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Russia, Vietnam to lift bilateral trade
29/04/2015

Vietnamese enterprises should try to raise the bilateral trade turnover with Russia to US$20 billion by 2020 following a Free Trade Agreement between Vietnam and the Europe-Asian Business Alliance to be signed later this month, President Truong Tan Sang said on May 24.

He expressed his hope of doubling the present goal of US$10 billion by 2020 at the meeting with Vietnamese enterprises currently investing in Russia, and explained that the agreement would remove trade barriers.

Regarding the establishment of a Vietnam’s light industrial park in Russia, Sang said that enterprises should choose the location with well-established infrastructure to invest in. They should form a joint stock company to manage the park, which Russia holds a 51% stake in.

When the park opened, Vietnamese workers residing in Russia should be given priority to work there and provided with all necessary support in social insurance and housing, he said.

President Truong Tan Sang (left) meets with representatives from Vietnamese enterprises who are investing in Russia. — VNA/VNS Photo Thanh Vu
Garments and textiles, wood, plastics, aqua-culture and food processing were the country’s best opportunities for investment in the Russian market, he said.

Tran Bac Ha, chairman of the Bank for Investment and Development of Vietnam (BIDV), said the light industrial park in Russia aimed to create more chances for Vietnamese enterprises to invest in Russia and improve the production of consumer goods for the market.

The light industrial park will cover 100-120 ha and is expected to provide production and trade assistance, product distribution, as well as legal and logistics services.

There are 19 Vietnamese enterprises operating in Russia with 3,600 employees signing up to move in the park which is expected to open in September this year.

According to BIDV, Vietnam’s investment in Russia hit US$2.5 billion this year from US$100 million in 2008. Last year, bilateral trade turnover between the two countries reached US$2.6 billion.

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