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Three-quarters of a century of friendship: Vietnam–Hungary economic relations

On the occasion of the 75th anniversary of the establishment of Hungarian-Vietnamese diplomatic relations, the two countries commemorated this important milestone through a series of cultural events. Their relations are presented through a range of interesting facts, with special emphasis on bilateral economic cooperation. This paper provides insights into how Hungarian–Vietnamese relations have evolved over the past 75 years and what factors support strong bilateral ties between the parties.

Valuable historical friendship

The establishment of diplomatic relations between the two states dates back to 3 February 1950, when Hungary recognized the independence of the Democratic Republic of Vietnam (better known as North Vietnam). From the very beginning, Budapest maintained friendly relations with Hanoi, founded on mutual interest and respect. The deepening of cooperation was particularly fostered by President Ho Chi Minh’s visit to Budapest in 1957. Thus, Hungarian-Vietnamese diplomatic relations have a history spanning several decades, rooted in tradition and partnership.

North Vietnam declared its independence on 2 September 1945, at the end of the Second World War. In the post-war period, both countries belonged to the bloc of “socialist states” and in the spirit of close solidarity among nations with similar political systems – based on the principles of friendly cooperation and mutual assistance – Hungary provided significant support to Vietnam during the period of state-building and nation-building. Moreover, during the Second Indochina War (better known as the Vietnam War) Hungary stood by the Vietnamese people, offering invaluable assistance. Within the framework of educational cooperation, Hungary supported North Vietnam by offering opportunities to acquire the professional knowledge and skills necessary for carrying out key state-building and development tasks. As a result, from the mid-1950s onward, thousands of talented valedictorians selected by the Vietnamese state came to Hungary to study and conduct research. Their mission was to return home with the knowledge they had gained and contribute as highly trained professionals to the reconstruction and development of their homeland, supporting the resurgence of the war-torn country of Vietnam. Between 1950 and 1989, more than 4,000 Vietnamese party cadres working in scientific and technological fields received Hungarian state scholarships. Furthermore, during the 1980s, as part of vocational training and labor cooperation programs, several hundred trained Vietnamese workers were employed in various Hungarian manufacturing plants, helping to alleviate labor shortages at the companies involved.

Hungary also forgave Vietnam’s debt accumulated before 1973, and between 1973 and 1975 a several hundred strong Hungarian contingent carried out peacekeeping activities in South Vietnam. Although it is less well known, the people of Vietnam hold deep gratitude toward Hungary – especially for the unforgettable demonstrations held during the Vietnam War, accompanied by the encouraging slogan “Standing with Vietnam!” and posters reading “Peace for Vietnam!”, these acts of solidarity left a lasting impression. The Vietnamese people likewise highly appreciate Hungary’s humanitarian assistance, particularly the blood donation campaigns and fundraising efforts organized to help save Vietnamese lives, for which they regularly express their gratitude in various diplomatic forums. Most recently, at the height of the COVID-19 pandemic, Hungary supported the Asian nation with several hundred thousand doses of vaccines and medical supplies.

The experiences gained during Vietnam’s post-1986 economic reform and Hungary’s political and economic restructuring following the 1989 regime change have provided a solid foundation for further expanding bilateral cooperation. Between 1990 and 1992, relations between the two countries were limited and remained generally modest until 2003, and became dynamic again from 2004 onward. Since 2010, Budapest and Hanoi have devoted particular attention to deepening their friendship-based relationship and continuously seeking new opportunities to strengthen cooperation between the two nations. As part of these efforts, representatives from both sides regularly organize meetings, dialogues, and delegation exchanges at the state, governmental, institutional, municipal, and expert levels. Hungary and Vietnam have concluded several significant bilateral interstate, intergovernmental and interministerial agreements, under which measures to enhance cooperation are continuously implemented. Moreover, recent high-level political visits, signed cooperation agreements and interinstitutional collaborations reflect the goals set out in the bilateral strategic framework. It was a major leap forward in September 2018 when Hungary became the first country in Central Europe to establish a deeper level of engagement with Vietnam beyond the traditional friendly relationship.

It is important to note that Vietnam distinguishes between three types of partnerships:

  1. comprehensive strategic partnership,
  2. strategic partnership and
  3. comprehensive partnership.

