Last updated: Monday, April 24, 2017
Cooperation between Vietnam and Russian Far East PromotedPosted: Tuesday, March 28, 2017
Vietnam is the only strategic partner of the Russian Federation in the Asia-Pacific region. However, Vietnam's economic, trade and investment relations with Russian Far East are still limited, well below the potential of the two sides, as they don’t have enough access to information of each other.
This is the information provided at the Roundtable between Vietnamese and Russian businesses organised by Vietnam Chamber of Commerce and Industry (VCCI) in cooperation with the Russian Trade Representative Agency in Hanoi on the occasion of Mr Yu. P. Trutnev, Deputy Prime Minister of the Russian Federation, and Presidential Plenipotentiary Envoy to the Far Eastern Federal District, visiting Vietnam. The roundtable aimed to introduce the potential and investment opportunities in the Far East to Vietnamese enterprises.
In 2015, Vietnam and Russia celebrated the 65th anniversary of the establishment of diplomatic relations with prominent achievements in politics, foreign affairs, economics, commerce, security and national defence. Vietnam - Russia cooperation has been strengthened with four pillars of trade, investment, oil and gas and electricity. Two-way trade tends to increase, and forms of cooperation and investment are also increasingly diversified.
According to Dr Doan Duy Khuong, Vice President of VCCI, more and more Vietnamese businesses are investing in Russia to seek and expand the market. To date, Vietnam has 20 investment projects in Russia with a total registered capital of nearly US$3 billion. Russian enterprises have also invested in 114 projects in Vietnam with a total registered capital of US$2.08 billion.
Dr Khuong said that although the investment capital between the two countries is still modest, many experts expect more opportunities for bilateral cooperation in the time to come. In addition, trade cooperation between Vietnam and Russia is also flourishing with the total import-export turnover increasing by 3.6 percent per year on average.
Mr Khuong hopes that, through this roundtable, both sides will be provided with the necessary information and that Vietnamese investors and businesses will find suitable business opportunities in this promising Far East region.
According to Russian Deputy Prime Minister Yuri Trutnev, the Far East has many advantages over rich natural resources, and in order to promote investment, the Far East authorities have created favourable conditions to facilitate both Russian and foreign investors, such as tax incentives and the improvement of the business investment environment, in order to make the region one of the most dynamic socio-economic development centres in Russia. More than 200 deals valued at more than 1.7 trillion rubles were signed at the Eastern Economic Forum held in Vladivostok, which showed that the Far East is increasingly attracting the interest of the business community.
However, Deputy Prime Minister Yuri Trutnev said that the Far East is still limited in infrastructure and labour force. To fill the gaps in infrastructure, the Russian government and the Far Eastern authorities are ready to offer incentives and incentives for businesses investing here. The Far East established the Development Fund as a supportive mechanism for investors, with interest rates two times lower than the free market rate. In addition, the simplification of visa procedures for citizens of other countries entering the Far East Freeport will create favourable conditions for business enterprises here, as well as tourism development in this region. This is the most exciting area of investment attraction in Russia, with 300 investment projects registered daily.
Mr Yuri Trutnev also affirmed that there are 8 potential sectors for investment, including: agriculture, natural resources, forests, fisheries, tourism, oil and gas, equipment and machine manufacturing. Vietnamese businesses will pay attention and start looking for investment opportunities, while pledging to create favourable conditions for businesses to invest in the Far East.
In order to facilitate bilateral cooperation in the future, Mr Yuri Trutnev said that Vietnam and Russia should take the initiative to launch new cooperative initiatives, actively participate in bilateral and multilateral mechanisms to link and spread the power of the area to the business community.