Vietnam-Malaysia ties set for new height
Prime Minister Anwar Ibrahim's upcoming trip to Vietnam will also be his first official visit to the country since taking office in December 2022.
Malaysia's Prime Minister Anwar Ibrahim and his wife will visit Vietnam on July 20-21 at the invitation of his Vietnamese counterpart Pham Minh Chinh, marking an important milestone in strengthening bilateral relations.
| Vietnam's Prime Minister Pham Minh Chinh (R) and Malaysia's PM Anwar Ibrahim during a meeting in Indonesia in May 2023. Photo: VGP |
Vietnam and Malaysia established diplomatic relations on March 30, 1973, and since then, the relationship has flourished, especially after the establishment of a Strategic Partnership in August 2015.
The two countries have endorsed the 2021-2025 Action Programme to implement the bilateral Strategic Partnership, which aims to leverage their respective potentials and strengths to achieve mutual recovery and resilient, sustainable development in the post-Covid-19 era.
During the visit of Malaysian Prime Minister Dato' Sri Ismail Sabri bin Yaakob's visit to Vietnam in March 2022, the leaders of both countries reaffirmed their commitment to enhancing political and economic cooperation.
They pledged to intensify regular high-level contacts and strengthen existing bilateral cooperation mechanisms, particularly the Joint Committee on Economic, Scientific and Technological Cooperation (JCM) and the Joint Trade Committee (JTC).
Both sides also agreed to implement previously signed agreements effectively, including the Vietnam-Malaysia Action Plan for 2021-2025.
Key economic partners
Economic and trade relations between Vietnam and Malaysia have been developing steadily. Malaysia is Vietnam's second-largest trading partner in ASEAN (after Thailand) and the ninth-largest in the world.
Vietnam is Malaysia's third largest export market within ASEAN. Two-way trade is projected to reach US$12.5 billion in 2021 (an increase of 25.3% from 2020) and US$14.68 billion in 2022 (17.4% from 2021).
Malaysia is the second largest investor in Vietnam among ASEAN countries (after Singapore) and ranks 10th among 140 countries and territories investing in Vietnam. Malaysia has 702 valid projects in Vietnam with a total registered capital of US$13 billion, mainly in education and training, electricity, gas, water production and distribution, processing and manufacturing.
The top provinces and cities receiving Malaysian investment are Ho Chi Minh City, Tra Vinh, Hanoi and other regions.
On the other hand, Vietnam has 21 valid investment projects in Malaysia with a total registered capital of $853 million, ranking ninth among 78 countries and territories with foreign investment from Vietnam.
Regarding labor cooperation, about 12,000 Vietnamese nationals are legally employed in Malaysia, accounting for almost 1% of the total foreign workforce in the country.
Various forms of cooperation
Over the years, Vietnam and Malaysia have actively fostered collaboration in various fields, including education, cultural tourism, science and technology, and people-to-people exchanges.
Currently, about 1,000 Vietnamese students are pursuing their studies in Malaysia. The two countries signed an updated Memorandum of Understanding (MoU) on education cooperation on March 6, 2019, and another MoU on higher education cooperation on October 17, 2013.
Malaysia continues to offer scholarship programs to Vietnamese personnel under the Malaysia Technical Cooperation Programme (MTCP).
In tourism and aviation, a tourism cooperation agreement was signed in 1994. With visa exemption for ordinary passport holders (implemented in September 2001) and improved transport links, the number of Malaysian tourists visiting Vietnam has increased significantly. Malaysia is one of the top 10 sources of tourists to Vietnam.
In 2019, prior to the Covid-19 pandemic, the total number of visitors between the two countries reached about one million. In 2022, Vietnam welcomed more than 170,000 Malaysian tourists, while Malaysia received about 170,000 Vietnamese tourists.
People-to-people diplomacy plays a crucial role in Vietnam-Malaysia relations and has become increasingly important. The Vietnam-Malaysia Friendship Association, established on June 5, 1994, maintains regular contact with the Malaysian Embassy in Hanoi and the Vietnamese Embassy in Kuala Lumpur.
The Association has successfully coordinated many meaningful activities between the two nations, such as art exchange programs and celebrations of important anniversaries in their diplomatic relations.
Despite some delays and interruptions due to the Covid-19 pandemic, the Association plans to organize activities to commemorate the 50th anniversary of diplomatic relations between Vietnam and Malaysia in the early months of 2023.
The Vietnamese community in Malaysia consists mainly of workers and small business owners, totaling about 30,000 people.
During the Covid-19 pandemic, Vietnam provided medical assistance to Malaysia, including protective suits and medical masks, demonstrating their cooperation in prevention and control efforts.
With deepening cooperation, common interests and growing trust, the official visit of Malaysian Prime Minister Anwar Ibrahim to Vietnam is of great significance. It is expected to strengthen political trust, expand multifaceted cooperation, and make bilateral relations more practical and effective.