So far, the Indochinese state has established comprehensive partnerships with around 14 countries. Vietnam considers its relationship with Hungary to be on the same level as with South Africa, the United Arab Emirates, the Netherlands, Canada and Switzerland. In this context, the bilateral relationship between the two countries is not based solely on economic and financial considerations. Equal emphasis is placed on priorities in foreign policy, diplomacy, law and justice, education, culture, healthcare, sports, tourism, security, energy, law enforcement, defense, water management, agriculture and scientific cooperation. Furthermore, both parties emphasized the importance of strengthening consultations and effective cooperation within multilateral organizations and forums. At diplomatic events, Hanoi consistently highlights the significance of its deep-rooted, friendship-based relationship with Hungary and regards Hungary as one of its most important partners in Central Europe. The same perspective is evident on Budapest’s side as well: among the member states of the Association of Southeast Asian Nations (ASEAN), Vietnam is considered one of Hungary’s most important partners.

Visit of the Vietnamese Prime Minister to Budapest in 2024. Source: Facebook/Viktor Orbán

The past 75 years represent a long journey marked by noteworthy events. These include the time when the first Vietnamese people entered Hungary in connection with an invitation to the 1949 World Festival of Youth and Students in Budapest, and two of them stayed to study. In the 1950s, a love affair blossomed in Budapest between a young Hungarian woman and a young Vietnamese man, which soon led to the creation of the first Hungarian-Vietnamese family. As a result, the first Hungarian citizen of Vietnamese descent was born. During the socialist era, Vietnamese students were strictly forbidden from forming romantic relationships with foreigners for political and ideological reasons. Those who broke this rule were often stigmatized and immediately sent back home. Nevertheless, many continued their relationships in secret with their Hungarian partners, and the luckiest couples eventually managed to marry. Tragically, some stories had darker outcomes. In the early 1970s, a couple preparing to get married was forcibly separated as a form of retaliation: the Vietnamese partner was put on a train despite the fact that his Hungarian partner was pregnant. From this forbidden love, a Vietnamese-Hungarian child was eventually born, who could not meet his Vietnamese parent until adulthood, and only found his biological father decades later.

Although the Hungarian language is known as one of the most difficult foreign languages to learn, the first Hungarian-Vietnamese dictionary and the language textbook titled “Hungarian-Vietnamese Conversation – Let’s Learn Languages!” were published in Hungary in 1974. These publications were the result of many years of work by several dozen Vietnamese guest students. Their significance remains decisive in strengthening bilateral economic and cultural relations, and their impact is still felt today. In this context, numerous works by Hungarian writers and poets, including Sándor Petőfi, János Arany, Attila József, Endre Ady, Géza Gárdonyi, Ferenc Molnár, Sándor Márai etc., have been successfully translated into Vietnamese, while important works by well-known Vietnamese authors such as Du Nguyễn, Hữu Tố, Minh Châu Nguyễn, Đình Thi Nguyễn, Ngọc Tấn Bùi, Đăng Khoa Trần, Hồng Nguyên etc. have been translated into Hungarian. In 2015, the first accredited bilingual dictionary was published, and in 2023 the first Hungarian-Vietnamese co-production film, titled “Our Blossom”, premiered in cinemas. A true rarity in Central Europe is the life-size statue of Ho Chi Minh in Zalaegerszeg, symbolizing Hungarian-Vietnamese friendship. In honor of orientalist Sándor Kőrösi Csoma, a commemorative plaque was also erected in the municipality of Vung Tau, Vietnam.

Today, the number of Vietnamese intellectuals who have earned degrees from Hungarian higher education institutions exceeds 5,000. Several of them have also received Hungarian state honors in recognition of their outstanding contributions. Most of the former guest students returned to Vietnam, forming the largest non-native Hungarian-speaking community in the world. Many of them, both in the past and today, play important roles in the political, scientific, economic or cultural field, and have significantly contributed to the deepening and development of Hungarian-Vietnamese relations. Currently, more than one thousand Vietnamese students are pursuing higher education studies in Hungary, a number that has never been this high before. Each year, the Hungarian Stipendium Hungaricum program provides 200 scholarships to Vietnamese students.

Source: Facebook/Consulate General of Hungary in Ho Chi Minh City

Thanks to Hungary’s political reforms in 1989 and the Vietnamese state’s openness, the number of Vietnamese living in Hungary began to gradually increase from the early 1990s. While the Vietnamese population numbered nearly 1,300 in 1990, today – counting dual citizens but excluding the several thousand Vietnamese guest workers – it is estimated at around 8,000. The first generation of this community consists of Vietnamese who arrived in Hungary during the 1970s and 1980s. Vietnamese people born or raised in Hungary represent an extremely valuable and productive intellectual and creative workforce for the country, thanks primarily to their excellent Hungarian and foreign language skills, high level of education, capacity for integration and frequently developing dual identity. Within the Vietnamese community in Hungary, there are approximately 2,000 Vietnamese-Hungarian intellectuals and nearly 2,500 Hungarian citizens who speak Vietnamese. Members of this community are mainly entrepreneurs and students who actively contribute to the operation and development of the Hungarian economy, demonstrate strong social responsibility, and are committed to Hungary’s welfare.

