Updated Jan. 14, 2025, 06:55 a.m. ET.
Vietnam and Russia are reaping the benefits of a free trade deal at a time when Moscow faces international sanctions, with bilateral trade rising by an annual 24% last year, Russia’s prime minister said as he began a two-day visit to Hanoi.
“We are paying priority attention to increasing trade and economic cooperation,” Mikhail Mishustin said in talks with his Vietnamese counterpart Pham Minh Chinh on Tuesday, as quoted by Russia’s TASS news agency. “Mutual trade turnover is growing steadily.”
A free trade agreement between Vietnam and the Eurasian Economic Union came into effect in 2016. During a June 2024 visit to Vietnam, Russian President Vladimir Putin pledged to boost trade. Some 11 agreements were signed after he met then-President To Lam, in areas such as nuclear power.
After meeting Chinh on Tuesday, Mishustin saw the nuclear agreement bear fruit with the signing of a memorandum of understanding between Russia’s state nuclear corporation, Rosatom, and the Vietnam Electric Power Corporation, TASS said.
Talks also focused on trade when Mishustin went on to meet Lam, now communist party general secretary.
“My colleague and I discussed the entire list of our bilateral issues, signed a corresponding action plan for our relations until 2030, confirmed 13 roadmaps and will achieve an expansion of our trade turnover to US$15 billion by 2030,” TASS quoted the Russian prime minister as saying. Vietnam says bilateral trade was worth around US$4.6 billion last year.
Russia is a long-time ally of Vietnam and they are marking the 75th year of bilateral diplomatic relations this year. Their Comprehensive Strategic Partnership puts Russia on the highest level of engagement with Vietnam alongside countries including China and the U.S.
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Facing international condemnation and sweeping sanctions for its invasion of Ukraine, Russia is keen to hold on to its allies in Asia. Putin has also been pursuing closer relations with North Korea, meeting leader Kim Jong Un last June just ahead of his Vietnam visit. That relationship appears to be paying off, with the U.S. claiming Kim is providing Russia with weapons and troops, while Putin has shared missile technology.
Hanoi is not in a similar situation regarding the supply of arms to Moscow, given that Vietnam is heavily reliant on Russian weapons, which make up about 80% of its military might.
However, there was no sign of any new Russian arms sales to Vietnam during Mishustin’s visit because of international sanctions, an analyst said.
“No major arms procurement deals were signed because Western sanctions on Russia have affected international currency transactions through the SWIFT system,” said Carl Thayer, a veteran Vietnam watcher and emeritus professor at the University of New South Wales, Canberra.
“During Putin’s visit last year, the two sides discussed the possibility of a ruble-đong transfer mechanism. However, as the Vietnam-Russian Joint Statement issued at the conclusion of Putin’s visit made clear, defense-security cooperation was confined to non-traditional security issues. Vietnam wants to avoid any penalties for violating Western sanctions.”
Vietnam has, however, resisted calls at the U.N. to condemn Russia’s invasion of Ukraine.
Vietnam is also one of the biggest investors in Russia, according to Vietnamese state media. As of last November, Vietnam had 16 projects in Russia with US$1.6 billion in capital, the fourth largest of 81 countries investing there, the Vietnam News Agency said.
Edited by Mike Firn.
Updated to include Mishustin’s comments at a meeting with To Lam.