VINEN President: Hanoi, Baku to resolve logistics, visa issues as quickly as possible to develop business ties

Owing to its stable economic growth, favorable business climate, and geographical location, Azerbaijan has strengthened its position as an important partner in the international political and economic arena. Moreover, today Azerbaijan is actively expanding the geography of its economic activity to the countries of the Middle East and Southeast Asia. Vietnam is among the countries with which Azerbaijan can establish special economic cooperation, which is testified by the recent visit to Azerbaijan of To Lam, the General Secretary of the Central Committee of the Communist Party of Vietnam. During the visit, the sides signed important agreements across a wide range of areas - from economics and trade to defense and security.

Strengthening economic ties is impossible without developing strong partnerships at the level of business structures. In an interview with Report, Dinh Viet Hoa, President of the National Entrepreneur Association of the Socialist Republic of Vietnam (VINEN), spoke about the current state of the business environment in Vietnam, prospects for Azerbaijani business, as well as the steps taken to strengthen partnerships.

- How would you characterize the current economic cooperation between Azerbaijan and Vietnam?

- First of all, I would like to congratulate both countries on the positive dynamics in the development of bilateral relations. A clear indication of the high level of cooperation is the recent summit meeting between Azerbaijani President Ilham Aliyev and General Secretary of the Central Committee of the Communist Party of Vietnam To Lam. It is especially noteworthy that the visit to Azerbaijan was Mr. To Lam's first foreign trip after taking office in August 2024. This speaks to the importance of the partnership between our countries. Based on this, I believe that in the future, our countries will be even more important to each other. Vietnam and Azerbaijan have long-standing and robust relations. This year, we celebrate the 66th anniversary of the visit to Baku of the first President of Vietnam, national leader Ho Chi Minh in 1959 - a significant event in the history of our bilateral ties. Relations between our nations have been developing ever since.

We hope that in the future they will develop not only as friendly, but also as fraternal. I would like to especially emphasize that the Vietnamese people have deep respect and sincere warmth towards your country. Many Vietnamese were educated in Azerbaijan during the Soviet period, and since then Baku has occupied a special place in their hearts. The Azerbaijanis had a historic mission to create the oil and gas industry of our country together with their Vietnamese friends. The national leader of the Azerbaijani people, Heydar Aliyev, visited Vietnam with a large Soviet delegation in October 1983. In my opinion, it is this historical and human connection that is a solid foundation for further strengthening our bilateral relations.

As for business cooperation, I am pleased to note that the VINEN Association, which I head, signed a Memorandum of Cooperation with the Agency for Small and Medium Business Development of the Republic of Azerbaijan (KOBIA). This document provides for the establishment of the first joint Business Council, which will undoubtedly open up new prospects for partnership and business interaction for our countries. KOBIA's experience is very interesting to us and we believe that our cooperation will bring very important results for our bilateral economic relations.

- What are the main areas of work of the Business Council?

- We have joined forces to establish a business council between Vietnam and Azerbaijan. This demonstrates our common desire to develop cooperation in the field of business and entrepreneurship. We are confident that such a platform will bring tangible benefits to both parties. It is planned that our cooperation will not be limited to trade, export and import of products. We can also exchange knowledge and experience - through research, training, educational programs and consultations for entrepreneurs. On this basis, joint exhibitions, business forums and summits can be organized, which will serve as a platform for strengthening partnerships. The products of our countries can be presented within these events, which will help identify competitive advantages and stimulate the development of new areas. In addition, it would be interesting to consider the possibility of establishing an award for outstanding entrepreneurs of both countries - as recognition of their contribution to the development of bilateral cooperation. Our vision is clear, and joint work has been going on for several years now. I also know that some Azerbaijani companies are already successfully operating in the Vietnamese market. This is a good sign. Just as the Vietnamese once came to Azerbaijan for knowledge, today we have a great opportunity to develop this partnership to a new level.

- You mentioned export-import relations. Which Vietnamese products, in your opinion, have the greatest potential to enter the Azerbaijani market?

- Of course, products from Vietnam have high potential to enter the Azerbaijani market. First of all, we are talking about agricultural products. Vietnam is famous for its high-quality agricultural products, and, in particular, Vietnamese coffee deserves special attention - it is recognized as one of the best in the world, has an excellent taste and is already exported to many countries. Secondly, spices and products such as pepper, chili and cinnamon. Vietnamese cinnamon is especially aromatic and of high quality: its plantations occupy about 250,000 hectares. It is also possible to export such popular products as ginger and rice. Azerbaijani entrepreneurs can consider the possibility of importing these natural and high-quality products. Thirdly, I would like to note the beauty and health industry.

Vietnam produces a wide range of natural cosmetics based on herbs and medicinal plants. These products not only help to maintain beauty, but also have a positive effect on health. I think this could be interesting for the Azerbaijani market, given the attention to care and aesthetics among the local population. Finally, I would like to emphasize that Vietnam is a huge market with a population of over 100 million people, which is ten times more than in Azerbaijan. However, our business sector is still in the active development stage: only about 940,000 companies are registered in the country. As far as I know, more than 200,000 companies are registered in Azerbaijan, with a much smaller population. Considering your rich entrepreneurial experience, I can say that an excellent opportunity is being created for Azerbaijani companies to enter the Vietnamese market by opening their representative offices or representative offices here.

- You invite Azerbaijani companies to participate more actively in the Vietnamese market. What kind of support can they count on from the Association you head?

