According to statistics from the Ministry of Industry and Trade, immediately after the entry into force of the Vietnam-Eurasian Economic Union Free Trade Agreement (UN-EAEU FTA) in 2016, bilateral trade between Vietnam and the Eurasian Economic Union (UN-EAEU FTA) accelerated sharply and the Russian Federation doubles during this period 2016-2021, which is about 15% annual growth, reaching more than 5.5 billion US dollars in 2021.

TRADE COOPERATION, MODERN INVESTMENTS

In 2022, due to the impact of many factors, the bilateral import and export turnover was significantly hit. Vietnam Customs statistics show that two-way trade will reach US$3.55 billion in 2022, down 35.4% from 2021. Imports reached US$1.99 billion, down 13.2%.

Currently, Russia accounts for more than 90% of all trade turnover between Vietnam and the Eurasian Economic Union (EAEU). Vietnam’s top exports to Russia include: phones and components, computers, electronic products, agricultural products, seafood, textiles and garments, and shoes.

In the reverse direction, Vietnam imported from Russia all kinds of iron and steel, all kinds of coal, fertilizers, petroleum products, chemicals, plastics, wood and wood products, wheat, meat, seafood.

In terms of investments, as of March 2023, the Russian Federation has 171 valid projects with a total capital of over 970 million USD, ranking 28th out of 143 countries and territories investing in Vietnam.

Russia’s investment projects are most concentrated in the mining sector, with a total registered capital of USD 531.2 million, accounting for 54.7% of the total registered investment capital; followed by the service sector at $203.7 million; Processing and Manufacturing Industry at $131.2 million.

In order to implement the cooperation protocol on the production and assembly of motor vehicles, the Gaz Group has established a joint venture in Vietnam. With the leading brand of the Russian Federation, the products of the joint venture “GAZ-Thanh Dat” were well received by the Vietnamese market and received positive reviews.

However, it must be recognized that the investment flow from Russia to Vietnam in the automotive manufacturing and assembly industry and supporting industries for this industry still does not match the potential of the two countries.

Meanwhile, Vietnam currently has 17 valid investment projects in the Russian Federation with a total capital of USD 1.63 billion. Russia ranks 4th in terms of capital out of 78 countries and territories that Vietnam has invested abroad, which accounts for 7% of Vietnam’s total foreign investment capital.

It is worth highlighting the oil and gas exploration and production project in Nhonhetxky, the operation of the Hanoi – Moscow Multifunctional Center, in particular the TH True Milk Group, which successfully implements the project of dairy cow breeding and milk processing with the help of high technology in Moscow region, Kaluga and some other regions of Russia.

At the recent “Vietnam – Russia Business Forum,” Mr. Pham Tuan Anh, deputy director of the Ministry of Industry (Ministry of Industry and Trade), openly said that the results achieved in the past period are still small compared to modest the friendship , the potential of the two countries.

Many experts believe that the trend of good trade growth between the two countries will continue in the coming years.

ENHANCE THE STRENGTHS OF BOTH PARTS

The goal set by the governments of the two countries is to increase the two-way trade turnover to USD 10 billion by 2025. “This is no small challenge for Vietnam and the Russian Federation when bilateral trade between the two countries is still more than USD 6 billion in recent times,” Mr. Pham Tuan Anh said.

Therefore, Vietnam-Russia needs to make more efforts. The representative of the Ministry of Industry and Trade said Vietnam has advantages in terms of natural resources, human resources, favorable geographical location, political security, stable society, broad economic openness and an increasingly improved business investment environment.

In addition, the Vietnamese government continues vigorous reforms and creates favorable conditions for foreign investments, including investments from Russia. Vietnam has become an attractive destination for foreign companies.

“One of the reasons why countries choose Vietnam for investment is the stable political situation, high economic growth rate, competitive product prices, abundant human resources, potential markets, etc. Openness in global economic integration, open policies with attractive incentives and located in a important strategic position in the Southeast Asian market, in the position of the East-West economic corridor.

In the area of ​​industry and green production, the Vietnamese government is pursuing a policy of industrial restructuring towards modernity, environmental protection and focusing on green growth.

A number of industry groups are selected for priority development, such as: B.: processing and manufacturing industries; Electronics, telecommunications, digital technology, new and renewable energies.

Aiming for 2035, Vietnam’s industry is developing an environmentally friendly, green industry, focusing on industrial production areas with advanced technology to produce products of high quality and value, is competitive, meets the standards of developed countries, and is deeply involved in the global value chain. In addition, the Vietnamese government pays special attention to the development of supporting industries, gradually increasing the rate of localization, and the development of products with high technological content and environmentally friendly.

Meanwhile, Mr. Potemkin Vasily Vladimirovich, Deputy Governor of Tomsk Oblast for Investment Policy and Property Relations said that the Russian Federation has great potentials and strengths in the fields of machine-building, mining and mining. especially in the new field of green production… These are the areas that Vietnamese companies are very interested in.

Therefore, considering the potential for cooperation and the main directions for industrial development of the two countries, it is clear that the prospect of industrial cooperation and green production between the two countries still has much potential and room for development.

In addition, the two countries have a solid foundation, as the governments of both sides have pledged to continue supporting enterprises of the two countries and create more favorable conditions to promote cooperation and investment, especially in the areas of investment. Each side has strengths.

The content of the article was published in Vietnam Economic Review No. 16-2023, issued on April 17, 2023. Welcome readers to read The:

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