Vietnam, Azerbaijan upgrade ties, oil and gas in focus

THE HANOI TIMES — Vietnam has upgraded relations with Azerbaijan, a country of traditional relationship, to forge the multifaceted cooperation with a focus on oil and gas in the new status “Strategic Partnership.”

The upgrading made on May 7 during the visit to Azerbaijan paid by General Secretary of the Communist Party of Vietnam (CPV) To Lam enables the two countries to elevate the relationship to a new height, both at bilateral and multilateral levels, paving the way for deepened collaboration.

In the Joint Statement, apart from promoting political and diplomatic relations, economic ties will be at the center, with both sides agreeing to strongly promote cooperation in the energy sector, especially in clean and renewable energy and oil and gas production, oil and gas services, and human resources training in the industry.

On May 8, General Secretary To Lam met with leaders of several prominent Azerbaijani companies, including the AzerGold Group, the State Oil Fund of Azerbaijan (SOFAZ), and the State Oil Company of the Azerbaijan Republic (SOCAR).

He emphasized Vietnam’s interest in expanding cooperation with major Azerbaijani enterprises in energy, mining, finance, and infrastructure.

Chairman of AzerGold Zakir Ibramimov expressed interest in collaborating with Vietnamese firms in mining, while SOCAR sought to increase crude oil and LNG exchanges and participate in LNG power projects in Vietnam.

During the meeting, Kanan Najafov, Deputy Director-General of SOCAR, said the oil and gas firm is expanding into new markets and interested in supplying gas and LNG to PVGas, and participating in LNG-based power generation projects in Vietnam. With an annual LNG export capacity of three million tons, SOCAR expected to become a reliable partner in this field.

Meanwhile, CEO of SOFAZ Shahmar Movsumov spoke about the fund’s mission to effectively manage and utilize the country’s financial resources, providing financing for large-scale projects. He expressed a desire to strengthen cooperation with developing economies like Vietnam.

General Secretary To Lam stressed that economic cooperation between Vietnam and Azerbaijan, especially in the energy sector, remains underdeveloped. He highlighted Azerbaijan's early role in Vietnam's oil sector since 1959 and suggested expanding bilateral energy cooperation beyond extraction.

He expressed Vietnam's interest in investing in Azerbaijan's oilfields and importing LNG, highlighting SOFAZ's potential to support Vietnam's economic growth. He also encouraged AzerGold to use advanced technologies in Vietnam's mining sector and guaranteed favorable investment conditions for Azerbaijani enterprises.

Cooperation for new heights

The Joint Statement, which both leaders called "historic," allows both sides to leverage their mutual strengths to new heights.

On the economic front, they will focus on trade, investment, agriculture, environment, and transportation. The two sides pledged to make effective use of cooperation mechanisms, including the Intergovernmental Commission on Economic, Trade, Scientific and Technical Cooperation, to facilitate long-term partnership in these areas.

The two sides will advance the opening up of their agriculture, forestry and fisheries sectors to each other, promote joint programs on climate change, environmental protection and green growth, while agreeing to exchange experience in the development of railways, roads, airways and maritime routes, and foster cooperation in the operation of the Trans-Caspian International Transport Route.

In particular, the two countries pledge to promote high-level visits, including at the highest level, and to establish inter-agency and inter-local cooperation mechanisms, in particular between the Ministries of Foreign Affairs, on both bilateral and international issues, and to hold regular political consultations.

They will strengthen relations between the Communist Party of Vietnam and the ruling New Azerbaijan Party and boost parliamentary diplomacy.

On defense and security, they agreed to expand cooperation in the security and defense industries, technology transfer, and education and training.

Meanwhile, both sides expressed their willingness to effectively implement educational cooperation, consider granting scholarships to each other's students according to their respective needs and fields of study, promote comprehensive and continuous cooperation, and establish mechanisms for academic engagement and exchange.

Both sides agreed to intensify cooperation in culture and communication, organize cultural days in each other's territories, promote the exchange of cultural and artistic delegations, and strengthen tourism promotion. At the same time, they pledged to foster better mutual understanding between the two peoples and establish twinning relations between their localities.

The two countries will work closely together within regional and international organizations, particularly the United Nations, the Non-Aligned Movement, the Conference on Interaction and Confidence Building Measures in Asia (CICA), as well as in other multilateral frameworks.

Vietnam will promote cooperation between Azerbaijan and ASEAN, as well as between Azerbaijan and individual ASEAN member states.

Secretary General To Lam proposed five strategic measures to make the cooperation more substantive by enhancing the role of the Intergovernmental Committee on Trade, Science and Technology to explore new areas; strengthening cooperation in oil and gas; enhancing investment promotion; promoting business partnership; signing agreements on investment protection and transportation; and promoting decentralization of cooperation.

President Aliyev pledged to strengthen bilateral ties, particularly in trade, investment, and logistics, while encouraging Vietnamese businesses to invest in Azerbaijan.

Both leaders expressed satisfaction with recent progress in relations and agreed to enhance high-level exchanges and effectively implement the Cooperation Agreement between their ruling parties.

Remarkable visit

At the meeting in Baku, Azerbaijani President Ilham Aliyev warmly welcomed General Secretary To Lam, his wife, and the high-ranking Vietnamese delegation on their state visit to Azerbaijan, the first visit of the CPV General Secretary to Azerbaijan since the establishment of diplomatic relations between the two countries in 1992.

President Ilham Aliyev believed that the visit would motivate the two countries to expand cooperation in all fields for the mutual benefit and prosperity of their peoples. He hailed Vietnam's dynamic development and growing international standing, recalling his positive impressions from his visit to the country in 2014. He affirmed that Vietnam is on the right track in socio-economic progress.

General Secretary To Lam expressed his appreciation for Azerbaijan's achievements under the leadership of President Aliyev and stressed the importance of the traditional friendship between the two countries, which dates back to the visit of President Ho Chi Minh in 1959. He expressed gratitude for Azerbaijan's support during Vietnam's national liberation and development.

He said Vietnam views Azerbaijan as a key partner in Central Asia and looks forward to strengthening bilateral ties.

Since 1992, Vietnam-Azerbaijan relations have been strengthened in energy, trade, investment, agriculture, education, and defense, with high-level visits and agreements. Azerbaijan is a significant partner for Vietnam in the South Caucasus, especially in oil, gas, and renewable energy.

On May 8, the Ho Chi Minh Memorial Room on the Vietnam-Azerbaijan Oil and Gas Industry Cooperation was inaugurated in Baku in the attendance of General Secretary To Lam and Azerbaijani Energy Minister Parviz Shahbazov. The memorial room displays President Ho Chi Minh’s statue and valuable documents of the president’s visit to Baku in 1959, and others related to his imprint in setting the foundation for the oil and gas cooperation between Vietnam and Azerbaijan.