As for Hungarians living in Vietnam, their exact number is currently unknown, but unofficial sources estimate it at around 100. Although the number of Hungarian students studying in Vietnam is still small, bilateral educational cooperation has made Vietnamese government scholarships available to young Hungarians. Civil society organizations serve as bridges connecting the two countries. These include the Association of Vietnamese Entrepreneurs in Hungary, the Hungarian-Vietnamese Friendship Association in Hungary, the Association of Vietnamese in Hungary, the Vietnamese-Hungarian Friendship Society in Vietnam, the Association of Vietnamese Youth, the Hungary-Vietnam Center for Trade, Cultural Support and Development, and the Foundation for Hungarian-Vietnamese Relations. Through their active involvement, these organizations contribute significantly to maintaining, energizing and strengthening bilateral trade and cultural relations.

The invaluable historical heritage, along with the dedicated work of exemplary communities and organizations, forms a strong and living link between the Hungarian and Vietnamese nations. This link not only connects our shared past but also unites our future in the spirit of friendship, cooperation and mutual respect. With this friendly relationship, both Vietnam and Hungary can rely on valuable social capital, a respected intellectual community, and diligent, trustworthy people who play a key role in the continuous strengthening of bilateral economic and social cooperation. They also represent an indispensable alliance in fostering unity in international forums and promoting successful access to global markets. It should be noted, however, that an increasing number of members of the first generation are passing away, and therefore both nations must prepare in time to involve the next generations in carrying forward this shared heritage. They can be the ones who contribute to shaping a more diverse, open, and developed future for both Hungary and Vietnam.

The modern era development of Vietnam’s economy

Macroeconomic data from recent decades reveal that Vietnam is not only one of the fastest-developing members of ASEAN, but also one of the dynamically flourishing nations of our modern world. The country boasts favorable geological conditions, rich natural resources, as well as a diverse historical and cultural heritage and tradition. With a history spanning nearly five-thousand years, this Asian nation continues to experience steady annual growth in both its population and economy.

According to projections by the United Nations (UN), Vietnam is currently the 16th most populous country in the world, and its population is expected to exceed 102 million by 2026, continuing to grow by several hundred thousand people annually thereafter. Once referred to by the French as the “Pearl of Far East,” the country has undergone remarkable economic transformation over the past 50 years through hard work and perseverance. Between 1985 and 2024, Vietnam’s economy achieved an average annual growth rate of over 6%, expanding in size by more than 3,000% during this period. In 2024, Vietnam’s nominal gross domestic product (GDP) reached USD 476.39 billion, making it the world’s 32nd largest economy – representing a 7.09% increase compared to the previous year. In terms of purchasing power parity (PPP), Vietnam’s GDP amounted to USD 1.65473 trillion, ranking it as the 24th largest market globally. Vietnam’s trade balance in 2024 recorded a surplus of USD 24.77 billion, with total foreign trade turnover reaching USD 786.29 billion. Imports amounted to USD 380.76 billion, while exports totaled USD 405.53 billion – enough to place the country among the world’s top 25 exporters.

Following U.S. President Donald Trump’s April announcement of tariff increases, the Organisation for Economic Co-operation and Development (OECD) projected Vietnam’s GDP growth at 6.2% for 2025 and 6.0% for 2026. In contrast, the International Monetary Fund (IMF) issued a more moderate forecast – 5.2% for 2025 and 4% for 2026. Meanwhile, in the first half of 2025 Vietnam recorded a 7.52% year-on-year GDP growth rate, while the leaders of this so-called “Tiger Cub Economy” nation expect the economy to expand by at least 8% by the end of the year. Interestingly, according to a 2022 report by the Centre for Economics and Business Research (CEBR), Vietnam’s economy could become Southeast Asia’s second most significant and the world’s 20th largest market by 2036, provided it maintains an average annual growth rate of around 6.5%.

