PM’s visit opens up new prospects for Vietnam-Romania trade ties

At an apparel company in Hai Duong. Illustrative image (Photo: VNA)

The upcoming visit to Romania by Prime Minister Pham Minh Chinh, his spouse and a high-ranking Vietnamese delegation is expected to open up new prospects for bilateral economic, trade and investment ties to develop to a greater height.

Romania, a traditional partner of Vietnam in southeast Europe, is viewed as a gateway for Vietnam to access European Union markets. Simultaneously, with a population of around 100 million people, Vietnam stands ready to serve as an entry point for Romania into the markets of ASEAN countries.

Statistics of the Ministry of Industry and Trade showed that two-way trade between Vietnam and Romania totalled nearly 431 million USD last year, marking a 1.4% increase from 2022. Vietnam's exports to Romania decreased by 12.5% to 282.3 million USD, but imports from Romania surged by 44.8% to nearly 148.7 million USD.

Key exports from Vietnam to Romania include machinery, equipment, textiles, aquatic products, computers, electronic products, steel, and coffee. Conversely, Vietnam imports wheat and maize, animal feed, pharmaceuticals, woolen fabrics and wood.

Trade with Romania accounts for just 0.06% of Vietnam's total foreign trade, while trade with Vietnam makes up only 0.2% of Romania's foreign trade.

As of September 2023, Romania had five valid investment projects in Vietnam with a total registered capital of 1.56 million USD, ranking 93rd out of 144 countries and territories investing in Vietnam. Meanwhile, Vietnam recorded one project worth 600,000 USD in Romania, ranking 65th out of 80 destinations of Vietnamese outbound investment.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said bilateral trade remains modest, but with advantages brought about by the Vietnam-EU Free Trade Agreement (EVFTA) and the Vietnam-EU Investment Protection Agreement (EVIPA), bilateral trade and investment ties are expected to grow.

He emphasised the complementary nature of the Vietnamese and Romanian economies, noting that Vietnam is keen on exporting its strong products, including apparel, footwear, agricultural products, and tropical seafood to Romania. Conversely, Vietnam seeks to import pharmaceuticals, animal feed, machinery, electronic products and components, fertilizers, and other goods from the European nation.

During the recent 17th meeting of the Vietnam-Romania Joint Committee on Economic Cooperation, Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Romanian Minister of Economy, Entrepreneurship and Tourism Stefan-Radu Oprea affirmed that economy-trade is an important pillar and the driver of cooperation between the two countries. They suggested fully tapping the benefits of major cooperation frameworks such as the EVIPA and the EVFTA and opening up markets for each other's goods as the immediate solution.

On the other hand, both sides will increase the exchange of business delegations and encourage investments in areas of Vietnam’s demand and Romania’s strength, such as mechanical engineering, specialised machinery, medical equipment, pharmaceuticals, telecommunications, automobile manufacturing, clean energy, mining and oil refining./.