Saudi Arabian businesses eye Vietnam expansion

Zamil Group, the biggest Middle Eastern investor in Vietnam, is looking to expand its steel business, and its president, Abdulrahman Al Zamil, told Vietnamese Prime Minister Pham Minh Chinh Wednesday that his company wants Vietnam to help it export more products to ASEAN member nations.

They were meeting in Saudi Arabia, where Chinh is set to attend the Association of Southeast Asian Nations - Gulf Cooperation Council Summit and make a bilateral visit.

Zamil Steel, a subsidiary, operates two plants in Vietnam with a combined capacity of 120,000 tons a year.

Its markets span 10 Southeast Asian countries and Bangladesh.

Chinh, commending Zamil’s operations in Vietnam, urged it to expand and assign priority to the use of advanced and environment-friendly technologies.

Zamil should partner with other Saudi Arabian companies to invest more in Vietnam, a country full of potential with a growing logistics capability that allows it to link with global markets, he added.

Zamil Group was established in 1920 and has become one of Saudi Arabia’s biggest industrial firms with interests in steel, plastic, paint, and shipbuilding and 21,000 employees in 60 countries.

Prime Minister Pham Minh Chinh (R) speaks with CEO of Lulu Group Shehim Kottilingal in a meeting in Riyadh, Saudi Arabia on Oct. 18, 2023. Photo by Nhat Bac

Saudi Arabian-based LuLu, which operates in 23 countries, wants to expand its agriculture processing factory in Vietnam and import more fish, vegetable and fruits from the country.

Its regional director Shehim Kottilingal told Chinh that his company imports 30% of its lime and 40% of its cashew from Vietnam.

He wanted the Vietnamese government to approve his company’s plans to expand its factory in the country and called for starting direct flights to facilitate fresh produce trade.

Chinh said Lulu has been a bridge between the two nations by introducing quality Vietnamese products to Arabians through its large retail chain, and promised his government would look into its requests.

Ajlan & Bros, a clothing firm that has businesses in 15 countries, is looking to expand into new industries such as food, energy and property in Vietnam.

Chinh welcomed the idea and said his government would create favorable conditions for the company to partner with Vietnamese businesses.

Chinh is in Saudi Arabia from Oct. 18 to 20.

This is the first time leaders of ASEAN and GCC countries are meeting though the two blocs established relations 33 years ago.

The leaders are expected to approve a joint declaration at the end of the summit.

Saudi Arabia is a key economic partner for Vietnam in the region.

In the first seven months of this year bilateral trade rose by 7.4% year-on-year to US$1.6 billion.

Many Saudi companies have invested directly and indirectly in Vietnam.

There are 4,000-5,000 Vietnamese workers in Saudi Arabia.