LCCI leadership, Vietnam envoy explore strategies to enhance trade

LAHORE: Joint ventures and enhanced cooperation between Pakistan and Vietnam in key economic sectors, including textiles, manufacturing, information technology, tourism, processed meat and agriculture is a pathway to avail full benefit potential of the two countries.

The consensus was developed during a high-level meeting between the Ambassador of Vietnam to Pakistan Pham Anh Tuan and the President of the Lahore Chamber of Commerce and Industry Mian Abuzar Shad at LCCI on Thursday.

LCCI Executive Committee Members Khurram Lodhi, Ahsan Shahid, Karamat Ali Awan, Muhammad Muneeb Monnoo, Asif Malik and Syed Ali were also present on the occasion.

The meeting, which was continued well over 2 hours, shared their insights on strengthening bilateral ties. The discussions highlighted the untapped potential for collaboration between the two nations and explored strategies to enhance trade and investment.

The ambassador gave an overview of Vietnam’s robust economic performance saying that the country’s global exports in 2024 surpassed $405.5 billion while imports stood at $380.8 billion. He said that Vietnam’s attractiveness is growing to foreign investors with foreign direct investment (FDI) reaching an estimated $25.35 billion in 2024.

The Ambassador underscored the importance of Pakistan as a key partner, particularly in the textile sector, where Faisalabad alone contributes 30% of Pakistan’s textile production and 44% of its textile exports.

The bilateral trade between Pakistan and Vietnam has shown steady growth, increasing from $750 million in 2023 to over $850 million in 2024. Pakistan’s exports to Vietnam reached $522 million, while imports from Vietnam stood at $328 million. Despite this progress, both sides acknowledged that the current trade volume remains far below the actual potential, given the economic strengths and complementary industries of the two nations.

The Ambassador shed light on the significant opportunities for collaboration in information technology and tourism, sectors that remain underutilized in the bilateral trade relationship. He stressed the need to explore new avenues of trade, particularly given Vietnam’s active membership in the Association of Southeast Asian Nations (ASEAN), a bloc that holds immense strategic and economic importance for Pakistan.

LCCI President Mian Abuzar Shad said that Pakistan and Vietnam have maintained diplomatic relations since 1972 and have collaborated on trade and economic initiatives for over five decades. He said that the current two-way trade volume does not reflect the true potential of the relationship.

According to data from the State Bank of Pakistan, Pakistan’s exports to Vietnam in 2023-24 amounted to $357 million, while imports from Vietnam totaled $285 million. In the first seven months of the current financial year (July 2024 to January 2025), Pakistan’s exports to Vietnam stood at $160 million, compared to imports of $228 million.

Mian Abuzar Shad stressed the need to increase Pakistan’s share in Vietnam’s total trade, which exceeded $400 billion in exports and $380 billion in imports in 2024. He proposed setting a target of achieving a bilateral trade volume of at least $3 billion by improving market access for exporters in both countries.

Pakistan’s primary exports to Vietnam include corn, woven cotton fabrics and leather, while imports from Vietnam consist of electronic equipment, synthetic filament yarn, natural rubber and tea. The LCCI president identified seafood, processed meat, pharmaceutical products and fruits and vegetables as potential areas where Pakistan could significantly boost its exports to Vietnam.

To achieve these goals, Mian Abuzar Shad called for the exploration of a Free Trade Agreement (FTA) between Pakistan and Vietnam, which would provide better market access and create a more favorable environment for businesses in both countries.

He also suggested increasing the frequency of direct flights, strengthening banking channels, organizing trade delegations and holding single-country exhibitions as effective measures to enhance mutual trade relations.

He said that the role of commercial sections in both countries’ missions in facilitating market knowledge and trade opportunities is important. He proposed that these sections regularly share market survey reports with their respective Chambers of Commerce to help businesses identify and capitalize on emerging opportunities.

The ambassador and LCCI chief expressed a shared commitment to deepening economic ties and exploring new avenues for collaboration. They also agreed to work towards a more robust and mutually beneficial trade relationship, leveraging the strengths of both nations to achieve sustainable economic growth.

The LCCI president said that as Pakistan and Vietnam look to the future, the focus will be on building stronger partnerships, fostering innovation and creating an enabling environment for businesses to thrive. By harnessing their complementary strengths and exploring new opportunities, the two countries aim to unlock their full economic potential and pave the way for a prosperous partnership in the years to come.

Copyright Business Recorder, 2025