Malaysia-Vietnam Aim for US$20 Billion in Two-Way Trade

Malaysia and Vietnam have become pivotal connections between each other and the global supply chains broadly. Here’s how trade works between these two burgeoning Southeast Asian economies.

On October 28, the Vietnamese delegation led by Prime Minister Pham Minh Chinh concluded their three-day working trip to attend the 47th ASEAN Summit and related meetings in Malaysia, at the invitation of Prime Minister Anwar Ibrahim. The visit highlights the productive cooperation between the two countries within the ASEAN framework.

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ASEAN has served to develop a myriad of free trade agreements that have made trading between these two countries cheaper and easier. In fact, during an earlier trip to Kuala Lumpur in May 2025 for the 46th ASEAN Summit, PM Chinh echoed his counterpart’s satisfaction with the prosperous growth of the bilateral relations following the elevation to a Strategic Comprehensive Partnership last year.

As the political and diplomatic ties between Vietnam and Malaysia deepen, so do the economic, trade, and investment cooperations.

Vietnam and Malaysia have become major trade partners over the past two decades, as each has sought to capitalize on the shift away from China and the diversification of supply chains. The bilateral trade totaled US$14.2 billion in 2024, while Malaysia remained among Vietnam’s top 10 investors, with over US$13 billion in registered capital.

Both sides agreed to work toward raising bilateral trade to US$20 billion by 2030 in a more balanced manner, while limiting trade barriers and facilitating the exchange of key products with strong growth potential. The two countries also committed to expanding cooperation in emerging sectors, including the digital, circular, and green economies.

With this in mind, the Vietnam Briefing looks at where trade between Vietnam and Malaysia is now and where it may be headed.

Trade relations between Malaysia and Vietnam

Both members of the Association of Southeast Asian Nations (ASEAN) trade between Malaysia and Vietnam are covered by several free trade agreements. These include:

• ASEAN Trade in Goods Agreement (ATIGA)
• ASEAN-China Free Trade Area
• ASEAN-Japan Comprehensive Economic Partnership
• ASEAN-Korea Free Trade Area
• ASEAN-Australia-New Zealand Free Trade Area
• ASEAN-India Free Trade Area
• ASEAN-Hong Kong, China Free Trade Area (AHKFTA)
• Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
• Regional Comprehensive Economic Partnership

See also: Vietnam’s Free Trade Agreements – Opportunities for Your Business

Vietnam-Malaysia trade performance

In the first half of 2025, total two-way trade between Vietnam and Malaysia reached US$7.78 billion, a year-on-year 5 percent increase. According to Vietnam Customs, the country’s exports to Malaysia amounted to US$2.57 billion, a 2 percent year-on-year decline, while imports rose 9.4 percent to US$5.21 billion over the same period.

Bilateral trade patterns reveal strategic openings for investors

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Data from the first half of 2025 show that 81 percent of Vietnam’s imports from Malaysia were concentrated in industrial inputs – electronics (US$1.78 billion), base metals (US$323 million), and machinery (US$425 million) – while nearly half of Vietnam’s exports to Malaysia were higher-value manufactured goods. This indicates a maturing production corridor where Malaysian capital and components fuel Vietnam’s export industries.

For investors, the numbers point to clear opportunities in electronics supply-chain integration, industrial-park logistics, and renewable-energy equipment manufacturing.

With Malaysia ranking 10th among Vietnam’s 150 foreign-investment sources and third within ASEAN, cross-border joint ventures that align with these trade patterns can capture both tariff advantages under RCEP and growing regional demand for high-tech manufacturing.

Imports to Vietnam from Malaysia

In the first half of 2025, Vietnam spent US$1.78 billion importing computers, electronic products, and components from Malaysia, a sharp 79 percent increase from US$991 million in the same period of 2024. This remained the only import category exceeding US$1 billion, underscoring Malaysia’s key role in Vietnam’s electronics supply chain.

Other major import categories valued above US$100 million included:

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• Petroleum products: US$488 million, down 61 percent year-on-year;
• Liquefied gas: US$243 million, up 56 percent;
• Chemicals: US$239 million, down 8 percent; and
• Base metals (other than iron and steel): US$323 million, up 13 percent.

Vietnam also recorded notable import values in several industrial inputs:

• Machinery, equipment, tools, and spare parts: US$425 million, up 39 percent;
• Household electrical appliances and components: US$240 million, up 17 percent;
• Plastic materials: US$200 million, up 24.7 percent;
• Animal and vegetable oils and fats: US$186 million, down 23 percent; and
• Chemical products: US$123.9 million, up 12 percent.

Together, these 10 product groups accounted for US$4.25 billion in imports, representing 81 percent of Vietnam’s total imports from Malaysia in the first half of 2025.

Some smaller but rapidly expanding import items also experienced significant increases, indicating where new trade opportunities exist:

• Fertilizers: up 51 percent to US$22.2 million;
• Paper: up 37 percent to US$76.9 million;
• Electric wires and cables: up 35.9 percent to US$49.3 million; and
• Fabrics: up 29.4 percent to US$67.9 million.

Exports from Vietnam to Malaysia

In the first half of 2025, electronics continued to lead Vietnam’s exports to Malaysia. Shipments of computers, electronic products, and components rose 54 percent YoY to US$439 million, followed by machinery, equipment, tools, and spare parts at US$221 million, a year-on-year 8.4 percent increase, and phones and components at US$202 million.

