By Alan Ting

KOTA KINABALU, Malaysia: Vietnam and Malaysia formally established diplomatic relations in 1973. Over the past 51 years, the traditional and multifaceted friendly relations between the two countries have been constantly strengthened and developed. 

 The two countries are enjoying robust relations, with various activities held to mark their 50th anniversary of the diplomatic relations last year and many others scheduled in celebration of the 10th anniversary of their strategic partnership in 2025.

 Political and diplomatic relations - moving from strength to strength

 The Vietnam–Malaysia relations have developed strongly, paving the way for extensive and comprehensive cooperation across the areas of politics, diplomacy, economy, trade, culture, tourism, defense, security, science technology, and sustainable development.

 Vietnam and Malaysia have exchanged high-level delegations relatively frequently, and political trust has continued to be enhanced. The two sides have held seven meetings of the Joint Committee on Economic, Scientific and Technical Cooperation (JCM) chaired by the Foreign Minister. 

 The two countries support each other's candidacy for international organizations; cooperate closely within the framework of ASEAN and other regional and international forums. 

 We have also seen how exceptional the various mechanisms that have been created by both countries, such as we have achieved strategic partnership status and this action plan has been implemented for different stages. 

 And of course, next year is especially important as both countries celebrate the 10th anniversary of their strategic partnership, and it will also strengthen many of the commitments and partnerships and cooperation between the two countries at different levels. 

 And of course, they also have a lot of different mechanisms including the Joint Committee on Economic, Scientific and Technological Cooperation, the Joint Trade Committee and many other platforms to promote the relationship between the two countries within the entire scope of multilateral commitments.

 The two countries adopted an action program to carry out their strategic partnership for the 2021-2025 period with major orientations so as to capitalize on the potential and strengths of each side towards post-pandemic recovery and resilient and sustainable development.

 Additionally, as they have well-coordinated and regularly exchanged consultations with each other at regional and international forums, they have shared many areas of consensus and common views on ASEAN issues as well as the relations between the bloc and partners, helping improve ASEAN’s position and roles in the international arena. 

 Vietnam is committed to supporting Malaysia which will act as the ASEAN Chair in 2025, and the comprehensive implementation of the ASEAN Community Vision 2045.

 China currently has territorial disputes with five ASEAN member nations in the South China Sea (SCS). However, ASEAN remains united in finding a regional solution, proof that the Declaration on the Conduct (DOC) of Parties in the South China Sea issued in 2002, and the subsequent DOC Guidelines.

 Malaysia has always advocated its non-aligned approach and refrained from getting entangled with one force or the other. And that in the case of Vietnam, of course, also creates a lot of effort to ensure that there is a need for regional stability, the rule of law and the needs of all parties, all actors and nations obeyed, respect the law of the sea and of course support ASEAN's moves to ensure stability in the region to support Indo Pacific is also free and open.

 Both countries are expressing that all parties will promote negotiations towards the completion of a practical, effective and suitable Code of Conduct in the East Sea (COC) based on international law, including the United Nations Convention on the Law of the Sea 1982, and for the benefit of ASEAN.

 Investment - trade relations between the two countries have been promoted and focused

 In 2015, we saw that the entire subtext of these bilateral relationships is largely structured in such a way that economic interdependence in key investment sectors is the main source of both motivating factors as well as motivating factors for both countries to initiate more. 

 Focus and effort at all levels, the business community, on key institutions and technologies, and all of that, will have these positive spillover effects on the economic development of both countries.

 But of course, in terms of economic cooperation, Malaysia has seen this as one of the important areas for both countries seeing how the latest global and regional economic developments are going. We have now seen a decline in China's economic output, a slower than expected recovery since the COVID-19 pandemic. 

 We have seen a demographic crisis that China is facing and the departure of leading companies. Companies from China, Vietnam and Malaysia remain among the more important destinations for this important investment opportunity. Look for these great alternatives of investment destinations. 

 Therefore, Vietnam is a top priority for this new economy and so are Malaysia and other ASEAN members. So, this is an area that both of them can really leverage together to support this new opening up, to have this kind of strategic interdependent economic structure that will have this kind of positive entanglement.

 Relying on Malaysia's core assets can help support Vietnam's economic development. At the same time, Malaysia can count on Vietnam's upcoming economic leadership and prestige to have a win-win economic impact. 

 Malaysia is currently Vietnam's second largest trading partner in ASEAN and 11th in the world; Vietnam is Malaysia's third largest trading partner in ASEAN. 

As of August 2024, bilateral trade turnover between the two countries reached nearly 10 billion USD, up nearly 25 percent over the same period last year. Malaysia is the second largest investor in ASEAN in Vietnam, ranking 11th out of 143 countries and territories investing in Vietnam.

 So, we've got this very strong import-export structure, of course, based on certain materials and resources but moving forward to get greater benefits from cadastral assets governance, sectors of critical importance on the next frontier of technological momentum on ships, on semiconductors, on the digital economy, the blue economy.

 And that, of course, also happens across different sectors of the economy, from trade, for example the halal export market, to Malaysia's capacities and capabilities in certain sectors including production, of vital resources including rare herbs, and of course, of palm oil and the energy sector which will also be crucial to Vietnam's density-driven economic development. 

 It will be beneficial for Vietnam in general. And Malaysia will also need Vietnam's capacity in the context of needing new motivation to reform and transform the energy sector in Vietnam. 

 So, all of this will have a positive ripple effect on both countries and the economic sector, economic sentiment will be the key driver maintaining high levels of participation, which will have a positive knock-on effect on other sectors.

 Conclusion

 The direction of Vietnam - Malaysia relations are basically favorable and will continue to develop rapidly, especially in the fields of trade - investment. More diverse fields and forms of cooperation; new cooperation mechanisms were established along with the promotion of the old cooperation mechanism. Political cooperation plays a key role, creating favorable conditions for other fields to develop, while cooperation on trade-economic has always been a bright spot.