Vietnamese-Russian economic cooperation FTA to create breakthrough

15:25 | 25/05/2015 Cooperation

(VEN) - On the occasion of the 70th anniversary of Russia’s Victory in the 1941-1945 Great Patriotic War, Vietnamese President Truong Tan Sang and his Russian counterpart Vladimir Putin stated that economic, trade and investment cooperation between Vietnam and Russia have strongly grown in recent years. This relationship will be deepened thanks to the signing of a free trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EEU) that is expected to be completed in late May 2015.

Vietnamese-Russian  economic cooperation  FTA to create breakthrough

Photo: Can Dung

Promoting trade
Despite the comprehensive strategic partnership, trade turnover between Vietnam and Russia has remained modest. According to the Vietnamese General Department of Customs, exports to Russia reached US$319.048 million in the first quarter of this year, while import turnover stood at US$128.485 million.
Vietnamese goods have great potential in the Russian market. Vietnamese President Truong Tan Sang and his Russian counterpart Vladimir Putin affirmed that the signing of the FTA between Vietnam and the EEU would create a breakthrough to promote economic cooperation, contributing to realizing the goal of reaching bilateral trade turnover of US$10 billion by 2020.
The EEU is a large market with a good and relatively stable growth. “The signing will help Vietnamese businesses enter the EEU market faster than other partners. Together with preferential conditions, it will contribute to boosting exports of goods, services and investment, especially in a context where the world economy remains unstable,” Vietnamese President Truong Tan Sang said.
Vietnamese agricultural products, seafood, garments and textiles, leather and footwear, furniture and some processing goods will enjoy incentives in exports to the EEU market. Meanwhile, Vietnam will open the market with a roadmap for some livestock products, machinery and equipment and vehicles from the EEU, directly contributing to persifying the domestic market. Thanks to the signing of the FTA, economic and trade cooperation between Vietnam and Russia will witness a very positive development.
Strengthening links
Vietnamese President Truong Tan Sang met Governor of Moscow Region Andrei Vorobyov during his visit. The Vietnamese president suggested to the governor to support the establishment of a light industrial area in Moscow, contributing to forming the professional, civilized and modern production model and creating jobs for Russian and Vietnamese workers.
Ho Chi Minh City People’s Committee Chairman Le Hoang Quan and Governor of Moscow Region Andrei Vorobyov signed a cooperation agreement between Ho Chi Minh City and Moscow Region, creating a legal basis for promoting cooperation.
One of the bright spots in the Vietnamese-Russian comprehensive strategic partnership is the oil and gas industry. Many Russian large corporations such as Gazprom, NK and Rosneft have investment projects in Vietnam. During the visit, the Vietnamese president attended the celebration on the occasion of exploiting 10 million tonnes of oil by the RusVietpetro, a joint venture between Zarubezhneft and PetroVietnam. 
                                                                                                                                                                      By Nguyen Phuong

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