ISLAMABAD: Pakistan and Vietnam on Tuesday agreed to start negotiations leading to a Preferential Trade Agreement (PTA), aiming to boost bilateral trade, investment, and economic cooperation between the two countries by the end of this year.
The signing of the agreement to begin talks took place during the Pakistan-Vietnam Business Forum held in Islamabad.
The session was co-chaired by Pakistan’s Federal Minister for Commerce Jam Kamal Khan and Vietnam Minister of Industry and Trade Nguyễn Hồng Diên, according to a statement by Khan on his social media handle X.
Jam Kamal Khan described the Vietnamese minister's visit as a sign of the two nations’ evolving economic partnership rooted in longstanding friendship and mutual respect.
Minister highlighted that while progress was achieved in the bilateral trade between the two countries, it remained “below its potential.”
He identified key sectors with potential for collaboration, including textiles, leather, pharmaceuticals, agriculture, food processing, fisheries, construction materials, and information technology.
The signing of the joint statement on launching negotiations was hailed as historic, setting a structured timeline to conclude the agreement by year-end.
The PTA will provide a comprehensive guideline to bolster market access, diversify trade baskets, and remove tariff and non-tariff barriers, the statement read.
“It is expected to foster a balanced and mutually beneficial trading partnership, boosting competitiveness and export potential for both countries”, it said.
The minister also encouraged the private sectors of both countries to see each other as long-term collaborators rather than short-term trading partners.
According to the statement, he also invited Vietnamese investors to explore opportunities in Pakistan’s Special Economic Zones (SEZs) for joint ventures, manufacturing partnerships, re-exporting, and people-to-people partnerships.
Kamal highlighted the potential for cultural and religious tourism in Pakistan’s Gandhara and Taxila civilizations, which are some of the world's sacred Buddhist heritage sites.
Both sides are committed to enhancing connectivity through direct flights and visa facilitation to promote trade and tourism.
The commerce minister concluded by stating that the signing represents the beginning of a new chapter in our bilateral relations – one defined by trust, mutual benefit, and shared prosperity.
The Business Forum included several Pakistani federal ministers and senior officials alongside diplomats and business leaders from both countries.
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