19-10-22023 (HANOI) Aramco, the leading oil company in Saudi Arabia, expressed its interest in investing in an oil refinery in Vietnam. The announcement was made by Yasser M. Mufti, Deputy CEO of Aramco, during a meeting with Vietnamese Prime Minister Pham Minh Chinh on October 19.
Yasser M. Mufti stated that while Aramco is actively operating in the Asia-Pacific region, they have not yet invested directly in Vietnam. However, the company is currently supplying crude oil to businesses in Vietnam. Therefore, the Deputy CEO of Aramco shared the company’s desire to invest in establishing an oil refinery in Vietnam. Prime Minister Pham Minh Chinh highlighted Vietnam’s efforts to diversify its markets, particularly in the petrochemical sector. He expressed his hope that Aramco would invest in oil refining plants and support Vietnam in training human resources in this field.
To implement their investment plans, the Deputy CEO of Aramco requested that the Vietnamese government create favorable conditions for the company to expand its investment, starting with allowing their technical team to conduct market surveys and research in Vietnam.
Aramco is one of the largest oil companies in Saudi Arabia. Last year, the company recorded a record profit of over $161 billion, a 46% increase compared to 2021, due to rising energy prices. The company is currently implementing a plan to increase its production capacity to 13 million barrels of oil per day by 2027 and develop new low-carbon emission technologies.
Prior to the meeting with the Vietnamese Prime Minister, discussions were held with the Saudi Minister of Economy and Planning. The Prime Minister also expressed his desire to enhance cooperation with Saudi Arabia in the energy and finance sectors.
The Vietnamese government officials were impressed by Saudi Arabia’s achievements in diversifying and developing non-oil sectors, promoting innovation, and prioritizing green development as outlined in the Saudi Vision 2030.
Prime Minister Pham Minh Chinh proposed that the two economies increase connectivity and promote trade and investment, with a focus on areas such as energy, finance, and banking. He also suggested exploring new areas of cooperation, including manufacturing, Halal product processing, and digital transformation. The Prime Minister also urged Saudi Arabia to resolve issues related to Vietnamese aquaculture exports to the country. Saudi Arabia is currently one of the largest economies in the Middle East, with significant reserves of oil and gold. The estimated per capita GDP of the country in 2022 is over $27,500.
During the meeting, Minister Faisal Al-Ibrahi stated that the two countries could leverage each other’s markets to expand exports to other markets in the ASEAN and Gulf regions. He emphasized the need for coordination between the Saudi Ministry of Industry and Mineral Resources and the relevant authorities in Vietnam to strengthen economic cooperation.
Both leaders agreed to establish joint working groups on economy and promptly organize the 5th Joint Committee meeting to promote investment and bilateral cooperation.
On the same day, Prime Minister Pham Minh Chinh also met with Minister of Human Resources and Social Development Ahmed AlRajhi, who praised the quality of Vietnamese labor. Currently, around 5,000 Vietnamese workers are employed in Saudi Arabia. The country plans to recruit an additional 10 million foreign workers in various sectors, including industrial production, energy, healthcare, and tourism. Prime Minister Pham Minh Chinh emphasized the importance of labor cooperation in bilateral relations, especially as Saudi Arabia is implementing numerous urban and infrastructure projects. In addition to enhancing market connectivity, the Prime Minister proposed that the two countries improve the legal framework for labor cooperation to facilitate the exchange of high-quality human resources.
Minister Ahmed AlRajhi agreed with the Prime Minister’s proposal and expressed the desire for Vietnam and Saudi Arabia to collaborate in resolving legal, training, and recruitment challenges to increase the number of Vietnamese workers in the country.
Prime Minister Pham Minh Chinh is currently visiting Saudi Arabia and attending the inaugural ASEAN-GCC Summit from October 18 to 20, upon the invitation of King Salman bin Abdulaziz Al Saud. This is the first meeting between ASEAN and GCC leaders in 33 years since the establishment of diplomatic relations. The leaders are expected to issue a joint statement after the summit.
Saudi Arabia is Vietnam’s leading economic partner in the Middle East. Bilateral trade between the two countries exceeded $2.7 billion last year. In the first seven months of this year, the total import-export turnover reached $1.6 billion, a 7.4% increase compared to the same period in 2022.
Vietnam exports garments, wood products, rice, cashew nuts, various types of phones and components to Saudi Arabia, while importing mainly chemicals, liquefied petroleum gas, and plastics from the country. Many Saudi Arabian corporations are investing directly or indirectly in Vietnam, such as Zamil Steel Group and Sabic Group. Additionally, the Saudi Development Fund has provided $181 million in preferential loans for 13 projects in Vietnam.
