Since the establishment of diplomatic ties on June 19, 1975, Vietnam and New Zealand have fostered a positive and sustainable bilateral relationship. In 1995, New Zealand opened an embassy in Hanoi and a consulate general in HCM City, while Vietnam opened an embassy in New Zealand in 2003 and a commercial affairs office in Auckland in 2005, which was subsequently relocated to Wellington in 2007.

A long-term partnership between Vietnam - New Zealand

The bilateral relationship has progressed rapidly over the years, culminating in the establishment of a comprehensive partnership in September 2009, which has been a pivotal milestone in promoting bilateral ties across various fields in a more comprehensive, pragmatic, and effective manner.

Over the years, the two sides have achieved several significant milestones, including the development of an action program for the period 2013-2016 aimed at implementing the comprehensive partnership, and the issuance of a joint statement in March 2015, in which they agreed to foster and deepen the comprehensive partnership towards a strategic partnership. Another action program for the period 2017-2020 was signed on the sidelines of APEC 2017. The two countries officially upgraded the relationship to a Strategic Partnership during the online high-level talks between Prime Minister Nguyen Xuan Phuc and New Zealand Prime Minister Jacinda Ardern (7/22/2020). Later, both countries signed the Action Program to implement the Strategic Partnership for the period 2021-2024 (12/2021).

High-level exchanges and delegation meetings have been regularly held between the two countries, with visits to Vietnam by Governor-General Jerry Mateparae in August 2013, Prime Minister John Key in July 2010 and November 2015, and Prime Minister Jacinda Ardern during the APEC Economic Leaders’ Meeting in 2017. Visits to New Zealand were made by Party General Secretary Nong Duc Manh in September 2009, Prime Minister Nguyen Tan Dung in March 2015, and Prime Minister Nguyen Xuan Phuc in March 2018. Recently, at their meeting on the sidelines of the 14th Annual Meeting of the New Champions (AMNC) of the World Economic Forum (WEF) in Tianjin, China, on June 27, 2023, Prime Minister Pham Minh Chinh met his New Zealand counterpart Chris Hipkins.

Trade, economic and investment relations between Vietnam and New Zealand

Trade & economic relations

Vietnam is the 13th largest trading partner (5th within ASEAN) of New Zealand. The bilateral trade turnover between Vietnam and New Zealand continued to grow strongly in 2022, reaching $1.2 billion, a 14% increase compared to 2021. The trade exchange between Vietnam and New Zealand has shown positive growth with an average growth rate of 14.2% per year, reaching $1.4 billion in 2022.

Trade between New Zealand and Vietnam is governed by three key regional agreements:

• The Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP)
• ASEAN – Australia – New Zealand (AANZFTA)
• Regional Comprehensive Economic Partnership (RCEP)

Thanks to these key regional agreements, Vietnam - New Zealand trade has noticeably accelerated in the past few decades. In the March 2023 quarter New Zealand exported $332.35 million of total goods and services to Viet Nam and imported $381.81 million, representing a trade balance of $-49.47 million and a total trade value of $714.16 million.  For trade in total goods and services Viet Nam ranked 15 of 232 for highest export value, 16 of 240 for highest import value, and 14 of 245 for highest total trade value.

The top exports from Vietnam to New Zealand were electrical machinery and equipment, footwear, mechanical machinery,  textiles and textile articles, furniture,. Meanwhile, the top imports from New Zealand to Vietnam were dairy products, meat and edible meat offal, wood and wood products, vegetables and fruits, and fish and seafood.

Investment relations

Regarding investment, as of May 2023, New Zealand has 39 valid direct investment projects in Vietnam with a total registered capital of USD 209.75 million. This places New Zealand at the 39th position out of 143 countries and territories with foreign direct investment in Vietnam. In contrast, Vietnam has 11 investment projects in New Zealand with a total registered capital of USD 38.4 million, focusing on processing and manufacturing industries, wholesale and retail, automobile repair services, and accommodation services.

In terms of official development assistance (ODA), New Zealand has been providing stable and increasing ODA to Vietnam, from NZD 3.2 million (equivalent to USD 2.3 million) in the 2003-2004 fiscal year to NZD 10.5 million (about USD 7.4 million) in the 2012-2013 fiscal year, and NZD 26.66 million (equivalent to USD 18.6 million) in the 2015-2018 period, focusing on developing human resources, education and training, and sustainable agriculture and rural development. New Zealand has committed to providing Vietnam with NZD 26.7 million non-refundable ODA for the period of July 1, 2017, to June 30, 2024.

Developing stronger trade ties between Vietnam - New Zealand

On May 23, 2023, the 8th session of the Vietnam - New Zealand Joint Trade and Economic Committee (JTEC) was held at the Ministry of Industry and Trade. During the session, Deputy Minister of Industry and Trade Phan Thi Thang emphasized the potential for the two countries to strengthen cooperation in trade, industry, and investment. Both sides agreed to continue to enhance cooperation activities and strive to achieve a bilateral trade turnover of $2 billion by 2024. At the session, both sides also welcomed the completion of the market-opening process for Vietnamese lemons and pomelos, and New Zealand's blueberries and strawberries at the end of 2022.

To carry out the next steps in promoting the export of Vietnamese lemons and pomelos, Vietnam proposed that the two agencies (the Ministry of Agriculture and Rural Development of Vietnam and the Ministry of Primary Industries of New Zealand) closely coordinate and widely disseminate information to the business communities of both countries about this import-export opportunity, while providing detailed guidance on the procedures and facilitation measures for businesses of both countries to exploit these new opportunities.

On July 16, 2023, Minister of Industry and Trade Nguyen Hong Dien had a meeting with Mr. Damien O'Connor, Minister of Trade and Export Growth of New Zealand, to discuss the enhancement of exports between the two countries. During the meeting, the Minister emphasized the importance of removing unnecessary import procedures and technical barriers to trade, and continuing negotiations to open up the market for new agricultural products, which would help increase the scale of bilateral trade.

Recently, in the latest meeting of the Vietnam-New Zealand Joint Economic and Trade Committee on June 2023, Vietnamese Deputy Minister of Industry and Trade Phan Thi Thang and Vangelis Vitalis - New Zealand’s Deputy Secretary of Foreign Affairs and Trade focused on practical things that will benefit both countries’ businesses, promised to boost cooperation in trade and reduce trade barriers. Vangelis Vitalis said that: “We have expedited customs procedures so that products that arrive in Vietnam will be cleared within six hours of customs. For Vietnam, we also have additional fast track certification requirements, which means that Vietnamese producers can sell more quickly into our market.” It clearly indicates that both countries are working towards the goal of reaching a bilateral trade turnover of $2 billion by 2024.

Conclusion

In conclusion, the bilateral relationship between Vietnam and New Zealand has been built on a long-term partnership that has shown positive growth in trade, economic, and investment relations. The two countries have great potential to strengthen their cooperation in various fields, including agriculture, education, tourism, infrastructure, and transportation. With the commitment of both sides to continue to enhance cooperation activities, Vietnam and New Zealand are striving to achieve a bilateral trade turnover of $2 billion by 2024. As such, the future looks bright for the development of stronger trade ties between these two nations, and it is expected that this partnership will continue to grow and prosper in the years to come.

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