HANOI: Malaysia and Vietnam are poised for fresh cooperation in the oil and gas sector.
This would be undertaken through the countries' respective national petroleum companies, Petronas and Vietnam Oil and Gas Group (PetroVietnam), Prime Minister Tun Dr Mahathir Mohamad said.
In March, Petronas and PetroVietnam inked a binding Heads of Agreement (HoA) for the sales and purchase of additional gas from Block PM3 CAA, Malaysia to Ca Mau Province, Vietnam.
This was on the heels of a plan to shore up economic development in the republic’s southwest region.
“Malaysia’s oil and gas company Petronas is currently active (in exploring new opportunities) in Vietnam, but there is room to increase cooperation with PetroVietnam,” Dr Mahathir.
The prime minister said this in a joint media conference with his Vietnamese counterpart Nguyen Xuan Phuc at the Presidential Palace, here, today.
Dr Mahathir, accompanied by Foreign Minister Datuk Saifuddin Abdullah, is currently on a three-day official visit to Vietnam following an invitation from Xuan Phuc.
The HoA represented Petronas’s commitment in support of Malaysia and Vietnam’s growth in the gas industry as well as the socio-economic development. It also extended both countries’ long term cooperation in the sector.
At the same media conference, Dr Mahathir also said any disagreement between the two nations particularly involving overlapping territories in the South China Sea would be resolved peacefully through legal means.
This would be in accordance to international laws and the 1982 United Nation Convention on the Law of the Sea.
“There are many areas we agree and there are a few areas where we disagree, or rather there are some disputes. But all these can be resolved between us in a friendly manner.
“Following the (outcome of the meeting) the bilateral dialogue session will continue and I invite the Vietnamese prime minister to visit Malaysia to further our talks on our cooperation and international issues.”
Both Malaysia and Vietnam had also agreed for renewed cooperation in trade, investments, security, maritime, education and agriculture while looking at ways to reduce trade imbalance.
“Malaysia would like to see the trade grow in size but with more imports by Malaysia from Vietnam to reduce the imbalance of trade between our two nations,” Dr Mahathir.
He pointed out that Malaysia and Vietnam would also form similar cooperation with other Asean countries for economic prosperity and resolve arising regional issues.
“We are concerned about promoting good relations not only in terms of diplomacy but also in terms of trade and development.
“There is much we can learn from each other. The (Vietnamese) prime minister has detailed out the agreements which would lead to deeper cooperation between our two countries.
“I am looking forward to implementing the agreements we have achieved from the discussions and meetings.”
Xuan Phuc said he Dr Mahathir had agreed to promote international integration and free trade for sustainable development for both countries, in efforts to stem macroeconomic challenges.
“We will need to put in place a suitable mechanism to facilitate legal fishing activities by our fishermen, apart from a collective solution to ensure a stable income for Vietnamese workers (in Malaysia).”
Malaysia and Vietnam plan to achieve US$15 billion (RM63 billion) trade by next year compared to US$13.3 billion (RM55.7 billion), last year. Vietnam is Malaysia’s 13th largest trading partner in the world and fourth in Asean after Singapore, Thailand and Indonesia.
Earlier, both leaders witnessed the exchange of letters for the establishment of “Malaysia-Vietnam Parliamentary Friendship Group”.
Dr Mahathir and Xuan Phuc also witnessed the signing of a memorandum of understanding between the two countries on maritime cooperation and search and rescue missions in the South China Sea.