Malaysia, Vietnam set trade target of US$18 billion by 2025

HO CHI MINH CITY: Vietnam and Malaysia have set a bilateral trade target of US$18 billion by 2025.

Tran Phu Lu, deputy director of HCM City Investment and Trade Promotion Center (ITPC), said the city will continue to improve its business climate and streamline administrative reform, including creating favourable conditions for Malaysian investors.

"The ITPC under the city administration regularly organises activities to support city businesses to promote trade and investment, and expand export markets.

"Vietnam and Malaysia have vowed to strengthen cooperation in tourism, culture, and science and technology, among other sectors," Vietnam news agency (VNA) reported he said in a meeting here, Monday.

Malaysia is one of Vietnam's 10 largest trading. Bilateral trade reached nearly US$14.8 billion last year with Vietnamese exports to Malaysia worth US$5.57 billion and imports US$9.1 billion.

HCM City's total imports and exports with Malaysia last year were estimated at over US$5.4 billion, up 8 per cent year-on-year.

According to VNA, as of the end of March, Malaysia invested in 329 projects in HCM City with a total investment of near US$4.9 billion, ranking sixth out of 116 countries and territories investing in the city.

The two countries are also members of a number of new-generation free trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Free Trade Area (AFTA).

Key Vietnamese exports to Malaysia include machinery and equipment and their parts, computers, electronics and components, steel, petroleum, and chemicals.

The two countries established diplomatic relations in 1973, which were upgraded to a strategic partnership in 2015.

-- BERNAMA