Vietnam to enhance trade and investment ties with Russia and Hungary

09:13 | 27/08/2018

Vietnam will further its trade and investment ties with Russia and lift its relations with Hungary to a new co-operative level.

It is expected that in the time to come, Vietnam will continue to further strengthen political trust, strategic attachment, and enhance the effectiveness of bilateral co-operation with Russia, and affirming Vietnam’s consistent foreign policy of placing Russia as a prioritised partner, and further promote the comprehensive strategic partnership in a more qualitative and practical manner.

Vietnam and Russia will also create a new co-operative momentum in the economic, trade, and investment sectors, with the Southeast Asian nation to expand the market share of Vietnamese goods in Russia.

vietnam to enhance trade and investment ties with russia and hungary

TH Group’s milk project in Russia will help the two nations to boost their trade and investment ties

One of the biggest co-operative projects between Vietnam and Russia is a milk producing project implemented by Vietnam's TH Group. It is expected that the group will organise the ground-breaking ceremony of its high-tech concentrated dairy and fresh milk production projects in Russia’s Kaluga oblast.

Russian Ambassador to Vietnam K.V. Vnukov told VIR that Russia is expanding its investment presence in Vietnam. We have begun implementing a bilateral deal on constructing automobile manufacturing and assembling plants in Vietnam, with Russia’s famous brands like KAMAZ and GAZ. Hopefully in the near future, these automobiles will approach the majority of Vietnamese consumers,” he added.

Currently, Russia has only 116 investment projects in Vietnam, registered at $940 million. Meanwhile, Vietnam has 13 projects worth about $3 billion in Russia. The biggest firms include oil and gas joint ventures Rusvietpetro and Gazpromviet, the Hanoi-Moscow multi-functional cultural and business centre, the TH true MILK agricultural-industrial complex in Moscow, Kaluga, Primorsky, and Bashkortostan. Notably, TH Group in May 2018 inked a deal worth over $630 million with RFPI in order to produce milk in Russia.

After the free trade agreement between Vietnam and the Eurasian Economic Union took effect in October 2016, the two sides’ bilateral trade turnover has soared by an average 30 per cent per annum, to $3.55 billion last year.

Meanwhile, it is expected that in the time to come, Vietnam and Hungary will lift their relations to a new co-operative level, with a view to creating new changes in the two countries’ co-operation and expanding Vietnam’s influence in the Central-Eastern Europe region.

Currently, Hungary has only 17 investment projects in Vietnam, registered at $63.56 million. The total bilateral trade turnover hit over $355 million last year.

Thanh Tung

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