The Vietnam-Myanmar Friendship Association and a business delegation meet with the Ambassador and Economic Counselor at the Myanmar Embassy

Looking back on 50 years of diplomatic ties, how do you assess the development of Vietnam-Myanmar relations? What would you consider the most notable achievements?

Mr. Chu Cong Phung, Chairman of the Vietnam-Myanmar Friendship Association and former Ambassador of Vietnam to Myanmar: Over the past half-century since diplomatic relations were established on May 28, 1975, Vietnam-Myanmar relations have made remarkable progress, particularly in the following areas:

Politically, the two countries have steadily upgraded their diplomatic relations, starting from consulates general (December 1957) to establishing embassies in each other’s capitals (May 1975).  Especially, following the visit of General Secretary Nguyen Phu Trong to Myanmar in August 2017, the two nations officially established a comprehensive cooperative partnership.

Economically, after Prime Minister Nguyen Tan Dung’s visit to Myanmar in April 2010, the two sides released a joint declaration on cooperation in 12 key sectors. This created strong momentum, with bilateral trade rising from just US$9.3 million in 2000 to the all-time high of US$952.9 million in 2019 (more than a 100-fold increase), making Vietnam the 9th largest trading partner of Myanmar. The two countries signed five trade agreements and six memoranda of understanding (MoUs) on economic cooperation and opened two direct flight routes (Hanoi-Yangon and Ho Chi Minh City-Yangon) with a frequency of 6-7 flights per week.

As of now, Vietnam has invested US$2.2 billion in Myanmar across three major projects, ranking 7th among 53 investing countries and territories. This represents a substantial increase from 2010, when the investment amounted to only US$23.65 million.

Mr. Nguyen Van Bay, Chief Representative of the Vietnam-Myanmar Friendship Association in Myanmar: Vietnam-Myanmar economic cooperation can be divided into two distinct phases: Limited engagement during the first 35 years, followed by vigorous growth in the past 15 years. The two most significant milestones in the two-way ties were Prime Minister Nguyen Tan Dung’s visit in 2010 and General Secretary Nguyen Phu Trong’s visit in 2017.

The Vietnam-Myanmar Friendship Association welcomes a delegation from the Myanmar Friendship Association to Vietnam

What factors are promoting the business cooperation between the two countries? What barriers need to be addressed to enhance the outcome?

Mr. Chu Cong Phung: Vietnam-Myanmar business cooperation features six key advantages:

First, Vietnam-Myanmar political relations are quite special. Both countries share a history of anti-colonial and anti-imperialist struggles, achieving independence through their own efforts. Since Myanmar’s independence in 1948, there have been no political or ideological conflicts or conflicts of interest between the two countries. In fact, Myanmar even sent troops to support Vietnam during the war.

Second, Vietnam and Myanmar stand out for cultural similarities. Both are wet-rice civilizations with similar customs, traditions, and predominantly Buddhist populations. Interestingly, they even share practices such as betel chewing and folktales related to it.

Third, Myanmar's relatively slow economic liberalization means fewer technical barriers. Vietnamese products suit local preferences and are well-received in Myanmar, as evidenced by strong sales at trade fairs and exhibitions in Myanmar.

Fourth, in addition to direct flights, namely Hanoi-Yangon and Ho Chi Minh City-Yangon, Vietnam and Myanmar are the two endpoints of the East-West Economic Corridor that runs across Vietnam, Laos, Thailand and Myanmar. As a result, trade connectivity is facilitated.

Fifth, both nations benefit from intra-bloc trade incentives as members of the ASEAN Economic Community.

Sixth, the two sides have appropriate cooperation mechanisms with eight multilateral free trade agreements and established a Joint Committee on Cooperation, along with three effective organizations, namely the Vietnam-Myanmar Friendship Association, the Vietnam Investors Association in Myanmar (AVIM) and the Vietnam Business Club in Myanmar.

However, several barriers persist. Myanmar’s political instability remains a challenge. The country’s legal system lacks consistency and imposes unfavorable conditions on the business circle, particularly foreign investors. Meanwhile, infrastructure remains underdeveloped, with frequent shortages of electricity and clean water, high taxes and logistics costs, a lack of supporting industries, and a low-skilled labor force. Moreover, administrative delays and a restrictive investment climate hinder business operation.

Mr. Nguyen Ba Khoat, Secretary of the Vietnam-Myanmar Friendship Association: Foreign investors and businesses in Myanmar still face difficulties in accessing basic business conditions such as land, capital, import/export licenses (still granted on a contract-by-contract basis), business support services, and an absence of a banking system. Outdated and vague legal and administrative procedures allow for bureaucratic red tape, unofficial costs and long time and high risks.

Mr. Nguyen Van Bay: Trust between the peoples of Vietnam and Myanmar has been strengthened in recent years. Vietnamese consumer products can be sold in Myanmar without major adjustments in specifications (except for some taste preferences like spicier or saltier food). Many people in Myanmar now see Vietnam as a reliable destination for investment, business, tourism and healthcare. They even go to Vietnam to study Chinese or Korean. The Vietnamese business community should recognize and seize these market opportunities when conditions allow.

