Vietnam, Bulgaria promote economic, trade cooperation

The May-13 talk between Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Bulgarian Minister of Economy and Industry Petko Nikolov

On May 13, in Bulgaria, Vietnamese Minister of Industry and Trade Nguyen Hong Dien had a bilateral meeting with Bulgarian Minister of Economy and Industry Petko Nikolov.

At the meeting, Minister Petko Nikolov said he hoped that businesses from both countries will have more opportunities to expand cooperation through the upcoming 24th session of the Vietnam-Bulgaria Inter-Governmental Committee for Economic, Scientific and Technical Cooperation.

According to Minister Petko Nikolov, Vietnam and Bulgaria have a long-standing traditional friendship, and in 2025, the two countries will celebrate the 75th anniversary of their diplomatic relations establishment. He affirmed that as a member of the European Union (EU), Bulgaria is willing to support Vietnam in economic, trade cooperation with the EU.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien (left) and Bulgarian Minister of Economy and Industry Petko Nikolov

Meanwhile, Vietnamese Minister of Industry and Trade Nguyen Hong Dien believes that his ministry’s visit to Bulgaria this time plays a crucial role in promoting the bilateral cooperative relationship.

He said Bulgaria is one of the first 10 countries in the world to recognize and establish diplomatic relations with Vietnam. It is also one of the strongest supporters of the signing of the EU-Vietnam Free Trade Agreement (EVFTA) and the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA). The Minister expects that these agreements, along with the Inter-Governmental Committee, will serve as a foundation and strong impetus to enhance cooperation between the two countries in the future.

Dien stated that Vietnam has become one of the 40 largest economies in the world, reaching an annual foreign trade value of more than US$700 billion, making it one of the world’s top-20 countries in terms of international trade value. Vietnam has become a world top-15 country in terms of foreign direct investment (FDI) environment, and the FDI capital it attracted has grown 5-6 percent per year. The country has so far attracted US$469 billion in FDI from over 141 countries and territories worldwide.

The Minister particularly emphasized economic, trade and investment cooperation is key to the bilateral relationship that has been growing well over the years, especially since the EVFTA officially took effect on August 1, 2020.

However, according to Dien, the bilateral trade remains incommensurate with the potential. In 2013, Vietnam's exports to Bulgaria accounted for only 0.24 percent of this market's total import value, while Bulgaria's exports to Vietnam represented 0.018 percent of Vietnam's import value. He attributed this to the limited mutual understanding between businesses of the two countries, geographical distance, and high transport costs.

Minister of Industry and Trade Nguyen Hong Dien and his Vietnamese companions in a joint photo with Minister of Economy and Industry Petko Nikolov and other representatives of the Bulgarian Ministry of Economy and Industry

Minister Dien affirms that there is huge room for bilateral cooperation development. He proposed the following solutions to promote the bilateral cooperation:

Firstly, the two ministries need to strengthen consultation and dialogue, as well as enhance the exchange of information and experience in building economic, trade and industrial development policies.

Secondly, it is important to encourage businesses of the two countries to participate in trade fairs and exhibitions in Vietnam and Bulgaria to seek investment and cooperation opportunities.

Thirdly, it is important to utilize cooperation mechanisms of the Inter-Governmental Committee, as well as cooperation frameworks that both parties have signed and/or joined, such as EVFTA; promote cooperative relations in areas where both sides have potential; and expand opportunities for cooperation in such new sectors as energy, high technology, pharmaceuticals, chemicals, information technology, supporting industries, agriculture, environmental protection, education, and healthcare.

Fourthly, Minister Nguyen Hong Dien proposed that after the Vietnamese Ministry of Industry and Trade’s visit, Minister Petko Nikolov assign relevant agencies to studying and suggesting several areas for deeper cooperation, moving towards signing a memorandum of understanding on cooperation between the two ministries on the occasion of the Bulgarian President’s visit to Vietnam in the fourth quarter of 2024.

Fifthly, it is necessary for the relevant authorities of both sides to implement issues stated in the minutes of the 24th session of the Vietnam-Bulgaria Inter-Governmental Committee for Economic, Scientific and Technical Cooperation.

On this occasion, Minister Nguyen Hong Dien extended an invitation to Minister Petko Nikolov and his Deputy Ministers and colleagues at the Ministry of Economy and Industry of Bulgaria, to visit Vietnam at the earliest opportunity.