Delegates welcome President Luong Cuong and his wife at Cairo International Airport, Egypt. (Photo: Lam Khanh/VNA)
Establishing diplomatic relations on September 1, 1963, Egypt was one of the first countries in the African region and in the Arab bloc to decide to establish diplomatic relations with Vietnam.
Over the past 60 years, the relationship between the two countries has developed steadily, including trade and investment. Notably, Egypt was the first North African country to recognize Vietnam as a full market economy in November 2013.
Therefore, the State visit to Egypt by President Luong Cuong is an important foreign political event of the two countries with the desire to soon elevate bilateral relations to Comprehensive Partnership, opening up a new space with much potential and room for bilateral friendship and cooperation.
Complementary relationship
According to trade experts, Egypt is a transcontinental country with most of its territory located in North Africa and the Sinai Peninsula in West Asia, a market with more than 100 million people.
In particular, Egypt is currently Vietnam's leading trade partner in the North African region. Currently, Vietnam has a business investing in Egypt with a total capital of about 30 million USD and a garment business in a joint venture with an Egyptian business.
In addition, Vietnam and Egypt have many complementary strengths to develop together. Specifically, with the advantage of being a member of many free trade agreements (FTAs) at the regional level, Vietnam can be a bridge for Egyptian goods and services.
On the contrary, with its prime location at the crossroads of three continents, Asia, Europe and Africa, and being a member of the African Continental Free Trade Agreement (AfCFTA), Egypt can effectively support Vietnamese goods and services to access these large markets.
Citing data from Vietnam Customs, the Ministry of Industry and Trade said: Egypt is Vietnam's largest trading partner in North Africa and Vietnam's second largest export market in Africa (after South Africa).
During the 2018-2022 period, despite the impact of the COVID-19 pandemic, total bilateral trade turnover witnessed positive growth with an average increase of 6.7% per year, from 471.8 million USD in 2018 to 612 million USD in 2022.
In 2024, Vietnam's total import-export turnover with Egypt will reach 472.6 million USD, up 9.4% compared to 2023. In the first 6 months of 2025, Vietnam's total import-export turnover with Egypt will reach 266.9 million USD, up 8.0% over the same period last year; of which, Vietnam's exports to Egypt will reach 266.9 million USD, up 8.0%. Vietnam's trade deficit with Egypt will be -266.9 million USD, up 8.0%.
The main export groups include computers, electronic products and components; phones of all kinds and components; coffee; seafood; machinery, equipment, tools, other spare parts; means of transport and spare parts; pepper; textile fibers and yarns of all kinds; textiles and garments; cashew nuts; vegetables and fruits; other base metals and products...
In the opposite direction, the main imported items from Egypt include vegetables and fruits; scrap iron and steel; raw plastics; DAP fertilizer; textile and footwear materials.
Mr. Nguyen Duy Hung, First Secretary, Head of the Vietnam Trade Office in Egypt, said: Over the past time, the Vietnam Trade Office in Egypt has always paid attention to analyzing the market situation, import-export management policies and economic - trade, industrial and investment policies affecting Vietnam; proposing solutions and policies to promote trade, industry, investment and other fields.
At the same time, the Vietnam Trade Office in Egypt actively supports the connection of businesses of the two sides in trade, promotes import and export of goods; regularly provides timely recommendations to export enterprises on payment and dispute resolution when signing export contracts.
Currently, Vietnam and Egypt are promoting the FTA negotiation process, which is expected to create favorable conditions for Vietnam to export its strong products not only to Egypt but also to access other markets in the Middle East, North Africa and Southern Europe.
On the other hand, if Egypt has an FTA with Vietnam, Egyptian goods will access Vietnam's market of over 100 million people as well as markets in ASEAN, Asia-Pacific countries and major economies with a series of FTAs of which Vietnam is a member.
At the meeting and working session with Ms. Rania Al-Mashat, Minister of International Cooperation of Egypt, Minister of Industry and Trade Nguyen Hong Dien affirmed: Vietnam always considers Egypt as one of the most important partners in Africa and wishes to expand FTA partnerships with African countries, including Egypt.
Establishing an FTA will create favorable conditions for Vietnam to promote the export of its strengths not only to Egypt but also to access other markets in the Middle East, North Africa and Southern Europe.
