5 September 2019
KEY CONCLUSIONS
Good prospects for economic cooperation between
Russia and ASEAN countries
“Talking about
Russia–Indonesia relationship – economic relationship, of course, both trade
and investment, – I think we have a very big capacity, given the fact that both
our countries, Russia and Indonesia, are G20 members. Among the G20 members
with economy of this size, there is a lot of potential to increase both trade
and investment. If you look at the current data, we are actually in a healthy
condition. Indonesia is one of the top ten exporters to Russia,” Bambang
Brodjonegoro, Minister of National Development Planning of the Republic of
Indonesia.
“This time, we arrive to
Vladivostok, and we learn that there is big potential for the energy sector
here. We expect LNG shipments from Vladivostok to the southern parts of
Thailand to develop power supply,” Leophairatana Prachai, Chief Executive
Officer, Chairman of Executive Committee, TPI Polene Public Company Limited.
Cooperation between the Russian Federation and the
countries of Southeast Asia is successfully developing in many areas
“This year marks the tenth
anniversary of the Russia–Singapore Business Council; initially when it was
created in 2009 on the initiative of the Russian Chamber of Industry and
Commerce with the support of the Ministry of Economic Development and the
Rostec State Corporation, the Council included just ten companies. Now we have
70 Russian enterprises and over 40 Singaporean companies,” Nikolay Volobuev,
Deputy General Director, Russian Technologies State Corporation.
“Our main achievement is
the creation of the RS Trade electronic trade and service platform, which was
announced at the Russia–ASEAN summit in Sochi in May 2016, and its work was
announced in November of the same year. <...> First of all, this platform
allows to promote the products of Russian manufacturers in the countries of
Southeast Asia through Singapore,” Nikolay Volobuev, Deputy General Director,
Russian Technologies State Corporation.
“We are highly satisfied
with our Southeast Asia roadshow; we promoted two products: our Ansat
helicopter and Mi-171A2. 20 firm contracts and 20 option contracts were signed
for Ansat, and about 20 option contracts for Mi-171A2, totaling nearly half a
billion US dollars,” Aleksey Pakhomenko, Deputy General Director for Programs
and Strategy, Russian Helicopters.
“As a result of the first
half of 2019, we see an increase in export deliveries of completely new types
of products, such as nitrogen fertilizers – an increase of nearly 200%,
although in absolute terms the numbers are still fairly small – lumber,
sunflower oil and food products,” Maxim Kobin, Managing Director for Client
Work, Russian Export Center.
PROBLEMS
Weak starting positions
“We set a goal for
ourselves to increase the volume of non-primary and non-energy exports: with
ASEAN countries it currently stands at only USD 9 billion, which gives us food
for thought,” Maxim Kobin, Managing Director for Client Work, Russian Export
Center.
“We have active links with
Japan, with other countries, but very few links with Russia,” Leophairatana
Prachai, Chief Executive Officer, Chairman of Executive Committee, TPI Polene
Public Company Limited.
“781 helicopters of various
types are presently in operation in ASEAN countries, of which only 41 are
Russian-made. Unfortunately, our aircrafts are poorly represented so far.
According to our forecasts, the market capacity until 2030 will be about 300
helicopters, totaling more than 2 billion US dollars. In this timeframe, we
expect to deliver at least 150 aircrafts,” Aleksey Pakhomenko, Deputy General
Director for Programs and Strategy, Russian Helicopters.
Low level of mutual awareness between business
circles
“The Indonesian business
community does not know much about the Russian business community. It is rather
unknown, and I believe it is the same for Russia: many Russian businesses may
not know very well about Indonesian economic potential,” Bambang Brodjonegoro,
Minister of National Development Planning of the Republic of Indonesia.
SOLUTIONS
Networking between governments and businesses
“The history of our
relationship, which was previously a dialogue, goes back twenty years. At the
meeting held in Singapore, a new agreement was signed, the level of partnership
was raised to strategic interaction. We hope that the level of political relations,
which we consider quite high, will have an effect on economic relations as
well,” Sergey Katyrin, President, Chamber of Commerce and Industry of the
Russian Federation.
“We hold bilateral business
conferences, seminars, various events with the participation of Russians and
Singaporean politicians. The Russia–Singapore business dialogue was also
organized, which was aimed at strengthening mutual trust. We aim to organize
regional infrastructure in Southeast Asia, with a goal to strengthen
cooperation,” Winnie Teo, General Director, Progression Engineering (S) Pte
Ltd.
Developing transport
“Today we are ready to
announce the launch of a flight from Vietnam to Vladivostok. It will be a
direct flight from Cam Ranh, and another one with a stopover in Seoul,” Nguyen
Thanh Hung, Chairman of the Board of Directors, SOVICO Groups.
Expanding cooperation in education and culture
“An important project to
strengthen cooperation was the initiative of the Russian government to ensure
the interaction of educational and technical institutions of Russia and
Singapore. Preparatory courses will be organized at the centre, as well as the
opportunity to receive education in a variety of disciplines,” Winnie Teo,
General Director, Progression Engineering (S) Pte Ltd.
“Vietnam is Russia’s
reliable partner in ASEAN. Hundreds of thousands of Vietnamese people studied
or grew up in Russia. <...> We believe that through Vietnam Russia can
enter into successful trade with ASEAN countries,” Nguyen Thanh Hung, Chairman
of the Board of Directors, SOVICO Groups.
For more information, visit
the Roscongress Foundation’s Information and Analytical System at www.roscongress.org