Vietnamese-Russian economic ties expand

09:03 | 30/03/2019 Cooperation

(VEN) - The Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA) has led to a rapid growth in trade between Vietnam and Russia since it went into effect in October 2017.

vietnamese russian economic ties expand

Data compiled by the General Department of Vietnam Customs showed that Vietnamese-Russian trade hit an estimated US$4.57 billion in 2018, up 28.6 percent from 2017. In the first 10 months of 2018, Russian exports grew 46 percent, while Vietnamese exports soared 13 percent in value compared to the same period of 2017. Russian exports mainly included food and foodstuffs (accounting for 32.4 percent of the total), automobiles and machinery (20.7 percent), iron, steel, and products made of iron and steel (16.6 percent).

The two countries are working together to implement the agreement in order to increase bilateral trade to US$10 billion by 2020. Russia in particular and the EAEU in general are expanding trade and investment relations with ASEAN (the Association of Southeast Asian Nations) as part of their strategy to strengthen relations with the Asia-Pacific region. Meanwhile, Vietnam is developing production and supply chains in this region.

Data from the Ministry of Planning and Investment’s Foreign Investment Agency (FIA) showed that Vietnam attracted an additional US$42.63 billion in registered capital from Russian businesses in 2018, including capital for eight new projects, increased capital for one project, and capital contributions to domestic enterprises. Russian businesses have invested in 123 projects totaling more than US$932 in registered capital in Vietnam, ranking 24th among 130 countries and territories investing in the country.

Vietnamese businesses have 23 investment projects totaling US$2.9 billion in registered capital in Russia, mostly in the fields of oil and gas, telecommunications, trade center, agriculture, dairy farming and milk refinery.

In 2018, the two countries set up new projects related to the construction of metro routes in Ho Chi Minh City, railways in Vietnam and hotels in the two countries. Vietnam’s TH Group is developing giant dairy farming and refinery projects in Moscow, Kaluga and other regions in Russia.

The TH factory in Kaluga - the first TH sterilized fresh milk facility in Russia - is expected to churn out its first products later this year.

Vietnam and Russia are preparing to build an atomic science and technology center in Vietnam and implement a series of wind power projects in the country, using Russian turbines.

Dmitry Makarov, head of the Ho Chi Minh City branch of the Trade Representation of the Russian Federation in

Vietnam, said Vietnam is a key Southeast Asian trade partner of Russia. The number of Russian companies

interested in Vietnam has increased and will continue to grow, he said.

Ca Huong