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Cyprus and Vietnam took a fresh step toward closer economic ties on Monday with the signing of an agreement aimed at avoiding double taxation and preventing tax evasion, a move both sides say will make doing business between the two countries easier and more predictable.
The agreement was signed at the Ministry of Finance by Cyprus Finance Minister Makis Keravnos and Vietnam’s Deputy Minister of Finance Cao Anh Tuan.
Speaking after the signing, Keravnos said the deal strengthens both economic and political relations with Vietnam, a country far from Cyprus geographically but one that shares common values and a growing interest in cooperation.
“This agreement gives companies, organizations, and individuals clear rules on how their income and capital gains will be taxed,” Keravnos said, adding that it creates stability and security without opening the door to tax avoidance.
He said the deal is expected to encourage trade, boost investment, and deepen cooperation on tax matters, while providing certainty for businesses operating between the two countries.
Growing ties despite the distance
For Vietnam, the agreement marks another milestone in a relationship that is already on an upward path. Deputy Minister Tuan noted that 2025 marks 50 years of diplomatic relations between Vietnam and Cyprus and said economic ties have been steadily improving.
Bilateral trade between the two countries has reached $111.6 million, while Cyprus currently has 28 investment projects in Vietnam, with total registered capital nearing $470 million. These investments are mainly in real estate, manufacturing, and agriculture, he said, adding that Vietnamese investment in Cyprus is also gradually increasing.
Tuan highlighted Cyprus’s strengths in tourism, financial services, ports and logistics, as well as its strategic location linking the Middle East, southern Europe, and North Africa, saying these factors make Cyprus a promising long-term partner for Vietnam.
A wider global framework
Vietnam has now signed 81 double taxation agreements worldwide while also participating in 19 free trade agreements, including the EU-Vietnam Free Trade Agreement, which Tuan said further supports trade and investment flows.
He described the agreement with Cyprus as both a practical tool and a symbol of friendship, saying it establishes a transparent and stable legal framework in line with international standards.
Why it matters for Cyprus
Keravnos described the deal as particularly important for Cyprus, noting the presence of Cypriot pharmaceutical companies in Vietnam and the 4,000 Vietnamese nationals working in Cyprus.
He also pointed to strong future potential, especially in the IT sector, for joint investments and exports. Vietnam, he said, is a large and dynamic economy with which Cyprus has traditionally enjoyed good relations, including consistent support on Cyprus’s national issue.
Both sides expressed confidence that the agreement will push economic and financial relations to a deeper and more meaningful level, delivering tangible benefits for businesses and citizens in both countries.
*Source: CNA
