VN companies urged to expand Russia operations

HA NOI (Biz Hub) — Vietnamese enterprises should expand their operations and increase their presence in the Russian market in spite of the challenges involved.

Deputy Minister of Industry and Trade Do Thang Hai issued the challenge at a seminar on the Russian market held in Moscow on Monday. Representatives of about 80 Vietnamese businesses operating at home and in Russia took part in the seminar, which aimed to facilitate the exchange of opinions on the opportunities, potential and advantages of investing in and exporting goods to Russia.

According to Hai, Russia is working to intensify production, gradually reduce its dependence on Europe and boost cooperation with Asian countries, including Viet Nam, its comprehensive strategic co-operation partner.

Also, Viet Nam and the Customs Union of Russia, Belarus and Kazakhstan are entering the seventh round of negotiations on a free trade agreement which is expected to be signed in early 2015 and facilitate Vietnamese business ventures in Russia, the deputy minister said.

Russia is also a potential market for Vietnamese goods because it has been one of the country's traditional markets, and a huge community of Vietnamese citizens are living and studying there, he added.

The seminar came up with a number of effective measures to strengthen trade and investment between the two countries.

At the event, representatives of the Bank for Investment and Development of Vietnam (BIDV) pledged to provide a VND3-trillion (US$141-million) credit package for the export of Vietnamese goods to Russia, as well as a $50-million package for a light industrial zone project in Russia. Viet Nam's Ministry of Industry and Trade joined the BIDV, Ha Noi-Moscow Multi-Functional Complex and Association of Vietnamese Enterprises in Russia in sponsoring the event. — VN