Pakistan, Vietnam Set Stage for PTA Talks

Vietnam has formally shown willingness to initiate discussions on a Preferential Trade Agreement (PTA) with Pakistan, a new chapter in bilateral economic cooperation. The Vietnamese Ambassador to Pakistan, Pham Anh Tuan, made the announcement in his speech at the Lahore Chamber of Commerce & Industry (LCCI).

This advancement comes after the 5th Joint Trade Committee meeting in Hanoi earlier this year, where both nations committed to initiating PTA negotiations in 2025. Two-way trade was at $850 million in 2024 and is expected to breach $1 billion next year.

Yet, the challenges persist. LCCI President Mian Abuzar Shad raised the issue that Pakistan exports to Vietnam decreased from $357 million during 2023-24 to $227 million during 2024-25, with imports rising from $285 million to $374 million. He emphasized increasing the exports beyond the traditional items such as corn, cotton, leather, and yarn, and asked for diversification into seafood, processed meat, pharmaceuticals, fruits, vegetables, and even IT and tourism.

Vietnam, whose 2024 global exports stood at $520 billion, presents big market opportunities for Pakistan. Leaders of the LCCI said that a PTA could serve as the starting point, paving the way for greater economic cooperation and potentially a Free Trade Agreement in the future.