Viet Nam and Sri Lanka deepen economic ties
Daily FT: The Third Meeting of the Viet Nam–Sri Lanka Joint Sub-committee on Trade was recently convened under the Co-Chairmanship of Viet Nam Industry and Trade Deputy Minister Phan Thi Thang and Sri Lanka Trade Secretary K.A. Vimalenthirarajah.
The two sides reviewed and evaluated the implementation of the outcomes agreed upon at the Second Meeting, acknowledging the continuous improvement of bilateral trade turnover which reached $ 278.9 million in 2024 and $ 225.4 million in the first 10 months of 2025. Both sides agreed that the potential for cooperation remains substantial, especially given the complementary nature of the trade structure of the two economies.
Within the framework of the meeting, the two delegations exchanged views on a series of priority cooperation areas, including market access facilitation, textiles and garments, footwear, fisheries, trade promotion, logistics, air connectivity, and investment collaboration in construction and infrastructure development, among others.
On trade facilitation, both sides agreed to enhance technical dialogue on customs standards and non-tariff measures to help businesses reduce compliance costs and improve market access. Regarding rice trade, Viet Nam affirmed its capacity to supply stable and diversified rice varieties to Sri Lanka.
In the textile and footwear sector, Sri Lanka proposed cooperation under the EU’s GSP framework on cumulative origin; Viet Nam acknowledged this request and expressed readiness to strengthen cooperation in training, design, product development, and supply chain connectivity. In the field of fisheries, Sri Lanka noted the need for enhanced technical cooperation and increased import of raw materials, while Viet Nam suggested expanding the product list and simplifying quarantine processes.
Both sides agreed to reinforce trade promotion activities, promote linkages between VIETRADE and Sri Lanka’s Export Development Board (EDB), implement established action programs, and increase the exchange of business delegations, participation in fairs and exhibitions, and B2B interactions.
Acknowledging the strategic positions of both countries in global supply chains, the two sides agreed to consider organising the Viet Nam–Sri Lanka Logistics Business Forum in the near future. They also agreed to soon establish a direct flight route between Colombo and Ho Chi Minh City to support trade, investment and tourism.
Sri Lanka expressed interest in attracting Vietnamese investments in infrastructure, energy, ICT, electrical and electronic industries, agricultural processing, logistics, and supporting industries. The Meeting also covered cooperation in 3D printing, quality control, software–digital transformation, Ayurveda medicine, and shipbuilding–ship repair.
At the conclusion of the Meeting, Deputy Minister Phan Thi Thang and Secretary K.A. Vimalenthirarajah signed the Agreed Minutes, which will serve as a basis for future cooperation.
The Third Meeting of the Viet Nam–Sri Lanka Joint Trade Sub-committee is regarded as an important step forward, creating new momentum for economic and trade relations as Viet Nam and Sri Lanka celebrate the 55th anniversary of diplomatic relations in 2025. The two sides will work closely to effectively implement agreed-upon initiatives and support businesses of the two countries in integrating more deeply into regional and global supply chains, with a shared goal of increasing bilateral trade turnover to $ 1 billion as agreed during the visit to Viet Nam by President Anura Kumara Dissanayake.
OSL take:
Sri Lanka is currently in the process of reviewing and further strengthening the country’s trade agreements with many foreign countries while working on expanding its trade ties to include more foreign countries. While Sri Lanka is on the path to becoming a hub in the South Asian region, Sri Lanka is among the few countries in the region to have cordial relations with all countries in the Asian region. Even rival countries in the Asian region have cordial relations with Sri Lanka, enabling healthy business, trade and investment ties. While Viet Nam and Sri Lanka continue to explore business/investment opportunities in each other as emerging economies, Sri Lanka presents the ideal destination for Vietnamese businesses/investors to engage with other countries in the South Asian region. Like Sri Lanka’s growing ties with Viet Nam, the ties with other Asian countries make Sri Lanka the ideal business destination for many foreign businesses/investors looking at doing business in the Asian region. These foreign businesses/investors could also look at setting up bases in Sri Lanka to engage with countries in the Asian region using the advantage of Sri Lanka’s geographical positioning in the Indian Ocean as well as the country’s close ties with all Asian countries.
| Article Code : | VBS/AT/20251219/Z_2 |