In the framework of the official Russia visit by Vietnamese President Truong Tan Sang from July 26 to 30, businesses of the two countries had the opportunity to exchange information, explore markets and promote cooperation on potential areas.
Business Forum: Opportunity for interaction and exchange
To prepare an accompanying delegation, the Vietnam Chamber of Commerce and Industry (VCCI) gathered representatives of 43 companies. VCCI collaborated with its Russian counterpart and Moscow business associations to organise the “Business Forum in Moscow” on July 30. This forum brought together nearly 400 businesses in Moscow and neighbourhoods.
Earlier, in Hanoi, VCCI collaborated with Moscow Entrepreneurs Association to organise "Vietnam - Russia Business Forum" for businesses of the two countries to learn about investment and trade environments and policies, seek cooperation opportunities, and boost bilateral development investment cooperation.
Cooperation agreement signed by Vietnamese and Russian businesses under the witness of President Truong Tan Sang and his Russian counterpart Vladimir Putin
At the Moscow forum, many important, high-valued contracts were signed. Apart from some companies with earlier discussions with their partners, Vietnamese visitors actively contacted, exchanged and discussed to seek future investment and business cooperation. Notable cooperation signings include the cooperation agreement between the Executive Board for Seafood Export to Russia and the Russia Seafood Importers Association; a US$30 million financial investment for Happy Land Long An project between Khang Thong Group and Diana Insurance Company of Russian; a downstream titanium processing cooperation agreement between the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) and OAO - VSMPO - Avisam Company, a Russian titanium producer, etc.
In addition, the Vietnam National Textile and Garment Group (Vinatex) explored opportunities for its supply of Vietnamese textiles and garments to big supermarkets in Moscow. The Electricity of Vietnam Group (EVN) had a meeting with Russian Rosatom Company to discuss the implementation of Vietnam - Russia agreement on cooperation in construction of Vietnam’s first nuclear power plant (signed in October 2010) and the Vietnam - Russia agreement on credits for the project (November 2011). TMT Automotive Corporation also reached a EUR300 million cooperation agreement with Yo-Auto Group of Russia to manufacture and transfer hybrid passenger cars (five-seat cars and pickups) running on clean fuel in Vietnam and to solely supply the Southeast Asian market. Remarkably, processors of export agricultural, forest and aquatic products received many post-harvest equipment offers from Russian partners.
Promoting potential areas
In 2010, bilateral trade turnover reached US$2.45 billion, up 400 percent from 10 years earlier. During the State-level visit, both sides agreed that economic and commercial cooperation has experienced strong growth, especially in strategic oil and gas and nuclear energy industries. In the first five months of 2012, the two-way trade turnover reached nearly US$1 billion, up 45.5 percent over the same period in 2011. According to the medium-term action plan for trade and investment fields, in 2012, the bilateral trade revenue between Vietnam and Russia will top US$3 billion; thus, there is a huge investment opportunity for future cooperation, especially in potential areas. At present, Russia has nearly 20 effective projects with a total investment of US$1.7 billion. The two countries avowed to bring the two-way trade turnover to US$5 billion by 2015 and US$10 billion by 2020.
Potential cooperation fields between the two parties are oil and gas, aviation, mining, metallurgy, telecommunications, information technology, agricultural product processing and exporting, steel, energy, electricity, garment and textile, footwear, banking and finance, construction, real estate, tourism, vehicle manufacturing (bicycle, motorcycle, automobile and parts), etc. In the future, the two sides will continue to promote cooperation in these areas.
Representing the business community in Vietnam, VCCI said it is necessary to speed up seeking and concretisation of new opportunities to promote bilateral trade by diversifying and liberalising trade. VCCI is willing to stay close with Russian business promotion organisations, create conditions favourable for businesses from both countries to study the market and promote investment. VCCI also recommended the Government have a master plan for preparing and negotiating a Vietnam - Russia Free Trade Agreement. In addition, we necessarily have mechanisms to support Vietnamese enterprises to connect, collaborate, and receive financial assistance and technology transferred from Russian organisations and enterprises to meet requirements of the Russian market.
On tourism cooperation, VCCI requested the Ministry of Foreign Affairs of Vietnam to consider extending the residence period in Vietnam for Russian tourists from 15 days to 30 days, a move to attract more Russians to the country. It also proposed the Russian Foreign Ministry considers facilitating the granting of longer term visas for Vietnamese businesspeople (over one year) to reduce the time for visa procedures for them.
Regarding current difficulties, accompanying businesses agreed that the most important measure is to soon negotiate and sign a free trade agreement between Vietnam and Tariff Alliance (including Russia, Belarus and Kazakhstan), timely resolve new difficulties to promote financial and banking cooperation, and expand cooperation in investment and credit, etc.
Thu Ha
Vietnamese
