Vietnam looks to ally for economic renaissance

In talks with Vietnamese leaders the Russian PM unveiled the message that enterprises in his country were looking forward to stimulating economic cooperation with Vietnam in all areas, particularly exploring opportunities to join major future projects.
According to Fradkov, Russia is ready to put forward tenders to take part in supplying equipment for the country’s energy plants including Son La hydro-power plant and constructing the first atomic power station in Vietnam, along with the construction of subways in Ho Chi Minh City and Hanoi.
Russia additionally wants to expand bilateral cooperation in the fields of mechanical manufacturing, oil exploitation and equipment supplies, as well as intensify activities in the Vietsopetro joint-venture, said the PM.
“We [the two countries’ leaders] have agreed to assign the Vietnam-Russia Inter-government Committee on Economics, Trade and Science and Technology to organise the Vietsopetrol’s cooperation activities, including those to be conducted after 2010,” said Fradkov at a press briefing following talks with his Vietnamese counterpart Prime Minister Phan Van Khai.
Minister of Industry Hoang Trung Hai revealed that the Vietnamese Government has asked Vietsopetro’s board of directors to discuss the specific expansion plans with Russian partners for the venture’s activities in the coming years.
“The joint-venture’s expansion plans include a plan in which Vietnam and Russia will join forces to invest in oil exploitation in a third country, perhaps including some former Soviet Union country members,” said Hai.
PM Khai said he hoped that the success of the visit to Vietnam by his Russian counterpart would heral remarkable progress in the two countries’ two-way trade volume, which he expects to register a two- to three-fold increase in 2010.
Bilateral trading volume last year between Vietnam and Russia registered a growth rate of 15 per cent against the previous year with an amount of more than $1 billion, comprising $260 million in exports from Vietnam to Russia and $750m in imports from Russia.
According to PM Khai, the current bilateral trading volume remains short of the two countries’ potential.
Khai proposed that Russia grant Vietnam a preferential tariff system as a developing country like the EU has, which would also offer Russian importers more chances to cooperate with highly qualified Vietnamese suppliers of rubber, coffee, aqua-products, footwear, textile and garment, wooden furniture and handicrafts.
The Vietnamese high-profile official agreed with his counterpart on the need to build a Vietnam-Russia cooperation bank, designed to facilitate the trading performance of the two countries’ enterprises.
Khai and Fradkov also shared the idea of holding talks with China on launching a straight flight linking Vietnam with Beijing and Russia for the further development of tourism.
The two PMs witnessed the signing of the amendment agreement on training Vietnamese citizens at Russian universities and the bilateral cooperation agreement on fighting drug trafficking at the conclusion of the meeting.



No. 749/February 20-26, 2006