VINACHEM

Vietnamese President Nguyen Minh Triet and his Ukrainian counterpart Victor Yanukovych agreed at the Vietnam-Ukraine Trade and Investment Forum held recently in Hanoi by the Vietnam Chamber of Commerce and Industry (VCCI) in association with the Ukraine Embassy in Vietnam, on the occasion of the visit to Vietnam by Ukrainian President Victor Yanukovych at the invitation of Vietnamese President Nguyen Minh Triet.

Vietnam and the Ukraine formed a diplomatic relation in 1992. Since then investment-trade cooperation between the two countries has progressed. Le Danh Vinh, the Deputy Minister of Industry and Trade, said that total import-export revenue between the two countries soared four-fold between 2007 and 2008, to US$546 million. However, due to the global financial crisis and economic recession, trade between the two countries declined over the last two years. Specifically, import-exports between Vietnam and the Ukraine fell to US$447 million in 2009. Of this, Vietnam sold US$129 million worth of exports to the Ukraine. The figures dropped further to US$256 million and US$115.7 million in 2010, respectively. Vietnamese exports to the Ukraine include textile-garments, seafood, pepper, cashew, rice and plastic products, with the country buying wheat, machinery, equipment, spare parts, iron and steel from the Eastern European country.

There are nine Ukraine investment projects with total capital of US$23 million in Vietnam and four Vietnamese investment projects worth US$27 million in the Ukraine.

In consideration of this, representatives of business communities and governmental agencies of both countries agreed that cooperation between the two countries remained limited and that efforts and steps are needed to boost the business-investment ties.

Victor Yanukovych said that the economies in Vietnam and the Ukraine compliment each other, rather than compete. He also said that the two countries had ample potential for investment-trade cooperation since trade exchange was less than US$300 million in 2010 falling behind the potential and political will expressed by both parties. At the forum, Victor Yanukovych proposed that the two countries promote cooperation in advantageous, high-demand areas including mining, energy, machinery and shipbuilding that are the Ukraine's strengths. He also said that in the near future the Ukraine will open a new non-stop flight between Kiev and Hanoi.

To further enhance the investment-trade ties, Le Danh Vinh said that both parties need to regularly organize meetings and mutual visits to exchange information about policies on foreign trade, increase mutual understanding and share experience in international economic integration. In the years to come, the two parties will need to negotiate and sign a free trade agreement to enable businesses in the two countries to expand cooperation, survey markets, take part in exhibitions-fairs in both countries, and advertise their products/services.

Nguyen Minh Triet said that Vietnam aims to develop solidarity and cooperation with brother countries including the Ukraine, a close, reliable friend for Vietnam. On the occasion of the visit to Vietnam by Victor Yanukovych the two parties agreed to transform the current ties into a comprehensive partnership, expand opportunities for investment in many areas to meet the need of people in the two countries, and make the most of the advantages offered by both countries. Nguyen Minh Triet also said that Ukrainian investors in Vietnam will be treated fairly and be helped to do business not only in Vietnam but also in other ASEAN countries./.