Vietnam, Russia Boosting Cooperation in Cross Year 2019

11:08:34 AM | 3/25/2019

Vietnam and the Russian Federation have long-standing traditional relationship and close cooperation in many fields. Currently, Vietnam is the only strategic partner of Russia in the Asia-Pacific region.

In 2020, Vietnam and Russia will celebrate the 70th anniversary of diplomatic relations. The two countries will attain great achievements in politics, diplomacy, economy, trade, security, defense, science and technology, education and training, culture and tourism.

Vietnam - Russia cross year 2019, the Russia Year in Vietnam and the Vietnam Year in Russia in 2019, will be a great opportunity for both sides to strengthen specific business cooperation. Russia is also planning to host the Russia Expo in Vietnam and the Vietnam - Russia Business Forum. The Vietnamese side also announced that the Vietnam Chamber of Commerce and Industry (VCCI) will organize several trade events for businesses in Russia in the coming time.

VCCI Vice President Hoang Quang Phong affirmed that, for more than a decade, trade and economy have always stood out in the bilateral multifaceted cooperation. Vietnam - Russia economic cooperation is increasingly strengthened with four pillars of trade, investment, oil and gas, and electricity. The two-way trade value tends to pick up and the cooperation and investment form is also increasingly diversified. In particular, more Vietnamese enterprises have invested in Russia to seek and expand markets.

The two-way trade cooperation has also flourished. Specifically, in 2018, the bilateral trade value rose 28.6% to US$4.57 billion. The two sides expect it to reach US$10 billion by 2020.

According to statistics, Vietnam is currently the 23rd largest trading partner of Russia, the first among ASEAN countries and the 6th among APEC countries. Meanwhile, Russia has 123 projects outside oil and gas investment in Vietnam with a total investment value of US$1 billion while Vietnam has more than 20 investment projects with nearly US$3 billion of investment capital in Russia, including US$2 billion dairy investment by TH True Milk Group.

He added that although investment between the two countries are still modest, more cooperation opportunity will be unlocked in the coming time, especially when the two countries have deployed two-way payment channels in local currency and cash flow transactions between two countries are open. Effectively combined, their strengths will create great benefits, helping further boost the bilateral strategic cooperation.

Given strong relationship and highly complementary import and export structure, Vietnam is confident to affirm itself as an attractive market for Russian businesses and investors. In the process of regional and international economic integration, Vietnam always welcomes and readily provides most favorable conditions for Russia and other partners to trade and invest in Vietnam, Mr. Phong affirmed.

Sharing this viewpoint, Mr. Sergey N.Katyrin, Chairman of the Chamber of Commerce and Industry of the Russian Federation, said that, the Vietnam - EU Free Trade Agreement (EVFTA) will take effect in October.

He added that Vietnam is Russia's main partner in Southeast Asia. The bilateral relationship is a comprehensive strategic partnership. Vietnam is the first foreign country that Russia has signed a free trade agreement. The agreement will bring the import tax of 98% product lines to zero. At present, two-thirds of the tariff lines have been removed and the rest will be zero within the next 10 years.

According to Mr. Sergey N.Katyrin, Russian high-tech businesses are now very interested in the Vietnamese market. They deal with smart city construction, modern technology for water treatment, water supply and drainage, fire prevention and fighting equipment, medical equipment with nuclear technology application, and wind power stations and other goods and services.

“I believe that Russian the number of businesses that want to access the Vietnamese market will increase every year,” said Sergey N. Katyrin.

2019 is considered a cross year between Russia and Vietnam as the two is celebrating the 25th anniversary of signing the Treaty on Basic Principles of Friendship. I think that we will have a dense agenda of political, cultural, commercial and economic events. This is a good opportunity to draw the attention of entrepreneurs and consumers in Russia, as well as in Vietnam, to each other's markets and products, he added.

Huong Ly