Vietnam, Malaysia form strategic partnership

Vietnam and Malaysia have advanced their comprehensive partnership, established in 2004, to a strategic partnership

According to a joint statement released during the visit, which saw Dung hold bilateral talks with his Malaysian counterpart Najib Tun Rajak, Vietnam and Malaysia have advanced their comprehensive partnership, established in 2004, to a strategic partnership.

“The strategic partnership will not only create new driving forces for bilateral cooperation but also contribute positively to the ASEAN community and to peace, stability, cooperation and development in the region and the world,” Dung said.

Under the statement, the two nations have agreed to swell their bilateral trade to at least $15 billion by 2020, from an expected sum of $10 billion this year.

On this occasion, several deals were inked, including an agreement on labour co-operation, and an oil and gas agreement between Malaysia’s Petronas and PetroVietnam. The State Bank of Vietnam also granted a licence to Malaysia’s CIMB bank to operate in Vietnam.

The two sides also vowed to amplify bilateral co-operation in the oil and gas, electricity and renewable energy sectors. Favourable conditions will be created for the establishment of a joint venture between Malaysia’s Tenaga Nasional Berhard and Electricity of Vietnam.

The two nations also sped up the signing of a government-level memorandum of understanding on rice trade for the 2015-2020 period. Vietnam and Malaysia also agreed to push the implementation of specific projects in the key sectors of oil and gas, liquefied gas, electronics, consumer goods and food processing.

The two nations’ bilateral trade turnover rose from $5.5 billion in 2010 to $8.1 billion last year. The figure totalled over $3 billion within this year’s first five months. As of June 20, 2015, Vietnam was home to 498 valid Malaysian investment projects registered with the total capital of $10.9 billion. Vietnam currently has 11 valid investment projects in Malaysia, with the total registered capital of $813 million, including two oil-and-gas projects worth $558 million.