Thayer Consultancy Background Brief:

ABN # 65 648 097 123

Vietnam and Russia hold 24th
Inter-Governmental Committee
on Bilateral Cooperation
April 9, 2023

We would like to ask for you analysis about the visit of Russia’s Deputy Prime Minister
Dmitry Chernyshenko to Vietnam to consult Vietnam about bilateral relations.
ANSWER: Russia’s Deputy Prime Minister Dmitry Chernyshenko paid a two-day official
visit to Vietnam from 6-7 April. Chernyshenko’s program included protocol laying of
wreaths at the Fallen Heroes Monument and the Ho Chi Minh Mausoleum, co-chairing
the 24th meeting of the Vietnam-Russia Inter-Governmental Committee on Economic,
Trade and Scientific-Technological Cooperation, a working visit to the Atomic Energy
Institute of Vietnam, touring Vietnam’s 32nd EXPO 2023, and visits to the Pushkin
Russian Language Institute (Hanoi branch) and Russian language faculty at the
Vietnam National University Hanoi.
Deputy Prime Minister Chernyshenko also paid a courtesy call on Prime Minister Pham
Minh Chinh and discussed “mutually beneficial cooperation.”
The Inter-Governmental Committee, co-chaired by Deputy Prime Ministers Tran
Hong Ha and Chernyshenko, evaluated on-going research projects at the Joint
Russia-Vietnam Tropical Research and Technological Centre. They agreed to expand
scientific and technical cooperation at the Tropical Centre.
Two major agreements were signed. The first agreement was on the establishment of
a Russian Artificial Intelligence Centre in Hanoi as a hub for Southeast Asia. This
agreement was signed by the Vietnam National University Hanoi, Russia’s Far Eastern
Federal University and Sberbank.
The second agreement outlined future bilateral cooperation between the Academy of
Social Sciences of the two countries;
A Vietnam-Russia Business Forum was held under the umbrella of the Committee and
was co-chaired by the two deputy prime ministers. The Forum’s agenda included
industry, energy, transport and logistics, climate change, environmental protection,
and digital economy and technology. A total of more than two hundred enterprises
were represented including thirty Russian companies, of which seven work in the hi-
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tech sector (information technology, high-tech equipment, security systems design

and pharmaceuticals).1
Deputy Prime Ministers Ha and Chernyshenko reviewed the Vietnam-Russia
comprehensive strategic partnership (2012) and progress under the Eurasian
Economic Union Free Trade Agreement (EAEUFTA) that came into force in October
2016. Vietnam is the only country in Southeast Asia to be a signatory of the EEUFTA.
Between 2016 and 2021, trade revenues increased 15% annually rising to US$5.5
billion. However, due to the war in Ukraine and slowing of global growth, trade
turnover between Russia and Vietnam dropped 35.4% in 2022 to US$3.55 billion.
Vietnam’s exports fell 51.4%. In the first two months of 2023, Vietnam’s exports to
Russia, fell by nearly 60% year-on-year to US$205 million.
Deputy Prime Minister Chernyshenko outlined the Russian Federation’s priorities as
“new development directions in science, education, digital technology, tourism, and
is willing to share achievements and technologies in these areas serving joint projects
of the two countries.” Chernyshenko also stated that Russia was “looking for solutions
in logistics and sustainable energy, areas where foreign investors will receive
favourable conditions.”
Deputy Prime Minister Ha noted that “results from economic cooperation between
Vietnam and Russia remain ‘modest’ and that different agencies have proposed new
projects to boost cooperation in various fields from commerce, infrastructure, energy,
to training and scientific research.” Ha listed Vietnam’s priorities as attracting foreign
investment in high technology, innovation, green economy and research and
development. Ha also asserted that “Vietnam always creates favourable business-
climate and legal-corridor conditions for foreign enterprises, including those from
Russia, to invest and do business in the country.”
Vietnamese companies have a self-interest in promoting economic ties with Russia as
an alternate market as Vietnam’s economic growth slumped in the first three quarters
of 2023 due to weak global demand.
As of March 2023, 171 Russian business projects were underway in Vietnam with
registered capital of US $970 million, ranking 28th of 143 countries and territories
investing in Vietnam. Half of Russian investment was in natural resource exploitation.
In contrast, Vietnam currently has 17 projects operating in Russia valued at US$1.63
billion (or 7% of total Vietnamese overseas investment).
The noteworthy outcomes of Chernyshenko’s visit included:
• Russia’s offer to assist Vietnam in the establishment of nuclear power plants.
• Creation of a Russian Artificial Intelligence Centre in Hanoi as a hub for
Southeast Asia.
• Transform the Pushkin State Institute for the Russian Language (Hanoi branch)
into a Russian Language Centre in Hanoi for Southeast Asian Countries.

1
The Exhibition included booths set up by the EligoVision, ELVIS-NeoTech, FESCO, Invention Production
Centre, Magnitogorsk Iron and Steel Works, Moscow Aviation Institute (National Research University),
Moscow Government, Russia Export Centre, SAGA, TransContainer, and VENDOTEK.
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• A proposal by the President of the Vietnam National University to form an

Association of Vietnam-Russia Technical Universities to include the Moscow
Aviation Institute and Moscow Power Engineering Institute.
• Promotion of Games of the Future (international phygital tournament) to be
held in Kazan city in 2024.
Chernyshenko’s visit to Vietnam had three main purposes.
The first purpose was to consolidate and advance bilateral diplomatic and economic
relations (trade and investment) and scientific and technical cooperation with
Vietnam in order to provide new opportunities for Russian enterprises affected by
western sanctions. Deputy Prime Minister Chernyshenko told reporters in Hanoi that
“A key priority is to find proper legal solutions to resolve obstacles in payment
between companies of the two countries. The Russia central bank has already offered
solutions, it’s possible to say the path to Vietnam is wide open to us.”
The second purpose was to promote Vietnam as a regional base for Russian
engagement with Southeast Asia.
The third purpose was to demonstrate to the international community that Russia is
not isolated and it was conducing “business as usual.”

Suggested citation: Carlyle A. Thayer, “Vietnam and Russia hold 24th Inter-
Governmental Committee on Bilateral Cooperation,” Thayer Consultancy Background
Brief, April 9, 2023. All background briefs are posted on Scribd.com (search for
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