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Vietnam and Russia are intensifying efforts to deepen and enhance their economic, trade, and investment cooperation, building on a foundation of historical ties and mutual support. At the meeting with Russian President Vladimir Putin, on the afternoon of June 20, Vietnam Prime Minister has highlighted the need for strengthened economic relations, expressing gratitude for past Russian assistance while advocating for more favorable trade conditions. This includes calls for removing trade barriers, expanding rice export quotas to Russia, and facilitating easier access for Russian agricultural products in Vietnamese markets.
The current trade relationship is robust, encompassing a diverse range of agricultural, forestry, and fishery products. Vietnam's exports to Russia include high-value items such as coffee, seafood, vegetables, tea, and increasingly, garments, while Russia supplies Vietnam with critical resources like seafood, wheat, fertilizer, and frozen meat. The garment sector, in particular, shows promising growth potential, with 21 major Vietnamese enterprises represented by Vitas members actively expanding their presence in the Russian market. However, despite rapid growth, Vietnam's share in Russia's total garment imports remains modest, indicating significant room for expansion.
On the investment front, Russia's presence in Vietnam, while notable with 171 projects totaling $970 million (June, 2023), is considered below its potential given the scale and complementarity of the two economies. To address this, Vietnam is actively working to create a more inviting business environment for Russian investors. The partnership's future growth is expected to leverage the unique strengths of each nation: Vietnam's prowess in agriculture, textiles, footwear, furniture, electronics, and consumer goods manufacturing complements Russia's advanced industrial base, scientific research capabilities, and abundant natural resources. Vietnam is particularly keen on attracting Russian investment in critical areas such as supporting industries, mechanics, manufacturing, new materials, metallurgy, and chemicals.
To fully capitalize on these synergies, both nations are encouraging their business communities to proactively engage in networking, information exchange, and participation in trade promotion events. This strategic approach aims to foster a deeper understanding of market dynamics and consumer preferences, ultimately leading to the identification and exploitation of specific business and investment opportunities that can drive mutual economic growth and strengthen the bilateral partnership between Vietnam and Russia.
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Vietnam has significant room for trade growth with the Far East, with potential for increased export volume of agricultural products, processed foods, consumer goods, textiles, garments, footwear, electrical products, electronics, equipment, and machinery. Vietnamese businesses can build their brand in the market by partially producing in Russian territory, taking advantage of tax incentives and investment attraction policies. The Russian Federation is investing in the Northern Sea shipping route, making it a strategic transport route.
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