and development in the South Asia - Southeast Asia region.

Source: https://daibieunhandan.vn/viet-nam-va-pakistan-khoi-dong-dam-phan-thoa-thuan-thuong-mai-uu-dai-10390395.html