New Zealand and Vietnam driving mutual prosperity

New Zealand and Vietnam driving mutual prosperity

The role of comprehensive strategic partners and a strong diplomatic relationship over the past 50 years has laid the foundation for Vietnam and New Zealand to further strengthen cooperation across a range of key areas.

Last week, the two countries celebrated half a century of diplomatic relations, reaffirming their strong ties and paving the way for deeper collaboration in various sectors.

Vietnam and New Zealand agreed to upgrade the bilateral relationship to a comprehensive strategic partnership in February, with the aim of diversifying supply chains, doubling two-way investment, and increasing bilateral trade turnover to $3 billion by the end of 2026.

Phan Minh Giang, Vietnamese Ambassador to New Zealand, said the upcoming commemoration reflects the strong confidence both countries share in the future of their relationship, as well as a shared determination to elevate cooperation to new heights in the current era.

“The two countries are entering their strongest phase of development. Economic, trade, and investment cooperation is expanding, with bilateral trade rising steadily from $300 million in 2009 to more than $1.3 billion. Economy, trade, investment, education, and training remain the highlights,” said Giang.

According to the Foreign Investment Agency under the Ministry of Finance, Vietnam is currently New Zealand’s 13th largest trading partner, with bilateral trade reaching $1.3 billion in both 2023 and 2024. Meanwhile, New Zealand ranks as Vietnam’s 41st largest trading partner, 41st in exports, and 37th in imports.

Vietnam’s key exports to New Zealand include footwear, furniture, ceramics, computers, electronics and components, seafood, coffee, and cashew nuts. In return, Vietnam imports agricultural products, wood powder, chemicals, and iron and steel from New Zealand to meet domestic demand in the processing and industrial sectors.

In terms of foreign direct investment, New Zealand currently ranks 39th out of 149 countries and territories with active investment in Vietnam, with 55 ongoing projects and total registered capital of $208 million. These projects focus primarily on real estate, education and training, processing and manufacturing, agriculture, forestry, and fisheries.

Vietnam has 12 foreign-led projects in New Zealand with a total registered capital of $43.9 million as of the first quarter of 2025. These focus on processing, accommodation and food services, wholesale and retail, distribution, import-export, and agriculture. New Zealand is currently Vietnam’s 30th largest outbound investment destination, out of 80 countries and territories.

Beyond investment, New Zealand is also one of Vietnam’s key development partners through official development assistance (ODA). From NZ$3.2 million ($1.9 million) in 2003–2004, the value of ODA has increased to NZ$26.7 million ($16 million) in the 2021–2024 period. These funds focus on human resource development, education and training, agriculture, and climate change adaptation – all priority areas in Vietnam’s sustainable development strategy.

Education stands out as a bright spot in the bilateral relationship. New Zealand offers a number of undergraduate and postgraduate scholarships to Vietnamese students and officials. There are currently around 1,700 Vietnamese students in New Zealand, making Vietnam the ninth-largest source of international students in the country, according to the Ministry of Education and Training.

Under the education and training cooperation agreement for 2023–2026, New Zealand continues to offer 30 postgraduate scholarships each year to Vietnamese candidates, while also providing English-language training for public officials and civil servants – helping to improve Vietnam’s management capacity and international integration.

Suzannah Jessep, chief executive of the Asia New Zealand Foundation, said that Vietnam’s dynamic economy and growing regional leadership, along with New Zealand’s strategic push to strengthen engagement across Asia, will be key drivers in the next phase of bilateral cooperation.

“Vietnam and New Zealand have great potential to enhance cooperation both bilaterally and internationally. Emerging sectors such as digital technology, high-tech agriculture, climate change, and the green economy present significant opportunities for partnership,” said Jessep.

Research by the Asia New Zealand Foundation also shows that the potential to scale up bilateral cooperation remains strong. More than two-thirds of New Zealanders now consider Vietnam important to the country’s future, while half view Vietnam as a friend of New Zealand – an increase of eight percentage points between November 2023 and December 2024.

“New Zealand sees Vietnam not only as a valuable economic partner, but also as a country with potential to jointly lead in areas such as sustainable agriculture, educational innovation, and regional peace-building,” Jessep said.

Caroline Beresford, New Zealand Ambassador to Vietnam For 50 years we have worked tirelessly together to nurture our friendship, cooperation, and understanding. The seed we planted half a century has grown into a mighty tree with deep roots and strong limbs today. Vietnam and New Zealand enjoy a deep and enduring partnership, anchored in shared interests, shared approaches to international issues and respect for the rule of law. We understand our complementary strengths and know that broad-based cooperation enhances cultural understanding, fosters trust, drives prosperity, and contributes to regional stability. Today, as comprehensive strategic partners, we see the impacts of our partnership in our everyday lives: in the growing number of Vietnamese students studying in New Zealand; in the premium New Zealand products found in Vietnamese supermarkets; and in our rural communities where New Zealand expertise supports Vietnam’s development ambitions; contributing to healthcare, education, small holder farming, emissions reduction, and community wellbeing. We honour what we’ve built, and look forward to what’s to come. Together, we will explore new avenues for cooperation to sustain our prosperity and security.

VIR