Vietnam, Myanmar target trade rebound after 30% fall

The Trade Challenge

Myanmar's President Min Aung Hlaing concluded a three-day visit to Vietnam on 2 September 2026, engaging with Vietnamese leaders including President To Lam and Prime Minister Le Minh Hung. The primary economic objective of the discussions was to invigorate bilateral trade and investment, which have experienced a notable contraction in recent years.

Statistics from the Associated Press reveal that two-way trade between the nations stood at $853 million in 2020, subsequently decreasing to $590 million by 2025. This represents a decline of approximately 30% over the five-year period.

The visit aimed to establish a framework for reversing this trend and fostering closer economic integration, particularly through targeted cooperation in key industrial sectors. This decline has prompted both countries to seek new avenues for collaboration, with a focus on specific industries that can drive trade volume and capital flows in the coming years.

Key Cooperation Areas

Discussions during the visit identified several specific sectors for enhanced collaboration. A statement from the Vietnamese government highlighted an agreement to expand cooperation in digital technologies.

President Min Aung Hlaing, speaking at the Myanmar-Viet Nam Business Forum in Hanoi on 2 September 2026, further specified Myanmar's interest in increasing cooperation with Vietnam in telecommunications, technology, manufacturing, agriculture, energy, tourism, and human resources development, as reported by the Global New Light of Myanmar.

These areas represent strategic priorities for both economies. The Myanmar President also held meetings with prominent Vietnamese enterprises, including electric vehicle manufacturer VinFast and the military-affiliated telecommunications group Viettel, which operates Mytel, a major telecom provider in Myanmar.

These engagements demonstrate a direct focus on leveraging private sector capabilities to achieve bilateral economic objectives.

Investment Focus

A central theme of the visit was Myanmar's explicit call for increased Vietnamese investment. President Min Aung Hlaing articulated this objective at the Myanmar-Viet Nam Business Forum, urging greater bilateral economic cooperation.

This aligns with Myanmar's broader strategy to attract foreign capital, as evidenced by the business and political delegations accompanying him on various international visits since his inauguration in April 2026.

The identified sectors for cooperation, such as manufacturing, energy, and digital technologies, are areas where Vietnamese firms possess established expertise and capital, presenting potential avenues for direct investment.

Vietnam's President To Lam, during the talks, expressed Vietnam's readiness to share its experience in national development, ensuring economic security and fostering sustainable growth, according to a Vietnamese government statement. This suggests a willingness to provide technical and strategic support alongside capital.

Bilateral Economic Commitments

Beyond specific sector agreements, the two nations reaffirmed a broader commitment to deepen economic ties. The discussions underscored a mutual interest in expanding the scope of bilateral economic engagement, moving beyond traditional trade to include more complex areas like technology transfer and human capital development.

Vietnam's Prime Minister Le Minh Hung, during his meeting with President Min Aung Hlaing on 30 August 2026, acknowledged Myanmar's efforts in national governance and affirmed Vietnam's support for measures promoting economic development and improving livelihoods, as reported by Vietnamese state media.

This indicates a shared understanding that economic stability and growth are foundational to the bilateral relationship. The emphasis on sustainable growth and economic security, as articulated by President To Lam, suggests a long-term perspective on the benefits of this renewed cooperation.

Outlook for Trade Recovery

The visit by Myanmar's President Min Aung Hlaing to Vietnam on 29 August – 2 September 2026 signals an intent to reverse the recent decline in bilateral trade and investment. For decision-makers, the critical metric to monitor will be the trajectory of two-way trade figures in the coming reporting periods. The $590 million recorded in 2025 serves as the current baseline.

Any significant increase beyond this figure in the 2026 full-year trade statistics, typically released in early 2027, would demonstrate initial progress on the stated objectives. Continued engagement in the identified sectors of digital technologies, manufacturing, and agriculture will be essential for sustaining any recovery.

The success of these initiatives will be reflected in the volume of goods and services exchanged and the flow of Vietnamese direct investment into Myanmar, providing a quantifiable measure of the economic partnership's revitalisation.