PANO - “Doubling current export turnover, from the current US $3.5 billion, for the next three years, between Vietnam and Russia is a great challenge for the two sides. However, I believe that this target is feasible”, said Russian Deputy Prime Minister Arkadiy V.Dvorkovich, at a roundtable meeting between Vietnamese and Russian enterprises, held on November 7th in Hanoi.

The meeting was part of the visit to Vietnam of Russian Prime Minister Dmitry Medvedev and delegation of high-ranking Russian officials.

According to Russian Deputy PM, the meeting, held by Vietnam Chamber of Commerce and Industry (VCCI), was significant for the two countries’ enterprises to talk about their expectations and business difficulties in order to find suitable solutions for them.

Considering usage of local currency for payment

A representative from Eurowindow Company, which has operated in Russia for many years’ now, put forward a suggestion for using the two countries’ currencies for payment. According to him, it would create favourable conditions for enterprises from each country if payment was not made in the currency of a third country.

In favour of that proposal, Nicolay N.Kosov, CEO of Russian Bank VTB, an open joint-stock company, said that payment in local currency between the two partnership countries was a choice in various countries, as in the case between Russia and Ukraine or China. However, he also noted that to this end, both sides had to meet some strict requirements.

According to Nicolay N.Kosov, VTB is one of the two banks, which set up Vietnam-Russia Joint-Venture Bank (VRB). But, in his words, VRB’s potential has not achieved expectations.

He explained that not all joint-venture companies use VRB’s services.

“There are some restrictions from Vietnam. Thus, if Vietnam abolishes them, it will help create favourable conditions for VRB. Moreover, VRB is ready to expand its services in investment, retail credit service provision and bond investment”, Nicolay N.Kosov said.

The Vietnamese side took note of those recommendations for consideration.

Breaking through barriers of administrative procedures

The first difficulty that each enterprise often faces when investing in a foreign market is administrative procedures. It is not an exception for Vietnamese enterprises investing in Russia.

In Russia, Eurowindow Company is building a trade centre, expected to be unveiled in May 2013 for its operation in September 2013. The centre will be a business link between the two countries. However, complicated administrative procedures prevent Eurowindow Company and other Vietnamese enterprises from doing business.

Russian Deputy PM said that, as a member of the WTO, Moscow must obey its rules. Russia has designed a roadmap to improve the business environment, which will be announced in two weeks.

“Russia aims to be one of the 20 countries offering the most favourable business environments possible. We will try our best to achieve that target”, he emphasized.

One of the efficient sectors of cooperation between Vietnam and Russia over the past years is the cooperation in oil and gas between Petrolimex and Russian oil and gas groups. PVN’s CEO Do Van Hau asked Russia to promote preferential policies for Vietnamese oil and gas enterprises operating in Russia’s Far East.

As for the above proposal, Deputy PM Arkadiy V.Dvorkovich shared that Russia is going to provide some preferential policies for businesses operating in oil exploitation areas with adversity in the near future.

“We will check wells where Vietnamese enterprises are operating and decide which businesses will benefit from such policies”, he said.

Translated by Mai Huong