President Tokayev’s first official visit to Vietnam fosters positive trajectory in bilateral ties
Thirty-one years of diplomatic relations
Kazakhstan and Vietnam established diplomatic relations in June 1992. In 2008, the Embassy of Vietnam in Kazakhstan was opened and the Kazakh Embassy in Vietnam was opened in 2013.
The two countries exchanged high-level visits over the years. Among the latest is the visit of Prime Minister Nguyen Tan Zung to Kazakhstan to participate in the signing ceremony of the free trade agreement between the Eurasian Economic Union and Vietnam in May 2015 and the visit of Deputy Prime Minister - Minister of Foreign Affairs of Kazakhstan to Vietnam in August 2022.
In October 2022, Vice President of Vietnam Vo Thi Anh Xuan met with Tokayev on the sidelines of the sixth Conference on Interaction and Confidence-Building Measures in Asia (CICA) Summit in Astana.
Kazakhstan is an important partner in Central Asia
President Tokayev's official trip to the Socialist Republic of Vietnam commenced with a ceremonial act of placing floral tributes at the Heroes and Martyrs Monument and the Ho Chi Minh Mausoleum, both situated in Ba Dinh Square. It was in this very square on September 2, 1945, that Ho Chi Minh proclaimed Vietnam's declaration of independence.
Kassym-Jomart Tokayev expressed his respect for the legacy of Ho Chi Minh and the courageous individuals who gave their lives to defend the nation's liberty.
Tokayev then met with Vietnamese President Vo Van Thuong at the Presidential Palace. Both leaders engaged in discussions for developing cooperation in trade, economic, investment, energy, transport and logistics, agro-industrial, cultural and humanitarian spheres.
According to the Kazakh President, Vietnam's economic success is a solid foundation for further cooperation between the two states.
«We pay significant attention to the economic and political interaction between our countries and fully appreciate the huge economic potential of Vietnam and the country's authority in the international arena,«Tokayev told his Vietnamese counterpart.
Vo Van Thuong said Tokayev’s visit would give impetus to «traditionally friendly relations.» He visited Kazakhstan before and said he was «impressed by the magnificent, beautiful country, and its hospitable people.
«Vietnam is closely following the development of Kazakhstan and the great successes that the Kazakh people have achieved under your leadership,» he said, emphasizing Kazakhstan is an important partner in Central Asia.
Promoting inter-parliamentary cooperation was also on Tokayev’s agenda, as he met with the Chairman of the National Assembly of Vietnam, Vuong Dinh Hue, who, in turn, supported the proposal to enhance the relationship between the parliaments.
He noted that Tokayev’s visit «fully reflects the sense of commitment to strengthening friendship between our countries.»
«Your visit represents an important step forward and gives an additional impetus to the traditional multifaceted cooperation between Vietnam and Kazakhstan. We are also aware of your rich experience in parliamentary activity, which is useful for strengthening cooperation between our legislative bodies,» said Vuong Dinh Hue.
Economic synergy
The same day, President Tokayev met with major businesses in Vietnam, giving a chance to
high-level delegation from Kazakhstan to engage in dialogue with business leaders from Vietnam to explore investment opportunities and potential joint ventures.
Notably, during his meeting with Nguyen Thanh Hung, Chairman of the Board of SOVICO Group, one of the largest diversified conglomerates in Vietnam, specializing in the energy, construction, banking and finance, and aviation sectors, Tokayev assured comprehensive assistance to the company, as it expressed interest in setting up a trade and logistics hub on the territory of Kazakhstan.
The company, whose total revenue hit $20.6 billion in 2022, signed a memorandum of understanding on cooperation in the field of investments in oil and gas projects with KazMunayGas, and a memorandum of understanding on cooperation in the field of transport and logistics infrastructure development with Kazakhstan Temir Zholy.
The company is also a co-founder of VietJet Air, a low-cost airline that launched direct flights between Almaty and Nha Trang last year. According to Nguyen Thanh Hung, the airline plans to expand the number of flights to Kazakhstan.
In his meetings with major businesses in Vietnam, President Tokayev emphasized Kazakhstan’s readiness to provide comprehensive support to Vietnamese investors, highlighting the synergies between the two economies.
On August 22, President Tokayev visited some major industrial enterprises, including the GoerTek production complex in Bac Ninh Province, part of a global-scale technological innovation enterprise specializing in the research, development, and production of electronic and precision structural components, such as acoustics, optics, microelectronics, precision structural parts, intelligent equipment, virtual and augmented reality devices, smart headsets, smart home appliances, and other high-end devices and products.
Another facility the Kazakh President has visited is Hyosung Financial System Vina, which produces new-generation ATMs, automatic cash registers (TCR) and software for the banking and financial sector.
Tokaeyev expressed interest in both countries exchanging expertise in fintech. Besides producing more than 80,000 products yearly, the company boasts a research center for developing advanced technologies, improving product quality, and promoting human resources development in IT in Vietnam.
Trade turnover should reach $1 billion by the end of 2023
While current trade turnover is gaining momentum, President Tokayev suggested setting an ambitious goal to bring trade to the $1 billion mark by the end of 2023.
In the first six months of 2023, trade hit $610.9 million, increasing 3.5 times compared to the first half of 2022 ($174.7 million), according to the Bureau of National Statistics.
The volume of exports from Kazakhstan increased 4.7 times from $24.6 million to $116.7 million, and the volume of imports increased 3.3 times from $150.1 million to $494.2 million
According to Kazakhstan’s Economic Research Institute, zinc accounted for most of Kazakh exports this year. Zinc exports amounted to $83.4 million or 71.5 percent of all domestic exports. During the same period last year, zinc was not supplied from Kazakhstan to Vietnam.
