King Abdullah and President Triet also witnessed the signing of three major agreements — a treaty to avoid double taxation, a protocol to promote ties in the oil and gas sectors and an agreement to promote cooperation in agriculture sector — which will eventually provide a legal framework for bilateral cooperation.
“The talks between King Abdullah and Triet covered a range of bilateral, regional and international issues of common concern,” said Vietnamese Ambassador Dao Thanh Chung. This is a historic visit by a Vietnamese leader since diplomatic ties were established between the two countries in 1999, Dao said.
The protocol in the oil sector endorsed by Riyadh and Hanoi will help boost oil supplies and encourage Saudi Aramco to invest in two refineries to be built in Vietnam.
“Some other subjects that were taken up during the discussions include cooperation in agriculture, trade relations, Saudi investments in Vietnam and cooperation in manpower,” said the diplomat. “As per Saudi Arabia, we affirm our readiness to cooperate in the agriculture sector,” said Triet while addressing a luncheon meeting of Saudi and Vietnamese businessmen and women on Saturday afternoon.
In his speech, Triet welcomed “the interest of Saudi firms to invest in agriculture, mainly in rice cultivation,” in Vietnam. This is indeed a significant development keeping in view the fact that “the Kingdom is among the world’s top five rice importers, while Vietnam is the world’s second-largest rice exporter,” he said. In fact, Saudi private firms have intensified efforts over the last two years to buy or lease land in developing nations to ensure supplies after a spike in the prices of commodities in 2008.
An agreement was also signed to boost cooperation between the Council of Saudi Chambers and the Vietnamese Chamber of Commerce and Industry. The signing was witnessed by Triet, which was followed by an announcement by Abdulrahman Al-Jeraisy, CSC vice chairman, that a major Saudi business delegation will shortly visit Hanoi. Triet said that the investment regulations of Vietnam will be simplified and translated into Arabic for Arabic-speaking businessmen.
He also pledged to work together to ensure access to Vietnam’s farmlands and for its abundant pool of workers to be brought over to the Kingdom. There are about 9,000 Vietnamese workers in Saudi Arabia at the moment; two-thirds of the country’s population of about 90 million is in the working age groups.
On hearing the Saudi side at the Saudi-Vietnam Business Forum, Triet agreed and said that “all your proposals shall be met” immediately.
Referring to the proposed cooperation in the oil sector, the Vietnamese president said that he is committed “to promoting cooperation in the energy sector.” To this end, Vo Thi Thanh Ngoc, deputy general manager of Petrovietnam, said that the “protocol signed yesterday in the oil and gas sector will help to bring the two sides closer in a huge sector.” She said that one of the refineries, to be located in the province of Vung Tau, would offer up to 70 percent of its capital to a foreign partner and have a capacity of 200,000 barrels per day.
“We are encouraging Saudi Aramco to join us,” said Ngoc, who along with other oil executives and businessmen will be visiting Aramco on Sunday. Another refinery project to come up in Van Phong Bay is another major option for investment so far as the Kingdom is concerned, said Nguyen Quang Kien, deputy general director at Petrolimex. “The plan is for us to take 30 percent and the rest will come from other partners,” Kien added. Petrolimex commands 55 percent of the country’s total retail fuel market, which exceeds 14 million metric tons annually.
Vietnam, a country with an annual economic growth topping seven percent, has only one oil refinery — the 140,000 bpd Dung Quat plant — which is struggling with operating glitches. Gasoline demand in Vietnam, Asia’s second-largest importer of the auto fuel, is still growing. Its imports are projected to increase by about 10 percent this year. Trade between Riyadh and Hanoi exceeds $ 290 million annually. Triet will address the Shoura Council on Sunday before wrapping up his visit on Monday.
