Bright spot in economic cooperation between Vietnam and the Russian Federation

TPO - Energy is a traditional strategic and effective field of cooperation between Vietnam and the Russian Federation, in which the prominent names are Vietsovpetro and Rusvietpetro.

DGCP-RP3 rig cluster, Dragon Field of Vietsovpetro. (Photo: PetroTimes)

Vietsovpetro was established on the basis of the Intergovernmental Agreement, becoming a symbol of friendship and close cooperation between Vietnam and the Russian Federation, a pioneer in the Vietnamese oil and gas industry. Vietsovpetro possesses great potential in terms of infrastructure, finance and human resources, and is a gathering place for leading experts and engineers in the Vietnamese oil and gas industry with high professional qualifications. The joint venture was established in November 1981, with headquarters located in Vung Tau. Russia (then the Soviet Union) and Vietnam each contributed half of the total investment capital of 1.5 billion USD. The Vietnamese side in the joint venture is the Vietnam Oil and Gas Group, while the Russian side is the Foreign Economic Union of the Russian Federation Zarubezkhneft. Up to now, Vietsovpetro is still an effective cooperation area of ​​the two countries, contributing about 80% of Vietnam's annual crude oil exports. In December 2010, Vietsovpetro agreed to continue its cooperation with the Russian State-owned Zarubezhneft Joint Stock Company for 20 years until 2030. According to the new agreement, the Vietnam Oil and Gas Group Petrovietnam holds 51% of the shares in the joint venture and the Russian company holds 49%. In addition to continuing cooperation within the framework of the Vietsovpetro joint venture until 2030, major Russian oil and gas corporations such as Gazprom and Zarubezhneft are implementing many projects on Vietnam's continental shelf. In Russia, the Rusvietpetro Joint Venture is implementing an oil and gas exploitation project in the Nenhetxky Autonomous Region. As of April this year, Russia had 186 investment projects in Vietnam, with a total registered capital of 984.98 million USD, ranking 28th out of 146 countries and territories investing in Vietnam. Russian projects focus on the fields of oil and gas, mining, processing and manufacturing industries... Vietnam currently has 18 investment projects in Russia, with a total registered capital of 1.63 billion USD, ranking 4th out of 180 countries and territories with Vietnamese investment capital. Vietnam's investment projects in Russia mainly focus on the Rusvietpetro Oil and Gas Joint Venture, the Hanoi - Moscow Cultural - Trade Center; TH's dairy farming and agricultural projects. Vietnam - Russia economic and trade cooperation has developed dynamically in recent times, but is not commensurate with the potential of the two countries. According to official statistics, trade exchange in 2023 reached 2.63 billion USD, up 2.3%; in the first quarter of this year it reached 1.11 billion USD, up 51.6%. Vietnam's main export items to Russia include phones, electronics, textiles, footwear, agricultural and aquatic products; Main import items include coal, wheat, iron and steel, fertilizer, automobiles, machinery and equipment of all kinds. Source: https://tienphong.vn/diem-sang-trong-hop-tac-kinh-te-viet-nam-lien-bang-nga-post1647226.tpo