Vietnam and Belarus: Much room for economic and trade cooperation

The State visit to Belarus by General Secretary To Lam will create new momentum to consolidate and enhance bilateral relations; at the same time, open up opportunities for businesses of the two countries.

Seafood is one of the products Vietnam exports to Belarus. (Photo: VNA)

Since officially establishing diplomatic relations in 1992, Vietnam and Belarus have maintained and developed a traditional friendship and multifaceted cooperation with high trust.

In particular, Vietnam's implementation of the Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), of which Belarus is a member, has contributed to promoting bilateral cooperation, especially in economics and trade.

Therefore, General Secretary To Lam’s State visit to Belarus will create a new impetus to consolidate and strengthen bilateral relations; at the same time, open up opportunities for businesses of the two countries in trade and investment cooperation.

Located in the heart of Europe, Belarus is emerging as a bright spot attracting international investors. Belarus's great advantage is that the VN-EAEU FTA not only helps increase trade between the two countries but also allows Vietnamese businesses to easily access many large markets such as Russia, Kazakhstan, Kyrgyzstan and Armenia.

Furthermore, Belarus has a highly developed industrial sector, which accounts for over 90% of the country's exports. The main export items include agricultural machinery, mechanical equipment, food, petrochemical industry and metallurgy.

Among them, the mechanical industry with products from the Minsk Automobile Plant and the Minsk Tractor Plant are highly appreciated in the international market, opening up great cooperation opportunities for Vietnamese enterprises.

Notably, Belarus is one of the world's leading exporters of meat, milk and dairy products. It is also one of the world's leading producers of potash fertilizer, accounting for 17% of global output, which will create important cooperation opportunities for businesses in the fertilizer and chemical industry to exploit.

Citing statistics from Vietnam Customs, the Ministry of Industry and Trade said that trade in goods between Vietnam and Belarus in 2024 reached 59.8 million USD, down 8.3% compared to 2023. Specifically, exports from Vietnam to Belarus reached 28 million USD, up 15.6% compared to 2023, while imports from Belarus to Vietnam reached 31.8 million USD, down 22.4% compared to 2023.

Vietnam exports to Belarus seafood, natural rubber, wooden furniture, textiles, footwear, rice, cashew nuts, peanuts, pepper, spices, tea, canned vegetables, pharmaceuticals, computers...

In the opposite direction, Vietnam imports from Belarus items including milk and dairy products, fertilizers, machinery, equipment, auto parts, tractors, trucks, chemicals, etc.

In the industrial sector, based on the Protocol between the Government of Vietnam and the Government of Belarus on supporting the production of motor vehicles in Vietnam signed in 2016, Maz Asia Joint Stock Company was established to produce Maz trucks and specialized cars.

In January 2024, MAZ Asia Joint Venture changed its name to GMA Auto Industry to facilitate international transactions and payments, and proposed to import right-hand drive vehicle components/vehicles into Vietnam, assemble, process and re-export to Indonesia.

Automobile assembly at Maz Asia Joint Venture Company Limited (Vietnam-Belarus joint venture) in Kim Dong district, Hung Yen province. (Photo: Danh Lam/VNA)

However, there is currently no complete information on all the assembly/processing stages that you intend to carry out in Vietnam so that the authorities can provide specific instructions, ensuring that both parties comply with international commitments and current Vietnamese laws.

In addition, the two sides also implemented some other cooperation related to testing the use of Belaz Company's trucks at coal mines of the Vietnam National Coal-Mineral Industries Group (Vinacomin), but the results were not as expected by both sides.

At the meeting and working session with Mr. Uladzimir Baravikou - Ambassador Extraordinary and Plenipotentiary of Belarus to Vietnam, Deputy Minister of Industry and Trade Nguyen Hoang Long commented: Vietnam and Belarus are two countries with complementary economies, but economic and trade cooperation between the two countries is still quite modest, not commensurate with their potential.

Deputy Minister Nguyen Hoang Long and the Belarusian Ambassador both said that: Cooperation in the automobile industry is a key area in cooperation between the two countries; in which, the automobile manufacturing and assembly plant of the MAZ Joint Venture (now GMA Auto Industry) is considered a typical cooperation between the two countries.

During the implementation process, all difficulties were resolved by both sides, supporting the Joint Venture to operate smoothly. Particularly in the agricultural sector, the Belarusian side hopes that Vietnam will create favorable conditions to open the market for meat products including beef, pork, and poultry.

