Russia trade to blossom again

The Beeline telco brand is one of many visible faces of Russian investors in Vietnam

To provide momentum, Bank for Investment and Development of Vietnam (BIDV) and Russia’s VTB Bank recently established a Vietnam-Russia investment fund to mainly mobilise capital from Russian companies for investing into Vietnam’s economic fields such as industry, energy and commerce.

The investment fund marks a milestone for the return of Russian companies to Vietnam. In the past, Russia used to be one of Vietnam’s most important economic partners. However, it was disturbed by the break-up of the Soviet Union.

Mirax, one of leading construction and real estate development companies in Russia, late last month also reaffirmed its investment plan in Vietnam. This company will develop a five-star hotel and luxurious villas in Nha Trang Bay in the central Khanh Hoa province.

A Mirax representative said  Vietnam was emerging as one of the best investment destinations for Russian investors.

Last year, bilateral trade turnover between Vietnam and Russia reached $1.7 billion and the two countries expected the figure to reach $2 billion this year.

Vietnam has attracted 68 investment projects from Russia with the total investment capital of $800 million, ranking 23rd out of 93 countries and territories investing in Vietnam.

Foreign Investment Agency figures show that Russian companies are interested in energy, construction, and telecommunication fields in Vietnam.

In July 2009, Russia’s VimpelCom officially introduced Beeline brand in Vietnam through the joint venture of Gtel Corporation, which the Russian company holds a 40 per cent stake. The company announced to invest $1.8 billion in Vietnam till 2013.

Another Russia’s telecoms group, Altimo also announced plans for making Vietnam the centre of its investments in the Southeast Asia.

Gazprom and Inter Rao UES also signed cooperation agreements with Vietnam National Oil and Gas Group. Early last month, Vietnam and Russia signed an agreement for the construction of Vietnam’s first nuclear power plant. Under this agreement, Russia’s Rosatom Company will be the main contractor of this project.

The attention of Russian companies paid to Vietnam has been proved at Vietnam-Russia economic forums, which attract hundreds of companies seeking investment and business opportunities in Vietnam.

Russia’s companies are also seeking opportunities in Vietnam through other international business forums.

Russia-Singapore Business Forum, for example, is one of channel for Russian companies to find business in Vietnam. The Russia-Singapore Business Forum Organising Council announced that this forum became the only business-to-business platform linking Russian political and business elites with Singapore and the rest of Asia.

Since 2006, the last four forums held in Singapore have created new opportunities and partnerships for Russian companies in Asia, including Vietnam.