Azerbaijan - A new route for Vietnam’s exports to reach Europe faster and cheaper

What fields do you believe hold the greatest potential for trade and economic cooperation between the two countries?

We have major potential in trade and investment. The first thing that comes to mind is international transportation and cooperation in transport, because Azerbaijan is located between Asia and Europe and has invested a lot of money in developing its infrastructure. With its partners, Azerbaijan has finished an international railway project of great importance, from Baku - Tbilisi - Kars, which connects the railways of Azerbaijan through Georgia to Turkey and then further into Europe. This project has opened up new opportunities for delivering goods from Asia to Europe and vice-versa by train, saving time and money.

Tourism is another field of great potential. We think cooperation will develop further post-pandemic. Mutual investment can also be developed between the two countries. And, of course, there is trade. Azerbaijan produces different goods that would be interesting for Vietnamese partners, and I am sure that Vietnamese exporters can also find partners in Azerbaijan. I think that in the near future we will witness an increase in trade cooperation between the two countries.

Azerbaijan liberated its territories in 2020. How has this impacted its economy and what opportunities has it created for economic cooperation between Vietnam and Azerbaijan?

Azerbaijan liberated its occupied territories in the autumn of 2020. The liberated territories are about 20 per cent of its land. This is quite a large area, nearly the same size as the entire territory of Lebanon. These areas have major potential in agriculture, energy, and tourism. So, their liberation will certainly contribute to the further development of Azerbaijan’s economy, especially after rebuilding. The lands are still blighted by mines, but after demining, reconstruction activities will be much faster than now. We have already built a first international airport in the liberated town of Fuzuli and other large projects will be implemented there.

The liberation of Azerbaijani territories will contribute to cooperation between Azerbaijan and Vietnam because there are enormous reconstruction activities in these areas, and Vietnamese companies can apply to participate. Vietnamese investors are welcomed, since favorable conditions for investors have been created in these liberated territories.

Many companies from different countries have already expressed interest in participating in these reconstruction efforts. But Azerbaijan’s policy is to give first priority to countries that have supported us, which includes Vietnam.

Vietnamese companies are more than welcome to come to Azerbaijan to invest and to build business relationships. The Embassy of Azerbaijan is ready to support them. We will provide support to all who wish to build links and relationships with Azerbaijani counterparts.

What about cooperation between the two countries in seaports and logistics?

We consider cooperation in logistics and transportation as among the key directions for future cooperation between Azerbaijan and Vietnam. These hold significant potential. Azerbaijan has built a large port on the Caspian Sea in order to receive goods from Asia for forwarding on to Europe and vice-versa. We wish to work closer with Vietnamese partners to establish port-to-port relationships. I believe this is important for future cooperation.

Logistics means international transportation, and not only from Vietnam to Azerbaijan and return. Vietnam’s export turnover to Europe is close to $60 billion. There is a large volume of goods exported from Vietnam to Europe. Prior to the pandemic, the transportation of one container from Asia to Europe cost $2,000-$3,000. Now, the cost is $13.000-$14,000. The change has been huge.

So, of course, Vietnamese companies are interested in finding a way to reduce the amount of money they must pay for transportation, and to find a way to transport their goods faster. I believe that Azerbaijan can provide Vietnam with solutions to cut transportation costs and to send Vietnamese goods to Europe faster, especially in door-to-door transportation by train. The goods would go from Vietnam by train to China and further on to Kazakhstan, and then to Azerbaijan, Turkey, and, finally, to Europe. When you send goods by train, you can deliver door-to-door to any address in Europe you wish.

And, importantly, Azerbaijan, Turkey, Georgia, and Kazakhstan have recently signed a Declaration on a Trans-Caspian East-West Transport Corridor. The idea behind the project is to simplify customs procedures, to allow countries like China and Vietnam to quicken the transportation of their goods and at a lower cost. So, I think the Declaration between the four countries has opened up a new opportunity for Vietnamese exporters to send goods to Europe. I hope that Vietnamese companies will be interested in this, and the Embassy of Azerbaijan will be glad to help them enter into detailed discussions with Azerbaijani partners so they can find a new route for their goods to reach Europe faster.

