Russia and Belarus trip yields deals

Oil and gas remains a priority co-operation area between Vietnam and Russia, source: VNA

During State President Tran Dai Quang’s first official visits to Belarus and Russia from June 26 to July 1, he and leaders of both countries agreed to grow trade and investment co-operation under new commitments.

On Quang’s June 28-July 1 visit to Russia, the two countries agreed to continue deepening their co-operation in oil refining, petrochemicals, and the production and sale of gas engine fuel on the Vietnamese market. Russia will also supply liquefied natural gas to the Vietnamese market.

“We examined opportunities for new projects and agreed on strengthening our ties in various areas. These projects include assembly and production of cars, energy, oil and gas, and construction of infrastructure facilities,” Quang told the press. “Vietnam and Russia will also continue to build the Nuclear Science and Technology Centre in Vietnam.”

According to Russian President Vladimir Putin, there are great possibilities for co-operation in the power sector. “A Russian company, Siloviye Mashiny, is already building the Long Phu 1 thermal power plant in Vietnam. Our companies are ready to take part in modernising facilities built during the Soviet era and to build new facilities,” Putin told the press.

He said the oil and gas sector remains a priority co-operation area. The Russian-Vietnamese joint venture Vietsovpetro accounts for around a third of oil production in Vietnam. The number of actors taking part in this co-operation continues to grow.

“Russian companies Rosneft and Gazprom have started working on developing Vietnam’s continental shelf. In Russia, our companies are working with their Vietnamese colleagues to develop fields in the Nenets Autonomous Area, on the Yamal Peninsula, and in the Orenburg Region,” Putin said.

The Russian-Vietnamese Investment Fund additionally plans to invest up to $500 million in promising non-commodities projects, above all in pharmaceuticals and agriculture.

Mosmetrostroy and Russian Railways are ready to take part in building metro systems in Hanoi and Ho Chi Minh City, and in modernising Vietnam’s railway network, Putin said. The two countries will also jointly implement projects to assemble Russian GAZ, KAMAZ, and UAZ vehicles in Vietnam.

During this visit, in addition to releasing a joint statement, the two countries signed many other documents on co-operation concerning the exchange of confidential financial information related to money laundering and financing of terrorism, the work of the Russian-Vietnamese High-Level Working Group on priority investment projects, co-operation between the two countries’ state treasuries, a project to build a nuclear science and technology centre in Vietnam, the development of space sector co-operation from 2017-2022, and railway co-operation.

Russian investment in Vietnam is currently at $2 billion, while Vietnamese investment in Russia reaches $2.5 billion.

“The Intergovernmental Commission and High-Level Working Group for Priority Investment Projects are working actively,” Putin said. “Agreement has been reached on more than 20 big joint investment programmes, worth a total of around $10 billion.”

Vietnam-Russia trade turnover reached $2.7 billion last year, up 25 per cent year-on-year, and $1.1 billion in this year’s first four months, up 30 per cent year-on-year.

During Quang’s visit to Belarus, Vietnam and Belarus pledged to find ways to increase bilateral trade to $500 million, from last year’s $96 million.

One of the proposed solutions to reach this target is expanding co-operation in the fields of production of transport means, agriculture, petrochemicals, light industry, IT, banking, electronics, minerals, seafood processing, and agro-industrial products.

Both countries welcomed the establishment of the joint venture MAZ Asia between Vietnam and Belarus for the assembly of Belarusian trucks in Vietnam.

Vietnam and Belarus also agreed to implement major projects in Vietnam, such as designing and constructing metro lines, a national library, and mineral exploitation.

The two countries also signed several co-operation deals in the sectors of defence, economy, science and technology, sports, and natural resources and environment.

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