More than 50 years ago, the former Soviet Union was one of the first countries in the world to recognise and establish diplomatic ties with Vietnam. After the collapse of the former Soviet Union in 1991, relations between Vietnam and Russia began to flourish again in the late 1990s and the first years of the 21^st century. The achievements made by the two countries’ people in the Doi Moi (Renewal) and Reform (Perestroika) process in their respective countries, the valuable experience in bilateral co-operation in the past decades, as well as Vietnam’s current external policy of independence and self-reliance and Russia’s practical and flexible policies are key factors in promoting bilateral ties in the past years and the coming time.

During the 1990s, the Vietnam-Russia relations were marked by the signing of a treaty on basic principles for bilateral friendship and co-operation during a Russia visit by the then Prime Minister Vo Van Kiet on June 14, 1994.

Since 1997, the two countries have regularly conducted exchange visits at all levels. The two countries signed a joint statement identifying the strategic partnership in the 21^st century following an official visit to Vietnam in 2001 by Russian President Vladimir Putin. This was the first time a Russian President had visited Vietnam since the two countries established diplomatic ties.

Based on the traditional and trustworthy friendship and co-operation, as well as similar stances in dealing with regional and international issues, both countries have been closely co-operating at UN forums and other multilateral forums.

Since 2001, bilateral trade has increased year-on-year from US$573 million in 2001 to US$700 million in 2002 and US$650.3 million in 2003, but such development was modest in comparison. For the first time, bilateral trade surpassed the US$1 billion mark in 2005, reaching US$1.019 billion, of which exports generated US$251.8 million. Vietnam exported rice, garments, footwear, rubber, seafood, fruit and vegetables, cashew nuts and tea to Russia, while importing fertilisers, steel, petrol and oil from the country. However, the figure only made up 0.3 percent and 1.5 percent of the total import-export value of Russia and Vietnam, respectively.

Regarding investment, by the end of 2005, Russia had 47 valid investment projects in Vietnam capitalised at a total of US$278 million, ranking it 21^st among 73 countries and territories investing in Vietnam. The two sides are studying the possibility of expanding investment and co-operation in processing Vietnamese farm produce in Russia and assembling Russian automobiles and exploiting anthracite in Vietnam.

Vietnam has invested 11 projects in Russia with a total combin ed capital of US$38 million, representing 11 percent of the total number of Vietnamese-invested projects overseas. However, these projects are small-scale, mainly focusing on trade, food processing and garments.

Energy is the most effective co-operation area between the two countries. By 2005, the 25-year-old Vietnam-Russia Oil and Gas Joint Venture Enterprise (Vietsovpetro) had extracted more than 150 million tonnes of crude oil and more than 13 billion cubic metres of gas, with its budget contributions making up 20 percent of the total State budget.

Russia has helped Vietnam upgrade and build hydro-electric and thermal power plants such as Hoa Binh, Yaly, Se San 3 and Can Don Hydro-Electric Power Plants and Uong Bi Thermal Power Plant. It has expressed its wish to partly build the Son La Hydro-Electric Power Plant.

Bilateral co-operation in the industrial and agricultural sectors as well as between localities have also developed, but the efficiency of these projects remains modest.

The two countries have been jointly implementing research projects and conducting technology transfer in the areas of bio-technology, composite materials, and infrared laser technology. They are boosting research and the application of atomic energy for peaceful purposes and plant protection.

After a period of interruption due to the collapse of the former Soviet Union in 1991, bilateral co-operation in education and training resumed in 1995 with the signing of a co-operative agreement between Vietnam’s Ministry of Education and Training and Russia’s Ministry of Education. In addition to students being sent to Russia for further studies under the agreement, Russia annually grants 250 scholarships for Vietnamese graduates and post-graduates at its universities. In July 2002, the two countries signed a training agreement, under which Russia agreed to transform Vietnam’s debts into aid.

During more than half a century, the former Soviet Union and Russia has trained approximately 150,000 officials and students in various areas. Recently, "Russian Days in Vietnam" and the second Russian speaking forum in the Asia-Pacific region were jointly held in Hanoi. These significant events testified to the influential role and position of Russia in Vietnamese society. The two countries have also organised cultural exchanges to promote friendship and mutual understanding.

Reality has shown that the relations between Vietnam and the former Soviet Union and Russia at present have stood the test of time despite historic changes. However, their economic and commercial ties do not yet match their potential.

Further developing the long-held friendship and multifaceted co-operation between Vietnam and Russia in the spirit of a strategic partnership not only brings about mutual benefits for the two countries but also contributes to peace, stability, co-operation and development in the region and the world. It’s hoped that the visit to Vietnam this time by Russian PM Mikhail Fradkov will bring bilateral ties to new heights.