By INS Contributors

KUALA LUMPUR, Malaysia: Since upgrading to Comprehensive Strategic Partnership in 2024, Vietnam and Malaysia have moved beyond conventional neighbourly diplomacy into a more strategic, multi-layered partnership defined by sustained political support in regional forums, growing trade and investment flows, and an intensifying programme of parliamentary exchanges.

Sound political – diplomatic relations

Over the past 50 years, the Vietnam–Malaysia relations have developed strongly, with extensive and comprehensive cooperation across the areas of politics, diplomacy, economy, trade, culture, tourism, defense, security, science technology, and sustainable development.

The two countries have maintained regular high-level delegation exchanges and contacts through the Party, Government, State, parliament, and people-to-people channels.

At bilateral meetings, both sides agreed to increase high-level mutual visits and effectively carry out bilateral cooperation mechanisms, including their joint committee on trade; consensus on strengthening collaboration in such areas as security, education, aviation, tourism, as well as emerging sectors like green economy and digital economy, aiming to elevate bilateral relations to a new height.

Leaders of both countries have paid due attention to and maintained bilateral cooperation mechanisms, including the Joint Committee on Economic, Scientific and Technical Cooperation, the Joint Trade Committee, the Committee on Science Technology Cooperation, and the Committee on Defense Cooperation.

Bright spots in economic and trade cooperation

Economic, trade and investment relations between Malaysia and Vietnam have shown strong momentum in the first half of 2025, underscoring the increasingly strategic nature of bilateral cooperation within ASEAN.

Two-way trade turnover between Vietnam and Malaysia reached US$7.78 billion in the first six months of 2025, marking a 5 per cent increase compared to the same period last year. Malaysia continues to be one of Vietnam’s most important trading partners in Southeast Asia, supplying key commodities such as petroleum products and electronic components, while Vietnam exports agricultural goods, processed foods, and consumer products to the Malaysian market.

Vietnam and Malaysia are stepping up cooperation in the energy sector, with a strong emphasis on renewable power. In May 2025, companies from Vietnam, Malaysia, and Singapore signed a landmark Joint Development Agreement to explore the export of renewable electricity from Vietnam to Malaysia and Singapore. The initiative will leverage Vietnam’s abundant offshore wind potential and employ subsea cables and storage systems to transmit clean energy across borders. The project is expected to make Peninsular Malaysia a key transit hub within the regional grid.

Malaysia’s state energy giant Petronas and Vietnam’s Petrovietnam have also pledged to strengthen collaboration in upstream and downstream oil and gas, while expanding into renewable energy ventures. During Prime Minister Anwar Ibrahim’s visit to Hanoi earlier this year, Petronas expressed interest in participating in offshore wind projects in southern Vietnam, signaling a broader shift toward sustainable energy partnerships.

Tenaga Nasional Berhad (TNB) of Malaysia and Vietnam Electricity (EVN) exchanged a memorandum of understanding to enhance cooperation on grid connectivity, capacity building, and the ASEAN Power Grid initiative. Officials said this would help ensure greater regional energy security and pave the way for large-scale electricity trade in the future.

While regulatory and financing challenges remain – particularly for offshore wind and subsea transmission infrastructure – the progress made so far underscores the determination of both governments to diversify their energy mix and drive the green transition. With Vietnam targeting significant renewable capacity by 2030 and Malaysia pursuing its National Energy Transition Roadmap, the two countries are set to become pivotal partners in shaping ASEAN’s sustainable energy future.

These encouraging trends highlight of Malaysia–Vietnam ties amid global uncertainties. As ASEAN neighbors and comprehensive partners, both sides are expected to strengthen their collaboration not only in traditional sectors such as trade and manufacturing, but also in forward-looking areas aligned with green.

Mutual support in regional and international forum

Political backing in multilateral settings has been a conspicuous feature of their bilateral relation. Vietnam publicly reiterated support for Malaysia’s ASEAN chairmanship in 2025, a high-visibility example of the two countries aligning at the regional level to promote ASEAN unity and collective priorities such as economic recovery, supply-chain resilience and maritime stability. Senior Vietnamese leaders explicitly stated their backing during meetings that accompanied official visits, signalling a commitment to cooperate on the regional agenda.

That mutual support matters on two counts. First, it helps preserve ASEAN’s consensus-based approach at a time when geopolitical competition has put pressure on regional institutions. Second, it creates a predictable environment for businesses and investors from both countries to plan medium-term projects — from infrastructure to digital services — knowing that political channels will be open to resolve disputes or clear regulatory bottlenecks.

