Representatives of RDIF and SCIC sign the MoU on establishing a $500 million fund. (Photo: Sputnik News)
The Russian Direct Investment Fund (RDIF) and State Capital Investment Corporation (SCIC), the Vietnamese government’s investment arm, will establish a $500-million fund to boost bilateral trade and investment, with each putting $250 million in the platform, according to media reports.
The memorandum of understanding (MoU) between the two parties was signed during Vietnamese Prime Minister’s visit to Russia, his first overseas trip since being sworn in last month.
The fund will be used to support projects that promote two-way trade and foreign direct investment (FDI) flows and to help Vietnamese businesses in Russia, RDIF said in a statement.
Cooperation between Vietnam and Russia now centers around the energy sector, but is poised to expand to other industries after Vietnam last year signed a free trade agreement with the Eurasian Economic Union (EAEU), which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, said RDIF’s Chief Executive Officer Kirill Dmitriev.
The trade between Vietnam and Russia totaled $2.18 billion in 2015, down 14.39% year-on-year. In the first four months of this year, the bilateral trade reached $836.75 million, up 41.8% from a year earlier, according to data of the General Department of Vietnam Customs.
As of the end of 2015, Russian firms had invested $2.07 billion in projects in Vietnam, making Russia the 17th largest investor in the country, data of the Foreign Investment Agency under Vietnam’s Ministry of Planning and Investment showed.