Vietnam eyes deeper trade and investment ties with Sri Lanka
Daily FT: Vietnam’s Ambassador to Sri Lanka Trinh Thi Tam has disclosed that they are seeking to boost its economic ties with Sri Lanka, with a particular focus on trade, investment, tourism, and agriculture.
Addressing a media briefing at the Embassy, she underscored the significant untapped potential between the two countries and outlined measures to enhance cooperation across multiple sectors.
Noting that bilateral trade between Vietnam and Sri Lanka has seen steady growth over the past two decades, rising from $ 30 million in 2000 to over $ 50 million in 2009, with Sri Lankan investments gradually making inroads into Vietnam, she said as of last year total trade values reached an estimated $ 300-350 million, with Vietnam enjoying a trade surplus.
However, Ambassador Tam suggested there remains room for further expansion, particularly in electric vehicles, information technology, renewable energy, construction, the green economy, the digital economy and climate change – sectors that are becoming increasingly crucial to both nations.
At present, Sri Lanka has 30 investment projects in Vietnam with a combined capital exceeding $ 42 million, indicating early signs of deeper business engagement.
“There is significant potential to expand cooperation, not just in traditional sectors such as trade, investment, agriculture, fisheries, tourism, higher education, and people-to-people exchanges, but also in emerging industries where both countries can leverage each other’s strengths,” she noted.
The Ambassador cited tourism as a critical driver of economic activity for both countries, remaining as an area of focus.
Vietnam drew 18 million tourists in 2024 and aims to draw 22 million this year, while Sri Lanka welcomed 2.05 million visitors in 2024 and has set a target of 3 million arrivals for 2025.
However, she opined that the lack of direct flights between the two countries remains a major impediment to unlocking tourism’s full potential. “This is a priority issue and discussions at high levels are ongoing to make direct air connectivity a reality soon,” the Ambassador disclosed. She said the establishment of a direct air route is expected to not only facilitate tourist footfall, but also enhance business and trade integrations between the two nations.
The Ambassador also stated that discussions on visa waivers are also underway, with Vietnam’s Public Security Ministry reviewing policies aimed at making travel easier. “Facilitating smoother travel between the two countries will be a significant step in boosting both tourism and business cooperation,” she noted.
Stating that the two countries share a long history of collaboration in agriculture and fisheries, sectors that remain vital to their respective economies, Ambassador Tam highlighted previous instances where Vietnam provided technical assistance to Sri Lanka in agriculture, including projects involving crop development, seed improvement, and fisheries management.
“Future collaboration will focus on high-tech agriculture, knowledge exchange and expanding bilateral trade in agricultural products,” she said, underscoring the importance of leveraging technological advancements in farming and sustainability practices.
One of the more promising avenues for cooperation is in the tea industry, she said, where both countries hold significant global market positions. “Sri Lanka is internationally renowned for Ceylon Tea, while Vietnam is a major producer of green tea. We aim to connect Vietnamese and Sri Lankan businesses in the tea industry for mutual learning and technological exchange,” she said.
OSL take:
Sri Lanka enjoys strong bilateral and trade ties with many foreign countries including many countries in the Asian region. Sri Lanka’s strategic positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed with many foreign countries and the country’s target of becoming a regional hub have all placed Sri Lanka as the ideal business venue for foreign businesses/investors on the lookout for ventures in the region. It is in such a backdrop that Vietnam is looking at further developing trade ties with Sri Lanka. With Sri Lanka becoming an emerging business destination in South Asia and interest shown by other countries in the Asian region to expand business and trade ties with Sri Lanka like Vietnam and China, foreign businesses/investors could confidently explore the growing business/investment opportunities in Sri Lanka. Local businesses/investors could also use these opportunities to venture out to form partnerships or joint ventures with foreign businesses/investors exploring lucrative business ventures. The trade benefits enjoyed by Sri Lanka with other countries could help local businesses to expand operations locally and internationally.
| Article Code : | VBS/AT/20250314/Z_3 |