Take advantage

Mr. Vadim Sadoinski - representative of shares of Minsk Automobile Plant Joint Stock Company in Vietnam shared that Minsk and its Vietnamese partner - Au Viet Industrial Joint Stock Company established MAZ-Asia Joint Venture Company Limited to manufacture and assemble trucks, tractors and some specialized vehicles such as vans, fire trucks, and passenger vehicles. In the coming time, the two sides will continue to cooperate to develop the automobile industry with products of high safety and environmental friendliness.

To develop the Vietnam-Belarus economic-trade relations strongly and sustainably, according to Mr. Vu Ba Phu, Director of the Trade Promotion Department (Ministry of Industry and Trade), strengthening trade promotion and investment promotion is extremely necessary, such as exhibitions, forums, seminars, and trade connections are important bridges to help businesses from both sides meet, connect and seek cooperation opportunities.

As the focal agency, the Trade Promotion Agency pledges to continue to closely coordinate with Belarusian trade promotion agencies and organizations to implement a variety of practical activities, support businesses of the two countries to access the market and expand trade and investment cooperation.

In addition, the active support from the two governments along with the proactive and creative spirit of the business community will certainly help remove difficulties, promote trade and create a more favorable business environment.

Belarusian Deputy Prime Minister Anatoly Sivak emphasized that Belarus sees great potential for cooperation with Vietnam in the production of vaccines, pharmaceuticals and medical equipment. In return, Vietnam can export electronic components to Belarus, contributing to diversifying bilateral trade.

In addition, Belarus pays special attention to cooperation between scientists of the two countries to promote research and development of new technologies. The development of high-tech industries not only helps the two countries meet their internal needs but also increases their competitiveness in the international market. Moreover, technological security is becoming an increasingly important factor, playing an essential role in strengthening the independence and autonomy of each country.

Therefore, the two countries need to strengthen cooperation in this field to ensure sustainable development. Belarusian Deputy Prime Minister Anatoly Sivak hopes that in 2025, the two countries will continue to develop the VN-EAEU FTA to create favorable conditions for expanding cooperation in many fields.

In particular, the combined development of high-tech industries not only helps meet the internal needs of the two countries but also enhances competitiveness in the international market.

The 16th meeting of the Vietnam-Belarus Intergovernmental Committee. (Photo: Tran Viet/VNA)

At the 16th meeting of the Vietnam-Belarus Intergovernmental Committee on economic-trade and scientific-technical cooperation, Minister Nguyen Hong Dien highly appreciated Belarus's Eastward foreign policy; in which, the role and position of Vietnam are always respected.

Minister Nguyen Hong Dien affirmed that through the Intergovernmental Committee mechanism, the two sides will continue to deepen the Vietnam-Belarus cooperation relationship in all fields, especially economic-trade and scientific-technical cooperation.

However, despite achieving many positive results, the current Vietnam-Belarus bilateral cooperation is still not commensurate with the potential and strengths of each side. Therefore, Minister Nguyen Hong Dien proposed that the two sides should urge relevant ministries, branches and localities to continue to effectively implement high-level agreements between the two countries during the visit of Belarusian Prime Minister Roman Golovchenko to Vietnam in December 2023; at the same time, urgently and effectively implement the contents agreed upon in the Minutes of the 16th meeting of the Vietnam-Belarus Intergovernmental Committee.

On the other hand, promote information sharing and policy consultation at all levels of the two sides to promptly resolve difficulties and obstacles in the process of implementing cooperation, as well as flexibly seek new solutions, contributing to increasing bilateral trade turnover.

In addition, it is necessary to continue efforts to create conditions for each side's goods to access each other's markets, including agricultural, aquatic, seafood products, dairy products, means of transport, agricultural machinery and equipment, etc.

On the other hand, support and facilitate businesses of the two countries to participate in fairs/exhibitions, explore trade-investment cooperation opportunities as well as effectively take advantage of incentives brought by the VN-EAEU FTA.

The Minister suggested that Belarus create the most favorable conditions for Vietnamese enterprises, including Belarusian businessmen of Vietnamese origin, to do business and invest in Belarus. In particular, both sides need to research and propose cooperation in new areas where one side has advantages and the other side has demand.

For example, fundamental industries (processing, manufacturing, mechanics, materials, chemicals, etc.); high-tech and emerging industries and fields (semiconductors, artificial intelligence, cloud computing, green transformation, circular economy, etc.) to build a modern, green, clean and sustainable industrial sector.

Source: https://baoquangninh.vn/viet-nam-va-belarus-nhieu-du-dia-hop-tac-kinh-te-thuong-mai-3357345.html