TEHRAN- Despite significant potential in petrochemicals, agriculture, and industry, Iran and Vietnam have yet to reach their desired trade levels. Overcoming financial, logistical, and intermediary obstacles is essential for a leap in bilateral exchanges, reports Mehr News correspondent.

Vietnam has emerged as a major production and trade hub in Southeast Asia, while Iran—with its strong petrochemical, mineral, agricultural, and chemical sectors—can supply many of this export-driven economy's needs. Yet sanctions, payment transfer issues, reliance on third countries, logistics costs, and limited Iranian business awareness of the Vietnamese market have left much of this potential untapped.

UN Comtrade data shows Iran's exports to Vietnam at about $67.84 million in 2022, with imports around $38.64 million—totaling roughly $106.5 million, well below targets. However, signs of renewed momentum are emerging. In March 2026, Vietnam's ambassador reported bilateral trade reached about $109 million over eight months, with goods like rubber, coffee, and tea flowing to Iran, while petrochemicals, IT products, and construction materials moved to Vietnam. He projected 7–10% annual growth and hoped for a 50% increase over five years.

Vietnam's total foreign trade hit a record $930.05 billion in 2025, with exports of $475.04 billion and 8.02% GDP growth—making it a far larger market than current Iran-Vietnam figures suggest.

Mostafa Mousavi, head of the Iran-Vietnam Joint Chamber, reports fresh Vietnamese requests for petrochemical and agricultural purchases, with barter deals under consideration. In some cases, Vietnam has shown readiness to buy directly and even offered to send its own ships for cargo pickup.

A key challenge has been the indirect nature of much trade, often routed through third countries like the UAE. This inflates costs, lengthens transit times, and raises sanctions-related risks. Direct trade is seen as a crucial competitiveness booster. Barter and alternative financial channels are being explored, alongside leveraging Vietnam's 2015 preferential trade agreement with the Eurasian Economic Union—which Iran joined in 2023—as a complementary access route.

Direct air links are also improving. The Tehran–Ho Chi Minh City route launched on August 31, 2026, with Tehran–Hanoi to follow soon. Trade attaché Mohsen Rezaeipour called this a game-changer for business travel, investment, and high-value, time-sensitive cargo, complementing sea freight.

In agriculture, a Vietnamese delegation recently toured apple production and packaging facilities in West Azarbaijan, with quarantine hurdles largely resolved—opening a new market beyond traditional destinations. Beyond apples, Iran can export dried fruits, processed foods, and horticultural products, while Vietnam offers coffee, rice, tea, seafood, and consumer goods.

Petrochemicals remain Iran's strongest export advantage, with some non-official estimates placing chemical exports to Vietnam in the hundreds of millions for 2025, though data discrepancies exist. Meanwhile, Iran could import electronics, machinery, and rubber products, suggesting a balanced, diversified trade basket is achievable.

Vietnam's $930 billion foreign trade landscape means Iran's $109 million share is still marginal. Yet recent steps—direct flights, quarantine progress, and interest in barter—signal a shift from "potential" to "practical pathways." If stable financial mechanisms, reduced intermediation, and better logistics take root, Vietnam could become a key Iranian market in Southeast Asia, offering not only off-take for petrochemicals and agriculture but also a gateway to broader ASEAN supply chains.

MA