ASEAN, Russia Focus on Economic Cooperation and Resilience at Forum

Enhancing economic cooperation, bolstering economic resilience, and addressing trade and investment challenges within shifting global dynamics were the central themes at the ASEAN Economic Cooperation Forum and Emerging Economies with the Russian Federation on April 12th.

The forum was jointly organized by the University of Economics and Business (UEB) under the Vietnam National University (VNU), the Institute of Economics of the Russian Academy of Sciences, the Vietnam Union of Friendship Organizations (VUFO), and VnEconomy/Vietnam Economic Times (VET).

The event coincided with several important anniversaries: the 30th anniversary of the Treaty on Basic Principles in Friendly Relations between Vietnam and Russia (1994-2024), the 6th anniversary of the strategic partnership between the Association of Southeast Asian Nations (ASEAN) and Russia, and the approaching 50th anniversary of the UEB's founding.

"Sixty-three years ago today, astronaut Yuri Gagarin became the first person to journey into space. The fact that our forum happens on such a significant day emphasizes the importance of this event," remarked Ms. Bakeeva Ekaterina, Minister Counselor of the Embassy of Russia in Vietnam.

Strengthening Relations through Knowledge Exchange

The forum, held at a pivotal time in ASEAN-Russia relations, drew in experts, diplomats from both countries, and representatives of Russian businesses operating within Vietnam.

"This forum offers an opportunity to elevate Vietnam-Russia relations through knowledge sharing. Through cooperation, both countries can progress together harmoniously," emphasized Associate Professor Nguyen Truc Le, Rector of the UEB-VNU, in his opening remarks. He further stated, "Today's event showcases the enduring connection between the East and Russia, significantly bolstering the close bond between the Vietnamese and Russian people."

Across 13 presentations, the forum addressed diverse aspects of Russian-ASEAN economic cooperation. This included analyses of Russia-Vietnam investment ties, Russia's policy shifts in the global context, and financial sector collaboration prospects.

The forum further examined achievements and areas of potential cooperation between Russia and Vietnam in banking and finance, the evolution of Russia's political and economic ties with ASEAN, and valuable economic policy lessons Vietnam can draw from the BRICS example.

Attendees also gained insights into the realities of energy, transportation, and agricultural partnerships between ASEAN, emerging economies, and Russia. This exploration aimed to support ASEAN nations' energy and food security amidst evolving transportation corridors and new socio-economic initiatives within the BRICS group.

Addressing Investment and Trade Barriers

"Beyond knowledge sharing, today's event is focused on discussing and resolving current investment and trade barriers hindering economic relations between Russia and Vietnam. These obstacles have contributed to a decline in trade between our nations in the past year," Associate Professor Nguyen Truc Le pointed out.

Agreeing, Mr. Duong Hoang Minh, Commercial Attache of the Embassy of Vietnam in Russia, shared that in 2023, bilateral trade between Vietnam and Russia totaled $3.6 billion, a mere 2.3% increase over 2022, marking the lowest growth since the Vietnam-Eurasian Economic Union FTA was implemented.

"However, the first quarter of 2024 has witnessed a strong recovery in trade between our countries, with a total turnover of $1.1 billion, representing a 52% increase compared to the same period in 2023," he added.

Mr. Vyacheslav Gennadievic Kalganov, Vice Chairman of the Committee for External Relations of Saint Petersburg, added, "Sanctions, along with complexities in payment channels and logistics, are currently hampering Vietnam-Russia economic ties."

Significant Potential for Further Growth

Despite these challenges, Mr. Vyacheslav Gennadievic Kalganov expressed confidence in the potential for stronger economic cooperation between Russia and ASEAN countries, including Vietnam.

According to AseanStats, total trade between the Russian Federation and ASEAN reached $15.9 billion in 2023, a 3.5% increase over 2022.

Associate Professor Nguyen Truc Le noted that trade between ASEAN and Russia reached approximately $20 billion in 2021, with ASEAN's exports to Russia totaling $12.6 billion, primarily driven by machinery and electronic equipment.

Furthermore, in just five years (2016-2021), bilateral trade between Vietnam and Russia doubled, hitting $5.5 billion in 2021 and averaging a 15% annual growth rate.

"ASEAN stands as one of the world's fastest-growing economic regions, establishing itself as a highly valuable trading partner for nations worldwide. Similarly, the BRICS countries (including Russia) are a major force, representing over 40% of the global population and 25% of worldwide GDP," Mr. Duong Hoang Minh stated.

"A key development trend is the shift of geopolitical and economic focus towards the Asia-Pacific region. Major powers are actively seeking stronger interactions with the region, placing ASEAN at its heart," Ms. Bakeeva Ekaterina observed.