Dr Doan Duy Khuong, Vice President of the Vietnam Chamber of Commerce and Industry (VCCI), recently received Mr Beketzhan Zhumakhanov, Ambassador Extraordinary and Plenipotentiary of the Republic of Kazakhstan in Vietnam, at the VCCI Headquarters in Hanoi. The meeting aimed to discuss development investment cooperation between the two countries, especially garment, textile and agricultural export and import.
Kazakhstan is the second largest country in the Commonwealth of Independent States (CIS) after Russia and has the highest economic growth amongst CIS countries. Kazakhstan’s economy developed quite sustainably (GDP rose by 8.4 percent a year on average in the 2004-2008 period). Kazakhstan is rich in natural resources like minerals, oil and gas, and soil for agricultural development. Kazakhstan is strong at mining and processing, construction and agricultural machine manufacturing and military equipment.
After Kazakhstan declared independence, Vietnam recognised Kazakhstan and the two established diplomatic relations on September 26, 1992. The Vietnam - Kazakhstan Intergovernmental Committee on Economic, Commercial, Scientific and Technological Cooperation was established and called for the first meeting in October 1997 at Almaty. So far, the committee has met six times, with the last taking place on November 12, 2013. At the meeting, the two sides assessed the implementation of contents in the 5th Meeting Minutes of the Intergovernmental Committee; a Vietnam - Kazakhstan joint action programme in 2011-2013; results in bilateral economic, commercial, scientific and technological cooperation between Vietnam and Kazakhstan. The two sides expect the 7th gathering of the Intergovernmental Committee to be held in the fourth quarter of 2015 in Astana, Kazakhstan. To increase bilateral cooperation, Kazakhstan has opened its embassy in Vietnam in 2014.
According to statistics, economic and commercial ties between Vietnam and Kazakhstan remained very modest. However, in recent years, the bilateral trade had positive growth.
The two-way trade turnover was US$158 million in 2013, up 185 percent over to 2012. Of the sum, Vietnam earned US$153.8 million, up 213 percent and Kazakhstan took US$5.2 million, down 63 percent.
In 2014, the bilateral trade value totalled US$228.9 million. Specifically, Vietnam fetched US$218.4 million, up 42 percent over 2013 while Kazakhstan got US$10.5 million, up 2 times compared to 2013.
Vietnam’s key exports to Kazakhstan are telephone, computers, agricultural products (rice, cashew, pepper), seafood, machinery, iron and steel.
Meanwhile, Vietnam imports metals, ores and minerals from Kazakhstan.
Currently, the two countries signed some important agreements, including an agreement on economic and trade cooperation, an agreement on education cooperation, an agreement on investment encouragement and protection, an agreement on double-tax avoidance.
Oil and gas cooperation is positively developing. In April 2012, Vietnam National Oil and Gas Group (PetroVietnam) and KazMunaiGaz - a State-owned oil and gas company of Kazakhstan signed an agreement on strategic cooperation and reached initial results in researching Lot Usturt (near Uzbekistan, where PetroVietnam is carrying out an oil and gas in Lot Kossor). In September 2012, PetroVietnam and KazMunaiGaz signed a memorandum of understanding on negotiations toward signing an oil and gas contract in Usturt. Currently, the two sides are researching and assessing documents and discussing costs. PetroVietnam is proposing KazMunaiGaz for carrying out seismic works in this area and reduce material purchase expenses. Along with investment projects in Kazakhstan and Vietnam, PetroVietnam and its affiliated PVEP are exchanging with KazMunaiGaz on the possibility of engaging in some projects in third countries.
In addition, at the sixth meeting of the Intergovernmental Committee, the two sides agreed on setting up cooperation ties between the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) and SOVICO Company of Vietnam with Kazak partners in mining industry as well as a cotton and yarn processing and production project in Ontustik Special Economic Zone.
According to VCCI, to elevate the two-way cooperation relations, Vietnam and Kazakhstan need to intensify official exchanges while quickening the negotiations of the free trade agreement called Vietnam - Customs Union of Russia-Belarus-Kazakhstan, expected to be signed in 2015.
Quynh Chi
Vietnamese