Azerbaijan has a long history, rich culture, and a lot of beautiful destinations that Vietnamese tourists would be happy to discover. And Vietnam also has much of interest to offer to Azerbaijani tourists. Do you have any ideas on promoting tourist flows between the two countries?

It is true that both Azerbaijan and Vietnam have a lot to offer foreign tourists. Cooperation between our countries in tourism has a great deal of potential and this is a field we are trying to develop. Just before the Covid-19 pandemic, we cooperated with Qatar Airways to organize a study trip to Azerbaijan for representatives from Vietnamese tourism companies. They found it to be quite promising and even opened group tours to Azerbaijan. Unfortunately, because of Covid-19 and travel restrictions, it was impossible to go further in this regard.

But now that travel restrictions have been eased in Azerbaijan and Vietnam there are more possibilities for travel. We are working with travel companies in Vietnam to help them establish relationships with Azerbaijani partners. After building working relations and cooperation between companies, it should be possible to increase the number of tourists from both sides.

Meanwhile, we are working closely with the media to provide more information on Azerbaijan to the public in Vietnam. If you come to Azerbaijan in the summer, you can enjoy beaches and a lot of other summer activities. If you come in the winter, you can enjoy skiing and stay at ski resorts. Azerbaijan also has fantastic cuisine. Vietnamese people love rice, and Azerbaijan has more than 50 different dishes with rice, which we call plov.

Azerbaijan is famous for its fantastic historical places and active cultural life, and I believe Vietnamese tourists would find these interesting. The capital, Baku, has preserved its historical sites, including the old city, and developed new areas. You can touch, see, and feel the significance of its historical architecture while at same time enjoying the modern atmosphere of the city.

What types of agricultural products do you think Azerbaijan could import more of from Vietnam, and what could Vietnam buy more of from Azerbaijan? How can the two countries boost cooperation in agriculture?

Tropical food producers in Vietnam would find Azerbaijan to be a good market. Vietnamese rice, coffee, and tea producers could sell their products in Azerbaijan. There are now more and more people in Azerbaijan who prefer coffee, but they still don’t know how good Vietnamese coffee is. Azerbaijan produces organic fruit and vegetables, which are famous in neighboring countries, but Vietnamese people don’t know too much about this.

Azerbaijan also produces and exports cotton, which is something Vietnam imports. Ninety-nine per cent of cotton used in Vietnam is imported. Its textile industry is a large part of its economy, contributing $36 billion in exports annually. Some of this is spent to buy imported cotton, which Azerbaijan could provide. I think this may be one of the interesting directions for future cooperation.

The problem in agriculture cooperation between Azerbaijan and Vietnam is that companies from the two countries don’t know enough about each other. They don’t participate in trade fairs and exhibitions organized in each other’s country, so they don’t know each other’s markets and don’t express any real interest. So, the starting point should probably be conducting measures to bring our businesses together and promote mutual participation at trade fairs and exhibitions.

Our Embassy is ready to help Vietnamese companies find partners in Azerbaijan. We would be happy to organize business meetings between agricultural companies from the two countries. If Vietnamese businesses express an interest, our Embassy will help them. It’s easier nowadays, because we can organize meetings online. Vietnam and Azerbaijan have major potential in agriculture and I hope that we will see further development in cooperation in the near future.

On a personal note, how long have you been in Vietnam and what impressions do you have of the country in terms of economic development?

I have been in Vietnam for almost ten years. I love the country and have enjoyed my stay here. I am impressed by how actively Vietnam’s economy is developing. I am really impressed by the performance of the Vietnamese Government. So many measures are being implemented to make the economy stronger and make development more active. I think the key was the decision to open up the economy to international partners.

Vietnam has signed a lot of extremely important free trade agreements with international partners. These agreements have given strong impetus to its economic development. It’s also crucial that the Vietnamese Government has created favorable conditions for foreign investors to come and invest in the country. Another reason why investors are coming to Vietnam is that they appreciate its stability and the way Vietnam protects foreign investors, as well as its ability to provide preferrable conditions to foreign investors.

I have no doubt about Vietnam’s ongoing development and will be very happy to see it record greater achievements.