Both ASEAN and Russia are stepping up efforts to increase their trade, investment and connectivity with the other, and Vietnam is playing a major economic connect between the two. Minister of Finance Ngo Van Tuan presented five priorities during the ASEAN-Russia 11th Comprehensive Plan on transforming the plan into actionable projects in Vladivostok.
The proposal widens the scope of trade, where the strengths of Russia’s energy, raw material-, agriculture and technology-based sectors meet with ASEAN’s market-led and manufacturing-driven capacities.
Stronger Supply Chains
The first priority is to create a network of trade and investment. Vietnam would like Russian enterprises from manufacturing, processing, logistics, energy and high-tech agriculture to enter into business to the Southeast if they are interested.
This may be able to lead to a deeper value chain, rather than just selling and buying. Vietnam’s trade ties will give Russian companies better opportunities to pursue expansion in the Asian market.
A New Logistics Corridor
A planned Far East-Vietnam-ASEAN logistics corridor would connect the markets of the Far East to the markets of Southeast Asian countries. It would tie together sea lanes, ports, the Eurasian rail lines, cold storage and distribution centers.
The corridor might accommodate seafood, agriculture based products, raw materials and manufactured products. The product’s true trial and error will come when it hits the market for sale.
Technology and Artificial Intelligence
Artificial intelligence, cyber security, fintech, digital healthcare, data centres, and smart manufacturing are Vietnam’s third priority.
The synergies and possibilities of joint research; technology transfer and skills development can provide ASEAN-Russia relations with a more future-oriented dimension. It would take commercial partnerships to make it an economic value.
Clean Energy and Green Growth
The fourth priority is Southeast Asia’s growing energy demand and shift towards cleaner growth. Vietnam is rolling out an abundant number of renewable energy and other modern power infrastructure business opportunities, as well as opportunities in the circular economy involving the reuse of renewable electricity.
However, the energy and technological power of Russia can be used to complement the needs of the ASEAN group, but financial and other considerations, such as project feasibility, will have to be taken into account.
Finance, Investment and Tourism
The fifth priority is to extend the cooperation into financial, investment, tourism and people-to-people ties. The country is creating the international financial centres in HCMC and Da Nang and seaport-adjacent economic zones, which may bring Russian investors to Vietnam.
Enhanced air transport and tourism facilities may further strengthen lines of business connections by attracting people and investments.
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Can Vietnam Turn the Vision Into Projects?
Implementation will be the key judge. Projects and partners will be identified in conjunction with financing and measurable outcomes to move forward.
Enhancing logistics, technology, energy and investment ties with ASEAN opens the door to diversifying the economic relations among ASEAN and Russia. The government of Vietnam is looking to use its position in the region to make that opportunity into a reality in Asia.
FAQs
What are the 5 priorities of Vietnam?
Their areas of focus include supply chains, logistics, technology, green growth and finance, investment, tourism and people-to-people exchanges.
What is meant by a logistics corridor?
It would tie Russia’s Far East and Vietnam and Southeast Asian nations together via maritime, rail, port, cold-storage/distribution routes.
What makes Vietnam special in its relationship with ASEAN-Russia?
Vietnam’s central position in the trade of EAEU and other Southeast Asian markets makes it become the economic bridge between the two.
