Vietnam eyes Saudi market for export growth

Prime Minister Pham Minh Chinh, his spouse and a high-ranking delegation of Vietnam arrived at the King Khalid International Airport in Riyadh on October 29 afternoon (local time), beginning their working trip  to Saudi Arabia.

The Prime Minister's ongoing working visit to Saudi Arabia is expected to further strengthen bilateral economic relations between the two countries, the Government News remarked.

The Vietnamese government aims to attract significant investments from Saudi Arabia's Public Investment Fund (PIF) for large-scale infrastructure projects and Halal industries.

According to the Ministry of Industry and Trade’s Asia-African Market Department, Saudi Arabia is a large market and a significant partner for Vietnam in the Middle East. Economic and trade relations between the two countries have been developing positively.

Between 2019 and 2023, bilateral trade has grown consistently, averaging over $2.2 billion annually. Vietnam has a trade surplus with Saudi Arabia.

As of Q3 2024, bilateral trade reached over $2.2 billion, an 8% increase year-on-year. Vietnam's exports reached approximately $1.18 billion, a 39% increase, while imports exceeded $1 billion.

Mr. Tran Trong Kim, First Secretary and Head of the Vietnam Trade Office in Saudi Arabia, noted that the Saudi market has a high demand for imported agricultural products, fresh fruits and vegetables, including rice. While Saudi Arabia imports about 1.7 million tons of rice annually, Vietnam currently exports only 35,000 tons to this market, indicating significant market potential. Moreover, Saudi businesses prefer to import directly from Vietnam, eliminating third parties to reduce costs.

Besides rice, Saudi Arabia consumes large quantities of fresh fruits and vegetables imported from countries like China, South Africa, Egypt, Australia, Jordan, Yemen, and a small amount from Vietnam (such as passion fruit, seedless lemons, pomelos, dragon fruit, guava, fresh coconuts, instant noodles…). These products are mainly shipped via air cargo.

Additionally, Saudi consumers favor coffee, nuts, spices, fresh seafood (like shrimp, fish, squid, and canned tuna) from Vietnam.

"The Saudi market has a huge demand for agricultural products, seafood and Halal food, giving Vietnam ample opportunities to boost exports. Vietnamese products like rice, pepper, and seafood are already enjoying strong sales in the market," stated Mr. Kim. He further mentioned that with increasing demand for consumer, industrial, and construction materials, Saudi Arabia presents a large market for Vietnamese businesses.

Despite positive developments in cooperative relations, the Asia-Africa Market Department acknowledges that bilateral trade growth between the two countries has not yet matched their potential.

Currently, Saudi Arabian investment in Vietnam remains modest, while Saudi businesses possess significant financial capacity. Vietnam presents attractive investment opportunities and a favorable business environment.