Overview of the Vietnamese Trade Office in Belarus

The Vietnamese Trade Office in Belarus is tasked with supporting businesses from both sides in connecting for trade and promoting economic cooperation.

Basic information about trade relations between Vietnam and Belarus

In 1993, Vietnam and Belarus signed an Agreement on the Promotion and Protection of Investments; and an Agreement on Visa Exemption for Citizens of both Countries Traveling to Each Other for Official Purposes.

In 1995, an agreement was signed on the establishment of the Vietnam-Belarus Intergovernmental Committee on Economic, Trade and Scientific and Technical Cooperation.

In 1997, the two countries signed a Treaty on Friendship and Cooperation; and an Agreement on the Avoidance of Double Taxation and the Prevention of Tax Evasion with respect to Taxes on Income and Property.

In 1998, Belarus established an embassy in Vietnam.

In 2003, Vietnam established an embassy in Belarus.

Between 2007 and 2009, the two countries signed an Air Transport Agreement; a Consular Agreement; and an Agreement on the Principles of Cooperation between Vietnamese Local Administrative Agencies and Belarusian Local Executive and Directive Agencies.

In 2011, the two countries signed an Agreement on the Temporary Employment of Citizens of Both Countries in Each Other's Territories (effective from June 2013).

In 2013, an agreement on cooperation in the field of information and communication was signed.

In 2016, the Protocol on supporting the production of motor vehicles in Vietnam (first amendment in 2017, second amendment in 2020) was issued.

In 2023, an Agreement on Cooperation in the Field of Education was signed (replacing the Agreement signed in 2011).

Bilateral trade cooperation

Vietnam and Belarus have complementary economic advantages and significant potential for boosting trade in various sectors. Over the years, bilateral relations between the two countries have seen many positive developments, with increased trust and frequent exchanges of delegations at all levels.

On the morning of December 8, 2023, Prime Minister Pham Minh Chinh presided over the official welcoming ceremony for Prime Minister Roman Golovchenko of the Republic of Belarus and the high-level delegation of the Government of the Republic of Belarus. Photo: VGP/Nhat Bac

In particular, the official visit of Belarusian Prime Minister Roman Golovchenko to Vietnam in December 2023 opened up new avenues for deeper cooperation between the two sides.

In 2023, total trade turnover between Vietnam and Belarus reached US$65.3 million. As of the first quarter of 2024, Belarus had invested US$32.25 million in 3 projects in Vietnam.

In particular, with Vietnam having implemented a Free Trade Agreement (FTA) with the Eurasian Economic Union, of which Belarus is a member, this will be a driving force for future cooperation. Besides bilateral relations, both Vietnam and Belarus are members of the Eurasian Economic Union (EAEU), creating favorable conditions for the two countries to elevate their cooperation to a new, more effective level.

Belarus, with a population of just over 9 million, is part of the Eurasian Economic Union, which has 184 million inhabitants and a unified customs policy, allowing for the free movement of goods, services, capital, and labor with Russia, Kyrgyzstan, Kazakhstan, and Armenia. Belarus also enjoys a level playing field for businesses, unified technical standards, and common standards for hygiene, veterinary care, and plant quarantine. Belarus has an open economy, with over 63% of the value of its goods and services being exported.

Belarus's main export products are petrochemicals, machinery, metallurgy, wood and wood products, textiles, dairy and meat products, furniture, glass, fiberglass, and cement. Meanwhile, Belarus imports energy, raw materials, and components, spare parts, and technological equipment.

The two countries could also cooperate in the supply of automobiles, electric passenger transport vehicles, and construction machinery. In addition, Belarus's healthcare and pharmaceutical industries are highly developed and could cooperate with Vietnam in sharing experiences in developing high-quality healthcare.

Signing ceremony of the Memorandum of Cooperation between the National Marketing and Price Research Center of Belarus and the Trade Promotion Department (Ministry of Industry and Trade). Photo: Moit

Advantages and disadvantages of exporting to Belarus

In 2023, total trade turnover between Vietnam and Belarus reached US$65.3 million. According to the Vietnamese Trade Office in Belarus, Vietnam has the opportunity to increase the volume of food and consumer goods exported to Belarus. However, currently, transportation and payment remain challenging due to the sanctions, primarily because high costs will result in imported goods being more expensive and less competitive.

Payments will also be difficult as most banks, due to sanctions, are expected to stop transferring funds in foreign currencies such as USD and Euro in the near future. Many Belarusian companies have switched to signing contracts in local currencies such as the Russian Ruble, Chinese Yuan, and Indian Rupee with foreign partners. This will cause concern among foreign businesses, including Vietnamese businesses, when they want to explore the market, find partners, and conduct transactions with Belarusian companies.

Business address: Minsk 220030, Krasnoarmeyskaia 22A/67, Belarus.

Phone: (375)172-260647; Fax: (375)172-260647; Email: [email protected].

Counselor: Mr. Nguyen Tien Phuong.

Source: https://congthuong.vn/tong-quan-ve-thuong-vu-viet-nam-tai-belarus-366974.html