On the other hand, if Egypt has an FTA with Vietnam, goods will not only access the Vietnamese market of over 100 million people but also have the opportunity to access the ASEAN, Asia-Pacific markets and major FTA economies of which Vietnam is a member.
In order to further promote bilateral economic and trade cooperation, Minister Nguyen Hong Dien suggested that the two sides closely coordinate to soon organize the 6th Meeting of the Vietnam-Egypt Joint Committee. Along with that, he proposed that Egypt study the possibility of negotiating an FTA with Vietnam.
The Minister also noted that the two sides should study the establishment of direct flights to facilitate trade development; continue to discuss and review to remove difficulties and obstacles, facilitate the export of goods from each country to each other's markets and create conditions for businesses of the two countries to increase meetings and connections.
Appreciating the comments of Minister Nguyen Hong Dien, Minister Rania Al-Mashat said: The Egyptian Government always considers Vietnam an important partner in the Asia-Pacific region and emphasized that Egypt always attaches importance to promoting economic and trade cooperation with Vietnam.
Minister Rania Al-Mashat affirmed that she will continue to pay attention and direct functional units under the Egyptian Ministry of International Cooperation to closely coordinate with the Vietnamese Ministry of Industry and Trade and relevant agencies to promote the resolution of the issues raised by the Vietnamese side, especially the organization of the 6th Meeting of the Joint Committee.
In particular, it will coordinate with relevant Egyptian agencies to study the possibility of negotiating an FTA with Vietnam.
In the first 6 months of 2025, Vietnam's total import and export with Egypt reached 266.9 million USD. (Source: VNA)
Lots of room for cooperation
Recently, European Plastics Joint Stock Company - the first Vietnamese enterprise has inaugurated the EuP Egypt Factory specializing in the production of Filler Masterbatch with a total expected capacity of 300,000 tons/year. This is the first factory of a Vietnamese enterprise in Egypt.
With a total expected investment of 30 million USD, EuP Egypt Factory is built on an area of over 34,000m2 specializing in the production of Filler Masterbatch (filler used in the plastic industry).
When fully operational, the factory will have a total of 24 production lines with a total capacity of 300,000 tons/year, creating direct jobs for more than 300 local workers. The factory's products will serve the Egyptian domestic market and be exported to countries in the Middle East, Africa, Europe and America.
According to Mr. Hoang Quoc Huy, Chairman of the Board of Directors of European Plastics Joint Stock Company, the investment project to build the EuP Egypt Factory is an important step in the strategy to expand the operations of European Plastics Joint Stock Company. The EuP Egypt Factory was established to serve the Egyptian domestic market and for export.
This is not only a factory but also a symbol of cooperation and development between Vietnam and Egypt, while also bringing job opportunities and added value to the local community.
Appreciating the significance of the first project of a Vietnamese enterprise in Egypt, Chairman of the Egyptian Export Processing Zones Investment Authority Hossam Heiba emphasized that the establishment of the EuP Egypt Factory has shown the efforts of the Egyptian Government in attracting foreign investors.
In particular, Egypt will always give incentives and protect foreign investors, including Vietnamese investors, and hopes that more and more Vietnamese enterprises will come to invest in Egypt.
In order to boost exports to Egypt, as the state management agency for industry and trade, the Vietnamese Ministry of Industry and Trade recommends that businesses learn about business culture, customs and the legal system to avoid unnecessary misunderstandings and comply with current regulations.
At the same time, clearly identify the products that Egypt has high import demand, especially those products that Vietnam has strengths in. The Ministry of Industry and Trade also notes that businesses need to improve the competitiveness of their products; ensure that products are of high quality, meeting international standards and requirements of markets with high import demand.
In addition, build a suitable pricing strategy that is highly competitive compared to similar products from other countries. At the same time, focus on eye-catching product design and packaging that suits consumer tastes; build and promote product brands and actively participate in international fairs and exhibitions in Egypt or specialized fairs related to the African market to introduce products and find partners./.
(Vietnam News Agency/Vietnam+)
Source: https://www.vietnamplus.vn/mo-ra-giai-doan-hop-tac-thuong-mai-moi-giua-viet-nam-va-ai-cap-post1053501.vnp
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