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SPECIAL REPORT

Old friends maintaining ties

Analysts at a recent forum discussed the opportunities and
challenges for Vietnam - Russia economic ties from a changing
geopolitical situation and disruptions to supply chains.

By VIET AN

nhancing economic cooperation, Vietnam - Russia investment ties, Russia’s 2016 to 2021, bilateral trade between Viet-
bolstering economic resilience, and policy shifts in the global context, and the nam and Russia doubled, hitting $5.5 bil-
E addressing trade and investment prospects for financial sector collaboration. lion in 2021 and averaging growth of 15
challenges within shifting global dynamics per cent each year.
were the central themes at the ASEAN Shifting global dynamics and trade barriers The recent slowing of Vietnam - Russia
Economic Cooperation Forum and Emerg- Speaking at the conference, Mr. Duong economic cooperation has also been
ing Economies with the Russian Federation Hoang Minh, Commercial Attache at the reflected in investment by the two countries
on April 12 in Hanoi. Embassy of Vietnam in Russia, said that, in the other.
The Forum was jointly organized by in 2023, bilateral trade between Vietnam According to Associate Professor
the University of Economics and Business and Russia totaled $3.6 billion, an increase Yakovlev Artem Alesandrovic, Deputy Prin-
(UEB) at the Vietnam National University of just 2.3 per cent against 2022, marking cipal of the Lomonosov Moscow State
(VNU), the Institute of Economics at the the lowest growth since the Vietnam- University, figures show that despite clear
Russian Academy of Sciences, the Vietnam Eurasian Economic Union Free Trade interest from both countries, the effec-
Union of Friendship Organizations Agreement (VN-EAEU FTA) took effect tiveness of investment between Russia
(VUFO), and Vietnam Economic Times in October 2016. and Vietnam remains low.
(VET) / VnEconomy. “However, the first quarter of 2024 “The sharpest increase in investment
Held at a pivotal time in Vietnam - witnessed a strong recovery in trade cooperation occurred in the 2016-2018
Russia relations, the Forum attracted between the two countries, with total period, immediately after the VN-EAEU
experts, diplomats from both countries, turnover of $1.1 billion, representing a 52 FTA came into effect, but later declined in
and representatives from Russian busi- per cent increase compared to the same 2019 and beyond due to the effects of Covid-
nesses operating in Vietnam. period of 2023,” he added. 19, which caused disruptions to global pro-
Diverse aspects of ASEAN - Russia eco- Associate Professor Nguyen Truc Le, duction and supply chains,” he pointed out.
nomic cooperation were addressed in 13 Rector at the UEB, said that in the first Investment between the two coun-
presentations. These included analyses of five years of the VN-EAEU FTA, from tries was further complicated by the

32 Vietnam Economic Times April 15, 2024 en.vneconomy.vn