|A visitor seen at EXPO Russia –Viet Nam 2015 yesterday in Ha Noi. Two-way trade between Viet Nam and Russia surged to approximately US$3 billion last year. Trade is expected to hit $10 billion by 2020. — VNS Photo Doan Tung
HA NOI (VNS) — Besides traditional co-operation areas, Vietnamese and Russian businesses should take initiative in widening their relations, vice chairman of the Viet Nam Chamber of Commerce and Industry (VCCI) Hoang Quang Phong told a business conference held yesterday in Ha Noi.
Viet Nam was now a comprehensive strategic partner of Russia in the Asia-Pacific region. The bilateral relationship between the two countries has developed significantly in trade, investment, oil and gas and electricity, Phong said.
The Free Trade Agreement (FTA) signed between Viet Nam and the Eurasian Economic Union (EAEU) in May will open up valuable opportunities for Vietnamese and Russian firms to accelerate their co-operation, he said, adding that the two governments had committed to create the most favorable conditions for enterprises to do business.
Duong Hoang Minh, deputy head of the Ministry of Industry and Trade's European Market Department said many opportunities were awaiting Vietnamese exporters in the Russian market especially when the Viet Nam-EAEU FTA came effect in the near future. The pact will result in tax cuts to zero per cent on nearly 90 per cent of tariff lines.
However, Minh also warned that enterprises should carefully study the exemption and reduction of specific tariff lines as well as regulations on origin to maximise the cut's benefits. The firms should also pay attention to ensuring product quality and safety if they wanted to deeply penetrate into the lucrative Russian market.
In his speech at the forum, the chief representative of the Russian Trade Office in Viet Nam, Maxim Golikov outlined oil and gas, mining, transport, chemical, high-tech industries and agriculture as sectors that Russia prioritised to co-operate with Viet Nam.
Two-way trade between the two countries surged rapidly from $500 million to approximately $3 billion in 2014. Trade was expected to hit $10 billion by 2020.
In term of investment, as of October, Russian companies had 113 valid projects, capitalised at $2 billion, in Viet Nam. The largest share of Russian investment came into the processing and manufacturing sector with $1.1 billion. Meanwhile, the mining sector attracted $581 million and real estate trading lured $73 million.
First in Viet Nam
The industrial exhibition EXPO Russia –Viet Nam 2015, organised by Russian-based Zarubezh-Expo, took place on the same day in Ha Noi.
Zarubezh-Expo Chairman David Vartanov said the expo, featuring approximately 120 enterprises from Russia, would showcase modern technology in various fields, including energy, mechanical engineering, transport infrastructure, telecommunications, communications, mining, chemistry, medicine and agriculture.
Attending the event, VCCI vice chairman Phong said the expo would provide opportunities for Vietnamese enterprises to access the Russian market.
The expo would create a favorable environment for the two side's businesses to seek business partners as well as expand collaboration in research and technological transfer, he said. — VNS