Russia is the world’s ninth largest economy, achieving a GDP growth rate of 4.2 percent in 2011 and 3.4 percent in 2012. It greatly relies on the exploitation and processing of natural resources, mainly oil and gas, metallurgy, and chemical and machinery manufacturing.
|Oil& gas is one of the key cooperation areas between Vietnam and Russia
Russia is the world’s largest crude oil producer, the second largest gas producer, and one of the leading producers of steel, coloured metals, and fertilisers.
The Democratic Republic of Vietnam and the Soviet Union (USSR) established diplomatic ties on January 30, 1950.
On June 16, 1994 Vietnam and Russia signed a treaty on basic principles of the friendly relationship between the two countries, laying a legal foundation for stronger ties in the future.
Both countries signed a joint statement establishing a strategic partnership on March 1, 2001 and upgraded the relationship to a comprehensive strategic partnership level in 2012.
Bilateral political ties have developed constantly through regular reciprocal visits by high-ranking delegations.
They included Russia visits by President Tran Duc Luong in May 2004, President Nguyen Minh Triet in August 2008, Prime Minister Nguyen Tan Dung in September 2007 and December 2009, and President Truong Tan Sang in July 2012.
Vietnam welcomed Russian visits by President Vladimir Putin in March 2001 and November 2006, President Dmitry Medvedev in October 2010, Prime Minister Mikhail Fradkov in February 2006, and Prime Minister D. Medvedev in November 2012.
Both countries have effectively implemented the existing cooperation mechanisms, primarily the Inter-governmental Committee for Economic, Commercial and Scientific and Technological Cooperation, regular dialogues on diplomacy-national defence-security, and regular political consultations between their Foreign Ministries.
They have also worked closely at international forums, especially at the United Nations and within the framework of regional forums such as the Asia-Pacific Economic Cooperation (APEC), the Association of Southeast Asian Nations (ASEAN), Asia-Europe Meeting (ASEM), and East Asia Summit (EAS).
Bilateral economic-trade ties have progressed, with two-way trade last year reaching nearly US$2.45 billion, a year-on-year increase of 23 percent. Vietnam mostly exports garments and farm products to Russia, and imports petrol, steel, fertilisers, machinery and equipment.
Russia currently ranks 18th among 101 foreign investors in Vietnam, pouring US$2.07 billion in 93 projects. Russian investment has increased considerably in recent times, focusing on mining, processing and manufacturing industries, banking, and telecommunications.
Vietnam has invested more than US$1.7 billion in 16 projects in Russia, mostly in oil&gas, banking and trade exchanges.
Both countries have achieved good results in energy cooperation. Oil&gas joint venture companies such as Vietsovpetro, Rusviepetro, Vietgazprom, and Gazpromviet have operated efficiently. Russia is helping Vietnam build Ninh Thuan No1 nuclear power plant.
Cooperation in science-technology, education-training, and culture has also progressed markedly. Russia is among Vietnam’s top 10 tourism markets, with 176,000 Russians visiting Vietnam last year.
PM Dung’s visit shows Vietnam’s determination to further develop the comprehensive strategic partnership with Russia.