The Vietnamese-Russian Business Forum, held recently in Hanoi with the participation of hundreds of businesses working in technology, trade and services of the two countries, was an opportunity for businesses from both countries to better understand the potential and opportunities of each other, to identify mutually beneficial forms of business cooperation. The forum was jointly held by Vietnam Chamber of Commerce and Industry (VCCI), the Russian Department of Economic Development and the trade representative of Russia in Vietnam.
Speaking at the forum, Dr Doan Duy Khuong, Vice President of VCCI said that Vietnam and the Russian Federation had a traditional, longstanding relationship of cooperation and support, the friendship between the people of the two countries was very special. The relationship between Vietnam and Russia currently was moving into a new phase of development - which was working together to build prosperous countries, for the happiness of the people, and also for peace and stability in the region and around the world. With determination from both sides, the bilateral relations were on the way becoming a strategic, long-term, coherent and comprehensive partnership.
“Economic and trade relations are an important part of the overall relationship and multifaceted cooperation between Vietnam and the Russian Federation. This was also a focus in our discussions with the Russian government as well as some Russian economic groups. All parties have evaluated and noted the dynamic and efficient development of economic, trade and investment cooperation between the two countries over recent time,” said Mr Khuong.
Statistics showed that two-way trade Vietnam - Russia had developed rapidly in recent years, in 2013 it reached nearly US$4 billion; the first 7 months of 2014 achieved US$1.52 billion. However, this is still a very small proportion, about 0.5 percent, of the total export and import of Russia with other countries. More so, despite growth in bilateral exports and imports, the absolute value remains low and exported goods lack diversification.
Major items Vietnam importing from Russia includes assorted petroleum, steel and steel products, chemicals, machinery and spare parts and fertilizer. Meanwhile, Vietnam exports to Russia seafood, electronic products, textiles and garments, footwear, agricultural and forest products such as fruits and vegetables, coffee and rice.
Currently, the two sides are under negotiation of a free trade agreement (FTA) between Vietnam and the Customs Union, including Russia, Belarus and Kazakhstan. This FTA is expected to create a breakthrough and realize the goal of increasing bilateral trade to US$7 billion by 2015 and US$10 billion by 2020. For this goal to be attained, it requires support from both the governments as well as the active participation of the business community.
However, Mr Khuong also noted that although there had been significant results in business partnerships, those were still relatively low compared with the potential of both sides. Vietnam was a strong market with approximately 90 million consumers, a gateway access to other large markets thanks to the formation of free trade areas such as ASEAN - China, ASEAN - Japan, and ASEAN – Korea. Additionally, the government's efforts in speeding up reforms, encouraging private sectors development, perfecting the law, the market economy mechanisms and infrastructure would also be favourable conditions to make Vietnam an attractive destination for foreign businesses and investors, Russian businessmen included.
Mr Khuong also affirmed that as the representative body for the Vietnamese business community, VCCI was willing to cooperate with the Russian trade representative as well as Russian trade promotion organizers to strengthen bilateral business meetings.
According to Vietnamese Deputy Minister of Industry and Trade Nguyen Cam Tu, in recent years, cooperation in economic, trade, industry and investment between Vietnam and Russia was getting more diverse, rich and comprehensive thanks to increased cooperation in key sectors, such as energy, including nuclear energy for peaceful purposes, and oil and gas, technical, transport and telecommunications.
The first six months of 2014, there have been more than 100 projects of Russian direct investment into Vietnam with a total registered capital of about US$2 billion. In return, Vietnam has also invested about US$2.5 billion to Russia into oil and gas exploitation, real estate, apparel and footwear.
According to assessment of Mr Aleksei Likhachev Evgenhevich, Deputy Minister of Economic Development of the Russian Federation, Vietnam had huge growth potential and could provide Russian businesses a strong foothold to penetrate deeper into the Asia Pacific market.
Aiming to promote a closer bilateral cooperation, the Russian Federation has invited Vietnamese businesses to participate in fair programs in Russia, expanding the list of Vietnamese exporters of agro-forestry-fishery. For high-tech and nuclear energy cooperation, this is a great direction for future cooperation, not only to the construction of nuclear power plants, but also to staff training, nuclear development to provide parts and services for regional countries.
Quynh Anh
Vietnamese
