Vietnam, Russia discuss joint auto venture, increase trade

Nov 27th at 12:05

27-11-2020 12:05:23+07:00

Vietnam and Russia share common vision on advancing the bilateral comprehensive strategic partnership, but although it has been growing well, bilateral trade remains incommensurate with its potential and has not yet met the two countries’ expectations.

The online meeting of the Vietnam-Russia Inter-governmental Committee for Commercial, Economic, Scientific and Technical Cooperation was chaired by Vietnamese Deputy Prime Minister Trinh Dinh Dung (middle) and his Russian counterpart D.N. Chernyshenko.

30 percent annual growth

Vietnam and Russia should take measures to more than double annual bilateral trade to US$10 billion, Prime Minister Nguyen Xuan Phuc said during a November 11 reception in Hanoi for Russian Ambassador to Vietnam Konstantin Vnukov. The event followed a virtual meeting that day of the Vietnam-Russia Inter-governmental Committee for Commercial, Economic, Scientific and Technical Cooperation.

Bilateral trade increased from US$2.5 billion in 2014 to US$4.5 billion in 2019. It saw signs of recovery amid the Covid-19 pandemic, reaching US$4.1 billion in the first nine months this year, representing a year-on-year increase of 13 percent. As a key member of the Eurasian Economic Union (EEU), Russia has worked with Vietnam to effectively implement the Vietnam-EEU Free Trade Agreement over the past three years. The agreement has provided opportunities for both countries’ businesses to access each other’s markets through tariff exemptions and other preferences. More than two years after the agreement was signed, bilateral trade has grown 30 percent annually.

Deputy Prime Minister and Foreign Minister Pham Binh Minh (right) and First Deputy Foreign Minister of Russia Vladimir Titov

“The meeting touched on Russia’s interest in establishing joint car-assembling ventures in Vietnam which would allow creating a production hub to export cars to ASEAN countries,” according to a statement issued after the meeting. In agriculture, it was proposed to consider broader access for Russian livestock products and increased wheat exports to Vietnam and the export of Russian organic nitrogen phosphate fertilizers. Dmitry Chernyshenko thanked the Vietnamese side for approving licenses for Russian pork and fish exports and for prompt licensing of Russian meat processing companies, the statement says.

The Vietnamese and Russian deputy prime ministers also discussed measures to address bottlenecks in the construction of the Phu Long 1 thermo-power plant and nuclear science center.

Specifically, in the field of trade, the two sides proposed solutions to remove non-tariff barriers to efficiently implement the Vietnam-EEU Free Trade Agreement. Regarding trade in agricultural products, the two sides agreed to increase the number of businesses allowed to export seafood and meat products to each other’s markets.

Both sides also agreed that the 23rd meeting of the Vietnam-Russia Inter-governmental Committee for Commercial, Economic, Scientific and Technical cooperation will be held soon once the Covid-19 pandemic is under control.

Bilateral cooperation between Vietnam and Russia in the fields of culture, tourism, education and training, national defense and security, and science and technology has been growing well. Defense Minister, General Ngo Xuan Lich held phone talks with his Russian counterpart, General Sergey Shoigu on October 30, during which they reviewed defense cooperation.

VietNam Economic News