Vietnam and Malaysia have shown strong cooperation in addressing key regional challenges, including the South China Sea disputes, the Code of Conduct (COC), and the crisis in Myanmar. The two countries are committed to resolving disputes in the South China Sea peacefully, in line with international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS). They have consistently supported the full and effective implementation of the Declaration on the Conduct of Parties in the South China Sea (DOC) and are actively working towards the early conclusion of a substantive and effective Code of Conduct (COC).

Regarding the Myanmar crisis, both nations, as members of ASEAN, have supported the bloc's efforts to find a peaceful and sustainable solution. They have consistently upheld the ASEAN Five-Point Consensus, advocating for a cessation of violence, constructive dialogue among all parties, and humanitarian access. Through diplomatic channels and cooperation within ASEAN, Vietnam and Malaysia are working together to promote stability and a return to normalcy in Myanmar, demonstrating their shared commitment to regional peace and security. This collaboration highlights their alignment on critical issues and reinforces their strategic partnership in navigating the complex geopolitical landscape of Southeast Asia.

Additionally, as they have well coordinated and regularly exchanged consultations with each other at regional and international forums, they have shared many areas of consensus and common views on ASEAN issues as well as the relations between the bloc and partners, helping improve ASEAN’s position and roles in the international arena.

Strengthening Defence & Security Ties

Vietnam and Malaysia have made significant strides in bolstering their defence and security cooperation in 2025, reflecting a deepening trust and shared commitment to regional stability.

During the 19th ASEAN Ministerial Meeting on Transnational Crime, Malaysia and Vietnam committed to strengthen their joint response to cybersecurity threats and to collaborate more closely in policy, information sharing, and technical capability building. 

On the maritime front, Vietnam’s People’s Navy has been active in joint naval engagements with Malaysia in 2025. The Vietnamese frigate Quang Trung in August to take part in the ASEAN Multilateral Naval Exercise (AMNEX 3) held in Penang. Activities there included fleet reviews, maritime threat response drills, and at-sea exercises alongside counterparts. 

Within ASEAN defence diplomacy, Vietnam has also played a constructive role alongside Malaysia. At the ADMM Retreat in Penang in February 2025, led by Malaysia, Vietnam reinforced its support for the theme “ASEAN Unity for Security and Prosperity,” highlighting non-traditional security challenges such as cybersecurity, AI, maritime security, disaster relief, and biological risk management. 

The elevation of Vietnam-Malaysia relations to a Comprehensive Strategic Partnership continues to give momentum to defence and security cooperation as one of its core pillars. Both governments have emphasised increasing collaboration not only in military exercises and naval cooperation, but also in joint planning in defence industries, goodwill visits, and exchange of experience and training.

Parliament-to-parliament diplomacy: the legislative front line

A notable reported driver of the bilateral relationship is parliamentary diplomacy. During 2024 and 2025, exchanges between the Vietnamese National Assembly and Malaysia’s Parliament increased in frequency and profile. In October 2024, Malaysia’s Speaker of the House of Representatives led an official visit to Vietnam; Vietnamese National Assembly delegations also had met senior Malaysian parliamentary leaders to intensify inter-parliamentary collaboration. These visits went beyond ceremonial handshakes: they produced commitments to expand legal and regulations.

Why is parliamentary diplomacy important? Legislatures are the bodies that transform political commitments into binding laws. Stronger parliamentary ties can speed up the ratification of bilateral agreements, align domestic regulations that govern cross-border trade, and safeguard the rights of vulnerable groups. They also provide a platform for lawmakers to bring the concerns of their constituents into the national and bilateral policy agenda.

Vietnam’s National Assembly has already shown the tangible benefits of legislative diplomacy by both hosting and conducting reciprocal visits, as well as engaging actively in inter-parliamentary platforms such as the ASEAN Inter-Parliamentary Assembly and the Inter-Parliamentary Union to forge shared positions. Further strengthening these channels — through routine exchanges of legislative staff, and collaborative research initiatives — would help institutionalize cooperation and ensure that dialogue translates into sustained policy outcomes.

As Southeast Asia confronts intensifying great-power rivalry, shifting supply chains, and the mounting challenges of climate change, bilateral partnerships built on political trust, economic complementarity, and institutionalised parliamentary cooperation are emerging as vital anchors of regional stability. The Vietnam–Malaysia relationship exemplifies this trend: it has demonstrated resilience and promise through expanding trade, high-level political support, and growing parliamentary engagement.

If both capitals follow through on the agreements and elevate parliamentary channels from episodic goodwill visits into durable institutional mechanisms, the rewards will be concrete: more jobs, better protections for migrant workers, faster cross-border business, and deeper citizen-level ties that make the region more resilient.