Việt Nam’s Minister of Industry and Trade Nguyễn Hồng Diên and Pakistan’s Minister of Commerce signed a joint declaration to launch negotiations on a preferential trade agreement (VPPTA) between the two countries. — Photo baochinhphu.vn

HÀ NỘI — Việt Nam and Pakistan on Tuesday signed a joint declaration to begin negotiations on a preferential trade agreement, marking a new milestone in economic and trade cooperation between the two nations.

The declaration was signed in Islamabad by Việt Nam’s Minister of Industry and Trade Nguyễn Hồng Diên and Pakistan’s Minister of Commerce during the Pakistan–Việt Nam Business Forum, held as part of Diên’s official visit from October 13 to 15.

Both sides agreed to start negotiations on the Việt Nam–Pakistan Preferential Trade Agreement (VPPTA) immediately on Wednesday, to finalise and sign the deal by the end of this year. Once concluded, the agreement will provide a legal framework for preferential tariffs, streamlined customs procedures and enhanced business competitiveness, opening a new chapter in Việt Nam–Pakistan economic relations.

The VPPTA is expected to create favourable conditions for trade in key sectors such as textiles, agriculture, seafood, Halal food, furniture, construction materials and pharmaceuticals. It will also help establish a stable legal environment to attract investment in complementary industries and lay the groundwork for a future free trade agreement.

During their talks, the two ministers discussed measures to strengthen bilateral trade, remove existing barriers and promote the early conclusion of the VPPTA.

According to Diên, Pakistan is one of Việt Nam’s most promising partners in South Asia due to its strategic location linking Southeast Asia with South Asia and the Middle East.

However, bilateral trade remains modest, reaching US$705 million in 2023, $850 million in 2024 and $600 million in the first nine months of this year, Diên noted.

He proposed that both countries remove tariff barriers and improve logistics and transport connectivity to deepen economic ties. He also called for greater cooperation in textiles, footwear, Halal food, machinery, processing, materials, energy, pharmaceuticals, digital technology and innovation.

At the same time, Diên highlighted ongoing challenges such as quarantine regulations, technical standards and import licensing procedures, urging Pakistan to consider reducing tariffs and easing market access for Vietnamese goods.

Speaking on the VPPTA, Diên said that launching negotiations represents a crucial and strategic step reflecting the strong political will of both governments to elevate bilateral cooperation.

Agreeing with Diên, Pakistan’s Commerce Minister Jam Kamal Khan expressed his readiness to expand collaboration beyond goods trade to services, Halal industries, banking, civil aviation and healthcare.

The VPPTA is expected to increase bilateral trade by between five and ten times in the coming years. — VNS