On October 14, 2025, the Ministry of Industry and Trade (MoIT) of Vietnam and the Ministry of Commerce of Pakistan jointly held the Vietnam - Pakistan Business Forum in Islamabad, co-chaired by Vietnam’s Minister of Industry and Trade Nguyen Hong Dien and Pakistan’s Minister of Commerce Jam Kamal Khan. The event brought together more than 100 leading enterprises from both countries.

The forum also saw the attendance of Vietnam’s Ambassador to Pakistan Pham Anh Tuan and five Pakistani ministers, including Minister of National Food Security Rana Tanveer Hussain, Minister of Transport Abdul Aleem Khan, Minister of Science and Technology Khalid Magsi, Minister of Maritime Affairs Junaid Anwar Chaudhry, and Deputy Minister of Commerce Jawad Paul. Their strong presence demonstrated Pakistan’s keen interest in deepening economic and trade relations with Vietnam.

In his remarks, Minister Nguyen Hong Dien underlined the enormous cooperation potential between the two nations, which have a combined population of nearly 360 million and hold strategic positions linking Southeast Asia and South Asia. He noted that Vietnam, the third-largest economy in ASEAN and the 32nd globally, has become a magnet for foreign direct investment, while Pakistan boasts rich natural resources and globally competitive sectors such as textiles, leather, pharmaceuticals, and Halal food.

He emphasized that the two countries share a common aspiration for growth and possess complementary strengths, forming a solid foundation for stronger business and investment ties. Minister Nguyen Hong Dien called on enterprises from both sides to explore cooperation in textiles and footwear, agriculture and Halal food, industrial materials and energy, pharmaceuticals, and digital technology and innovation. He reaffirmed that the Vietnamese Government is committed to creating the most favorable legal conditions for Pakistan investors to operate sustainably and effectively in Vietnam, while expressing hope that Pakistan will offer similar support to Vietnamese businesses.

At the forum, witnessed by senior officials and business representatives from both countries, Minister Nguyen Hong Dien and Minister Jam Kamal Khan officially signed a joint declaration to launch negotiations on a Vietnam - Pakistan Preferential Trade Agreement (PTA). The signing marked an important milestone in bilateral trade cooperation. Both sides assigned their technical units to start negotiations immediately, with the goal of concluding and signing the agreement at the earliest possible date, ideally within 2025.

The launch of PTA negotiations carries strategic significance for both Vietnam and Pakistan. From a market access perspective, the agreement will facilitate greater trade flows between the two countries, especially in areas of strength such as textiles (from Pakistan’s cotton and yarn to Vietnam’s garment production), agricultural and aquatic products, Halal food, furniture, construction materials, and pharmaceuticals.

Beyond trade facilitation, the PTA will establish a stable legal framework encouraging cross-investment in complementary sectors, from textile supply chains and agro-processing to energy and digital industries. It will also lay the groundwork for a future comprehensive Free Trade Agreement (FTA), enhancing regional connectivity and helping both countries respond to global economic challenges.

The forthcoming PTA is expected to unlock the full potential of the two dynamic economies, boosting bilateral trade, currently below USD 1 billion per year, to five to ten times its current value in the coming years.

Progress of negotiations on the Vietnam - Pakistan free trade or comprehensive economic partnership agreement

During Prime Minister Pham Minh Chinh’s working visit to Saudi Arabia in October 2024 to attend the 8th Future Investment Initiative (FII) Summit, the Vietnamese Government leader and his Pakistani counterpart Shehbaz Sharif reaffirmed their shared determination to lift bilateral trade turnover to over USD 10 billion in the near future.

To realize this target, Minister Nguyen Hong Dien sent official letters to Pakistan’s Minister of Commerce in November 2024 and January 2025, proposing to launch negotiations for a Free Trade Agreement (FTA) or a Comprehensive Economic Partnership Agreement (CEPA) between the two nations.

In December 2024, the Ministry of Industry and Trade (MoIT) of Vietnam also delivered an official diplomatic note to Pakistan’s Ministry of Commerce, notifying the appointment of Vietnam’s chief technical negotiator and proposing a draft Terms of Reference (TOR) for the FTA/CEPA for Pakistan’s consideration and feedback.

However, the Pakistani side expressed its preference for a gradual approach, suggesting that the process be carried out in two stages, starting with a Preferential Trade Agreement (PTA), before proceeding to a comprehensive FTA at a later stage.

Accordingly, Vietnam took proactive steps and, on July 8, 2025, transmitted through technical channels a draft PTA to the Ministry of Commerce of Pakistan. The draft included a proposed list of Vietnamese products for which tariff reductions from Pakistan were requested.

On September 23, 2025, the two ministries, together with relevant agencies from both sides, convened the first technical-level meeting to discuss key issues and prepare for the official launch of PTA negotiations scheduled for October 2025.