08:40 | 25/07/2019 Cooperation
(VEN) - Although bilateral trade remains modest, economic relations between Vietnam and Armenia are forecast to expand thanks to the free trade agreement between the Eurasian Economic Union (EEU) and Vietnam. Armenian Prime Minister Nikol Pashinyan’s visit to Vietnam from July 4-7 was expected to strengthen the traditional friendship and cooperation between the two countries.
Armenia began shifting toward a market economy in the 1990s and has maintained stable economic growth with a low inflation rate.
Vietnam and Armenia established diplomatic reltions in 1992, and Armenia opened its embassy in Vietnam in 2013. Despite geographical distance, similarities in terms of history and culture enable the two countries to cooperate in political, economic, trade and humanitarian activities for mutual development.
Political relations between the two countries have expanded, with the two sides coordinating and supporting each other at international forums. However, bilateral trade remains modest and incommensurate with its potential. The two countries exchanged US$6.1 million worth of goods in 2015, US$2.4 million in 2016 and US$3.6 million in 2018.
The free trade agreement between Vietnam and the EEU - consisting of Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia - was signed on May 29, 2015. Vietnam and Armenia have established an intergovernmental committee for economic, commercial, scientific and technological cooperation with the first meeting held in Hanoi in 2017.
The two countries are promoting economic cooperation to increase bilateral trade, with Vietnam exporting seafood, farm produce, electronic products, textiles and garments, and importing Armenian machinery, equipment, spare parts, cotton, chemicals, plastics, materials for textile and garment production, leather and footwear.
Armenia is a potential manufacturer and exporter of high-grade electronic products, bronze, cables, tobacco, milk, meat, cognac and jewelry. It has import demand for cereals, sugar, high-tech products and fuels. Armenia is prioritizing the development of high technology areas, pharmaceuticals, biotechnology, chemicals, agricultural mechanization and machinery manufacturing, opening up potential cooperation options with Vietnam in these fields.
Vietnam and Armenia also pledged to promote cooperation in education and people-to-people exchanges.
Vietnam and Armenia have agreed to increase contacts and dialogue at different levels and boost cooperation
between ministries, sectors and localities in order to enhance mutual understanding and create a firm foundation for
further cooperation in economics, trade, investment and other fields.