09:56 | 28/09/2018 Industry
(VEN) - Moscow and Hanoi agreed to expand oil and gas development and production zones in Vietnam’s offshore areas.
The agreement was reached during an official visit to Russia earlier this month by General Secretary of the Vietnam Communist Party Nguyen Phu Trong, at the invitation of President Vladimir Putin.
During the visit, leaders of the two countries witnessed the signing of 12 cooperation agreements in various fields, including energy, oil and gas.
A memorandum of understanding was signed between the Vietnamese Ministry of Industry and Trade and the Russian Ministry of Energy to promote cooperation in the field of liquefied natural gas (LNG) and thermoelectricity generation using gas, creating a legal framework for business cooperation in this important field.
The Vietnamese Party leader and the Russian President also agreed on measures to foster collaboration on motor vehicle manufacturing.
Since the free trade agreement between Vietnam and the Eurasian Economic Union took effect in October 2016, trade between the two countries has grown about 30 percent.
In the first seven months of this year, bilateral trade reached nearly US$2.67 billion, equivalent to 75 percent of the previous year’s results, according to the General Department of Vietnam Customs. Vietnam exported goods worth nearly US$1.47 billion to Russia and imported US$1.2 billion worth of goods from this market. Major Vietnamese exports to Russia include telephones, textiles, garments, farm produce and seafood, while imports include petroleum, iron and steel, fertilizer, machinery and equipment.
Russia ranks 22nd among 117 countries and territories investing in Vietnam, with 116 ongoing projects with total registered capital of about US$990 million. Russian investment in Vietnam is concentrated in oil and gas, with major projects by Vietsovpetro and Vietgazprom, manufacturing, energy, mining, transport, aquaculture and seafood catch. Vietnamese investment in Russia has grown rapidly in the past several years, from some US$100 million in 2008 to nearly US$3 billion at present (23 project), and is concentrated in oil and gas, trade and agriculture. Major Vietnamese investment projects in Russia include Rusvietpetro, Gazpromviet, TH-True Milk’s dairy cow breeding and milk processing project, and the Hanoi-Moscow shopping center and hotel complex.
However, party chief Nguyen Phu Trong observed, bilateral trade remains modest and incommensurate with the strong political ties between the two countries.
The leader of the Vietnam Communist Party said he believed his visit would create a new impetus for further development in the bilateral partnership for the benefit of both sides, as well as the entire Asia-Pacific region.
The traditional friendship between Vietnam and Russia has a long history and been nurtured by generations of
leaders and peoples of the two countries.