Vietnam and Thailand Strengthen Ties with Focus on Trade and Sustainability

In a significant step toward deepening bilateral relations, Vietnam’s National Assembly Chairman Tran Thanh Man met with Thailand’s Prime Minister Paetongtarn Shinawatra in Hanoi on May 15, 2025, to discuss enhanced cooperation in trade, investment, and sustainable development. The meeting, held during the Thai leader’s official visit to Vietnam, underscored the shared ambition of achieving US$25 billion in bilateral trade by 2030, while addressing pressing regional and global challenges through strategic partnerships.

Building Economic Bridges

Chairman Tran Thanh Man emphasized Vietnam’s commitment to refining its legal framework to create a more favorable environment for Thai businesses and investors. Key sectors highlighted for collaboration included the digital economy, green transition, and sustainable development—areas where both nations see significant potential for mutual benefit. “Vietnam is ready to share its experiences and strengthen cooperation with Thailand in high-tech agriculture and green energy” said Chairman Man, signaling a proactive approach to leveraging complementary strengths.

Economic ties between Vietnam and Thailand have already shown robust growth. In 2024, two-way trade reached over US$20.2 billion, marking a 6.3% increase from the previous year. The momentum continued into the first four months of 2025, with bilateral trade growing by 11.2% year-on-year to nearly US$6.88 billion. Thailand also stands as Vietnam’s ninth-largest investor among 150 countries and territories, with 767 projects and registered capital exceeding US$14.85 billion. These figures reflect a deepening economic interdependence that both leaders are keen to expand further.

During the discussions, Chairman Man urged both nations to maximize the benefits of free trade agreements, particularly the Regional Comprehensive Economic Partnership (RCEP), to boost trade volumes. He also proposed greater integration in regional supply chains and smart agriculture, areas where Vietnam’s agricultural expertise and Thailand’s technological advancements could create synergies. For Thailand, this aligns with Prime Minister Paetongtarn’s ambitious 2025 agenda, which prioritizes infrastructure development and social welfare initiatives—sectors that could benefit from Vietnamese collaboration.

A Milestone in Strategic Partnership

Prime Minister Paetongtarn’s visit, which included co-chairing the 4th Vietnam-Thailand Joint Cabinet Meeting, was described as a pivotal moment in the Enhanced Strategic Partnership between the two countries. This partnership, which spans economic, cultural, and political domains, has grown comprehensively in recent years. “I am delighted to witness Vietnam’s remarkable achievements in socio-economic development” said Paetongtarn, expressing her admiration for Vietnam’s progress and her intent to elevate bilateral cooperation.

The Joint Cabinet Meeting, a mechanism reserved by Thailand for its closest neighbors, provided a platform to discuss ways to strengthen economic, investment, and trade ties. Paetongtarn underscored the strategic importance of Vietnam in Thailand’s foreign policy, highlighting shared values and the need for enhanced cooperation amid complex regional and global challenges. Both leaders agreed on the importance of intensifying people-to-people exchanges, tourism cooperation, and improving connectivity through air and rail links—measures aimed at fostering closer cultural and economic bonds.

Legislative and Regional Collaboration

A significant portion of the dialogue focused on legislative cooperation, with Chairman Man praising the role of the Vietnamese and Thai parliaments in implementing economic agreements. The Vietnam-Thailand Friendship Parliamentary Groups were recognized for their contributions to mutual understanding and collaboration in trade, investment, tourism, and education. Close coordination at regional and international parliamentary forums, such as the Inter-Parliamentary Union (IPU) and the ASEAN Inter-Parliamentary Assembly (AIPA), was also highlighted as a cornerstone of bilateral ties.

Beyond bilateral relations, the leaders addressed broader regional concerns. Chairman Man urged Thailand to continue working with Vietnam and other ASEAN members to maintain a unified stance on the East Sea (internationally known as the South China Sea), advocating for it to be a zone of peace and cooperation. This call reflects ongoing regional tensions over maritime disputes, where ASEAN’s collective position plays a crucial role in maintaining stability. Both nations reaffirmed their commitment to contributing to peace and prosperity within the ASEAN framework, a shared priority given their active roles in the bloc.

Support for Communities and Future Engagements

Chairman Man expressed gratitude for Thailand’s support of the Vietnamese community in the country, which numbers over 100,000 individuals. This acknowledgment underscores the importance of cultural and social ties in strengthening bilateral relations, ensuring that economic partnerships are complemented by mutual respect and support at the community level. In return, Prime Minister Paetongtarn extended a formal invitation to Chairman Man to visit Thailand, an offer he accepted with plans to arrange a suitable time for the trip.

Additional invitations were extended to the Speaker of the Thai House of Representatives, Wan Muhamad Noor Matha, and Senate President Mongkol Surasajja to visit Vietnam, signaling a desire for continued high-level exchanges. Such visits are expected to further cement legislative ties and facilitate the sharing of experiences in governance and policy-making, particularly in areas like digital transformation and sustainable development.

Analysis: A Partnership with Broader Implications

The meeting between Chairman Man and Prime Minister Paetongtarn comes at a time when Southeast Asia faces multifaceted challenges, from economic recovery post-pandemic to the urgent need for climate action. Vietnam and Thailand, as key players in ASEAN, are positioning themselves as leaders in the region’s push toward sustainability and digital innovation. Their focus on green transition and digital economy aligns with global trends, where investments in renewable energy and technology are increasingly seen as drivers of long-term economic growth.

However, achieving the ambitious US$25 billion trade target by 2030 will require overcoming structural barriers, including bureaucratic hurdles and disparities in regulatory frameworks. While Vietnam is actively working to improve its legal environment for foreign investors, challenges such as intellectual property protection and transparency in public procurement could pose obstacles if not addressed. Thailand, on the other hand, must balance its domestic priorities—such as infrastructure development—with the demands of regional partnerships, ensuring that initiatives like the RCEP are fully utilized to facilitate trade.

Geopolitically, the strengthened partnership between Vietnam and Thailand could serve as a stabilizing force within ASEAN, particularly on contentious issues like the South China Sea. By advocating for a unified regional stance, both nations are signaling their commitment to diplomacy over confrontation, a stance that could influence other ASEAN members to prioritize dialogue. Yet, the effectiveness of this approach remains to be seen, especially if external powers continue to exert influence over maritime disputes.

Looking Ahead

As Vietnam and Thailand chart a new phase in their relationship, the outcomes of this visit and the Joint Cabinet Meeting will likely set the tone for future collaboration. With economic ties deepening and legislative cooperation on the rise, both nations appear poised to achieve their shared goals. Yet, questions linger about how they will navigate the complexities of regional politics and global economic uncertainties. For now, the commitment to mutual growth and stability offers a promising foundation for what lies ahead.