"The two governments should resolve the policies that are barriers to investment and trade between the two countries," urged Prime Minister Nguyen Xuan Phuc in Vietnam-Russia Business Forum held in Hanoi-Moscow trade centre, part of the Hanoi-Moscow Complex (Incentra), during the visit of the Prime Minister to the Russian Federation in mid-May.
According to Prime Minister Nguyen Xuan Phuc, Vietnam is an attractive destination for foreign investors and is active in international integration with the focus on economic integration. Vietnam and Russia have a long tradition of relations and has established the comprehensive strategic partnership. Investment cooperation between the two countries has positive development. In 2015 Russia faced with sanctions and the Ruble decreased, so trade turnover between Vietnam and Russia declined to just US$2 billion and the number of tourists from Russia to Vietnam was also lower than that of the previous years. Russia did not have any big projects investing in Vietnam except oil and gas sector.
Prime Minister Nguyen Xuan Phuc emphasised that new opportunities have come because Vietnam is a member of the 13 bilateral and multilateral Free Trade Agreements, including free trade agreements with the Eurasian Economic Union. Therefore, the enterprises of the two countries should take advantage of these favourable conditions to export to Russia many agricultural products and fisheries. In contrast, Vietnam could import from Russia meat and some consumer products. In addition, Russian businesses can invest in schools and hospitals in Vietnam.
According to statistics, two-way trade turnover between Russia and Vietnam in 2015 was estimated at US$2.2 billion and in the first quarter of 2016 it reached about US$600 million. Russia ranked 17th of 112 countries and territories investing in Vietnam, with 114 valid investment projects with the total registered capital of US$2.08 billion, in areas such as energy, mining, manufacturing, tourism services, etc. Vietnam has 20 investment projects in Russia, with a total new and additional investment of US$2.93 billion in the areas of exploration and exploitation of oil and gas, service.
To achieve the goal of bringing trade turnover between the two countries to US$10 billion by 2020, Prime Minister Nguyen Xuan Phuc said the government of Vietnam will always create favourable conditions for the two countries' businesses. The Prime Minister also suggested Russian government study to remove the barriers currently hindering business in the two countries to expand investment and trade in the market economy.
According to, Dr Vu Tien Loc, President of the Vietnam Chamber of Commerce and Industry (VCCI), VCCI will work with the two countries’ business communities to contribute to raising bilateral trade turnover equal to the comprehensive strategic partnerships.
The forum attracted more than 500 enterprises, not only businesses in Moscow but from throughout the region as well. After the official workshop, the businesses of the two sides exchanged in-person meetings to identify new opportunities for cooperation in the areas in which both sides have great potential such as tourism, mining, textile, etc.
Some important and valuable contracts were concluded during the event. The T&T group signed a legal consultancy contract with Herman Smith firm. This is a legal consultancy contract for Investment Project Phase 1 in Russia worth US$25 million, which has been approved by the government and focused on the field of exporting agricultural and fishery products and real estate. Hung Vuong Seafood Company also signed a contract to buy 51 percent shares of the Russia Fish. After completing the acquisition of shares of Russia Fish, Hung Vuong will buy seafood from other countries and export to the Russian market through this distribution company.
In addition, the Vietnam National Cement Association (VNCA) negotiated to find Russian partners on spare parts and machinery in mining. In the real estate sector, the Dat Xanh Company is working with Russian partners to coordinate the construction of resort in Phu Quoc, Nha Trang and finding partners for projects in real estate and luxury apartments.
VCCI also signed cooperation with Russian company JSC Zarubech to implement a number of activities organizing Vietnam-Russia trade & investment fairs in Hanoi, which is expected to be held every two years. This programme is approved within the promotion programme of the Russian government.
Quynh Chi
Vietnamese
