Tuesday,  Jul 27, 2021,16:48 (GMT+7) 0 0
Numerous Vietnam-Russia projects in the offing
Van Nam
Tuesday,  Aug 27, 2013,20:52 (GMT+7)

Numerous Vietnam-Russia projects in the offing

Van Nam

By Van Nam - The Saigon Times Daily

HCMC – A host of investment projects by Russian investors will be prioritized and fast-tracked for implementation in Vietnam in the coming time, according to an agreement between the two countries signed in HCMC on Friday.

Minutes of a meeting between Vietnam’s Deputy Minister of Industry and Trade Le Duong Quang and Russia’s Deputy Minister of Economic Development Likhachev Alexcy Evegenievich were signed on Friday, with both sides pledging to make conditions easier for their enterprises to strengthen cooperation. The signing took place before the inauguration of the HCMC branch of the Russian Trade Office.

The list of the aforesaid bilateral cooperation schemes includes a project to construct a titanium plant in Vietnam as proposed by Russia-based VSMPO-AVISMA Group and Vietnam National Coal and Mineral Industries Group.

As per the list, Vietnam also suggests Russia’s Inter RAO Group to consider joining the construction of Song Hau 3 and Vung Ang 3 power plants. The Russian company, meanwhile, has keen interest in building the Quang Trach 2 thermo-power plant.

Vietnam will give priority to Russia’s Power Machines Company as a candidate to build Quang Trach 1 and Song Hau 1 thermo-power plants via biddings. This Russian investor will also be given priority in a plan to modernize the Hoa Binh hydropower plant as long as the quality of its equipment is ensured.

Vietnam also wants the involvement of Russia’s company Uralvagonzavod in a project to construct a train factory with a designed capacity of 2,000 carriages with total investment of some US$100 million. In addition, Russia’s GeoProMining Company is now looking for partnerships with local partners to build a titan plant in the south-central coastal province of Binh Thuan as part of an overall development plan of the local titan production industry.

Before signing the minutes, Quang reported there were a total of 92 Russian-invested projects in Vietnam as of this July with total registered capital of some US$2 billion, ranking 18th among foreign nations and territories making investments in the country. Russia is also the third most favorite destination for Vietnam’s outbound investment with 17 projects totaling roughly US$2.4 billion, he said.

In the meantime, bilateral trade has more than quadrupled between 2007 and 2012, which is expected to reach US$4 billion this year and up to US$20 billion by 2020, according to the Russian deputy minister, Evegenievich.

Of this year’s expected trade value of US$4 billion, Vietnam will earn up to US$3 billion from shipments of seafood, rubber, tea and fruits. Russia, meanwhile, mainly exports steel, iron, machinery and equipment, and fertilizer to Vietnam, he added.

Two negotiation rounds have been completed for the signing of the free trade agreement between Vietnam and the customs alliance of Russia, Belarus and Kazakhstan, with the third round scheduled for September in Belarus.

Upon the customs alliance’s entry, Vietnam enjoy soft tariffs as low as 5%, 3% or even 0% compared to the current 10% when shipping products to these three countries, Evegenievich remarked.

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