Last updated: Thursday, February 21, 2019


Altai Businesses in Russia Seeking Partners in Vietnam

Posted: Tuesday, September 25, 2018

The Small and Medium-sized Exporters Association of Russia recently led the Altai business delegation to Vietnam to conduct a market survey and look for potential partners. On this occasion, the Vietnam Chamber of Commerce and Industry held the Vietnam - Russia Business Meeting in Hanoi.

The business delegation consisted of companies engaged in processed foodstuff and cereals (buckwheat, barley and oat), cooking oil (sunflower seeds, flaxseeds and canola seeds), spare parts for agricultural machinery, fuel and petrochemical additives (acetate, diesel, mazut and petroleum), steam power accessories, heat exchanger recuperators, valve silencers, actuators, control panels for accessories, and heat recovery stations.

Russian companies seek to cooperate with Vietnamese partners active in food processing and distribution, agricultural machinery, petrochemicals, oil and gas, steam and power plants, power industry designing and construction, steel smelting, oil refining and sugar production.

Mr Nguyen Van Hai, Director of the VCCI International Relations Department, said, Vietnam and the Russian Federation have established long-lasting close relationship and cooperation in many fields, especially after the two countries’ leaders upgraded bilateral ties to comprehensive strategic partnership. According to statistics, the two-way trade value increased to a record of US$5.2 billion in 2017, the highest since 1991. In the first six months of 2018, the bilateral trade totalled US$2.3 billion, up 42 per cent from the same period of 2017, of which Vietnam's exports to Russia valued US$1.24 billion, up 24 per cent, and its imports from Russia were worth US$1.06 billion, up 59.5 per cent.

On investment, in addition to oil and gas cooperation, Russia had 117 valid investment projects in Vietnam with a total registered capital of nearly US$1 billion as of June 2018. Vietnam had 22 investment projects with nearly US$3 billion of registered capital in Russia. TH True Milk Group invested more than US$2 billion in dairy farming and processing projects in Moscow and Kaluga oblasts, becoming a bright spot in the investment landscape of the two countries. The encouraging trade growth in recent years has been partly driven by the Vietnam - Eurasian Economic Union (EAEU) Free Trade Agreement and by careful preparations of the two countries’ enterprises to utilise FTA benefits. However, the bilateral relationship can grow far more.

Hai added that, with favourable factors such as time-honoured traditional cooperation, the two countries have high economic growth rates and need to expand merchandise exchanges, particularly items of their specific competitive strengths. The relationship between Vietnam and Russia can be further developed, especially in education, renewable energy, agriculture, food processing, information technology, consumer goods, services, real estate and mining.

To capture and utilise these favourable factors, businesses should focus on developing their advantages, building strategic business plans for new trends, and improving product and service quality to meet increasingly diversified needs from both sides.

“As a national trade promotion agency, a bridge for Vietnamese and international business community, VCCI has coordinated with many organisations to host many business support events. As for Altai Republic, VCCI also cooperated with VP Bank to organise the Business Networking Day 2017 and drew the attendance of a lot of Vietnamese enterprises. This showed that the two sides really want to have such practical and useful foundations to connect small and medium businesses and help them introduce their products and services to target customers,” he said.

Ms Rimma Moskvitina, Acting Director of Export Promotion Centre, Altai SMEs Fund, said, Vietnam - Russia cooperation has been developed strongly on mutual respect. In 2012, an Altai business delegation also visited and explored the Vietnamese market.

“This meeting is very significant for Altai and Vietnamese businesses to boost investment cooperation, and seek for partners. Altai's products are very different from other parts of Russia and are very competitive. We are looking forward to major investment cooperation projects between the two sides,” she said.

Anh Mai

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