Economic relations between Hungary and Vietnam

Hungary is an open, small and largely export-dependent economy that is sensitive and vulnerable to external factors such as economic crises, pandemics, or armed conflicts. For this reason, in order to ensure long-term competitiveness, the country must not only strengthen its domestic market but also make it competitive and sustainable. Since 2010, within the framework of its economic policy, the Government of Hungary has developed foreign economic strategies and packages of measures – many of which are still being implemented – with the aim of supporting the improvement of the operating environment of Hungarian enterprises, enhancing the nation’s economic competitiveness and increasing export revenues. At the same time, the inflow of foreign direct investment (FDI) into Hungary has become a key factor. Consequently, the policies of “Opening to the East and South, Maintaining the West” were proclaimed. In recent years, Hungarian FDI directed toward developing countries has become increasingly significant, potentially contributing to the further growth of the Hungarian economy. Within Hungary’s foreign economic strategy, relations with Asia, particularly with the Southeast Asian region, have seen growing emphasis. At a Hungarian-Vietnamese Business Forum held in 2013, Deputy Prime Minister Tibor Navracsics emphasized that for Hungary, building relationships with reliable, long-term business partners outside the European Union, based on mutual interests, is of strategic importance. Consequently, growing trust can be observed between Budapest and Hanoi, along with the strengthening of cooperation built on shared benefits, which has continuously reinforced the economic and trade relations between the two countries. In the context of Hungarian-Vietnamese economic relations, the Indochinese state – beyond its natural resources – fits well into Hungary’s vision, which primarily aims to expand Hungary’s foreign economic relations, diversify the geographical structure of exports and increase the export orientation of Hungarian enterprises. To implement this vision effectively and pragmatically, Hungary offered Vietnam a tied aid credit package worth 500 million euros. The program’s objectives include promoting trade relations, strengthening the foundations of economic cooperation, and creating export opportunities for Hungarian companies. In the long term, the Stipendium Hungaricum scholarship program, serving as a tool of “soft power”, also supports similar goals by fostering the deepening of economic, cultural, and educational ties.

Compared to the performance between 1995 and 2013, trade between the two countries has shown significant growth and qualitative improvement over the past eleven years. This development has been achieved partly as a result of Budapest’s “Opening to the East” policy and partly due to Hanoi’s openness. In light of this, bilateral trade between the two nations has been developing promisingly, as the well-considered foreign economic strategy – particularly over the last decade – has been able to respond swiftly and flexibly, providing strong incentives for businesses on both sides. In addition, bilateral agreements between the European Union and Vietnam also exist and have created favorable conditions, enhancing economic relations and making the market environment more secure. These agreements have further advanced Hungarian-Vietnamese trade and investment which already rest on long-standing traditions. The EU-Vietnam Free Trade Agreement (EVFTA), which entered into force in August 2020, is one of the most modern, comprehensive and ambitious trade agreements in existence. It will gradually eliminate 99% of tariffs by 2030 and also covers areas such as climate protection, labor rights and human rights. The EVFTA serves as a bridge for Hungarian and Vietnamese exports and provides access to the dynamically developing ASEAN region. The new-generation EU-Vietnam Investment Protection Agreement (EVIPA) is in line with Hungary’s position on EU-level investment protection agreements, as it establishes an Investment Court System, featuring a modernized and more transparent appeals mechanism, a standing tribunal composed of members appointed by the contracting parties and shared cost arrangements. The agreement negotiated with Vietnam reflects the EU’s new approach to investment protection, taking into account, among other things, the right of states to regulate and the rules concerning fair and equitable treatment. In this light, the EVIPA enhances the security of investment activities conducted by Hungarian and Vietnamese economic actors both in Vietnam and within the European Union. Hungary was among the first EU member states to ratify the EVIPA. Although this agreement has not yet entered into force, it appears promising for the economic operators of both parties. The concluded EU agreements have greatly contributed to the further development and deepening of Hungarian-Vietnamese bilateral and pragmatic cooperation. Therefore both sides can be regarded as beneficiaries of the current regional network of relations, while the countries of the respective regions also profit from the advantages derived from their organizational memberships.

  • By the end of 2024, the number of Hungarian foreign direct investment (FDI) projects registered in Vietnam had reached 21, with a total value exceeding 72.26 million USD.
  • In contrast, Vietnamese FDI registered in Hungary is limited to just two projects with a combined value of 5.8 million USD.

Currently, a Vietnamese investment project valued at 80 million USD is in preparation within the Hungarian hotel industry and is presently undergoing the investment licensing process.

Despite the fact that Hungarian companies face strong competition – from both emerging Vietnamese enterprises and global multinational corporations – several market players have successfully maintained their presence in the Southeast Asian country. Notable examples include EGIS, Gedeon Richter and Törley, all of which have been active in Vietnam for several decades. In addition, a number of Hungarian businesses have achieved significant market results, such as Zoltan’s Little Hungary, Babati és Társa Kft., Hungarian Water Partnership Nonprofit Kft., MOL Lub Kft. and Thermowatt Kft. Hungarian investors, such as Master Good Kft., are also active participants in Vietnam’s economic landscape.

