Vietnam-Ukraine Cooperation Promoted

1:41:37 PM | 3/31/2011

On the occasion of the official visit of Ukraine President Victor Yanukovych to Vietnam, VCCI, in conjunction with Vietnamese concerned authorities, the Ukraine Chamber of Commerce and Industry and the Ukraine Embassy sponsored the Vietnam-Ukraine Trade and Investment Forum. The forum was an opportunity for businesses of the two countries to exchange information and promote bilateral economic cooperation.
Visiting Vietnam with the President are leading Ukrainian businesses and investors in petro-chemistry, mechanics, transport, ship-building, finance, banking, medicine, agriculture and food processing, brewery and trading.
Favourable business conditions
Speaking at the Forum, President Nguyen Minh Triet expressed the hope that businesses of the two countries will find more opportunities for cooperation and investment, new and efficient partnership in the coming years. He also reaffirmed that Vietnam stands ready to welcome Ukrainian investors to consolidate the traditional friendship between the two countries, broaden and deepen the unity and cooperation between the two peoples and business communities.
President Nguyen Minh Triet also added that Vietnam will be a gateway for Ukraine businesses to approach other ASEAN countries.
Ukraine President Victor Yanukovych said that Vietnam has great potential for cooperation and is Ukraine’s most important partner in South East Asia. Businesses of the two countries can complement each other in development.
The Ukrainian President also expressed hope that trade turnover and cooperation between the two countries will increase in the coming years, especially in ship-building, transport, agriculture and flight routes.
New opportunities
According to Assistant Professor and Doctor Le Danh Vinh, Standing Vice-Minister of Industry and Trade, Vietnam and Ukraine have maintained important cooperation in such fields as military, customs, trade and others.
In economic-trade cooperation, since the establishment of diplomatic cooperation (January 23, 1992), the two countries have significantly increased bilateral trade value. In 2008, total trade value increased to US$546 million, four times that of 2007. Due to the world economic crisis, bilateral trade decreased to US$447.7 in 2009 with US$129 million in export and US$335 million in import. Bilateral trade value in 2010 was US$256 million with US$115.7 million in export and US$140 million in import.
The import-export items of the two countries complement each other. While main Vietnamese exports to Ukraine are aquatic products, garments, pepper, rice, cashew nut and plastic products; Ukraine exports are wheat, machines and equipment, steel and steel products.
Concerning investment, Ukraine has invested some US$23 million in Vietnam with three projects: Bong Sen sea transport joint venture (US$19.6 million), Small hydro power station joint venture (US$1.2 million), Fruit and vegetable export processing joint venture (US$2.2 million). Some other businesses are also operating in Vietnam such as: Vicorutech (natural rubber), Lotus (port logistics), Tienki (dried tropical fruit), Ucrinternergo, Elektrotyazhmash (hydro-power equipment and construction), Kraz (trucks), and Ucrhidroproekt.
Vietnam has four investment projects in Ukraine, mostly through the Vietnamese community, with total capital of US$27 million focusing in food processing (instant noodle), packaging and restaurants.
Bilateral cooperation in industry concentrates on energy, chemistry, archaeological exploration, mining and ship-building.
 Mr Vinh added that Vietnam has great potential in natural resources and several mineral mines. Ukraine businesses with advanced technology can develop cooperation in these areas (titan processing, bauxite waste treatment, modernization of coal mining). It is a most promising area of cooperation. On the occasion of the 11th Meeting of Vietnam-Ukraine economy-trade-science cooperation, a Memorandum of Understanding has been signed between Ukraine National Archaeology Institute (UKrGGRI) and Vietnam Coal and Minerals Industries Group (Vinacomin). In addition, the two sides have also agreed on cooperation to process red mud in bauxite mining.           
Also, according to Mr Vinh, Vietnam is developing the ship-building industry and Ukraine, with its strong expertise, can supply Vietnam with equipment, especially high-speed passenger boats, patrol boats, and air-cushion boats.
Ukraine plans to participate in the modernization of Vietnam port systems, building mobile floating ports, parking, berths and wave breaks by composite.
Ukraine businesses are also interested in hydro power as the former Soviet Union has developed several hydro power stations in Vietnam with the participation of Ukraine enterprises, such as the supply of turbines to Huong Dien hydro power station.
Ukraine also plans to participate in the building of new energy and hydro power projects, restructuring and modernizing Vietnam’s energy industry.
Quynh Anh