Vietnam–New Zealand: A Comprehensive Strategic Partnership for the Future

In February 2025, Vietnam and New Zealand elevated their bilateral relations to a Comprehensive Strategic Partnership, marking a significant milestone in their 50-year diplomatic history. This advancement reflects a shared commitment to deepening cooperation across various sectors, including politics, defense, economics, education, and climate change. The partnership aims to foster mutual prosperity and contribute to regional stability in the Indo-Pacific.

Historical Context and Diplomatic Milestones

The foundation of the two countries’ relations was laid in 1975 with the establishment of diplomatic ties. Over the years, the relationship has evolved through several key phases:

• 1993: Vietnamese Prime Minister Vo Van Kiet’s visit to New Zealand marked the first high-level exchange between the two nations.
• 1995: New Zealand opened its embassy in Hanoi, followed by Vietnam’s establishment of an embassy in Wellington in 2003.
• 2009: The countries upgraded their ties to a Comprehensive Partnership.
• 2020: The relationship was further strengthened to a Strategic Partnership.
• 2025: The Comprehensive Strategic Partnership was formalized, reflecting the dynamic and forward-looking nature of their bilateral engagement.

Regional and Multilateral Cooperation

Vietnam and New Zealand actively engage in regional and multilateral forums, including the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP). Their cooperation in these platforms underscores their shared commitment to an open, inclusive, and rules-based international order.

Overview of FDI Relations

The two countries have cultivated a robust economic partnership, with Foreign Direct Investment (FDI) serving as a pivotal component. As of Mar 2025, New Zealand has 57 valid direct investment projects in Vietnam, totaling approximately USD 208.61 million in registered capital. These investments position this country as Vietnam’s 39th largest foreign investor out of 143 countries and territories.

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

Key Sectors of Investment

1. Agriculture and Horticulture

Agriculture remains a cornerstone of the Vietnam-New Zealand FDI relationship. In 2024, New Zealand announced a NZD 6.24 million investment in Vietnam’s horticulture sector, underscoring the potential for collaboration in this area. Additionally, New Zealand companies have shown interest in investing in dairy farms and milk processing in Vietnam, aiming to leverage the country’s strengths in dairy production.

2. Processing and Manufacturing

New Zealand’s investments in Vietnam’s processing and manufacturing sectors are diverse, encompassing areas such as food processing, electronics, and machinery. These investments contribute to the enhancement of Vietnam’s industrial capabilities and the creation of value-added products for both domestic consumption and export markets.

3. Wholesale and Retail

The wholesale and retail sector has witnessed increased interest from New Zealand investors, focusing on distribution networks and retail operations in Vietnam. This sector’s growth aligns with Vietnam’s expanding consumer market and the increasing demand for diverse products and services.

4. Education and Training

Education and training represent significant areas of collaboration, with New Zealand institutions providing expertise and resources to enhance Vietnam’s educational infrastructure. This partnership supports Vietnam’s human resource development goals and fosters long-term bilateral ties.

Strategic Initiatives and Future Prospects

The elevation of Vietnam-New Zealand relations to a Comprehensive Strategic Partnership in February 2025 signifies a commitment to deepening economic and investment cooperation. This partnership aims to enhance collaboration across various sectors, including agriculture, education, and manufacturing, fostering mutual prosperity.

Looking ahead, both nations are poised to explore new avenues for investment, particularly in emerging industries such as renewable energy, technology, and infrastructure. Vietnam’s strategic location and growing consumer market present attractive opportunities for New Zealand investors seeking to expand their presence in the Southeast Asian region. Simultaneously, New Zealand’s expertise in sustainable practices and innovation offers valuable insights for Vietnam’s development initiatives.

Source: various sources

Read more about Vietnam’s FDI attraction in the first 5 months of 2025 here.