Bilateral relations are not limited purely to traditional economic sectors: products associated with Hungarian innovation – such as Rubik’s Cube or Teqball – also enjoy great popularity in Vietnam. A particularly noteworthy example is that Ho Chi Minh City hosted the 7th Teqball World Championship in late 2024.

Source: Facebook/Consulate General of Hungary in Ho Chi Minh City

Examining the development of goods trade between Hungary and Vietnam from 1995 to 2024, several favorable trends can be observed. Over this 30-year period, total bilateral merchandise trade averaged more than 304.7 million USD per year, of which 55.56% was imports from Vietnam and 44.44% was exports from Hungary. While in 1995 the total volume of foreign trade amounted to only 40.2 million USD (Hungarian exports: 19.3 million USD; Vietnamese exports: 20.9 million USD), by 2024 this figure had risen to 932 million USD  (Hungarian exports: 226 million USD; Vietnamese exports: 706 million USD).

This dynamic growth means that the volume of bilateral merchandise trade has expanded by around 2,318.5% over the past three decades. Within this, the value of Hungarian exports increased by around 1,171%, while Vietnamese exports grew by 3,378%. Over the entire period under review, the average annual growth rate was approximately 15%.

It is worth noting that the value of merchandise trade had already surpassed 100 million USD by 2008 and exceeded 500 million USD by 2018. The substantial expansion of bilateral trade accelerated after 2014, driven in large part by the establishment of an appropriate institutional framework and favorable developments in the legal and regulatory environment.

Chart: Viet Chinh Do. Source: Vietnamese National Statistics Office (NSO)

The data presented in the diagram clearly confirm that between 2014 and 2024, both the volume and the value of trade in goods showed a significant increase. During this period, Hungary exported goods worth a total of 3.3 billion USD, while the exports of the partner country amounted to 4.4 billion USD. The bilateral trade balance was favorable to the Hungarian side from 2014 to 2016, as well as in 2022 and 2023, while between 2017 and 2021, and again in 2024, the situation reversed in favor of Vietnam. Over the past eleven years, bilateral trade turnover expanded by an average of 22% per year. The period between 2020 and 2022 was particularly remarkable, as trade in goods between the two countries exceeded the one-billion-dollar threshold, indicating exceptional dynamism.

This trend also means that, compared to previous years, there has been significant progress in foreign trade relations, as reflected by the fact that among ASEAN countries, Vietnam was only Hungary’s fourth most important trading partner in 2016, but by 2020 it had risen to first place. During this period, Hungary’s main export products included pet food, raw materials, pharmaceuticals, machinery, equipment, and parts, while Vietnam’s main exports were computers, electronic products, accessories, and coffee. The year 2020 stands out as exceptional, when bilateral trade increased by 84%, making Vietnam Hungary’s fifth most important Far Eastern trading partner after China, South Korea, Japan and Hong Kong.

It can also be observed that following the approval of the EVFTA by the Vietnamese National Assembly in June 2020, Vietnam’s exports to Hungary immediately doubled and then tripled in the following months. In contrast, Hungarian exports to Vietnam began to double only after the EVFTA came into force in August. In the first eight months of the year, bilateral trade between the two countries increased by 60%, largely supported by Hungarian investments in Vietnam. Although trade turnover in 2021 showed a 15.2% decline, this can be attributed to the outbreak of the COVID-19 pandemic which limited manufacturing activities and slowed production. Within the Southeast Asian region, Vietnam was the first country that conducted trade exceeding one billion USD with Hungary between 2020 and 2021. In 2022, the total value of trade between the two countries reached 1.2 billion USD, representing an increase of nearly 10% compared to the previous year, although it still fell short of the 2020 record. In contrast, 2023 saw an almost 30% decrease, influenced by the lingering effects of the COVID-19 pandemic and disruptions in global supply chains – such as the prolonged Russia–Ukraine conflict, continued instability in the Middle East and other geopolitical tensions – which created unfavorable conditions for bilateral trade. In addition, consumer demand declined, as the Hungarian population adopted strict austerity measures in response to the economic recession and high inflation.

