Two-way trade between Vietnam and Russia is of great potential and Vietnamese authorities will create more favorable conditions for the investment and operations of Russian firms, Vietnamese Deputy Prime Minister Trinh Dinh Dung has said.

Vietnam's Deputy Prime Minister Trinh Dinh Dung. Photo: Linh Pham

Vietnam and Russia trade will greatly depend on vision and determination from the both sides, especially the business communities, Dung said at the Expo-Russia Vietnam 2019 taking place in Hanoi on November 14-16.

Being a member of 13 free trade agreements (FTAs), 12 of which are already effective, Vietnam has been committed to international regulations requiring high standards for goods and trade activities, Dung said, adding that FTAs will encourage foreign companies to enter Vietnam, ASEAN, and Asia as well.

Russian Ambassador to Vietnam Konstantin Vnukov. Photo: VTC News

The enforcement of the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA) is a strong boost for the Vietnam-Russia trade, he noted.

Accordingly, Vietnam expects its leather and footwear, agro-forestry-fisheries, electronics and consumer goods to further penetrate into Russia and other markets in the Russia-led Eurasian Economic Union (EAEU).

Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry. Photo: Linh Pham

Meanwhile, Vietnam welcomes Russian goods like farm produce, pharmaceuticals, health, industrial equipment, automobile spare parts, devices, mine extraction, materials, high-tech products, energy, and oil.

Sergey Anatolievich Tsyb, first deputy minister of Russian Ministry of Industry and Trade, said at the expo that Vietnam ranks among Russia’s top 10 Asian biggest trade partners and the biggest trade partner in ASEAN.

Health and pharmaceuticals are among sectors posting the strongest growth in the bilateral economic ties and Russian companies are finding opportunities to cooperate in these sectors as Vietnam has a strong health industry.

Russian companies are ready to supply the best materials which are highlighted in this expo for Vietnamese partners, he emphasized.

Senior Russian offcials attend the expo. Photo: Linh Pham

Expo-Russia Vietnam 2019 is one of the main activities celebrating Vietnam Year in Russia and Russia Year in Vietnam 2019.

The expo will open up opportunities to exchange goods and find out new collaborative ways that will support companies and facilitate short-term trade between the two countries, Russia’s Ambassador to Hanoi Konstantin Vnukov said at the event.

Sergey Anatolievich Tsyb (1st from left), first deputy minister of Russian Ministry of Industry and Trade. Photo: Ha An

Russian Foreign Minister Sergei Lavrov said in a letter sent to the expo that the event is necessary for information exchange and partnership for enhanced economic ties, of which Vietnam has contributed tremendously to the substantive cooperation.

The expo showcases booths of nearly 200 Russian companies and localities in Vietnam. More than 300 exchange meetings have been held during the three-day event.

Vision

Vietnam-Russia trade value in 2014-2020. Source: General Department of Vietnam Customs. Chart: Linh Pham

The bilateral economic ties have significantly increased since the enforcement of the free trade agreement between Vietnam and the Russia-led Eurasian Economic Union (EAEU).

As a result of the launch of this mechanism, Vietnam will obtain a privileged access to the large and lucrative common market of five countries namely Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan with the total volume of gross domestic product of around US$2.2 trillion and with almost 183 million consumers.

In exchange, the five Eurasian countries will be able to promote their products in Vietnam with a population of over 95 million people.

Two-way trade rose from US$2.6 billion in 2014, US$3.9 billion in 2015, US$5.2 billion in 2017, US$6.1 billion in 2018 and is estimated to reach US$10 billion by 2020, according to the General Department of Vietnam Customs.