Vietnam - Russia Business Forum, featured by the attendance of Deputy Prime Minister Hoang Trung Hai of Vietnam and First Deputy Prime Minister Igor Ivanovich Shuvalov of Russia, took place in Hanoi on October 16, 2013. More than 130 leading Russian companies joined this event.
Deputy Prime Minister Igor Shuvalov highly valued the huge potential for Vietnam-Russia cooperation. Particularly, he said the Customs Union of Belarus, Kazakhstan and Russia, and Vietnam are conducting negotiations of a free trade agreement (FTA), and the signing of the agreement, together with implementation of joint prioritised projects, will help bilateral economic, investment and trade ties to grow and flourish in the coming time.
In recent years, together with the fine development of political and diplomatic relationship, economic and commercial cooperation, and investment between the two countries has also thrived. In 2012, the two-way trade turnover reached US$3.7 billion, up 19.7 percent against 2011, of which US$2.3 billion was Vietnam's exports of goods to Russia, up 32 percent year on year, and US$1.4 billion was its import from Russia, up 3.7 percent. The value is expected to reach US$4 billion in 2013.
In the first seven months of 2013, the bilateral trade turnover totalled US$2.7 billion, up 1.7 percent year on year, of which Vietnam’s exports to Russia accounted for US$1.5 billion.
As of late August, 2013, Russia had 92 projects in Vietnam worth around US$2 billion, ranking 19th among countries and territories investing in the Southeast Asian country. Meanwhile, Vietnamese firms injected US$2.4 billion in 17 projects in Russia.
Mr Tran Tuan Anh, Deputy Minister of Industry and Trade, said, Russia is an economic, financial and technological powerhouse, especially mechanical engineering, new energy, mining, automation, industrial production, environmental industry and supporting industries while Vietnam has great advantages in human resources, natural resource diversity, and favourable geographical position. Vietnam also has stable political, economic and social situation and guaranteed security as well as a high prospect of sustainable economic development driven by market mechanism and open international economic integration. If the strengths of the two countries are combined, both sides will enjoy tremendous benefits.
“I hope that Russian and Vietnamese businesses will find out many opportunities of cooperation that fit potential and interests of both sides, especially many fields Vietnam is encouraging investment into such as new energy, renewable energy, supporting industries, high-tech industry, green industry, mechanical engineering, petrochemical, pharmaceutical, information technology, agro -processing, forestry, fisheries, construction, infrastructure development, education, training, healthcare and tourism," he added.
The forum also heard many suggestions and recommendations to bring the two-way trade revenue to US$7 billion by 2015 and US$10 billion by 2020.
Mr Hoang Trung Hai, Deputy Prime Minister of Vietnam
For the time being, the two-way trade turnover is now made up a small portion in both Vietnam and Russia’s trade turnover while direct investment in each other’s territory remains modest. The bilateral cooperation in economy, trade and investment needs to be further promoted to match inherent potentials of high complementarity. The accelerated negotiation and conclusion of FTA between Vietnam and the Customs Union will facilitate the flow of goods, services and investment among signing countries, reduce business costs for enterprises, and promote sustainable economic, trade and investment growth of the two countries.
The Government of Vietnam has been, and will be, continuing with the utmost efforts to reform the economy, improve the legal system, improve the business and investment environment, and create favourable, fair and transparent conditions for investors.
Mr Pham Gia Tuc, Vice President of Vietnam Chamber of Commerce and Industry (VCCI)
VCCI proposes the governments of the two countries build a legal framework for Russian local authorities to support and facilitate Vietnamese companies to invest and do business in Russia, overcome difficulties and obstacles in administrative procedures, and accelerate FTA negotiations between Vietnam and the Customs Union of Belarus, Kazakhstan and Russia. Besides, VCCI proposes the Russian Ministry of Foreign Affairs consider easing visa granting to Vietnamese businessmen, specifically, businesspeople who have close business contact with Russia should be given a longer term of visa in order to help them reduce time and costs.
Huong Ly
Vietnamese
