As per Government News Agencies, Vietnam and Pakistan are moving towards finalizing a bilateral Preferential Trade Agreement (PTA) to enhance trade liberalization and expand market access, according to the official news agency.
Ambassador of Vietnam to Pakistan, Pham Anh Tuan, stated that both sides have agreed to treat the PTA as a strategic step, aiming to reduce tariffs and lay the foundation for a future Free Trade Agreement (FTA).
At the 5th Pakistan-Vietnam Joint Trade Committee (JTC) meeting held in Hanoi on July 11, Vietnam submitted a draft PTA on July 8, listing over 80 export items with a proposed tariff rate of 0-5%. Pakistan welcomed the proposal and plans to begin negotiations in 2025.
Revival of the JTC after 8 years is a major resetting of the bilateral economic relations, which enabled organised trade relations. Some of them were improving business delegation contacts, trade shows, and market openings.
Vietnam requested that Pakistan facilitate the entry of Vietnamese businesses into Pakistani trade fairs and Pakistan received invitation to take part in Vietnamese shows like Saigontex, HanoiFabric. TEXPO, HEMS and FoodAg were also invited to Pakistan.
Vietnam recognized Pakistan as the 14th largest source of fibers and they were willing to raise imports of cotton, fabric, and leather. With regards to Aquaculture, the two countries decided to deal with the logistical and regulatory hindrances on the sea food trade especially in pangasius fish.
In the halal trade industry, technical cooperation, as well as recognition of certification also addressed. The other spheres of collaboration are in aviation, healthcare, finance, human resource development and visa facilitation.
According to 2024 trade data, Pakistan exported cereals ($117.26M), cotton ($65.64M), and leather ($26.59M) to Vietnam. Vietnam exported electronics ($186.67M), spices ($30.70M), and man-made filaments ($20.63M) to Pakistan.
Both governments target $10 billion in bilateral trade in coming years.
