High potential for cooperation between Caspian region and Southeast Asia highlighted
In the Southeast Asian region (ASEAN), Vietnam has the fastest-growing economy at over 7% per year, as well as one of the highest GDPs per capita. It continues to maintain the position of the largest economy in the region and has already taken fifth place after such economies as Singapore, Malaysia, Thailand, and Indonesia. Indonesia has the largest economy in the region with a GDP of over 1.4 trillion US dollars. Singapore has the highest GDP per capita (over 89,000 US dollars).
The visit of Tô Lâm, General Secretary of the Communist Party of Vietnam, to Kazakhstan and Azerbaijan in May is therefore particularly noteworthy. In Kazakhstan, he held meetings with the heads of the largest companies and the CEO of the National Investment Fund of Kazakhstan, “Samruk-Kazyna.” To Lam invited Kazakhstan to invest and conduct long-term business in Vietnam. The fund will send a working delegation to visit and engage with the relevant ministries and sectors of Vietnam, with the aim of identifying investment-attractive projects in areas such as high-speed railways, aviation, telecommunications, mineral resources, and more.
On May 7–8, General Secretary of the Communist Party of Vietnam, To Lam, held talks with President Ilham Aliyev. Source: Chinhphu.vn.
The Vietnamese National Oil and Gas Group (Petrovietnam) and its subsidiaries exchanged key documents on cooperation in the energy sector. A Memorandum of Understanding was signed between the Vietnam National Oil and Gas Group and the Ministry of Economy of Azerbaijan on cooperation in exploration and development, technical services, and training in the oil and gas sector. General Secretary To Lam and President of Azerbaijan Ilham Aliyev emphasized that the adoption of the Joint Statement on the Establishment of a Strategic Partner
Partnership between the two countries during this visit holds historic significance and serves as a foundation for consolidating and strengthening bilateral relations. Vietnam expressed its readiness to serve as a bridge for Azerbaijan in strengthening cooperation with Southeast Asian countries, while Azerbaijan will serve as a bridge for Vietnam in enhancing cooperation with the Central Asian region. The parties emphasized the importance of resolving disputes through peaceful means based on international law and the United Nations Charter; supporting ASEAN’s position on the issue of the East Sea in accordance with international law, particularly the 1982 United Nations Convention on the Law of the Sea.
Petrovietnam and the Ministry of Economy of Azerbaijan exchanged Memorandums of Understanding on exploration and production, technical services, and training in the oil and gas sector. A Memorandum of Understanding was also signed on the long-term supply of crude oil to the Dung Quat Refinery between BSR, PVOIL, and SOCAR Trading Singapore.
Since 2009, two subsidiaries of Petrovietnam - PVOIL and BSR - have signed numerous agreements and contracts with SOCAR Trading SA (a subsidiary of SOCAR) for the supply of Azerbaijani crude oil to the Dung Quat Refinery.
From 2010 to the end of January 2025, SOCAR Trading Singapore (a branch of SOCAR Trading SA in Singapore) delivered 35 shipments of Azerbaijani crude oil to the Dung Quat Refinery, totaling approximately 31.7 million barrels - or 4.34 million tons - with a total value of around USD 2.55 billion.
In 2025, the parties are expected to launch an advanced technical training program on drilling technologies for Petrovietnam staff in Vietnam.
The parties agreed to continue strengthening the coordinating role of the Intergovernmental Committee on Trade, Economic, and Scientific-Technical Cooperation, thereby finding solutions to develop cooperation in new areas such as the processing industry, mechanical engineering, and chemistry; promoting cooperation in the fields of energy and oil and gas; expanding information exchange, seeking investment opportunities, training human resources, as well as exploring opportunities for research cooperation in clean and renewable energy; the enterprises of both countries will contribute to developing ties, exchanging information, and investing in each other’s markets; promoting investment in agriculture, with agreements on the promotion and protection of investments expected to be signed soon; and strengthening cooperation in maritime and railway transport between the two countries; as well as enhancing local-level cooperation.
President Ilham Aliyev confirmed that he would issue specific instructions to develop relations in all areas, especially in the fields of economy, trade, and investment. Thanks to its geographic advantage, Azerbaijan seeks to cooperate with Vietnam in the areas of logistics, seaports, railways, aviation, and renewable energy. President Ilham Aliyev instructed to involve Vietnamese businesses in conducting business in Azerbaijan and promised to create favorable conditions for Vietnamese companies to operate and invest in Azerbaijan. In the first three months of 2025, trade turnover between Vietnam and Azerbaijan exceeded $100 million, nearly double the total for all of 2024.
The leaders of the two countries also discussed and agreed on many important measures and areas for the development of bilateral relations in the fields of economy, trade, energy, defense, security, education and training, culture, and people-to-people exchanges. Source: /pvts.com.vn/.
A Memorandum of Understanding was signed on the establishment of the Azerbaijan-Vietnam Business Council between the Small and Medium Enterprise Development Agency (SMEDA) and the National Association of Enterprises of the Socialist Republic of Vietnam (VINEN).
Issues of cooperation within regional and international organizations, including the UN, the Non-Aligned Movement, and the Conference on Interaction and Confidence-Building Measures in Asia (CICA), were discussed.
Considering the multifaceted activities of Petrovietnam, in addition to stabilizing the market, the company ensures energy security, food security, and national economic security. In particular, Petrovietnam actively collaborates with the steel giant Hoa Phat Group, as well as in the financial sector with the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Vietnam Bank for Agriculture and Rural Development (Agribank).
At the same time, it is worth noting the investment cooperation between Petrovietnam and the largest economy in Southeast Asia, Indonesia, in the exploration, development, and operation of oil and gas fields in Indonesia, particularly in deepwater offshore areas. Thus, Vietnam could become a gateway and facilitator of cooperation between the Caspian region and Southeast Asia in all the mentioned areas, with high potential for investment interaction.
