Vietnam and Ethiopia have officially signed a Memorandum of Understanding (MoU) on Trade Cooperation, defining the goals, scope, areas of collaboration, and methods of coordination between the two countries.
At the invitation of Prime Minister Pham Minh Chinh and his spouse, Ethiopian Prime Minister Abiy Ahmed Ali and his spouse paid an official visit to Vietnam and attended the 4th P4G Summit (Partnering for Green Growth and the Global Goals 2030) held in Hanoi from April 15–17, 2025.
Strengthening Bilateral Cooperation
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During the visit, Minister of Industry and Trade Nguyen Hong Dien took part in several key activities, including:
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The official welcoming ceremony,
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The bilateral talks between Prime Minister Pham Minh Chinh and Prime Minister Abiy Ahmed Ali, and
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The meeting between General Secretary To Lam and the Ethiopian Prime Minister.
Notably, on April 15, immediately following the bilateral talks between the two Prime Ministers, Minister Nguyen Hong Dien and Minister of Foreign Affairs of Ethiopia Gedion Timothewos Hessebon signed the Memorandum of Understanding on Trade Cooperation, witnessed by both heads of government.
This document represents a significant milestone, establishing the framework for trade cooperation, implementation mechanisms, and joint efforts to boost bilateral trade relations between Vietnam and Ethiopia.
Ethiopia – A Promising Market in Africa
Located in the Horn of Africa, Ethiopia is a potential market with a population of around 130 million, making it the second most populous country in Africa.
The country has maintained impressive economic growth, averaging 9% from 2011 to 2019 and over 6% from 2020 to 2024, positioning itself as one of Africa’s fastest-growing economies. In 2024, Ethiopia recorded 8.2% GDP growth.
As the largest economy in East Africa and fifth largest in the continent, Ethiopia’s trade turnover ranged between USD 18–21 billion from 2021 to 2023. The country is rich in minerals (gold, platinum, lithium, tantalum), agricultural resources (coffee, cotton, oilseeds), and a young workforce. Notably, Ethiopia is Africa’s largest coffee producer and the fifth-largest Arabica coffee producer in the world.
Growing Vietnam–Ethiopia Trade Relations
Trade relations between Vietnam and Ethiopia remain modest but are steadily expanding. From USD 10.1 million in 2019 to USD 13.2 million in 2024, bilateral trade has shown consistent growth.
Vietnam’s exports to Ethiopia include plastic products, electrical machinery, mechanical equipment, and chemicals, while its imports mainly consist of coffee, fabrics, cotton, footwear materials, oilseeds, sesame, and soybeans.
The complementary trade structure between the two nations offers mutual benefits and low competition, paving the way for the newly signed MoU to become a major driver of future cooperation.
Key Takeaways
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The MoU establishes a formal framework for trade collaboration between Vietnam and Ethiopia.
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Ethiopia presents great potential in Africa with its growing economy and strong demand for manufactured goods.
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Vietnam’s strategic export capabilities and Ethiopia’s rich natural resources create a mutually beneficial partnership.
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The agreement is expected to enhance trade volume, encourage investment, and strengthen economic ties.