This is the first visit to Vietnam by a senior Ethiopian leader since the two countries established diplomatic relations, and also marks the first high-level delegation exchange activity between the two countries in seven years.
Located in the Horn of Africa, Ethiopia is a market with great potential, boasting a large economy and population of about 130 million people, making it the second most populous country in Africa.
In recent years, Ethiopia’s economy has consistently grown at a high and relatively stable rate, regarded as a bright spot for economic development in Africa. Ethiopia is the fastest-growing economy on the continent, with an average growth rate of 9% from 2011 to 2019 and over 6% from 2020 to 2024. In 2024, Ethiopia’s economic growth reached 8.2%.
Ethiopia is currently the largest economy in East Africa and the 5th largest in Africa.
From 2021 to 2023, Ethiopia’s average total import-export turnover ranged from 18 to 21 billion USD. Ethiopia’s main export products include coffee, gold, leather products, and oilseed crops; while its main imports are foodstuffs, oil and petroleum products, chemicals, machinery, transportation equipment, grains, and textiles.
Ethiopia is in the early stages of market liberalisation and privatisation of state-owned enterprises, offering many opportunities for foreign businesses to participate.
Since 2018, Prime Minister Abiy Ahmed Ali has implemented strong reforms such as the Self-Reliance Economic Reform Programme, promoting privatisation, attracting foreign investment, prioritising telecommunications, agriculture, and infrastructure development to support industrialisation and urbanisation, aiming to become a middle-income country by 2025.
In digital transformation, Ethiopia is implementing the ‘Digital Ethiopia 2025’ national strategy, aiming to digitise the economy by 2025.
With Ethiopia’s ratification of the African Continental Free Trade Area (AfCFTA), foreign businesses can leverage Ethiopia’s position as a regional trade hub to penetrate the East African market.
As a member of many international and regional organisations and with a central location in the Horn of Africa — the gateway to East Africa — Ethiopia hosts the headquarters and regional offices of over 90 international and regional organisations.
Prime Minister Abiy Ahmed Ali’s official visit to Vietnam takes place amid the continued development of traditional friendship and cooperation between Vietnam and Ethiopia.
The two countries established diplomatic relations on February 23, 1976, and are preparing to celebrate the 50th anniversary of bilateral diplomatic ties in 2026.
The Communist Party of Vietnam maintains good relations with Ethiopia’s Prosperity Party (the ruling party) and previously with the Ethiopian People's Revolutionary Democratic Front (1988–2019).
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| Ethiopian Prime Minister Abiy Ahmed Ali and his spouse welcomed at Noi Bai International Airport in Hanoi on April 14 by Vietnamese Deputy Minister of Foreign Affairs Nguyen Minh Hang (Photo: VNA) |
High-ranking leaders of the two Parties frequently exchange greetings and congratulations on the occasion of each other's congresses. The two sides consistently support one another at multilateral forums and international organisations.
Ethiopia has recognised Vietnam as a market economy since 2014. The two countries have signed many cooperation agreements in culture, economy, and trade.
Bilateral trade turnover in the past four years has stood at 10-15 million USD per year. In 2024, two-way trade reached 13.1 million USD, with Vietnam’s exports accounting for 7.11 million USD.
Vietnam exports agricultural products, consumer goods, and industrial items such as machinery, equipment, fibres, and chemicals to Ethiopia.
Vietnam mainly exports machinery, equipment and spare parts, textile fibres, and chemicals to Ethiopia. In return, Ethiopia exports coffee, textile materials, and leather products.
Regarding investment, MK Group, the only Vietnamese enterprise with a joint venture in smart card production in Ethiopia. As of the end of October 2024, Ethiopia has one valid investment project in Vietnam with a total capital of 10,000 USD.
Vietnam and Ethiopia are enhancing cooperation in economy, trade, and investment, promoting collaboration in new potential fields such as food, seafood, pharmaceuticals, Halal products, textiles, telecommunications, and digital transformation.
Vietnam’s reception of the Ethiopian prime minister aims to continue implementing the foreign policy of the 13th National Party Congress on independence, self-reliance, multilateralisation, diversification, and proactive and active international integration, while realising the project on developing relations between Vietnam and countries in the Middle East-Africa region for 2016-2025 and the project on developing relations between Vietnam and the African Union for 2021-2025. It also affirms Vietnam’s consistent policy of valuing and wishing to further promote relations with African countries, including Ethiopia.
Based on the foundation of traditional friendship and great potential for cooperation in many fields, the Ethiopian prime minister’s visit will bring bilateral relations to a new phase with more effective and substantive development, deserving the potential of each country, contributing to peace, cooperation, and development in the region and the world at large.
