Illustrative image. Việt Nam-Algeria trade soar over 200 per cent in the first 10 months of this year to nearly US$500 million. —VNA/VNS Photo

ALGIERS — Algeria has clinched its position as an important partner of Việt Nam in North Africa, with bilateral trade soaring over 200 per cent in the first 10 months of this year to nearly US$500 million.

According to Hoàng Đức Nhuận, Vietnamese Trade Counsellor in Algeria, trade cooperation between the two countries has expanded significantly since the signing of the Bilateral Trade Agreement, last renewed in 1994.

He noted that from the 1960s to 2000, trade remained modest and mainly conducted under Việt Nam’s debt repayment schemes. Since 2001, however, bilateral trade has grown sharply with the increasing participation of private enterprises.

Việt Nam’s main exports to Algeria include coffee, cashew nuts, pepper, seafood, chemicals, footwear, textiles, and steel, while Algeria ships computers, electronic components, carob powder, chicken feet, and animal feed to Việt Nam. Algeria is also seeking Vietnamese partners for dates and olive oil imports.

In recent years, numerous business forums and online conferences have been organised to connect the two markets, with enterprises from both sides actively participating in major international exhibitions such as Vietnam Expo, Vietnam Food Expo, and the Foire Internationale d’Alger.

Beyond trade, bilateral cooperation has extended into oil and gas exploration and production. A tripartite joint venture, established in 2009 between the Petrovietnam Exploration Production Corporation (PVEP), Sonatrach (Algeria’s National Oil and Gas Company), and PTTEP (Thailand’s Petroleum Exploration and Production Company), operates the Bir Seba oil field in Hassi Messaoud, Ouargla province, about 600 km south of Algiers.

Since its first oil flow in August 2015, the joint venture had produced nearly 57 million barrels as of the end of last year, with an average output of 17,500–18,000 barrels per day in early this year. The project is regarded as a highlight in Việt Nam–Algeria cooperation.

The Algerian Government is also inviting Vietnamese businesses to invest in agriculture, agro-processing, aquaculture, textiles, tourism, logistics, mineral exploitation, pharmaceuticals, functional foods, construction, and labour supply.

With their strategic locations, both Việt Nam and Algeria can serve as regional gateways, helping each other’s goods enter neighbouring markets in Africa and Asia. Algeria, located in North Africa, is the largest country on the continent and the 10th largest in the world, with a population of around 47 million.

Its GDP is estimated at over $260 billion, ranking fourth in Africa, with per capita GDP of about $5,532 this year. Agriculture contributes 14.7 per cent, industry 42.3 per cent, and services 43 per cent to the economy. The World Bank forecasts its GDP growth of 3.8 per cent this year.

Last year, Algeria’s exports totalled $49.35 billion, while imports reached $46.05 billion, resulting in a trade surplus of $3.3 billion. The economy remains heavily dependent on oil and gas, which account for nearly 30 per cent of GDP, over 30 per cent of tax revenue, and around 90 per cent of export earnings. — VNS