Striving to boost Vietnam - Mongolia trade turnover to USD 500 million

Overcoming obstacles in logistics and transportation

Mr. Nguyen Do Anh Tuan, Director General of the Department of International Cooperation (Ministry of Agriculture and Rural Development), reported on the results of previous SOM (Senior Officials' Meetings) sessions. He stated that the two delegations had finished assessing the implementation of the agreements from the 18th Intergovernmental Committee session and had developed the agenda for the 19th session.

During this round of SOM meetings, the Joint Declaration on the establishment of the Vietnam - Mongolia Comprehensive Partnership in October 2024 and the agreements between the respective ministries were the topics of discussion. 

They also consented to expanding cooperative relations and improving exchanges, potentially signing an Investment Promotion and Protection Agreement, and collaborative efforts to address the logistics and transportation challenges between the two countries. 

Additionally, despite the signing of a memorandum of understanding (MOU) on the subject, additional research is required to facilitate the effective bilateral trade of rice and minimize transportation expenses.

Mr. Jadamba Enkhbayar, the Minister of Agriculture, Food, and Light Industry of Mongolia, who served as the head of the Mongolian delegation, underscored the significance of the Vietnam-Mongolia Intergovernmental Committee in nurturing economic, scientific, and technical collaboration in order to establish comprehensive bilateral relations.

Minister Enkhbayar observed that the two nations have established practical cooperation in the field of agriculture. Vietnam welcomes Mongolian livestock products, including flesh, while Mongolia favors Vietnamese agricultural products, including rice.

Opening up more new collaboration opportunities

The ASEAN countries in Southeast Asia have proposed new opportunities for cooperation, such as the export of produce, the production of Halal-certified meat, and the breeding of livestock. Mongolia intends to dispatch a delegation to Vietnam to investigate the nation's standards, procedures, and logistics, thereby creating new opportunities for collaboration.

A "barrier" to bilateral commerce is currently present in the form of transportation. To resolve these concerns, Minister Enkhbayar suggested convening a trilateral meeting between China, Mongolia, and Vietnam.

The trade transaction between Vietnam and Mongolia amounted to USD 120 million in 2023. Mongolia intends to surpass USD 500 million in bilateral trade turnover in the future.

The 19th session is of considerable significance, as it commemorates the 70th anniversary of diplomatic relations between Vietnam and Mongolia and the transformation of the relationship into a "Comprehensive Partnership," according to Minister Le Minh Hoan. He underscored the importance of expediting the export of Mongolian goat and sheep products to Vietnam as a representation of the expanding partnership.

Additionally, Minister Le Minh Hoan disclosed that certain Vietnamese enterprises are initiating transactions with Mongolia. The Ministry aims to foster collaboration and facilitate connections between businesses by leveraging its expertise in technology and a market for processed livestock products. Furthermore, a delegation of Vietnamese enterprises may visit Mongolia to investigate its potential and acquire knowledge of its regulations.

Minister Le Minh Hoan emphasized the advantages of Mongolian goat and sheep husbandry and urged Mongolian businesses to form partnerships with Vietnamese entities, particularly in light of the fact that Vietnam's central provinces possess comparable geographic conditions.

The Minister also recognized the difficulties associated with the implementation of agreements and protocols, as well as the endeavors to facilitate the export of processed Mongolian livestock to Vietnam and, in turn, the export of Vietnamese rice, coffee, and agricultural products to Mongolia.

In order to cultivate more substantial business relationships, Minister Le Minh Hoan proposed the formation of a Meat Processing Association. This organization would allow both parties to collaborate in order to implement policies and broaden market access.

"It is imperative to communicate to businesses that Mongolia is a gateway for Vietnamese goods to access Central Asia, Eurasia, and Russia, and that Vietnam is an entry point for Mongolian products to access ASEAN and Southeast Asian markets," Minister Le Minh Hoan concluded.