Russia is seeking to negotiate a free trade agreement with Vietnam to boost trade volume over the next several years.
Russian minister of Economics ES Nabiullina, who joined the Asean Economic ministers' Meeting, stressed Russia's target to cement an agreement during a meeting with Vietnam's deputy prime minister Hoang Trung Hai early last week.
The two countries are aiming for two-way trade volume of $10 billion over the next several years, from $l.78 billion in 2009.
Both countries' leaders were confident that an agreement would significantly bolster the trade activities of their businesses in the future.
Early this year, Vietnam targeted two-way trade with Russia to reach two billion dollar for 2010, of which Vietnam exported $560 million worth of goods to Russia while importing Russian products worth $l.5 billion.
Vietnamese firms have this year recorded 64 percent growth year-on-year in exports to Russia, up to $374 million. They shipped mostly coffee, seafood, garments and textiles, rubber, footwear, cashew nuts, rice, fruits and vegetables, tea, pepper and grains to Russia, which ranked 23rd on Vietnam's overseas market list.
Russia experienced a 27.5 percent drop to $556 million in exports to Vietnam. The major Russian products shipped to Vietnam included steel and steel billets, oil, fertilisers, rubber, paper and machinery.
Steel billets currently make up one-third of Russia's overall exports to Vietnam, which accounted for 35 percent of Vietnam's total billet imports.
The two countries believe an agreement would help increase the attractiveness of their investment conditions for business communities in both nations. According to figures from Vietnam's Ministry of Planning and Investment, Russian firms had registered 69 projects with an accumulative capital of $894 million, ranking 22nd among foreign investors in Vietnam.
Vietnam had 11 investment projects in Russia, with an overall registration capital of $34 million.
Hai said the two countries still had a lot of potential for their partnership development, particularly in the establishment of joint ventures in mechanics, chemistry and pharmaceutics in Vietnam. He stressed that
Russia was Vietnam's strategic partner in the energy industry, especially in regards to oil, gas, coal and power. He expected that both sides would accelerate cooperation for the development of Vietnam's nuclear power projects.
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