CPTPP Creates New Momentum for Vietnamese Goods to Expand Their Presence in the Malaysian Market

In the overall picture of international economic integration, Malaysia is one of Vietnam’s most important partners in the ASEAN region. The fact that both countries are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has created—and continues to create—new, profound, and sustainable momentum for bilateral trade cooperation, not only in terms of scale but also in the quality and structure of trade.

Drivers Promoting Vietnam–Malaysia Trade

According to data from Vietnam Customs, in the first nine months of 2025, total bilateral trade turnover between Vietnam and Malaysia reached USD 12.06 billion, up 12.89% year-on-year. Of this, exports amounted to USD 3.89 billion, up 1.3%, while imports reached USD 8.18 billion, up 19.37%. The trade balance continued to tilt strongly in favor of Malaysia, with Vietnam’s trade deficit reaching USD 4.29 billion, an increase of 42.36% compared to the same period.

On the export side, the structure of Vietnam’s goods exported to Malaysia has continued to shift in a more positive direction, closely aligned with its advantages in industry and processing and manufacturing. Computers, electronic products, and components rose to the leading position, accounting for 16.9% of total export turnover and surging by 40% year-on-year. This was followed by machinery, equipment, tools, and spare parts, accounting for 9.6% and growing by 21.9%. Notably, transport vehicles and spare parts recorded growth of up to 65.2%, signaling an expansion of industrial supply chains between the two countries.

These growth figures are closely linked to the impact of the CPTPP. Deep tariff reductions under the committed roadmap, together with transparent regulations on rules of origin, technical standards, and customs procedures, have provided Vietnamese enterprises with a more favorable legal “runway” when accessing the Malaysian market. This is a key advantage compared to the period before the CPTPP came into force, when many sectors still faced high tariff and non-tariff barriers.

However, in the opposite direction, several of Vietnam’s traditional export items to Malaysia such as iron and steel, chemical products, and rice continued to decline sharply, down 28.4%, 69.7%, and 53.3%, respectively. This reflects both intense competition in the market and mounting pressure on Vietnamese goods to improve quality, standards, and value added in the increasingly stringent CPTPP arena.

According to reports from the Vietnam Trade Office in Malaysia, the Malaysian market is assessed as having relatively strong purchasing power, diverse consumer demand, and many similarities in consumption culture with Vietnam. In particular, participation in multiple free trade agreements, including the CPTPP, has created a high level of market openness and relatively low barriers for Vietnamese goods. In addition, Malaysia faces shortages in domestic supply for certain essential products such as rice and seafood—areas in which Vietnam has strong advantages.

However, an open market also means intense competitive pressure. As a highly open economy, Malaysia imports goods from many countries such as China, Thailand, and Indonesia, forcing Vietnamese products to compete directly in terms of price, quality, and standards.

In particular, food products face major barriers related to Halal certification—while currently in Vietnam there is only one non-governmental organization recognized by JAKIM to issue this certification. This is a significant bottleneck constraining the expansion of Vietnamese food products’ market share in Malaysia.

In addition to technical barriers, many Vietnamese enterprises remain hesitant to access the market due to differences in language and business culture; in some cases, they have even fallen victim to commercial fraud due to the lack of verification through official channels. These limitations show that the CPTPP can only fully realize its effectiveness when enterprises’ integration capacity is enhanced accordingly.

Promoting Brand Building for Enterprises

One of the bright spots in Vietnam–Malaysia cooperation in recent years has been trade promotion activities closely linked with the direct support role of the Trade Office system. In early October 2025, the Vietnam Trade Office in Malaysia brought 21 Malaysian logistics enterprises to Vietnam to attend the World Congress of the International Federation of Freight Forwarders Associations (FIATA 2025), creating an important bridge for logistics cooperation between the two countries. Subsequently, from 16–19 October 2025, the Trade Office participated with a booth at the Malacca International Halal Fair (MIHF 2025), one of the largest Halal exhibitions in Malaysia.

These activities demonstrate that for the CPTPP to penetrate more deeply, it cannot remain merely a set of commitments on paper, but must be accompanied by substantive promotion programs closely aligned with market and business needs. The CPTPP space can only truly expand when Vietnamese goods have a tangible presence in distribution systems, trade fairs, and supply chains in the partner country.

Beyond tariff and technical factors, the CPTPP also places Vietnamese enterprises in a new arena of competition in terms of branding and cultural value. Practical market experience shows that although product quality may be comparable, many Vietnamese brands still lag behind due to limitations in packaging, design, and brand storytelling.

The story of Nonla Vietnam Global with its Aodai Coffee product is a typical example. Building product imagery based on the cultural identity of the Vietnamese ao dai has helped this brand create a strong impression in the Malaysian market. Mr. Nguyen Trung Chinh, Founder & CEO of NONLA Vietnam Global Co., Ltd., shared that in a fiercely competitive retail environment, enterprises have only “three golden seconds” to make an impression on customers when they stand in front of the shelf. When product quality is combined with professional imagery and a clear cultural story, Vietnamese goods can fully stand shoulder to shoulder with international brands.

From the perspective of state management, Mr. Ngo Quang Hung, First Secretary in charge of the Vietnam Trade Office in Malaysia, highly appreciates creative ideas that link exports with cultural storytelling, viewing this as a strategic direction to enhance the value of Vietnamese goods amid increasingly intense global competition. Especially as Vietnam and Malaysia are targeting bilateral trade turnover of USD 20 billion by 2030, elevating brand value becomes even more critical.

To realize this goal, the Vietnam Trade Office in Malaysia recommends that Vietnamese enterprises focus on very specific actions: thoroughly verifying partners before transactions; prioritizing the export of products with Halal certification; boldly investing in distribution channels, sending product samples, and participating in trade fairs; innovating product designs to suit local consumer tastes; and coordinating the display of goods at the Trade Office’s sample showroom.

In other words, the CPTPP has opened the door, but how wide that door opens depends largely on the capacity of each enterprise. When businesses master standards, branding, logistics, and product storytelling, the CPTPP can truly become a “strategic lever” for Vietnamese goods in the Malaysian market./.

Source: MOIT.

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