Nevertheless, in 2024 bilateral trade increased by 9.9% compared to the previous year, resulting in an overall improvement. In 2024, exports from Hungary to Vietnam showed a 47% decline in turnover, while the product composition was the following: 44.66% other goods, 35.49% machinery, equipment, tools and accessories, 18.62% pharmaceuticals, and 1.23% pet food and raw materials. Exports of pet food and raw materials fell by 98%, while exports of machinery, equipment, and parts decreased by 42%, both of which significantly contributed to the overall decline in Hungarian exports. Meanwhile, Vietnam’s exports (imports into Hungary) increased by 69%, with computers, electronic goods, and components accounting for 55.95%, machinery, equipment, and other parts for 17.26%, other goods for 15.68%, phones and accessories for 8.06%, and fabrics and technical textiles for 3.05%. Coffee, one of the leading export products of Vietnamese agriculture, reached Hungary in a total quantity of 545 tons in 2024 – a significant decrease compared to previous years: 1,163 tons in 2023, 887 tons in 2022, and 1,762 tons in 2021. At the same time, it can be observed that Hungarian exports to Vietnam have expanded substantially since 2018, particularly in 2021 and 2022, when record levels were reached – amounting to 532.2 million USD and 628.6 million USD, respectively.

The achievements attained can clearly be attributed to the well-implemented measures. In the first half of 2025, trade between Vietnam and the 27 EU member states amounted to a total value of 35.7 billion USD. Of this, trade with Hungary accounted for 451.4 million USD, ranking the country 13th – behind Slovakia but ahead of Portugal. During the period under review, Hungarian exports increased by 18.5% compared to the same period of the previous year, although the effects of the economic recession could still be felt. Although the Hungarian market is relatively small, the continuous expansion of import volumes suggests that market demand for Vietnamese goods will remain stable in the long term. Therefore, the statistical data of the past decade clearly indicate a growth trend in the import of Vietnamese goods to Hungary – and the same is true in the opposite direction as well.

The volume of bilateral trade in services has remained below that of trade in goods. Between 2008 and 2020, the annual average turnover of services amounted to approximately 13.8 million USD, while during the period from 2021 to 2024 this value nearly reached 29 million USD. For the entire period between 2008 and 2024, the annual average turnover of trade in services stood at 17.3 million USD, with an annual growth rate of 12%.

In terms of the proportions of service exports and imports, it can be stated that Hungarian exports accounted for 30.84% of the total turnover during the period under review, while imports from Vietnam represented 69.16%, meaning that the balance was generally favorable to Vietnam.

Nevertheless, the volume of bilateral trade in services still constitutes only a small fraction of the total trade in services conducted between Hungary and Asian countries.

Chart: Viet Chinh Do. Source: Central Statistics Office

Based on the available data, it can be concluded that between 2014 and 2024, the balance of trade in services – with the exception of the years 2014 and 2024 – was generally favorable to Vietnam. At the same time, the annual growth rate of two-way service trade averaged around 19%. During the period under review, the total bilateral trade in services reached 218.5 million USD, of which 154 million USD (70.5%) came from imports from Vietnam and 64.5 million USD (29.5%) from exports originating from Hungary.

Between 2020 and 2024, the annual average volume of trade in services amounted to 25.2 million USD, representing an 83% increase compared to the 2008-2020 average. The peak of the examined decade occurred in 2022, when the value of trade in services reached 51 million USD – a 2.5-fold increase compared to the previous year – positioning Vietnam 13th among Hungary’s Asian service trade partners. Subsequently, similar to the trend in goods trade, a decline was observed in 2023 and 2024.

Overall, Vietnam can be classified among the middle-ranking countries in terms of the volume of trade in services between Hungary and Asian nations. In addition, the labor market cooperation between the two countries can also be considered significant: since 2018, several thousand Vietnamese citizens have taken up employment in various sectors of the Hungarian economy, particularly in mushroom cultivation, food processing, construction, the wood industry, agriculture and hospitality.

Considering the total volume of bilateral foreign trade, the trade relations between Hungary and Vietnam have generally shown an upward and improving trend over the past eleven years. During the period under review, Hungary exported goods worth a total of 3.6 billion USD to Vietnam, while imports from Vietnam amounted to 4.7 billion USD. This has acted as a significant driving force behind the dynamization of Hungarian-Vietnamese trade relations, especially with regard to the noticeable expansion in the exchange of goods and services. A shift can also be observed in the composition of foreign trade toward products with a higher added value. The intensification of foreign economic activity can be attributed partly to favorable customs and legislative conditions, and partly to political openness. The expansion of trade volume shows a close correlation with the strengthening of political, diplomatic, economic, cultural and educational relations between the two countries.

