Pakistan, Vietnam Launch Negotiations on Preferential Trade Agreement to Boost Economic Cooperation

Islamabad: Pakistan and Vietnam on Tuesday formally signed and launched negotiations on a Preferential Trade Agreement (PTA), marking a major step towards strengthening bilateral trade, investment, and economic cooperation between the two countries.

The signing ceremony took place during a high-level bilateral meeting and the Pakistan–Vietnam Business Forum held in Islamabad. The event was co-chaired by Federal Minister for Commerce Jam Kamal Khan and Vietnam’s Minister of Industry and Trade, H.E. Nguyễn Hồng Diên.

The forum was attended by Federal Minister for Science and Technology Khalid Hussain Magsi, Federal Minister for Communications Abdul Aleem Khan, Federal Minister for Maritime Affairs Junaid Anwar Chaudhry, Federal Minister for National Food Security Rana Tanveer Hussain, and Parliamentary Secretary for Culture and Tourism Nawabzada Mir Zarain Khan Magsi, along with senior officials, diplomats, and leading business representatives from both sides.

Welcoming the Vietnamese delegation, Commerce Minister Jam Kamal Khan described the visit as a reflection of the shared resolve of both nations to transform their longstanding friendship into a robust and future-oriented economic partnership. He said Pakistan and Vietnam enjoy cordial relations based on mutual respect, political understanding, and people-to-people linkages, and that the Business Forum represented a major step forward in expanding commercial and investment cooperation.

Highlighting that bilateral trade had shown steady progress but remained below potential, the minister identified promising sectors for collaboration, including textiles, leather, pharmaceuticals, agriculture, food processing, fisheries, construction materials, and information technology.

The most significant outcome of the event was the signing of the Joint Statement on the Launch of Pakistan–Vietnam PTA Negotiations by both ministers. The agreement marks a historic milestone in bilateral trade relations and sets a structured process to finalize the PTA by the end of 2025.

The PTA will provide a comprehensive framework to enhance market access, diversify trade baskets, and eliminate tariff and non-tariff barriers, thereby fostering a balanced and mutually beneficial trading partnership.

Minister Nguyễn Hồng Diên welcomed the initiative, emphasizing that the PTA would help diversify export markets, enhance resilience against global economic challenges, and create new opportunities for sustainable and inclusive growth. He stressed the importance of transparent negotiations that ensure balanced benefits for both sides.

Minister Jam Kamal Khan encouraged private sectors in both countries to build long-term collaborative relationships rather than short-term trade engagements, highlighting Pakistan’s strategic location, skilled workforce, and business-friendly environment as key advantages. He also invited Vietnamese investors to explore opportunities in Pakistan’s Special Economic Zones (SEZs) for joint ventures and re-exports.

Both sides agreed to enhance connectivity and people-to-people linkages, including exploring direct flight routes between Pakistan and Vietnam to facilitate trade, tourism, and business travel. They also discussed visa facilitation to encourage greater mobility for entrepreneurs and tourists.

Referring to shared cultural and spiritual ties, Minister Jam Kamal Khan highlighted the potential for religious and cultural tourism, particularly related to Pakistan’s Gandhara and Taxila civilizations — home to some of the world’s most sacred Buddhist heritage sites. The Vietnamese Minister lauded Pakistan’s efforts to promote Buddhist tourism, describing such pilgrimages as journeys to the spiritual roots of Buddhism.

Minister Jam Kamal Khan also acknowledged Vietnam’s remarkable economic transformation and said Pakistan seeks to learn from its success in value-added manufacturing, industrial modernization, and trade facilitation. He invited Vietnamese enterprises to participate in the upcoming FoodAg Exhibition to be held in Karachi in November 2025, which will showcase Pakistan’s agricultural and food processing potential.

Both ministers reaffirmed their commitment to deepen cooperation in science, technology, and innovation and expressed solidarity with the people affected by recent floods in Vietnam.

Concluding the event, Minister Jam Kamal Khan termed the launch of PTA negotiations as “the beginning of a new chapter in Pakistan–Vietnam relations — one defined by trust, mutual benefit, and shared prosperity.”