Energy Cooperation: The Shining Star in Vietnam-Qatar Relations

25 December, 2024

Ambassador of Vietnam to Qatar, Nguyen Huy Hiep. (Photo: VNA)

2024 witnessed positive developments in economic, trade, and investment cooperation between Vietnam and Qatar, with energy cooperation and labor collaboration in the energy sector as the highlights of bilateral relations.

This was shared by Ambassador of Vietnam to Qatar, Nguyen Huy Hiep, in an interview with a Vietnam News Agency reporter in the Middle East-North Africa regarding the cooperation situation between the two countries in the past year, as well as future orientations.

According to Ambassador Nguyen Huy Hiep, the economic, trade, and investment cooperation between Vietnam and Qatar continued to be strongly promoted and consolidated in 2024.

According to statistics from Qatar, two-way trade turnover between Vietnam and Qatar in the period from January to October 2024 reached 2.7 billion Qatari riyals (over US$740 million), approximately equal to the trade turnover of the whole year of 2023 ($752 million). Qatar temporarily recorded a surplus, mainly thanks to the export of energy and petrochemical products. In the first ten months of this year, the export of some commodities of Vietnam, including mobile phones and machinery, increased. In general, the trade exchange trend between Vietnam and Qatar will continue to increase in the future.

To serve production and growth, Vietnam has a demand for energy products of Qatar such as liquefied natural gas. Conversely, Qatar will import industrial machinery, electronic equipment, ships, and floating works from Vietnam.

Regarding economic cooperation, ‘energy cooperation and labor collaboration in the energy sector’ was the highlight of the bilateral relationship in 2024. The two sides not only promoted trade exchange of energy products but also maintained oil and gas service projects, specifically between PTSC M&C and PTSC POS of Vietnam and their partners/customers in Qatar.

The number of skilled and technical Vietnamese laborers working in Qatar to serve the above projects and at related corporations such as Qatar Energy and Qatar Energy LNG reached nearly 600 at some points. This is an impressive number and is likely to continue to increase in the future.

Prime Minister Pham Minh Chinh (R) receives a business delegation led by Sheikh Faisal bin Qassim Al Thani, Chairman of the Qatar Business Association (QBA). (Photo: VNA)

Especially, the official visit to Qatar by Prime Minister Pham Minh Chinh in October 2024, focusing on promoting economic, trade, and investment relations, attracted great attention from economic ministries and businesses of the two countries and was expected to create momentum for Vietnam-Qatar cooperation to develop to a new height of substance and effectiveness.

Ambassador Nguyen Huy Hiep expressed his belief that the cooperation prospects between Vietnam and Qatar are very bright in 2025. Especially, the important catalyst here comes not only from the attention of the leaders of Vietnam and Qatar but also from the business communities of the two countries. The Ambassador also highlighted some areas where the two countries can strengthen cooperation.

In the field of energy and renewable energy, with abundant energy resources and great financial and technological potential, Qatar can cooperate with Vietnam in technology transfer and the development of energy projects, especially renewable energy projects.

In terms of trade and investment, Vietnam, with its rapidly developing economy, attractive investment environment, and open policies, can be an appealing destination for Qatari investors in the fields of industry, agriculture, and services.

Vietnam is currently in the top 40 economies in the world, the top 20 countries with the largest trade turnover, and is an important link in 16 free trade agreements (FTAs) involving 60 major economies in the region and the world. Vietnam is one of the most preferred investment destinations among emerging and developing countries in Asia. Vietnam is ready and has the full potential to become an important partner of Qatar.

Regarding cooperation in high-quality labor, skilled workers from Vietnam can come to Qatar to meet the country’s needs in its new development phase, focusing on green transition, digital transformation, and promoting economic diversification. Tourism and culture are also very potential fields of cooperation, as the two countries have cultural diversity and are increasingly interested in exploring each other, thanks to cultural and tourism promotion activities in each country.

According to Ambassador Nguyen Huy Hiep, the direction of economic cooperation between Vietnam and Qatar in the coming years is to achieve more extensive and effective cooperation, especially in areas of mutual interest.

To do this, Vietnam and Qatar first need to consolidate existing cooperation mechanisms between the two countries, especially the Vietnam-Qatar Intergovernmental Committee on Economic, Trade, and Technical Cooperation, as well as to study and establish new cooperation mechanisms suitable to the current situation and interests of the two countries, such as a subcommittee on labor or a mechanism for trade exchange, a working group on investment, etc., between relevant agencies of the two countries.

While waiting for old and new cooperation mechanisms to be built or adjusted, the two sides can still carry out joint cooperation projects. Especially, enterprises of the two countries need to proactively explore the market and look for partners.

The Ambassador emphasized that in business and investment exchanges with Qatar, Vietnam needs to understand the needs and psychology of the partner to have a suitable strategy and prove the potential benefits with specific results to gradually establish long-term partnerships.

Nguyen Truong