In an international comparison, Vietnam ranked 53rd among all countries in 2016 in terms of Hungary’s foreign trade partners, a position that improved to 33rd place by 2021. Furthermore, in 2018 Vietnam was the 21st most significant trading partner among non-EU countries, indicating the increasing intensity of bilateral economic relations. The volume of Hungarian-Vietnamese foreign trade in 2021 was close to that of Hungary’s bilateral trade with Ireland and Portugal, positioning Vietnam among these countries in Hungary’s overall trade ranking. In the same year, Hungary ranked 42nd in Vietnam’s list of trading partners, between Côte d’Ivoire and Sweden. When comparing the annual foreign trade volume between Hungary and Vietnam with Hungary’s bilateral trade with other Asian countries, Vietnam can be placed in the upper segment of the mid-range. Hungarian-Vietnamese foreign trade demonstrated dynamic growth, particularly between 2018 and 2019, while the most favorable trade figures were recorded in 2020. Subsequently, however, several Asian countries – including Taiwan, India, Singapore, Israel and Malaysia – temporarily surpassed Vietnam in terms of trade volume with Hungary.

The further expansion of bilateral trade cooperation is, however, constrained by several structural and market factors, which merit brief discussion. On the one hand, due to market characteristics, consumer preferences and traditional market structures, the EU member states continue to be Hungary’s main trading partners, accounting for approximately three-quarters of the total foreign trade turnover. On the other hand, unfavorable factors include Hungary’s high value-added tax (VAT) rate of 27%, as well as the limited number of internationally recognized trade fairs and exhibitions, which may restrict the export market opportunities for Vietnamese industrial products. Additional obstacles arise from the significant geographical distance between the two countries, as well as Hungary’s geographic and logistical characteristics – particularly the lack of a seaport – which result in considerable transportation and logistical surcharges for goods imported from Vietnam.

Vietnam’s long-term economic and social development is hindered by a number of structural challenges. These include the still considerable underdevelopment of infrastructure and the need for its modernization, the limited availability of highly skilled labor, systemic corruption at both national and local levels, the strengthening of protectionist economic policy tendencies, and the unpredictability of the legal and regulatory environment. In addition, the anticipated impacts of climate change are particularly alarming. According to international forecasts (especially those by the United Nations) the country could be severely affected: by 2050, the living conditions and livelihood opportunities of up to 50 million Vietnamese citizens may undergo significant changes.

Overall, it can be stated that the economic relations between the two countries are characterized by stability and gradual expansion. Based on the indicators examined, Hungary and Vietnam can be identified as mutually relevant long-term trading partners, which provides a solid foundation for the sustainability of their economic cooperation. Furthermore, it has been established that, given their decades-long relationship and substantial economic potential, Hungary and Vietnam still have ample capacity to further develop their bilateral economic and trade relations within the framework of the EVFTA. The findings clearly confirm that the EVFTA has accelerated Hungarian-Vietnamese trade by creating favorable conditions and a secure environment. The decline observed in 2023 may be temporary; however, it highlights the need for structural transformation – both in terms of product composition and export capacity. Considering regional and EU practices, as well as the ongoing mutual and steady interest in Hungarian-Vietnamese economic relations, it may be advisable – should the necessary governmental will materialize – to conclude a bilateral intergovernmental agreement on exports, which would further strengthen economic and trade cooperation between the two countries.

In terms of bilateral trade in services, the sector’s current performance falls far short of expectations. Therefore, it is advisable to support economic actors with incentive tools to promote development in these areas. There remain numerous opportunities for further expansion, for example in sports, tourism, education, culture, transportation, business and financial services, healthcare, water management, construction, repair and maintenance, and contract labor. One potential approach is for organizations specializing in foreign economic relations to identify and connect potential partners in both countries. If necessary, experts fluent in both languages should be trained, since statistical data indicate that the services sector accounts for a significant share of the annual gross domestic product in both countries.

Hungarian FDI in Vietnam holds strategic significance, as it provides opportunities for domestic companies to grow internationally and strengthen their competitiveness. Conversely, Vietnamese investments in Hungary create new employment opportunities for the Hungarian workforce.

The dynamic economic growth of the ASEAN region, combined with Vietnam’s ongoing development needs – particularly in agriculture, healthcare, education, chemicals, food industry, research and development, water management, ICT, digitalization, machinery, artificial intelligence, construction, creative industries, pharmaceuticals, renewable energy, climate protection, and the defense industry – offers numerous potential investment opportunities for Hungarian investors. Among Vietnam’s planned projects are the construction of a north–south high-speed railway and several thousand kilometers of highways, development of waste-to-energy and Bio-BDO plants, establishment of a nuclear power plant, modernization and expansion of metro and railway networks, construction of a new high-capacity international airport and seaport near Ho Chi Minh City, development of modern residential and office parks, hospitals and various infrastructural “smart city” projects. At the same time it is evident that, relative to the size of both economies, the current bilateral investment volume remains limited, indicating that a significant amount of untapped potential exists in this area.

