Upgrade of Việt Nam-Malaysia ties reflects commitment to shared development: Minister

November 25,monza – torino 2024 - 15:31 Your browser does not support the audio element. Malaysia could provide the platform for Vietnamese companies to tap into the global halal market, which is a high growth industry targeted to be worth more than US$5 trillion by 2030.

Malaysian Minister of Investment, Trade and Industry Tengku Datuk Seri Utama Zafrul. — VNA/VNS Photo

KUALA LUMPUR — The upgrade of Việt Nam – Malaysia relations to a Comprehensive Strategic Partnership during Party General Secretary Tô Lâm’s official visit to Malaysia from November 21-23 demonstrates the two countries’ deeper commitment to shared development and closer bilateral ties, according to Malaysian Minister of Investment, Trade and Industry Tengku Datuk Seri Utama Zafrul.

In an interview granted to the Vietnam News Agency (VNA)'s resident correspondent in Kuala Lumpur, he highlighted the longstanding friendship between the two integral ASEAN member states and described the elevation of the bilateral relations as the most significant outcome of the visit, with Party General Secretary Tô Lâm and Prime Minister Anwar Ibrahim emphasising enhanced collaboration in the areas of security, defence, digital economy and maritime.

He expressed his confidence that the trip would catalyse greater cooperation between the two countries.

Regarding economic cooperation, he highlighted that the time was ripe for furthering the agenda of the bilateral economic collaboration in multiple domains. He referenced his July meeting with Prime Minister Phạm Minh Chính that helped strengthen Government-to-Government understanding on enhancing trade in existing electrical and electronics (E&E) and chemical industries.

The minister underscored several promising areas for future collaboration, particularly renewable energy where Malaysian firms could join the equipment supply chain, services and investments.

The halal industry and food security, he continued, would also be key areas where the two countries could work together in, adding Việt Nam's rapidly increasing middle class provides an opportunity for Malaysia’s food and beverage as well as beauty and personal care producers to access the new market.

In the meantime, Malaysia could provide the platform for Vietnamese companies to tap into the global halal market, which is a high growth industry targeted to be worth more than US$5 trillion by 2030.

Trade statistics reveal the robust economic relationship between the two nations, with Việt Nam ranking as Malaysia's 11th largest global trading partner and fourth within ASEAN in 2023. Bilateral trade reached $17.38 billion in 2023, though showing a 10.6 per cent decrease from $19.43 billion in 2022. Malaysia's primary exports to Việt Nam include E&E products, petroleum products, chemicals, metal manufacturing, and palm oil-based products.

Looking ahead to Malaysia’s ASEAN Chairmanship next year, the minister said the ASEAN 2025, themed “Inclusivity and Sustainability”, reflected the country’s commitment to leading the regional push towards growth that is resilient, inclusive and sustainable for the bloc and beyond.

In practice, this meant adopting an all-encompassing approach in developing the ASEAN economy, and ensuring that marginalised groups, such as youths, women and micro, small and medium enterprises reap the full benefit of ASEAN’s overarching objectives.

A key sphere would be developing the digital economy, with particular focus on finalising the ASEAN Digital Economy Framework Agreement (DEFA) - the world's first regional digital economy agreement. According to Zafrul, DEFA could potentially boost the regional digital economy to $2 trillion by 2030, equivalent to an additional $1 trillion increase over a business-as-usual trajectory.

He said the agreement would present ASEAN states such as Việt Nam and Malaysia a vast potential to capitalise on a lucrative new economy in a seamless and inclusive manner. Besides the obvious boon for trade between ASEAN member states, the spillover effects would be huge for the entire region.

The framework would empower growth for the region in future-proof industries such as generative AI, Data Centres and perhaps most crucially, cybersecurity, he added. — VNS