At the Business Forum “Vietnam – Russia: New cooperation opportunities and potential fields”, on the afternoon of April 6, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc pointed out 8 advantages that help Vietnam become a destination for the future. linking Russia with ASEAN and the Asia-Pacific.
Sharing at the forum, Deputy Minister Nguyen Thi Bich Ngoc said that over the years, the relationship between Vietnam and Russia has been a traditional, reliable, sincere partnership, standing side by side on the path of development. develop. The bilateral relationship has many positive highlights, in which economic cooperation – investment continues to be important pillars to promote cooperation.
Analyzing the Asia-Pacific region as a dynamic economic development area with a lot of potential for development with a favorable location, Ms. Ngoc emphasized, Vietnam has become an important link, a bridge between the two countries. center connecting the Russian Federation with the ASEAN region as well as the Asia-Pacific region with 8 important advantages.
“Advantages can be mentioned are political stability; high economic growth; abundant young labor, low cost; competitive production costs; potential consumption market with 100 million people, and growing middle class; Vietnam is a country deeply integrated into the world economy and has a large number of FTAs; competitive opening policy with many incentives; The strategic location has many advantages,” said Deputy Minister Nguyen Thi Bich Ngoc.
Vietnam has set a goal to become a middle-income country by 2045.
To achieve that goal, the Deputy Minister of Planning and Investment said that the Government and the Prime Minister had many important policies, including policies to attract foreign investment.
However, according to Deputy Minister Nguyen Thi Bich Ngoc, so far, Russian investment in Vietnam has been modest. As of March 2023, the Russian Federation has 171 valid projects with a total registered capital of over 970 million USD, ranking 28th out of 143 countries and territories investing in Vietnam.
Russia’s investment projects are most concentrated in the mining sector with a total registered capital of 531.2 million USD, accounting for 54.7% of the total registered investment capital; followed by the service sector with 203.7 million USD and; the processing and manufacturing industry with 131.2 million USD. Deputy Minister Nguyen Thi Bich Ngoc hopes that Russian businesses can continue to consider Vietnam as a potential market to promote investment.
Meanwhile, Vietnam currently has 17 valid investment projects in the Russian Federation with a total registered capital of 1.63 billion USD. Russia is the 4th place in terms of capital out of 78 countries and territories Vietnam has invested abroad, accounting for 7% with 171 projects, total valid capital is 970 million USD. Thereby, the leader of the Ministry of Planning and Investment emphasized, Vietnamese businesses always consider Russia as one of the important strategic areas.
In the coming time, Deputy Minister of Planning and Investment Nguyen Thi Bich Ngoc hopes that businesses of the two countries will have more cooperation in investment in areas of strength and complement each other.
Russia invites Vietnamese enterprises to invest in vacant fields
Also at the forum, Deputy Minister of Economic Development of the Russian Federation Lliychev Vladimir Evgenyevich shared that the Russian economy has now overcome many difficulties of sanctions. At the end of 2022, Russia recorded many economic indicators higher than expected. Which, agriculture increased by 10%; construction increased by 5%; Mining and metallurgy both had GDP growth of 0.2%.
“We always create favorable conditions for investors in Russia. We are pleased to invite Vietnamese businesses to Russia to join the vacancies that Russia still has such as apparel, food, and energy. Vietnamese products exported to Russia can exploit more about garment products and processed foods,” suggested Lliychev Vladimir Evgenyevich.
According to the Deputy Minister of Economic Development of the Russian Federation, the country has a well-developed digital platform, which is favorable for businesses to invest in Russia. Russia will also develop logistics and logistics to match its potential, creating favorable conditions for investors.
Besides, Russia has many projects in oil and gas, and food… and wants to find new markets for these fields.
According to Mr. Lliychev Vladimir Evgenyevich, the two countries’ trade turnover is growing at a good rate, and the two countries still have plenty of room to boost their growth.
Vietnam – Russia shares a common Eurasian Economic Agreement (EVFTA), which is favorable to strengthening cooperation in joint projects: Agriculture, industry, energy, digital, and information technology. These are projects where the two countries can complement each other’s potential and advantages.
In addition, Mr. Lliychev Vladimir Evgenyevich also said that Russia is very interested in the circular economy and will focus on improving the capacity of Russian factories in Vietnam to accomplish this goal.
Visit the website HERE for more news!
Follow ICOS to see more service packages!