- I am sure that now is the best time to invest in Vietnam. Just a few days ago, on May 5, the head of our country, Mr. To Lam, signed an important resolution that has become a landmark in the history of Vietnam. For the first time in the history of our country, he gave the "green light" to entrepreneurship in the country. This clearly demonstrates that entrepreneurs are now seen as the driving force behind the future economic development of our country. By 2030, that is, over the next five years, more than 1 million companies should be registered in Vietnam - twice as many as now. This creates a favorable environment for foreign investors and new partnerships.

- So now the economy is becoming more open to foreign businesses and those interested in investment and cooperation?

- Yes, exactly. I believe that now is a unique period of opportunities. This is a really big chance for Azerbaijan to join us and develop mutually beneficial cooperation. We are open to working together in such areas as agriculture, tourism, healthcare, cosmetics, as well as in the field of innovation and technology. I would especially like to note that our government today actively supports the development of the technology sector.

- Is it planned to hold a business forum or organize trade and economic missions between Vietnam and Azerbaijan in the near future?

- Returning to the recently created joint Business Council between our countries, I can say that we have already begun to develop an action plan on its basis. We agreed that within the next two to three weeks, we will present a detailed work program - both for the current year and for the following years. This September, we plan to hold a business summit in Hanoi and intend to invite Azerbaijani entrepreneurs. The summit will include exhibitions, a forum, as well as meetings of Azerbaijani entrepreneurs with representatives of the Vietnamese government and the leadership of provinces with investment and export potential. During my visit to Azerbaijan, I also got acquainted with a very interesting initiative of KOBIA - the concept of the Small and Medium Business House. This is indeed a very interesting and effective model. If it is possible to adapt it to the realities of Vietnam, we could implement the model here as well. This will allow Azerbaijani entrepreneurs to feel at home, since this scheme is already operating in Azerbaijan.

- Are there plans to open a House of Vietnam in Baku, where your products and national cuisine will be presented?

- Upon my return to Vietnam, I intend to encourage our entrepreneurs to visit Azerbaijan and engage in the restaurant business, especially in the seafood sector. Our seafood is truly delicious, and Vietnamese cuisine is deservedly considered one of the best. It is the culinary industry that is one of the reasons why our country is so attractive to tourists. Last year, 25 million tourists visited us, and Vietnamese cuisine has a lot to do with it. As for business potential, I hope that in the future we will be able to open a House of Vietnam in Baku - a kind of center for Vietnamese entrepreneurship. This will become a platform where we can present our products, culture, and business opportunities. This will help Azerbaijani entrepreneurs get to know Vietnam and its potential better. At the same time, there is one problem between our countries - logistics.

Geographical remoteness and the lack of direct routes complicate the supply of goods and economic interaction. In addition, in light of global geopolitical conflicts, shipping goods by sea is becoming even more difficult and expensive. There is currently no direct air service between our countries - my journey from Hanoi to Baku took about 16 hours. While with a direct flight, I could get here in just 7 hours. But there is also good news: negotiations are underway to launch a direct flight. I heard that it could be launched in the near future, perhaps no later than 2026. There is also a visa regime between our countries for now. However, a visa can be obtained quickly. Moreover, according to my information, the visa regime between our countries is planned to be abolished in 2026. This will be an important step towards bringing the two friendly states closer together. I am confident that soon there will be no barriers between our countries - neither visa nor logistics.

- You mentioned that there is a logistics problem between Vietnam and Azerbaijan. What solutions do you think are possible, apart from launching direct flights?

- In my opinion, one of the most optimal and relatively fast options is to use transit through Kazakhstan. There are already direct flights from Kazakhstan to Vietnam, and from there to Azerbaijan it is not far. Thus, even in the absence of direct communication between our countries, we have many opportunities for interaction. This can be a good alternative for developing business ties. This opens up additional logistics routes that Vietnamese and Azerbaijani entrepreneurs can start using right now - without waiting for next year. I would like to emphasize that the level of relations between our countries directly depends on the level of political will and dialogue at the highest level.

I really hope that the Vietnamese government will soon open its embassy in Baku. At the moment, unfortunately, we do not have a diplomatic mission in Azerbaijan, and this, of course, limits the development of our relations. As the President of the National Entrepreneur Association of Vietnam, I appeal to our government to intensify cooperation and officially be present in Azerbaijan. A diplomatic mission will only simplify the organization of business events.

- Is it possible to create a Chamber of Commerce and Industry between Azerbaijan and Vietnam?

- We have already created such a structure - this is our Business Council, which we talked about earlier. In essence, it performs the same functions as the Chamber of Commerce and Industry: establishing business ties, promoting investment and trade, supporting entrepreneurs. If necessary, we can change its official name.

- Where will the Council's office be located - in Hanoi or Baku?

- I think that the offices will be in both Hanoi and Baku. Moreover, the structure of our Business Council provides for co-chairs - one from Vietnam, the other from Azerbaijan. This is already reflected in the Memorandum of Understanding that we signed. Thus, the Office of the Chamber of Entrepreneurs of Vietnam will function in Azerbaijan, and the Azerbaijan Business Chamber or the Chamber of Azerbaijan will function in Vietnam. I would like to emphasize one more important point.

We are currently making serious efforts in Vietnam to improve the quality of our products. Many of our products meet international standards and undergo strict certification. In particular, a significant part of the products are certified as halal, which is especially important for Muslim countries such as Azerbaijan. In the future, we hope for the support of our Azerbaijani partners in the development of the halal industry and its certification in our country. This means that residents of Azerbaijan can confidently purchase and use Vietnamese products, knowing that they meet religious and sanitary requirements. I think this is valuable information for the local population and an additional step towards strengthening trust and mutual trade between our countries.

- Thank you for the interview.