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The Vietnam News

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[Year 2002]

Shipping lane between Vietnam and Russia to be reopened

HANOI - Vietnam and Russia have announced plans to re-open a shipping route connecting the two countries to facilitate trade, which has been hindered by a lack of low-cost transport options. Russia's Ambassador to Vietnam Andrey Tatarinov told a meeting organised by the Vietnam Chamber of Commerce and Industry that he expected one or two freighters a week would make the journey between Russia's east coast and the port cities of Hai Phong, HCM City and Da Nang.

Vietnamese exports such as vegetables, fruit, pork and other tropical products are likely to be some of the key beneficiaries of the new shipping route. Two-way trade last year reached US$571 million, an increase of more than 50 per cent over 2000. Although further growth is expected, Tatarinov said that both sides must still grapple with high tariffs, poor marketing and the lack of a stable system of inter-bank payments. Vietnamese exporters must also do a lot more marketing in Russia if they are to boost their market presence, he warned. The ambassador said Russia was also a major potential source of foreign tourists for Vietnam, and more should be done to facilitate this trade.

He suggested that the tourism authorities should launch a promotional campaign in Russia, and help major travel agents and tourism service organisations to visit Russia and forge partnerships. They should also upgrade tourist infrastructure in the south, he said, and offer airfare discounts during the Russian winter.

The ambassador also had advice for Vietnamese enterprises wanting to invest in Russia, saying they should engage local consultants or overseas Vietnamese assistance, and familiarise themselves with Russian law. Russian investors, on the other hand, needed to do more marketing and make use of inter-bank payment schemes in order to crack the local market. The ambassador lauded Russia-Vietnam co-operation in building and upgrading electricity projects, including the contract to supply basic equipment for the Cam Don Hydropower Plant and the contract to build the Cam Pha Thermal Power Plant.

Russian credit for power plant construction projects could help deepen bilateral ties in the energy industry, he said. Tatarinov said that many Russian firms were lining up for a role in the construction of the Son La Hydropower Plant, which will begin in the near future. Co-operation is also mushrooming between various localities in Russia and Vietnam, the ambassador noted.

Last year, delegations from Moscow, Primoie, Yaroslav, Nyzheforod, Skada and other provinces visited Vietnam. Yaroslav and Nyzhegorod have set up close ties with Da Nang city, and are preparing to jointly produce refrigeration equipment and Russian cars under the Gazel trademark.

Vietnam News Agency - June 14, 2002.