Refined lead is the second most exported commodity, accounting for 27.7 percent of total exports. The volume of lead exports amounted to $32.3 million and increased by 5.2 times compared to the last year's figure.
Imports from Vietnam to Kazakhstan increased by 3.8 times due to the increase in the supply of smartphones from $67 million to $254 million. The share of smartphones in imports is 51.4 percent.
Among other imports are vacuum cleaners, headphones and machines for receiving, converting and transmitting or restoring voice and images.
Vietnam is Kazakhstan’s gate in the market of Southeast Asia
Kazakhstan can benefit from developing ties with Vietnam for several reasons.
According to Yersultan Zhanseitov, an expert from the Institute of World Economy and Politics (IWEP), Vietnam can be the gate for Kazakhstan into the market of Southeast Asia, particularly the countries of the ASEAN, officially an abbreviation of the Association of Southeast Asian Nations, a political and economic union of 10 member states in Southeast Asia.
«It should be noted that the movement of global capital, technology and innovation is moving from the Old World, so to speak, from Europe and Americas to Asia, namely to the countries of Southeast Asia. Therefore, the fact that a free trade zone has been operating between the Eurasian Economic Union and Vietnam since 2016 allows us to access ASEAN through Vietnam,» Zhanseitov said in an interview for this story.
According to Zhanseitov, Kazakhstan can benefit from Vietnam’s rapidly growing economy.
«Vietnam is a country with a very dynamically growing economy. In 2022, GDP growth exceeded 8 percent, even though most of the states have been in a recession due to the coronavirus and the situation in Ukraine. This year and next year, World Bank and other international organizations project GDP growth at around 6.5 percent,» Zhanseitov told in an interview for this story.
The growth is not only dynamic but stable, he added.
«Regarding Kazakhstan, last year, bilateral trade turnover amounted to $500 million, and now for the results of the first half of the year, we already have $600 million. That is, most likely, these figures will increase to $1 billion this year. That is, we see a two-fold increase in trade turnover in one year,» he explained.
Indeed, it is a mutually beneficial cooperation. For Vietnam, Kazakhstan offers a huge source of resources necessary for a fast-growing economy.
«Separately, [Kazakhstan can offer] IT solutions in many areas. The digitalization of Kazakhstan is moving ahead of the world rankings, and Kazakhstan's experience in digitalization of public services, for example, electronic government, or Kaspi,» he said.
Twelve agreements signed
One of the visit’s key highlights was the signing of 12 documents covering a wide range of sectors, including trade and economic cooperation, investments, e-commerce, oil and gas, visa regime and tourism. These agreements underscore the commitment of both nations to fostering collaboration for their mutual benefit.
In fact, all the 12 agreements s are eventually expected to stimulate bilateral trade.
Notable documents include a Joint Action Plan for the accelerated development of trade and economic cooperation between the governments of Kazakhstan and Vietnam for 2023-2025, a memorandum of cooperation between QazTrade Trade Policy Center and VietTrade, the Vietnam Trade Promotion Agency, a memorandum of cooperation between the Investment Committee of the Ministry of Foreign Affairs of Kazakhstan and the Investment Agency of Vietnam.
Microtech DFS Vietnam Company Limited, a fintech company, part of Microtech Holdings, a Singapore-based fintech-driven investment & management company, signed an agreement on cooperation with Vela Corporation, a technology company based in Vietnam that provides a variety of services, including software development, cloud computing, and digital marketing.
Kazpost and Viet Post Corporation signed an agreement to develop e-commerce and postal activities. As part of this historic agreement, the parties will join forces to develop e-commerce, optimize tariff policies, modernize the money transfer system and optimize delivery routes.
Commenting on the memorandum, KazPost CEO Assel Zhanassova said it would open up new prospects for the development of e-commerce and postal activities in Kazakhstan and Vietnam.
«We believe that our partnership with Vietnam Post will allow us to exchange experience and best practices in these areas, as well as improve the quality of services for our clients,» she said.
Cultural exchanges and people-to-people bonds
Tokayev’s visit to Vietnam also focused on cultural exchanges and fostering people-to-people bonds.
President Tokayev visited prominent cultural sites in Hanoi, including the Museum of Military History and the ceramic village, where the Kazakh leader got acquainted with Chu Dau, an ancient Vietnamese technique for making ceramics that dates back to the 12th century AD.
These visits showcased Vietnam's rich history and demonstrated Kazakhstan's genuine interest in understanding the cultural fabric of its partner nation.
Vo Van Thuong told Tokayev that Vietnam «remembers and thanks the people of Kazakhstan for the valuable support provided in the struggle for national liberation and reunification of the country in the past and for assistance in the development of the country today.»
An important highlight in this area was the signing of the agreement between the governments of Kazakhstan and Vietnam on exemption from visa requirements of holders of national passports. While the procedures will just begin, it is expected to drive tourism and people-to-people contacts, acknowledging that international relations are not just about governments but also about the individuals who shape those societies.
A positive trajectory
President Tokayev's visit to Vietnam marks a pivotal moment in the diplomatic relations between the two nations. The signing of agreements demonstrates a shared commitment to broadening collaboration across trade, energy, investments, and tourism, among other sectors. As the visit draws to a close, the remarkable strides achieved in a mere three days stand as a testament to the unwavering commitment of both nations in fortifying their bilateral ties. It is imperative that the momentum generated during this visit is sustained through continued dialogue, cooperation, and collaboration.
