Vietnam-Russia trade ties on the rise

Russian Deputy Minister of Industry and Trade Viktor Evtukhov delivers a speech at the conference
(Photo: Tuong Thuy)

Speaking at an investment and trade promotion conference in Ho Chi Minh City last week, the deputy minister urged firms to leverage the opportunities presented by the forthcoming signing of a free trade area agreement (FTA) between Vietnam and the Customs Union of Russia, Belarus and Kazakhstan. His views were echoed by Vietnamese representatives, with both sides eager to make better use of the rising opportunities that would be available in the coming years.

Over 400 Russian and Vietnamese enterprises attended the workshop where Vietnamese Ambassador to Moscow Pham Xuan Son stressed to Vietnamese firms Russia’s interest in the country as a gateway into the Asia-Pacific region.

Two-way trade last year between the two countries topped $4 billion, double the figure recorded in 2010. However, both countries are keen to see trade value top $7 billion by 2015 and hit $10 billion by 2020.

This ambitious target would represent a major surge in trade between the countries with current trade accounting for just 1 per cent of Vietnam’s total trade value and a miserly 0.5 per cent of Russia’s trade turnover.

Evtukhov added that the opportunities existed for this remarkable leap in trade, stressing the progress made on energy co-operation, military equipment, education and tourism.

The conference saw words turned into actions as the Vietnam National Textile and Garment Group (Vinatex) concluded a deal with several Russian companies to build the Moscow-Ho Chi Minh City Light Industries Complex outside the Russian capital. The Evarz Park joint venture, with Vinatex holding a 51 per cent stake, will house apparel, footwear and wooden products factories. Work on the first plant, a jeans factory, is set to start the fourth quarter, with its first products available from next autumn. Vinatex also concluded a deal to open a showroom at the Hanoi-Moscow Culture Trade Centre Complex in Moscow with Vietnamese-owners Incentra.

Vladimir Lebedev, international cooperation consultant of the Moscow Governor, said the agreement underlined the Russian capital’s interest in supporting the Vietnamese community. The city allocated nearly 5 hectares of land to investors to construct the complex which serves Vietnamese businesses and provides a base for further bilateral trade ties.