The business delegation from the Vietnam-Myanmar Friendship Association at the meeting at the Myanmar Embassy

Have you undertaken any initiative to support and connect businesses from both countries?

Mr. Chu Cong Phung: We regularly provide businesses with insights into market advantages, challenges and barriers. We host annual seminars with both successful and unsuccessful investors and experts to share real-world experiences in investment and business in Myanmar and connect businesses of both sides seeking cooperation opportunities. Specifically, in April 2024, the Association facilitated partnerships between four major Vietnamese and Myanmar companies engaged in pharmaceuticals, agriculture, aquaculture and industrial crops. After they signed agreements, we continued to monitor and support these partnerships to ensure they are effective. Additionally, we participate in intergovernmental meetings and provide policy recommendations and proposals to tackle difficulties and promote bilateral cooperation. We also serve as a bridge for cultural and tourism exchanges.

Mr. Nguyen Ba Khoat: We maintain close contact with the Myanmar Embassy in Hanoi, trade counselors, and other Myanmar representatives in Vietnam to provide information and advisory support and stay ready to foster the cooperation between the two countries and their people. For instance, in early 2025, we assisted the Myanmar Embassy in inviting delegates to the Water Festival, which was recently recognized by UNESCO as an Intangible Cultural Heritage of Humanity.

What advice would you give to those doing business in Myanmar?

Mr. Chu Cong Phung: Doing business and investing in Myanmar requires perseverance. The experiences of companies like Viettel and BIDV demonstrate that achieving success there is a long journey, demanding sustained effort to transform potential and opportunities into tangible results.

The Vietnam-Myanmar Friendship Association at a working session with the Myanmar Friendship Association 

Do you have any plans or initiatives to strengthen business connections between the two countries?

Mr. Chu Cong Phung: We will organize regular forums where businesses from both countries can meet and exchange information. The Association will actively provide the latest market insights, export and import demand updates, and help connect potential partners. It will also act as a channel to convey the views and proposals of businesses and citizens to relevant government bodies. In 2025, the Association aims to meet with a Deputy Minister of Foreign Affairs of Vietnam to share key business recommendations put forth by the Association and businesses to boost the bilateral business cooperation ties. Additionally, we will invite Vietnamese businesses to join annual investment, trade and tourism promotion delegations to Myanmar to bolster business cooperation, with a focus on agriculture, industrial crops and fisheries which are of strong interest to the Myanmar government and business community.

Mr. Nguyen Van Bay: In agriculture, Vietnam has many farm models that Myanmar could learn from, such as coffee, coffee-macadamia, and coffee-durian intercropping. We’ve already organized visits to these farms in Dak Lak and other aquaculture sites for Myanmar businesses and individuals. However, some Vietnamese companies remain hesitant because of Myanmar’s political situation. To clarify, areas with conflict are off-limits to foreigners, but most regions are still relatively safe for doing business.

Mr. Nguyen Ba Khoat: Myanmar currently prioritizes agricultural development projects and border trade with China and Laos could complement this. At present, most trade depends on sea routes, with small-scale overland shipments along Myanmar-Thailand-Cambodia route to Vietnam. Meanwhile, road transport has certain advantages like short transportation time, suitable for chemicals, flammables, crops and agricultural goods (the strengths of Myanmar). This mode is often suitable for cross-border trade items, not requiring formal import/export permits, and allows flexible payment options like barter or local currency, helping Myanmar partners overcome its dollar shortage for imports.

Apart from the above overland route, we recommend that businesses, particularly those run by Vietnamese-originated people in Laos, explore the shortest and most efficient overland route connecting Myanmar, Laos and Vietnam. There is an international land border checkpoint between Myanmar and Laos, linked by the Friendship Bridge inaugurated in 2015, connecting National Highway 4 in Myanmar’s Tachilek district (Shan State) with National Highway 17 in Luang Namtha province of Laos. This bridge allows trucks of up to 75 tons. Myanmar-Laos trade is currently worth only a few million USD a year, representing a major opportunity for businesses to establish cross-border warehouses and logistics routes to Vietnam.

What is your perspective for Vietnam-Myanmar economic cooperation prospects in the next decade? What are the decisive factors for the success of this relationship?

Mr. Chu Cong Phung: Let me share some comparisons between Vietnam and Myanmar. Myanmar’s area is over twice that of Vietnam, with a longer coastline, but its population is just 54% of Vietnam's. Its GDP is only 20% of Vietnam’s and its per capita GDP is 30%. Its export value is just 2.5% of Vietnam's. These figures lead many experts to conclude that Myanmar offers exceptional opportunities, with some even saying that "Myanmar is the last economic frontier of Asia.”

Although political instability persists, there is hope that the situation will improve after the general election scheduled for late 2025 or early 2026. Bilateral cooperation is expected to recover quickly after that. Notably, many businesses in Myanmar are enthusiastic about news that Russia will help the country build a nuclear power plant, which could help address its severe power shortages. We believe that once Myanmar establishes a coalition government, bilateral relations will return to a positive trajectory, with Vietnam maintaining its position among Myanmar’s top 10 economic and investment partners. To achieve this, both governments must continue to strengthen and expand cooperation under existing agreements and work together to elevate the relationship to a new level.

 Thank you very much!