Pakistan and Vietnam have agreed to initiate negotiations for a Preferential Trade Agreement (PTA) within 2025, marking a renewed effort to strengthen bilateral trade and economic cooperation. The announcement came during the 5th Pakistan–Vietnam Joint Trade Committee (JTC) meeting, held in Hanoi on July 11, 2025 — the first such meeting in eight years.
The session was co-chaired by Pakistan’s Additional Secretary of Commerce, Nasir Hamid, and Vietnam’s Deputy Minister of Industry and Trade, Phan Thi Thang. It concluded with the signing of the agreed minutes, witnessed by Pakistan’s Minister for Commerce Jam Kamal Khan and Vietnam’s Minister of Industry and Trade Nguyen Hong Dien.
The proposed PTA is expected to eliminate or reduce tariffs on key products and streamline market access, especially in sectors such as textiles, agriculture, pharmaceuticals, fisheries, halal certification, IT, and civil aviation. Vietnam also expressed specific interest in increasing imports of Pakistani rice, textiles, and leather goods, while Pakistan aims to explore investment and export opportunities in Vietnam’s manufacturing and technology sectors.
Pakistan’s delegation highlighted the country’s strategic geographic location as a gateway to Central Asian and Middle Eastern markets, offering Vietnam broader trade access through regional connectivity initiatives.
Social media reactions have been cautiously optimistic, with trade analysts and business leaders posting on X about the long-overdue economic synergy between the two nations. Some users also noted the potential for joint ventures and deeper business-to-business engagement ahead of any eventual Free Trade Agreement (FTA).
Bilateral trade between the two countries reached $850 million in 2024, and $327.5 million in the first five months of 2025 — showing a steady annual growth rate of over 6.7%. The next JTC meeting is scheduled to be hosted in Pakistan, reinforcing both countries’ commitment to a more robust and balanced trade relationship.
Southasiandesk.com will continue to track developments as Pakistan and Vietnam move toward formalizing their PTA.
Published in SouthAsianDesk, July 11th, 2025
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