In terms of tourism, 17.5 million foreign tourists visited Vietnam and 8.7 million visited Hungary in 2024, indicating that both countries successfully managed the pandemic and highlighting the growing potential of the tourism sector. As part of a program to develop tourism, Vietnam introduced a 45-day visa exemption for Hungarian citizens starting from 15 August 2025, thereby promoting bilateral tourism relations. Furthermore, taking into account the interest in Hungarian-Vietnamese economic, cultural and educational relations, the increased demand for language training due to the 200-student annual Stipendium Hungaricum program, and the hundreds of students studying in both countries, the development of a medium-term strategy is necessary. This could support the foundation of business relations, cultural initiatives, and language education between the two nations. In this context, relevant proposals may include establishing a direct air route between Hungary and Vietnam, creating “Cultural and Community Centers” in Budapest, Hanoi and Ho Chi Minh City, and setting up Hungarian-Vietnamese tourism representative offices. These measures would strengthen tourism connections and facilitate the exploitation of cooperation opportunities between the two countries. Given that the possibility to take a Vietnamese language exam in Hungary has been discontinued since 2000, it may be advisable to reconsider reintroducing such an examination to deepen linguistic and cultural ties.

One potential solution to the obstacles facing trade cooperation could be the Hungarian-owned seaport in Trieste, which is expected to become operational in 2028 and would provide a strategic logistical advantage for Hungary. In parallel, the comprehensive administrative reform process currently underway by the Vietnamese government may help mitigate the previously mentioned administrative and regulatory challenges, thereby supporting the further strengthening of bilateral economic relations.

Last but not least, the Hungarian-Vietnamese bilateral diplomatic, political, economic, military, cultural and educational relations, established in 1950, have never been as balanced, intense and multifaceted as they are today. The depth of this relationship is well illustrated by cooperation in the security and defense sector, the successful projects implemented through tied concessional loans, and the diversity of cultural, diplomatic and educational presence. At the same time, regarding economic and trade development, there is still room for improvement for both countries, as the record achievements reached relative to their decades-long relationship and economic capacity remain far below the desired performance level. To achieve the goals of economic development and stability, both countries need to make further efforts. Cooperation could be strengthened even further if the governments elevate their relationship to the level of a “strategic partnership.” In the long term, both sides should diversify their engagement, remain committed to their respective regions and build on a relationship founded on mutual respect.

The year 2025 marks significant anniversaries for both Hungary and Vietnam: in addition to the 75th anniversary of the establishment of diplomatic relations between the two countries, Hungary celebrates its 1,025th anniversary, Vietnam its 80th anniversary of statehood and the 50th anniversary of national reunification.

Sources

Sources

https://vnembassy-budapest.mofa.gov.vn/vi-vn/News/EmbassyNews/Trang/Kỷ-niệm-75-năm-quan-hệ-Việt-Nam-Hungary-.aspx

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Jegyzőkönyv az Országgyűlés Igazságügyi Bizottságának 2025. február 18-án, kedden, 12 óra 02 perckor az Országház Nagy Imre termében (főemelet 61.) megtartott üléséről (Minutes of the meeting of the Justice Committee of the National Assembly held on Tuesday, 18 February 2025, at 12.02 p.m. in the Nagy Imre Hall (main floor 61) of the Parliament House

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https://english.thesaigontimes.vn/additional-vnd605-billion-approved-for-long-thanh-airports-phase-one/

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https://ceecvn.org/ceec_members/gedeon-richter-plc/

https://www.worldcubeassociation.org/competitions/VietnamChampionship2024

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https://2015-2019.kormany.hu/hu/a-miniszterelnok/beszedek-publikaciok-interjuk/orban-viktor-sajtonyilatkozata-nguyen-phu-tronggal-a-vietnami-kommunista-part-fotitkaraval-tortent-megbeszeleset-kovetoen

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https://baoquocte.vn/apicenter@/print_article&i=266505

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https://index.hu/gazdasag/2025/02/20/magyar-levente-trieszt-magyar-kikoto-beruhazas-projekt-exportor-fiume/

https://trademagazin.hu/hu/gyors-utemben-bovulnek-a-magyar-vietnami-gazdasagi-kapcsolatok/

https://en.cand.com.vn/public-security-forces/vietnam-hungary-agree-to-strengthen-security-cooperation-i595176/

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https://hcmc.mfa.gov.hu/vie/news/mol-lub-kft-h

Külső szerző |  Published writings

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