KARACHI: Pakistan and Vietnam on Tuesday formally launched negotiations for a Preferential Trade Agreement (PTA) aimed at expanding trade, investment and connectivity between the two countries, the commerce ministry said following the Pakistan–Vietnam Business Forum in Islamabad.
The two Asian nations have maintained diplomatic ties since 1972, with relations strengthening in recent years through growing defense, trade and cultural cooperation. Bilateral trade currently stands at around $800 million, dominated by textiles, seafood, rubber, and chemicals. Officials on both sides have expressed the desire to double it in the coming years.
Pakistan is currently pushing to grow trade diplomacy in Southeast Asia, as it seeks to diversify exports and deepen regional partnerships.
Pakistani Minister for Commerce Jam Kamal Khan and Vietnam’s Minister of Industry and Trade H.E. Nguyen Hong Dien jointly addressed Tuesday’s business forum, which brought together dozens of business leaders, investors and government representatives from both nations. The ministers announced that negotiations on the PTA would begin immediately, with the goal of finalizing and signing the agreement by the end of 2025.
“The longstanding and friendly relations between Pakistan and Vietnam are growing stronger,” Jam Kamal Khan said while welcoming the Vietnamese delegation and business community. “There are vast opportunities for cooperation in textiles, leather, pharmaceuticals, agriculture, food processing, and information technology.”
Khan said the planned PTA would “enhance market access and trade diversification,” adding that both sides had agreed to strengthen collaboration in trade, investment, technology, connectivity and tourism.
“The Business Forum marks the beginning of a new chapter in Pakistan–Vietnam economic relations,” he said. “Meetings and B2B sessions will play a vital role in promoting bilateral trade.”
The commerce minister also invited Vietnamese firms to invest in Pakistan’s key growth sectors, noting that the country offered a young workforce and an attractive business environment. He said Pakistan sought to learn from Vietnam’s experience in industrial growth and value-added manufacturing, and expressed optimism that sustained cooperation would generate long-term partnerships between the two private sectors.
During the forum, the Trade Development Authority of Pakistan and Vietnam’s Ministry of Industry and Trade delivered presentations on investment potential and export opportunities. Both ministers urged the private sector to take an active role in joint ventures and cross-border projects.
Vietnam’s Minister of Industry and Trade said the PTA would pave the way for sustainable and mutually beneficial growth, creating new opportunities for businesses in both nations.
“The PTA will enhance market access and diversify trade,” he said, emphasizing that closer cooperation would help the two economies grow together.
The meeting also explored prospects for expanding religious and cultural tourism. The Vietnamese minister described Buddhist heritage sites as destinations for “spiritual journeys,” while the two sides agreed to promote collaboration in faith tourism.
Pakistan, home to the ancient Gandhara and Taxila civilizations, reaffirmed readiness to facilitate Vietnamese visitors seeking to explore Buddhist heritage sites. Khan also invited the Vietnamese business community to participate in the Food and Agriculture Expo to be held in Karachi in November.
