Historical Foundations of Azerbaijan–Vietnam Relations
Azerbaijani-Vietnamese relations have deep historical roots dating back to the Soviet period, when close ties were established between the two countries through the personal contacts of leaders Ho Chi Minh and Heydar Aliyev. Following Azerbaijan’s independence, diplomatic relations were officially established on September 23, 1992, laying the foundation for the further development of political, economic, and cultural cooperation. Over the past decades, both countries have consistently strengthened their partnership, despite geographical distance, and today they are united by traditional friendship and mutual respect.
In the economic sphere, cooperation between Azerbaijan and Vietnam is of a strategic nature. In 2012, an agreement was signed between the State Oil Company of Azerbaijan (SOCAR) and the Vietnamese corporation Petro-Vietnam on the main commercial principles and terms of a contract for the rehabilitation, exploration, production, and profit-sharing of the Muradkhanli–Jafarli–Zardab onshore oil block in Azerbaijan. In the following years, the two sides actively expanded their cooperation in the oil and gas industry, trade, transport, and logistics. Bilateral trade turnover has fluctuated: in 2022 it reached $702.5 million, in 2023 it was around $250 million, and in early 2025 it exceeded $100 million. In May 2025, several new memorandums of cooperation were signed in the fields of energy, digital technologies, culture, archival work, and support for small and medium-sized enterprises, reflecting the intention to elevate relations to the level of a strategic partnership.
Cultural and humanitarian cooperation also plays a key role in the bilateral agenda. A striking example is the work of the Heydar Aliyev Foundation in Vietnam, aimed at supporting educational and social initiatives, as well as active interaction in the fields of literature and the arts. [3] Joint educational projects contribute to bringing the peoples closer together, building sustainable humanitarian ties, and strengthening mutual understanding between Azerbaijan and Vietnam.
Azerbaijan and Vietnam’s Evolving Energy Partnership
Energy cooperation between Azerbaijan and Vietnam holds a special place in their bilateral relations and stands as one of the key areas of partnership. Azerbaijan, endowed with abundant oil and gas reserves, has long established itself as a reliable partner in the global energy market. Vietnam, for its part, is actively developing its own oil and gas industry and is interested in exchanging experience and technologies.
One of the first significant steps toward energy collaboration was the signing of an agreement in 2015 between the State Oil Company of Azerbaijan (SOCAR) and Vietnam’s state corporation PetroVietnam. [4] This agreement opened up new opportunities for joint projects in oil and gas exploration, production, and processing. As part of this cooperation, the two sides exchange specialists, conduct joint scientific research, and discuss investment prospects in the petrochemical industry.
Particular attention is paid to improving hydrocarbon production efficiency, implementing modern technologies, and adopting environmentally safe production methods. Azerbaijan shares its expertise in oil resource management with its Vietnamese partners, while Vietnamese specialists contribute innovative solutions in the fields of energy processing and transportation. Regular meetings at the ministerial level and between industry-specific companies further strengthen mutual trust and promote the development of long-term partnerships.
Advancing Strategic Energy Partnership between Azerbaijan and Vietnam
In recent years, energy cooperation between Azerbaijan and Vietnam has been expanding through new avenues such as renewable energy, digitalization of the energy sector, and joint educational programs for training specialists. During the recent visit of To Lam, General Secretary of the Central Committee of the Communist Party of Vietnam, to Baku, President Ilham Aliyev of Azerbaijan emphasized the importance of broadening energy cooperation between the two countries. According to the President, the signed documents and conducted negotiations confirm that cooperation in this sphere is poised to reach a new level in the near future.
To date, cooperation has been primarily realized in the format of trade operations, but both sides agreed on the need to transition toward mutual investments, including the involvement of Vietnamese companies in Azerbaijan and Azerbaijani companies in Vietnam. Relevant institutions have already been tasked with taking concrete steps to implement these initiatives.
A particular focus during the talks was placed on the development of renewable energy cooperation. President Aliyev noted that under the newly signed contracts, Azerbaijan will receive 6,500 megawatts of new clean energy over the next five years and extended an invitation to Vietnamese companies to participate in these projects. [5] Simultaneously, Azerbaijan expressed its readiness to invest in the development of renewable energy in Vietnam, opening new prospects for bilateral technological exchange and joint investments in the green economy.
To affirm the strategic nature of the partnership, a Memorandum of Understanding was signed between the Ministry of Energy of Azerbaijan and the Ministry of Industry and Trade of Vietnam, as well as agreements between SOCAR and Petro-Vietnam, the national oil and gas corporations. These documents outline the expansion of cooperation in the oil and gas sector, technology exchange, joint training programs, and the development of new directions, including energy sector digitalization and innovation.
Future Perspectives
Thus, energy cooperation is becoming one of the key pillars of the strategic partnership between Azerbaijan and Vietnam. The expanding energy cooperation between Azerbaijan and Vietnam is set to transform from primarily trade-based interactions into a strategic, investment-driven partnership encompassing oil and gas, renewable energy, digitalization, and human capital development. A key focus lies in renewable energy collaboration, as Azerbaijan and 6,500 MW of clean energy capacity over the next five years and invites Vietnamese participation while also committing to invest in Vietnam’s green energy projects—fostering technology transfer and joint innovation.
Given Azerbaijan’s ongoing large-scale reconstruction and development efforts in Karabakh, there may be emerging opportunities for Vietnamese companies to participate in related projects—particularly in sectors aligned with their strengths, such as renewable energy, infrastructure, and technology. It is plausible that Vietnamese companies may explore future engagement in Karabakh as the region’s economic environment stabilizes and investment frameworks become clearer. The dialogues between the two countries further support the potential for Vietnamese investors to gain access to projects in Karabakh, particularly those connected to sustainable development and reconstruction.
Moreover, digital transformation initiatives will enhance operational efficiency through smart grids, automation, and data analytics, supported by expanded bilateral educational programs aimed at training highly skilled specialists. Institutional mechanisms, such as the revitalized intergovernmental commission, will ensure sustained policy coordination and facilitate diversified trade flows beyond hydrocarbons, strengthening economic resilience and aligning both countries with global sustainability and energy security goals. This comprehensive partnership marks a forward-looking model of bilateral cooperation with significant implications for regional energy dynamics and sustainable development.
