The state visit to Mongolia by Vietnam’s Party General Secretary and President Nguyen Phu Trong is expected to pave new ways for businesses from both countries to expand partnerships and explore investment opportunities. This visit not only marks an important milestone in diplomatic relations between the two countries but also creates new opportunities for deepening economic cooperation.

On November 17, 1954, Vietnam became the first Southeast Asian country to establish diplomatic relations with Mongolia. Over the past 70 years, the traditional friendship between the two countries has flourished, with significant achievements in various fields. Experts point out that Mongolia highly values Vietnam’s increasingly important international role and status. In talks with Vietnamese leaders, the Mongolian side consistently emphasizes that Vietnam is an important partner in its foreign policy in Southeast Asia, as well as a crucial gateway to the ASEAN market with its population of 700 million.

The economic and trade relations between the two countries can be traced back to 1958 when they signed their first trade agreement. Since then, a series of cooperation agreements have been signed, including a Memorandum of Understanding (MoU) on economic and trade cooperation between Vietnam’s Ministry of Industry and Trade and Mongolia’s Ministry of Foreign Affairs, as well as an MoU on sustainable rice trade for 2023 with Mongolia’s Ministry of Food, Agriculture and Light Industry. These agreements aim to establish comprehensive cooperation mechanisms and ensure food supply and rice market stability for both countries.

Despite this, the scale of bilateral trade remains small, mainly due to Mongolia’s limited market size and geographical challenges. Currently, Vietnam primarily exports grain products, LCD and LED screens, and rice to Mongolia, while importing tungsten ore and small quantities of other products from Mongolia.

Experts point out that Mongolia’s vast territory and rich mineral resources provide great potential for strengthening cooperation, especially in mining, rare earth metals, key materials for electric vehicle production, green economy initiatives, climate change mitigation, and pollution reduction. On the other hand, Vietnam’s advantage lies in its market of over 100 million people, with a rapidly growing middle class.

For Mongolian businesses, entering the Vietnamese market will give them the opportunity to leverage Vietnam’s extensive network of free trade agreements (FTAs), including new-generation agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement. This provides opportunities for Mongolian products to enter broader international markets.

Vietnam’s Ambassador to Mongolia Nguyen Tuan Phong emphasized that economic and trade cooperation between the two countries is continuously developing. Last year, bilateral trade exceeded $130 million, and although the trade volume is still small, there is enormous growth potential. Particularly, there are bright prospects for the export of Vietnamese agricultural products, food, and consumer goods. At the same time, Vietnam can also become an important market for Mongolian agricultural products and raw materials.

Experts believe that the trade structure between the two countries is complementary rather than competitive. Therefore, both sides should continue to promote imports and exports, ensure mutual market access, and meet each other’s standards and demands. They expect bilateral trade volume to double in the near future.

Key points:

• The Vietnamese President’s visit to Mongolia will promote economic and trade cooperation between the two countries.
• The traditional friendship between the two countries has continued to develop over 70 years of diplomatic relations.
• Several economic and trade cooperation agreements have been signed, but there is room for growth in trade volume.
• Mongolia’s rich mineral resources and Vietnam’s vast market potential provide a good foundation for cooperation.
• Experts believe the two countries’ trade structures are complementary and expect trade volume to double in the future.