Russia–Vietnam

6 September 2022

Russia–Vietnam

Key conclusions

Cooperation between Russia and Vietnam is constantly evolving, particularly in the face of new challenges

“Cooperation between our countries is constantly evolving, our relations are becoming ever so close. Global cooperation is facing challenges and difficulties. The business community of our countries must be quick and flexible to take advantage of all these opportunities,” Dang Minh Khoi, Extraordinary and Plenipotentiary Ambassador of the Socialist Republic of Vietnam in the Russian Federation, the Republic of Azerbaijan, the Republic of Armenia, the Republic of Uzbekistan and Turkmenistan.

“Vietnam has it all to become a reliable partner for Russia. We are ready to act as a bridge to link the Russian economy to the world. The Far East has great potential for cooperation with Vietnam and the world. There is a large stock of resources, which makes our cooperation promising for both our countries,” Nguyen Hong Thanh, Head, Trade Representation of the Socialist Republic of Vietnam in Vladivostok.

“We have traditionally enjoyed vibrant trade and economic relations with Vietnam. Our countries complement each other well. Now we are facing new challenges, which have to do with securing the market supply. Vietnam has a steadily growing economy, plus a growing population. This makes Vietnam a promising market for all kinds of food produce. We are interested in increasing grain supplies, we intend to strengthen and develop the meat market, as well as sunflower oil, fish and seafood,” Sergey Levin, Deputy Minister of Agriculture of the Russian Federation.

PROBLEMS

Difficulties with logistics and mutual settlements

“The main reason (for the difficulties in the relationship – Ed.) are payment issues, disruption of logistics chains. We are glad to note that Fesco, an international company, has recently introduced the Vladivostok – Hoshi-min City route,” Dang Minh Khoi, Extraordinary and Plenipotentiary Ambassador of the Socialist Republic of Vietnam in the Russian Federation, the Republic of Azerbaijan, the Republic of Armenia, the Republic of Uzbekistan and Turkmenistan.

“The current situation affected the supply chain and mutual settlements. Now we can confidently deliver cargoes both from Russia to Vietnam and from Vietnam to Russia. Russian exports this year are increasing compared to last year. Those export volumes coming from Russia are already exceeding imports from Vietnam. Imports are declining due to the deterioration of the settlement system. Many banks are afraid of secondary sanctions and are not very eager to make contact with businessmen. We hope that the issues of mutual settlements will be fixed, and then there is an opportunity to adjust the import numbers,” Vyacheslav Kharinov, Trade Representative of the Russian Federation in the Socialist Republic of Vietnam.

“There is still no direct flight between the Far East and Vietnam, which would greatly stimulate the development of relations,” Yevgeny Vlasov, Acting Vice-Rector for International Relations, Far Eastern Federal University (FEFU).

Lack of efforts on the part of business

“We see the potential for medium and small businesses, the potential for cooperation [in terms of imports and exports, – Ed.] of almost all consumer goods. But at the moment both Vietnamese and Russian businesses are not putting in enough efforts, in my opinion,” Le Truong Son, President, Vietnam Businessmen’s Association.

“In these new conditions, education should solve new problems, while business should set tasks for the education system. If we talk about the development of economic cooperation on both sides, then we are talking the training of personnel for the future economy. It is important that graduates are embedded in economic chains. We have successful cases, like the partnership with the National University of Vietnam. We need to cooperate at the level of corporations,” Yevgeny Vlasov, Acting Vice-Rector for International Relations, Far Eastern Federal University (FEFU).

SOLUTIONS

Mutual visits and participation in trade shows

“In just two months, we will have a visit [of Russian representatives to Vietnam]; their agenda is very diverse; all the regions of the Russian Federation will be represented. A number of regions already have signed agreements, and today we are fine-tuning these agreements and introducing a modern legal framework. We understand the problems, the difficulties. Our aspiration is to increase trade turnover, to build up the pace. I think that our old friendship will surely help us establish new business contacts,” Andrey Yatskin, First Deputy Speaker, Federation Council of the Federal Assembly of the Russian Federation.

“One confirmation of the growing role of the regions is the increased demand for our lumber exports in Vietnam. Another trend is joint production: such an opportunity opens up for producers, including supplies to ASEAN countries. Thanks to exhibitions we establish direct contacts, learn more about each other,” Vyacheslav Kharinov, Trade Representative of the Russian Federation in the Socialist Republic of Vietnam.

“Last year was a milestone, when we saw our first trade turnover with Vietnam. This year we started to work more actively with Vietnam, in April we visited Hanoi for the first time. By the end of the year, we are expecting a delegation from Vietnam in our republic,” Gavril Kirillin, Minister of External Relations and Ethnic Affairs of the Republic of Sakha Yakutia.

Logistics infrastructure development and payments in cryptocurrency

“I propose that the state authorities of the Russian Federation accept the strategic role of Vietnam in mutually beneficial cooperation with the Russian Federation. It is also proposed to continue the reconstruction of railroads and highways to ensure the convenience of logistics operations. Russian business is invited to consider the possibility of interaction with Vietnamese small and medium-sized businesses, <...> the use of common cryptocurrency in mutual settlements. As well as approval of visa-free entry for Vietnamese citizens, equivalent to visa-free entry for Russian citizens in Vietnam,” Nguyen Hong Thanh, Head, Trade Representation of the Socialist Republic of Vietnam in Vladivostok.

“Sakhalin residents are actively visiting Vietnam, and the Vietnamese have tried the ski resorts of Sakhalin Region. We expect these relations to rise to a whole new level. We urge to organize the direct flights between the Far East and Vietnam, it can be done quickly if there is political will. We could offer complex solutions to our Vietnamese colleagues for them to implement in their home country,” Vasily Grudev, Minister of Investment Policy, Government of the Sakhalin Region.

Supplying timber and food

“Vietnam can be a hub for the promotion of Russian business to ASEAN countries and in the opposite direction. There are additional opportunities for cooperation, Vietnam has not joined the anti-Russian sanctions. The desire for cooperation is there, so we need to look for new opportunities,” Alexander Shokhin, President, Russian Union of Industrialists and Entrepreneurs.

“There is demand for venison in Vietnam, and we hope to sign a contract by the end of the year to supply the meat,” Gavril Kirillin, Minister of External Relations and Ethnic Affairs of the Republic of Sakha Yakutia.

“In recent years, Vietnam has become one of the leading wood processors, we export wood products. We import 9 million cubic meters of wood. We very much appreciate the potential of cooperation with Russia, including the Far East, and hope that our governments can help us increase the volume of supplies,” Ngo Sy Hoai, Vice-Chairman, General Secretary, Vietnam Timber and Forest Products Association.

For more information, visit the Roscongress Foundation’s Information and Analytical System roscongress.org.

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