Energy and oil and gas cooperation - the most important pillar in Vietnam - Russia relations

Cooperation in the fields of energy and oil and gas is a top important pillar in the comprehensive strategic partnership between Vietnam and Russia.

From October 23-24, 2024, the BRICS Leaders' Meeting will take place in Kazan, Russia. This is an important meeting within the framework of cooperation between BRICS and developing countries. The meeting will be attended by leaders of BRICS members and leaders of more than 30 guest countries, including developing countries on the continents and a number of international organizations.

At the invitation of Russian President Vladimir Putin, the BRICS Chair in 2024, Vietnamese Prime Minister Pham Minh Chinh attended the Summit as a guest. Prime Minister Pham Minh Chinh's participation at the BRICS Summit will open up new prospects for cooperation between Vietnam and the BRICS bloc, providing Vietnam with opportunities to promote extensive cooperation with BRICS member countries and partners, while allowing Vietnam to access BRICS mechanisms, abundant resources and large-scale markets to serve the country's development goals.

On the morning of October 23, Prime Minister Pham Minh Chinh led a high-ranking Vietnamese delegation leaving Hanoi to attend the BRICS Leaders' Meeting in Kazan, Russia from October 23-24, 2024 at the invitation of Russian President Vladimir Putin, BRICS Chair in 2024. Photo: Nhat Bac

Vietnamese Ambassador to the Russian Federation Dang Minh Khoi said that, along with opening up prospects for cooperation between Vietnam and BRICS as well as BRICS member countries, the participation of the Vietnamese Government leaders at the expanded BRICS Summit in Russia also sends a message about the special relationship between Vietnam and Russia, continuing and effectively promoting the long-standing traditional friendship and multilateral cooperation based on the foundation of trust, sustainable cooperation and mutual respect.

Vietnam established diplomatic relations with the Soviet Union (now Russia) on January 30, 1950, paving the way for a strong friendship and good cooperation between the two countries. Over the past nearly 75 years, bilateral relations have developed comprehensively and extensively.

The two countries signed the Agreement on Principles of Vietnam-Russia Friendship Relations on June 16, 1994, established a strategic partnership in 2001 and upgraded it to a comprehensive strategic partnership in 2012. In 2021, the two countries issued a Joint Statement on a common vision of a comprehensive strategic partnership until 2030. Within the framework of that relationship, Vietnam-Russia cooperation has witnessed strong development in all fields.

Currently, Vietnam is Russia's largest trading partner in Southeast Asia. Russia is one of Vietnam's top five trading partners in Europe. The two countries also have investment projects in each other, including important areas and Russia's strengths such as energy, science and technology, education and training...

According to the leader of the European - American Market Department (Ministry of Industry and Trade), despite being affected by the unstable situation in the world and the region, trade turnover in 2023 will still reach more than 3.6 billion USD, a slight increase of 2.3% over the same period in 2022.

In the first 9 months of 2024, bilateral trade turnover between the two countries reached 3.52 billion USD, up 40.4% over the same period in 2023. Of which, exports reached 1.78 billion USD, up 50.1%; imports reached 1.74 billion USD, up 31.6%. Also in the past 9 months, export groups with high growth rates include: Seafood products reached 164.5 million USD (up 94.7% over the same period in 2023); rice reached 6.5 million USD (up 130.9%); exports of confectionery and cereal products reached 23.3 million USD (up 123.7%); textile and garment exports reached 616.3 million USD (up 117.7%); machinery, equipment, tools and other spare parts reached 176.6 million USD (up 68.7%); Rubber reached 34.8 million USD (up 49%).

Imported goods groups with high growth rates include: Fertilizers of all kinds, coal of all kinds, paper of all kinds, auto parts and components; other means of transport and spare parts...

An important highlight in economic cooperation between Vietnam and Russia is the strong development in the energy and oil and gas sectors with major projects. Illustrative photo

Notably, according to the European-American Market Department, an important highlight in economic cooperation between the two countries is the strong development in the energy and oil and gas sectors with major projects. In addition to the Vietsovpetro joint venture, which is the flagship in oil and gas cooperation, the two sides have other joint ventures that are actively operating in both countries.

“Cooperation in the field of energy - oil and gas is the most important pillar in the comprehensive strategic partnership between Vietnam and Russia” - the leader of the European - American Market Department emphasized and added that currently, cooperation in the field of energy - oil and gas between the two countries does not only take place in the field of crude oil exploration and exploitation, but has gradually expanded to other prospective fields such as building gas power plants, supplying liquefied natural gas to Vietnam, building infrastructure and developing renewable energy, producing engine fuel, as well as modernizing Vietnam's energy facilities.

Regarding cooperation in the industrial sector, in recent times, the two sides have promoted the import and export of raw materials for industrial production, and Vietnamese enterprises regularly import coal from Russian partners to serve domestic needs. Regarding cooperation in automobile production, the two sides signed a Protocol between the Government of the Socialist Republic of Vietnam and the Government of Russia on supporting the production of motor vehicles in Vietnam (Protocol).

In addition, the two sides are also studying to promote cooperation in a number of potential fields such as mechanics, metallurgy, chemicals, mineral processing, supply and production of equipment for energy projects, transportation projects, etc.

In recent times, trade cooperation between the two countries has grown positively and gained much momentum. Illustrative photo

Assessing the economic and trade cooperation between the two countries, Mr. Duong Hoang Minh - Trade Counselor of the Vietnam Trade Office in the Russian Federation commented that in recent times, trade cooperation between the two countries has grown positively and gained a lot of momentum. The biggest driving force is that both sides have gradually resolved difficulties in transporting goods; sea transport routes (Vladivostok - Hai Phong - Ho Chi Minh City route), railway transport (Vietnam - China - Russia international railway route) ... have been gradually resolved.

In addition, from June 4, 2023, Russia's IAERO Airlines will operate direct flights between Russia (Irkusk) and Vietnam (Hanoi) by Russian aircraft twice a week. Direct flights between Moscow and Ho Chi Minh City have resumed since the end of January 2024. In addition, Russia and Vietnam have relaxed visa regulations for each other's citizens (from August 1, 2023, Vietnamese citizens can apply for an electronic visa to Russia, from August 15, Russians can stay in Vietnam for up to 45 days visa-free)... These advantages have been creating opportunities for the two sides to promote trade, investment and tourism cooperation.

However, Trade Counselor Duong Hoang Minh said that economic and trade cooperation between the two countries is facing great challenges in the context of the world economy facing many difficulties. Although the authorities of both sides have made many efforts, import-export activities or the implementation of bilateral investment projects still face many barriers.

Faced with this challenge, Trade Counselor Duong Hoang Minh said that businesses of the two countries need to make better use of the advantages of the Vietnam - Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA); in which, Russian businesses can increase investment in producing Russian products with strengths in Vietnam for export back to Russia and CIS countries or to other markets with which Vietnam has FTAs.

For domestic export enterprises, the Trade Office recommends that in order to learn about the market and find customers in the Russian Federation, enterprises should directly attend product displays or visit major specialized exhibitions in the Russian Federation. Many Vietnamese enterprises have been successful after attending exhibitions.

Source: https://congthuong.vn/hop-tac-nang-luong-dau-khi-tru-cot-quan-trong-hang-dau-trong-quan-he-viet-nam-nga-354163.html