Vietnam - Russian business ventures not so taxing

Vietnamese investors are looking to boost trade with Russia thanks to an import duty reduction.

As Russia joined the World Trade Organization (WTO) in December, 2011, the average tariff imposed on all goods reduced to 7.8 per cent in 2012, compared with 9.5 per cent in 2011.

The import duty of Vietnam’s key exports like cereals reduced from 19.8 to 14.9 per cent, while that of timber and paper fell from 13.4 to 8 per cent.

These moves will boost Vietnam-Russia investment cooperation and trade.

Till the end of the first quarter of 2012, Vietnamese investments into Russia reached $776 million, focused on petroleum, banking and trade. The Hanoi-Moscow Trade Centre is one of the largest projects.

“Parallel to Vietnamese traditional exports to Russia such as garments, agricultural and seafood products, handsets and electronic equipment have recently contributed to its exports and this shows the new way for Vietnamese enterprises to exploit Russian market,” said deputy minister of Foreign Affairs Bui Thanh Son.

Bilateral trade turnover with Russia in the first quarter of 2012 hit more than $500 million, up more than 25 per cent against the same period last year, in which Vietnam’s exports were $311 million, surging 34 per cent on-year.

Hanoi-Moscow Trade Centre Investment Joint Stock Company chairman Nguyen Canh Son said that the figure of $1.28 billion made up a very little per cent in Russian total import value each year, showcasing Russia’s huge consumption capacity.

To facilitate bilateral investment and trade Vietnam Chamber of Commerce and Industry (VCCI) vice president Pham Gia Tuc said that VCCI had signed a cooperative agreement with National Registration Bureau, under Russia’s Ministry of Justice, to support Vietnamese enterprises establishing representative offices in Russia and assisting firms in both countries when making investments into each other’s market.

vir.com.vn

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