PM visit deepens Vietnam- New Zealand relationship

Expanding cooperation across all pillars

On the morning of March 11, in the capital city of Wellington, a bilateral dialogue took place between PM Pham Minh Chinh and his New Zealand counterpart Christopher Luxon. Both sides agreed on major directions to deepen cooperation in various areas, encompassed by three key phrases, namely “stability and consolidation,” “reinforcement and expansion,” and “acceleration and breakthrough.”

Vietnamese Prime Minister Pham Minh Chinh talks with his New Zealand counterpart Christopher Luxon - photo: VGP

1. Stability and consolidation: The focus is on strengthening political trust, strategic confidence, and cooperation in politics and diplomacy, laying a stronger foundation for the bilateral relationship. Both sides will enhance delegation exchanges, high-level contacts, and engagements at various levels through effective cooperation mechanisms, including regular meetings between the two prime ministers and ministers.

The two prime ministers witness the signing of an agreement on education cooperation by Vietnamese Minister of Education and Training Nguyen Kim Son and New Zealand Minister of Education Penny Simmonds

2. Reinforcement and expansion: The two countries will strengthen and expand cooperation across all important pillars of the strategic partnership, including economy, trade, and investment; security and defense; agriculture; culture and people-to-people exchanges; and local connectivity.

There will be an emphasis on enhancing economic, trade, and investment cooperation. The aim is to strive for bilateral trade value to reach US$2 billion in 2024 and to double investment flows through appropriate measures, including market opening and reduction of trade barriers. Vietnam welcomes investments from New Zealand, particularly in areas, such as education and training, renewable energy, expanding the market for each other’s goods, especially agricultural products such as lychee, fabric, bananas, cut flowers, high-tech agriculture, plant varieties, and food safety management.

3. Acceleration and breakthrough: The focus is on accelerating and making breakthroughs in various areas, including:

- Scientific and technological cooperation, innovation, entrepreneurship, and the development of green, digital, circular, sharing, and knowledge-based economies. This includes technology transfer for environmentally-friendly solutions, emission reduction, agricultural development, and emerging technologies such as artificial intelligence (AI) and semiconductor chips.

- Economic cooperation in the maritime sector and environmental protection, particularly in sharing experience, policy development, and technology transfer in these areas.

- Labor cooperation and vocational training: Creating favorable conditions for Vietnamese workers to work in New Zealand; establishing legal frameworks and implementing appropriate mechanisms and policies for effective management in this field.

Prime Minister Pham Minh Chinh and his New Zealand counterpart Christopher Luxon meet the media to announce successful results of their talks - photo: Nhat Bac

New Zealand PM Christopher Luxon views Vietnam as an important partner that has become a “rising dragon” with remarkable development and high annual growth. Over the past five years, the bilateral trade value has increased by 60 percent. The people and businesses of New Zealand have benefited greatly from cooperation with Vietnamese partners. Both sides have set the bilateral trade target of US$2 billion for 2024 and agreed to boost cooperation in non-tariff issues, agriculture, education, and especially tourism.

The two leaders committed to developing a cooperation plan to achieve the net-zero target by 2050. New Zealand will continue to invest in Vietnam in the fields of agriculture and environmental protection, and concrete steps have been taken to fulfill the commitments of both governments, enhance cooperation, and elevate the strategic partnership between the two nations to a new level.

Prospects for economic and trade cooperation

On March 11, the two PMs witnessed the signing ceremony of important cooperation documents. These included a memorandum of understanding on financial cooperation between the Vietnamese Ministry of Finance and the Treasury of New Zealand for the 2024-2026 period, and a strategic cooperation plan on education between the Vietnamese Ministry of Education and Training and Education New Zealand for the 2023-2026 period.

In the presence of the two PMs, Vietnamese Minister of Industry and Trade Nguyen Hong Dien and New Zealand Minister for Trade Todd McClay signed an agreement on economic and trade cooperation between the Vietnamese Ministry of Industry and Trade and the Ministry of Foreign Affairs and Trade of New Zealand.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien and New Zealand Minister for Trade Todd McClay ink an agreement on economic and trade cooperation

Under this agreement, the two sides will create favorable conditions for the private sector, especially small- and medium-sized enterprises, to cooperate and exchange experiences. Bilateral trade will be increased through market opening activities, trade promotion, and cooperation in trade defense. Businesses of the two countries will cooperate to make the most of opportunities from free trade agreements and multilateral cooperation frameworks of which both countries are members.

During the visit, Minister Nguyen Hong Dien also attended a meeting between PM Pham Minh Chinh and representatives of associations, large corporations, and notable businesses in New Zealand. Minister Nguyen Hong Dien shared insights on the prospects of economic and trade cooperation between Vietnam and New Zealand, and provided information about Vietnam’s business environment and policies in sectors that New Zealand businesses are interested in, such as trade, energy, science and technology.

PM Pham Minh Chinh holds discussions with leading businesses of New Zealand and the world

Prime Minister Pham Minh Chinh meets with Governor-General of New Zealand Dame Cindy Kiro

Boosting investment

Also on March 11, PM Pham Minh Chinh held discussions with leading businesses of New Zealand and the world in various fields to explore the potential, needs, and possibilities for investment cooperation between Vietnam and New Zealand. After being briefed on the economic and social development situation in Vietnam, particularly the investment potential and opportunities, the leaders of New Zealand agencies and businesses introduced their capacities, needs, desires, and plans for investment and business cooperation in Vietnam.

PM Pham Minh Chinh proposed that the New Zealand government, associations, and business community further enhance economic, trade, and investment cooperation, and open up markets to maximize the benefits of bilateral trade agreements, cooperation frameworks, and new-generation free trade agreements that the two sides participate in. The two countries will create favorable conditions for goods to enter each other’s markets, and consider the removal of non-tariff barriers on Vietnamese goods, particularly agricultural and aquatic products.

Efforts will be made to enhance the effectiveness of the Inter-Governmental Committee and dialogue mechanisms between the governments and business communities of both countries. This includes promoting dialogue and connectivity with the Vietnamese business community. The ASEAN-New Zealand Business Council will continue to play a crucial role as a bridge between the governments and the business communities of both nations.

PM Pham Minh Chinh expressed his desire and confidence that economic, investment, and trade cooperation will continue to be a crucial pillar and a breakthrough in the bilateral relationship. This cooperation will serve as a driving force for both countries to overcome difficulties and challenges and promote development, leading to increased strength, prosperity, and happiness for the people of each nation.