Deepening Vietnam-Malaysia Relations Through policy and economy sectors

Vietnam and Malaysia enjoyed close ties even before they officially set up diplomatic relations on March 30, 1973. Over the past five decades, the bilateral relationship has been continuously reinforced and promoted across all fields from politics and diplomacy to defence and security, as well as economy and culture. Some key milestones in their economic collaboration include:

1994

The Vietnam–Malaysia and Malaysia–Vietnam Friendship Associations were established.

1995

The two countries agreed to establish the Joint Commission for Economic, Technical and Scientific Cooperation (JCM).

2023

Bilateral cooperation flourished, with notable milestones achieved. In the year, their trade was valued at nearly $13 billion.

Historical Context and Strategic Partnership

Vietnam and Malaysia upgraded their bilateral relationship to a Strategic Partnership in 2015, reflecting their commitment to comprehensive cooperation in key areas, including economy, trade, science, defense, and sustainable development. Over the years, both nations have signed numerous agreements on trade, investment, tourism, and visa exemptions, establishing a robust framework for collaboration. These efforts are complemented by regular high-level engagements, with leaders emphasizing mutual goals, such as enhancing trade revenues to $18 billion by 2025.

Economic and Trade Relations: Bright Spots

Malaysia is bolstering economic ties with Vietnam, focusing on private-sector collaboration in emerging industries like EVs, semiconductors, and advanced materials. Prime Minister Anwar Ibrahim highlighted Vietnam’s rapid industrial growth and potential partnerships during a meeting with Vietnamese leaders. Areas of cooperation include fisheries monitoring, halal certification, and market expansion for halal products.

Other developments in their economic collaboration include:

Energy and labor supply: The two countries cooperate in these areas.

Multilateral frameworks: The two countries collaborate within these frameworks.

Agriculture, investment, and banking: The two countries have seen progress in these sectors.

Trade promotion, banking supervision, and agriculture: The two countries are working on bilateral cooperation documents in these areas.

Digital technology, the green economy, and the energy sector: The two countries support each other in these areas

Economic collaboration remains a cornerstone of the partnership. Malaysia is Vietnam’s second-largest trading partner in ASEAN, with bilateral trade reaching $12.66 billion in 2023. Efforts are underway to deepen collaboration in digital transformation, green energy, and Halal industry development. Malaysian investments in Vietnam, valued at nearly $13 billion across 748 projects, further underscore the economic synergy between the nations.

Political-diplomatic relations is strengthed

In terms of politics-diplomacy, the two sides regularly exchange delegations and high-level meetings through all channels of Party, Government, State, and people-to-people contacts. Even amid the COVID-19 pandemic, Vietnam and Malaysia still promoted their relations through telephone talks among their senior leaders.

The two countries have approved an action programme to implement their Strategic Partnership for the 2021-2025 period with major orientations, aiming to effectively exploit the potential and strengths of each country, thus recovering sustainable development together in the post-pandemic period.

Over the past 51 years, leaders of the two sides pledged to further deepen bilateral political and economic cooperation by increasing and maintaining high-level meetings and promoting the existing collaboration mechanisms, especially the Joint Committee on economic, science and technology cooperation and the Joint Committee on trade cooperation. They also agreed to coordinate in effectively implementing signed agreements, including the Action Programme to implement their Strategic Partnership for the 2021-2025 period.

Meanwhile, the two countries have shown close coordination and conducted regular discussions and consultations at international and regional forums, thus reaching a consensus and sharing many common viewpoints within the ASEAN and between the ASEAN and its partners, contributing to enhancing the role and position of the association in the world arena.Regional and Global Cooperation

The two nations’ shared commitment to ASEAN’s goals strengthens their alignment on regional and international issues. Vietnam’s support for Malaysia’s upcoming ASEAN chairmanship in 2025, along with mutual advocacy for ASEAN’s strategic vision, reflects their dedication to a unified regional bloc.

Looking Ahead

The ongoing joint efforts across various sectors signal a promising trajectory for their relationship. It’s not only consolidates bilateral ties but also sets the stage for more dynamic engagement in the years ahead, benefitting the people and economies of both nations. ENDS

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