New momentum for Vietnam-Russia trade cooperation

28/12/2024, 02:00

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The official visit to Russia by National Assembly Chairman Tran Thanh Man, which will see the top legislator co-chairing the third session of the Vietnam-Russia Inter-Parliamentary Cooperation Committee, is expected to create new momentum for bilateral trade – a highlight in the two nations’ relationship since they established diplomatic ties in 1950.

Russian and Vietnamese experts at the Vietsovpetro oil transfer control room. (Photo: VNA)

The official visit to Russia by National Assembly Chairman Tran Thanh Man, which will see the top legislator co-chairing the third session of the Vietnam-Russia Inter-Parliamentary Cooperation Committee, is expected to create new momentum for bilateral trade – a highlight in the two nations’ relationship since they established diplomatic ties in 1950.

The European-American Market Department under the Ministry of Industry and Trade (MoIT) reported that despite ongoing geopolitical volatilities, the Vietnam-Russia trade grew in 2023, reaching 3.63 billion USD, a slight annual increase of 2.3%. In the first seven months of 2024, the two-way trade turnover surged to 2.74 billion USD, up 45.5% year-on-year.

According to Duong Hoang Minh, Trade Counselor at the Vietnam Trade Office in Russia, several difficulties involving maritime and rail transport in the two sides’ economic and trade cooperation have been progressively addressed thanks to their joint efforts.

Since June 4, 2023, Russian airline IAERO has operated direct flights between Irkutsk of Russia and Hanoi of Vietnam, with two flights per week. Direct flights between Moscow and Ho Chi Minh City resumed at the end of January 2024. Additionally, both countries have relaxed visa regulations for each other's citizens, creating favourable conditions to enhance trade, investment, and tourism cooperation.

Minh said the two economies are complementary. Vietnam imports Russian products such as coal, metals, fertilisers, oil, liquefied gas, machinery, food, seafood, and timber, while Russia imports Vietnamese tropical agricultural products, seafood, food, beverages, textiles, footwear, electronics, machinery, and consumer goods.

However, he noted that their economic and trade cooperation faces significant challenges amid global economic difficulties. Despite their substantial efforts, the bilateral trade has experienced a sharp decline and slow recovery, with many investment projects encountering implementation issues in both Vietnam and Russia.

At a recent meeting between Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Russian Deputy Prime Minister and Minister of Industry and Trade Denis Manturov, the two sides reviewed bilateral trade relations and proposed measures to address challenges and strengthen economic cooperation.

They also explored new opportunities in various areas, such as green and renewable energy. Dien affirmed that Russia is a top comprehensive strategic partner of Vietnam, and the Vietnamese government is committed to facilitating Russia's energy projects.

To boost exports to the Russian market, the European-American Market Department advised associations and businesses working with Russia to closely monitor the market situation and adopt appropriate response measures.

Minh suggested that domestic exporters should participate in major trade exhibitions in Russia to better understand the market and business partners, thereby enhancing exports and strengthening the bilateral trade relations./.