Party General Secretary and State President Nguyen Phu Trong attends the inauguration ceremony of TH Group’s dairy plant in Kaluga. (Photo: baodautu.vn)
The TH dairy plant, the first of its kind by TH Group and the one using the most modern technology in Russia, is expected to be put into operation by late 2019 in Kaluga, marking a major turning point in Vietnam - Russia investment cooperation. For the first time, Vietnamese products will be officially produced in Russia.
Three years earlier, the TH Group announced its strategy in spending USD2.7 billion in 10 years for constructing a complex of farms and dairy processing plants in Moscow, Kaluga, Tyumen and the Far East of Russia. It has become the first Vietnamese private business pouring such large amount of investment in Russia, with USD500 million in the first phase.
Talking at the inauguration of TH dairy plant construction in Kaluga, Communist Party of Vietnam General Secretary and State President Nguyen Phu Trong confirmed that the project reflected Vietnamese businesses’ ability in integrating into the world market, adding that it could be a start of a new tendency of investment cooperation between the two countries.
“In the past, we get used to the fact that Russian businesses invest in Vietnam; but now Vietnamese businesses invest in Russia,” he said. “With the success of the TH Group, I hope that more and more Vietnamese businesses will invest in Russia.”
In fact, not only TH Group, but many Vietnamese businesses are investing in Russia; however, they are mainly State-owned businesses investing in the gas and oil sector. Notable are the projects worth nearly USD2.5 billion of the Rusvietpetro joint-venture.
Russian Prime Minister Dmitry Medvedev is paying a 2-day visit to Vietnam from November 18th-19th during which he held talks and met with Vietnamese leaders, discussing Vietnam - Russia cooperation in trade, investment, industry and energy. The two sides also considered the progress in the implementation of joint infrastructure, hi-tech, education and humanity projects, thus further promoting cooperation.
Although Russian businesses invested a capital of USD931 million as of late October, they have made important contributions to Vietnam’s socio-economic development, notably the Vietsovpetro joint-venture.
Economic experts are expecting an outbreak of Russian investment into Vietnam, as many cooperative and investment plans have been mentioned between the two sides, especially after the Free Trade Agreement between Vietnam and the Eurasian Economic Union (VN-EAEU FTA) goes into effect./.