Last updated: Thursday, March 23, 2017
Potential Business Cooperation between Vietnam and BashkortostanPosted: Monday, February 13, 2017
“Bilateral trade turnover between Vietnam and the Republic Bashkortostan of Russia is now as humble as only US$15 million. Most of the value comes from Bashkortostan’s exports to Vietnam, while Vietnam’s earnings from shipments to Bashkortostan are very little,” said Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), at the “Vietnam - Bashkortostan Business Forum: Potential business cooperation”.
The forum was held in Hanoi by VCCI in cooperation with the Bashkortostan Chamber of Commerce on the occasion of a working visit to Vietnam by Bashkortostan Prime Minister Mardanov Rustem Habibovich. The event aimed to provide opportunities for Vietnamese companies to meet and discuss cooperation potential with trade and investment partners and companies from Bashkortostan.
Bashkortostan Prime Minister Mardanov Rustem Habibovich was accompanied by leading companies of Bashkortostan engaged in oil and gas, energy, medical equipment, biological product, food processing. Many of them want to seek Vietnamese partners in food processing and the production of milk, microbiological fertiliser and medical equipment.
Dr Khuong said Vietnam has 20 projects with US$3 billion of investment capital in Russia while Russian companies have 114 investment projects worth US$2.08 billion.
Although investment value is modest, the two sides expect more cooperation opportunities in the future, particularly after the bilateral payment channel is opened.
Besides, bilateral trade is thriving with an average growth rate of 3.6 percent each year. Vietnam is interested in garment and textile, footwear, consumer goods, agricultural production and livestock in Bashkortostan.
Dr Khuong said, to boost trade between Vietnam and Bashkortostan, it is necessary to encourage businesses to do market surveys while increasing information exchange and the introduction of each other’s business climate.
Kharinov Vyachslav Nikolaevich, Head of the Russian Trade Office in Vietnam, said, although the current bilateral trade remains modest, Bashkortostan believes in Russian goods’ competitiveness in the Vietnamese market.
“We hope that the Vietnam - Eurasian Economic Union Free Trade Agreement will create a solid foundation for Vietnamese and Russian businesses to penetrate each other's markets and to increase investment and trade,” he said.
He added that the Republic of Bashkortostan is committed to giving incentives in tax and land lease term to Vietnamese businesses seeking to develop business in the Russian market. In addition, tourism is another field of potential cooperation for both sides.
The Republic of Bashkortostan has large oil reserves, which used to be a crude oil production hub of the Soviet Union. Bashkortostan is also strong at machine manufacturing, medical equipment and fertiliser production and is ready to discuss cooperation plans with Vietnamese companies in these fields.
Bashkortostan has many advantages in the spheres Vietnam is interested in such as textile-garment, footwear, consumer goods, agricultural production, livestock, horticulture and fisheries.