Vietnam, Russia target trade, investment expansion

09:28 | 04/10/2019 Cooperation

(VEN) - Russian Ambassador to Vietnam Konstantin V. Vnukov said Russia wishes to develop a comprehensive strategic partnership with Vietnam and considers Vietnam one of the most important partners in the Asia-Pacific region.

vietnam target trade investment expansion

Solid foundation

Vietnamese-Russian economic, trade and investment relations have experienced great progress, with Vietnam accounting for one-third of the trade value between Russia and the Association of Southeast Asian Nations (ASEAN).

According to Vietnam’s data, since the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA) came into effect in October 2016, bilateral trade has grown over 30 percent per year to reach more than US$4.5 billion in 2018 (the highest annual bilateral trade value so far) and US$1.14 billion in the first quarter of 2019, up 12.4 percent from the same period last year.

Vietnamese electronics, textiles, garments, seafood and coffee have attracted an increasing number of Russian consumers, while Vietnamese consumers are more interested in Russian machinery, equipment, technology and consumer goods.

Expanding cooperation

Bilateral investment cooperation has expanded with many large-scale projects implemented in the two countries. Energy is a traditional, strategic field of cooperation, which has greatly enriched the two countries’ coffers. Apart from continuing cooperation within the framework of the Vietsovpetro joint venture until 2030, major Russian oil and gas corporations, including Gazprom and Rosneft, are implementing many projects in Vietnam’s continental shelf, including offshore areas. Petroleum enterprises of the two countries are considering expanding their cooperation into new fields of liquefied petroleum gas (LPG) import and engine fuel production.

However, bilateral trade and investment remain incommensurate with their potential. Current trade figures (of US$5-6 billion) challenge the fulfilment of US$10 billion target in bilateral trade by 2020. Russian investment in Vietnam totaled only US$1 billion, while Vietnamese investment in Russia has reached US$3 billion.

Authorities and businesses in both countries are making great efforts to achieve the set targets while looking for new, feasible and beneficial ways of cooperation.

Vietnam’s TH Group is successfully implementing giant dairy development projects in Moscow, Kaluga and some other regions in Russia. The project in Kaluga is expected to churn out its first products later this year.

High-tech industries such as clean energy, information technology, electronics and telecommunications are potential fields for bilateral cooperation development, with many projects proposed for implementation.

The two countries’ governments and businesses hope that the Vietnam Year in Russia and the Russia Year in Vietnam will contribute to developing the bilateral comprehensive strategic partnership.

Nguyen Huong