Vietnam recorded strong growth in several product categories during the same period, including:

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• Petroleum products: up 126 percent to US$30.9 million;
• Rubber: up 347 percent to US$29.1 million;
• Iron and steel products: up 128 percent to US$48.5 million;
• Fertilizers: up 56 percent to US$33.8 million; and
• Transport vehicles and parts: up 62 percent to US$142 million.

Agricultural and seafood exports also performed well, with most notable products being:

• Fruits and vegetables: US$43.4 million, up 54.7 percent;
• Seafood: US$60.5 million, up 18.2 percent;
• Coffee: US$126 million, up 59 percent;
• Tea: US$2.4 million, up 18.8 percent;
• Pepper: US$8.6 million, up 75.8 percent;
• Cassava and cassava products: US$6 million, up 4.5 percent; and
• Rice: US$114 million, down 58 percent.

Overall, the six major product groups, including electronics, machinery, phones, vehicles, rice, and coffee, accounted for US$1.24 billion, representing 48 percent of Vietnam’s total exports to Malaysia in the first half of 2025.

Vietnam-Malaysia investments

As of April 2025, Malaysian investors had established 770 valid projects in Vietnam, with total registered capital approaching US$13.6 billion. Malaysia ranked 10th among 150 countries and territories investing in Vietnam and third within ASEAN, underscoring its long-term commitment to the Vietnamese market.

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Among 18 economic sectors in which Malaysian investments are made in Vietnam, the education and training industry attracts the largest share, with seven projects valued at over US$3.6 billion. It is followed by manufacturing and processing, which accounts for 249 projects worth nearly US$2.9 billion (21.2 percent of total investment), and the power and gas sector, including five projects valued at almost US$2.5 billion (18.2 percent).

Conversely, Vietnamese businesses have invested in 27 projects in Malaysia, with a total registered capital of US$854.8 million. Most of this is concentrated in mining (US$804.2 million), followed by professional, scientific, and technical services (US$43.7 million) and wholesale, retail, and vehicle repair activities.

Malaysia FDI projects in Vietnam

Recent M&A activity highlights Malaysia’s accelerating push to secure land assets in Vietnam’s real estate market, especially in major metropolitan areas such as Ho Chi Minh City (HCMC) and Hanoi.

SkyWorld expands footprint in HCMC

Malaysian real estate developer SkyWorld Development Berhad has signed an agreement to acquire a 9,429-square-meter land plot in Lai Thieu Ward, near HCMC, for VND 864 billion. The company plans to develop a 40-story residential tower with over 1,200 apartments, alongside retail and service facilities.

The Memorandum of Understanding (MoU) was signed with Vina An Thuan Phat LLC, granting SkyWorld a three-month period for due diligence and exclusive negotiations before a final purchase agreement.

The land plot, located near Lotte Mart, Tan Cang, and VSIP Industrial Park, had previously attracted interest from major domestic developers such as Ha Do Group, Phu Dong Group, and MIK Group. SkyWorld’s expansion marks its latest major move in Vietnam’s real estate market following previous transactions worth hundreds of billions of dong.

UOA Group acquires prime downtown site in HCMC

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In August 2025, United Overseas Australia Ltd (UOA Group), through its subsidiary UOA Vietnam, acquired 100 percent of VIAS Hong Ngoc Bao JSC for USD 68 million (VND 1.7 trillion). The acquisition grants UOA ownership of a 2,000-square-meter prime land plot on Vo Thi Sau Street, Tan Dinh Ward, in District 1, HCMC.

The site is designated for a 20,000-square-meter commercial office development, further strengthening UOA’s presence in Vietnam’s premium property segment. UOA entered the Vietnamese market in 2017, and its local portfolio includes a completed office building in Phu My Hung and The MarQ luxury apartment project developed in partnership with Hongkong Land.

Gamuda Land deepens long-term commitment

Another Malaysian developer, Gamuda Land, continues to expand aggressively in Vietnam, where it has operated since 2007. The company has invested in several large-scale urban projects, including:

• Celadon City (82 ha, HCMC);
• Eaton Park (HCMC);
• Artisan Park (Binh Duong, HCMC); and
• Gamuda Gardens (260 ha, Hanoi).

Gamuda Land has also proposed participating in the planning and architectural design phase of the Binh Quoi – Thanh Da Peninsula and expressed interest in transport infrastructure, such as a potential metro line connecting HCMC and Long Thanh Airport.

Malaysia-Vietnam trade and investment moving forward

Malaysia and Vietnam set an ambitious target of US$20 billion in two-way trade by 2030, reflecting a growing economic relationship strengthened by their Strategic Comprehensive Partnership. Various free trade agreements, including ATIGA and RCEP, support trade by lowering tariffs and enhancing market access.

Trends in industrial inputs and new categories like fertilizers and fabrics offer significant investment opportunities. With Malaysia among Vietnam’s leading investors, there is strong potential for growth across sectors such as technology, manufacturing, and agriculture.

To find out more about building regional supply chains in Southeast Asia, contact the business advisory experts at Dezan Shira and Associates.

(With input from Ayman Falak.)

(This article was originally published on January 8, 2024. It was last updated on October 30, 2025.)

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