Revived trade dialogue aims to reset economic ties and lay groundwork for deeper cooperation
Pakistan and Vietnam are closing in on finalizing a Preferential Trade Agreement (PTA) that could reshape their economic relationship and open the door to a broader free trade deal down the line. The move comes after both nations revived formal trade discussions following an eight-year pause.
Vietnamese Ambassador Pham Anh Tuan, in a recent interview, confirmed that both countries are aligned on accelerating the PTA as a stepping stone to enhance bilateral trade. “A stable legal framework is essential for improving market access and lowering tariffs,” he said, emphasizing the strategic nature of the negotiations.
Key Milestone in Hanoi
The latest round of talks took place during the fifth Pakistan-Vietnam Joint Trade Committee (JTC) meeting, hosted in Hanoi on July 11, 2025. According to the ambassador, this session marked a significant turning point in diplomatic and economic engagement between the two nations.
Just days before the meeting, on July 8, Vietnam formally submitted a draft PTA. The proposal includes over 80 export items, with a request for Pakistan to cut tariffs to a range of 0-5%. Pakistan has responded positively, agreeing to study the document and begin negotiations within the year.
Rebooting Relations After Nearly a Decade
The reactivation of the JTC after nearly a decade signals what both sides describe as a “strategic reset.” The committee provides a structured mechanism to advance bilateral trade, promote regular dialogue, and implement long-term economic plans.
In practical terms, the JTC talks have already resulted in commitments to expand business exchanges and host trade fairs in both countries. Vietnam has invited Pakistan to major events like Saigontex, Hanoitex, and HanoiFabric, while Pakistan has asked for Vietnamese participation in exhibitions such as Texpo and FoodAg.
Textiles and Seafood in Focus
Trade in textiles remains a key area of mutual interest. Vietnam sees Pakistan as a critical supplier, already ranking as its 14th largest source of fiber. There’s strong interest from Hanoi in importing more cotton, fabric, and other raw materials to support Vietnam’s massive textile and garment export sector.
Aquaculture is also on the radar. Vietnam’s seafood exports to Pakistan are dominated by fish fillets, accounting for 98% of the trade. Both sides have agreed to work on reducing barriers, improving logistics, and creating a more competitive environment for seafood products.
What’s Next?
While the PTA is still under discussion, the momentum suggests that a deal may not be far off. Both Islamabad and Hanoi view it as a necessary precursor to a more comprehensive free trade agreement in the future.
With the revival of trade talks, a clear roadmap, and growing economic complementarities, Pakistan and Vietnam appear poised to transition from cautious partners to more integrated trade allies.