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  • Russian, Vietnamese state funds to invest $500m in joint trade platform
    The Russian Direct Investment Fund (RDIF) and the State Capital Investment Corporation (SCIC) of Vietnam will each dedicate $250 million in a Russian-Vietnamese investment platform to identify attractive investment projects in bilateral trade.
    Thus, the $500-million platform will be directed towards projects that promote bilateral trade and foreign direct investment flows between the two countries, as well as Vietnamese business activities in Russia.
    "Following last year’s free trade agreement between the Eurasian Economic Union and Vietnam, RDIF has identified a major opportunity to strengthen cooperation between the two countries in a broader range of sectors beyond commodities. This investment platform will focus on leveraging these potentially high-growth opportunities for the mutual benefit of Russian and Vietnamese businesses,” said Kirill Dmitriev, CEO of the $10-billion Russian fund, addressing that the investment cooperation between the two nations has been mainly focused on energy projects.
    RDIF positions itself as a catalyst for direct investment in the Russian economy, making equity co-investments alongside reputable international financial and strategic investors. Meanwhile, SCIC, founded in 2006, represents the Vietnamese state ownership in major companies and invests in key industries.

    Due to this similar role, the SCIC believes strengthening the relationship with RDIF will enable both parties to "set out efficient framework for identifying and realizing cooperation potential and effectively invest in projects in Russia and Vietnam for mutual benefit,” says a joint statement.
    Trade between the Southeast Asian country with the EEU, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, is forecast to more than double, reaching $10 billion, by 2020.

    Vietnam and Russia have also witnessed large investments in other sectors, such as the $168.5 million Hanoi-based Vietnam Russia Joint Venture Bank and the first dairy farming and processing facility worth $2.7 billion by TH Food Chain in Moscow.
    Russian corporations has invested in 100 non-oil-and-gas projects in Vietnam so far. It is expected that more investments will be made in other areas such as hi-tech, agriculture, minerals, shipping and tourism.
    Source: Deal Street Asia
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