OREANDA-NEWS. December 05, 2011. Belarus and Vietnam plan to increase their annual trade to USD 1 billion within the next five years, Belarus Premier Mikhail Myasnikovich said at the opening of the Belarusian-Vietnamese business forum in Ho Chi Minh, Vietnam.

According to the Belarusian head of government, over the last five years the bilateral trade has soared more than threefold. It is expected to reach USD 300 million by late 2011. The two countries, however, still have a huge untapped potential. “We have agreed to make USD 1 billion in annual trade within the next five years,” he stressed.

In the near future Belarus plans to implement a series of large projects in Vietnam including the construction of plants to produce car parts and engines. There are also plans to increase supplies of Belarusian potash fertilizers to Vietnam. Belarus is ready to develop transport service networks in Vietnam and expand leasing financing for new purchases of Belarusian equipment for Vietnamese companies.

Mikhail Myasnikovich is confident that the two countries have big prospects in the agricultural sector. Belarus hopes for close partnership with Vietnam in agriculture and is ready to provide all necessary conditions for the implementation of the outlined projects.

The Belarusian-Vietnamese business forum in Ho Chi Minh is meant for promotion of bilateral relations. Belarus is expected to display its best investment projects and demonstrate its economic potential.

The major objective of the visit of Belarusian businessmen to Vietnam is a search for new partners. Partaking in the forum on Belarus behalf are companies engaged in the mechanic engineering, light, chemical, processing, meat and dairy, power industries and scientific sectors. Among them is Belarusian Potash Company, Minsk Motor Plant, MTZ, Belspetsvneshtekhnika, BelAZ, Belshina, MAZ, Belgorkhimprom, Minsk Meat Packing Plant, Savushkin Product and others.

“We need large joint transnational corporations to work not only for our markets but also for third countries,” the Belarusian PM is confident. He asked Vietnamese business circles to join the projects.

Developing cooperation with Belarus, Vietnam will be able to enter not only Belarus’ domestic market but also the market of the Customs Union and the single economic space. “You will trade duty-free with our countries,” the Premier added. Thus, there is a unique opportunity to establish a free trade zone between the Customs Union and Vietnam, and in the future with the ASEAN countries.

Mikhail Myasnikovich also mentioned the advantages of joint projects with Belarus. “Working with Belarus means you can develop cooperation with Western Europe. The business of Germany, Austria and France is present in our country. We can advance joint products to these countries,” he stressed. The PM also reminded of the plans to reduce the profit tax in Belarus from 24% to 18%.

According to the Prime Minister, it is important for the countries to develop partnership in the innovation area. A joint scientific and practical center which is to be set up soon will contribute to the effort.

A business matchmaking session is held in Ho Chi Minh as part of the Belarus-Vietnam business forum. “The participants are considering not only mutual supplies of goods, but also new joint ventures in agriculture and the manufacturing industry,” Chairman of the Belarusian Chamber of Commerce and Industry Mikhail Myatlikov said. Over 100 Vietnamese companies are taking part in the event. “Belarusian companies have a good opportunity to forge new partnership,” he added. The parties are discussing projects across all economic fields – agribusiness, power engineering, machine building, construction, new technologies.

New contracts and cooperation agreements have already been concluded between the companies of the two countries. Belarus will supply quarry machines, tractors and potash fertilizers to Vietnam. The Vietnamese business community shows interest in cooperation with Belarus and expanding their presence on the market of the Customs Union, Mikhail Myatlikov said.

Belarusian Potash Company has contracted to deliver over USD 250 million worth of potash fertilizers to Vietnam, BPC Director General Vladimir Nikolayenko told.

The new contracts were signed with four major Vietnamese companies during an official visit of Prime Minister of Belarus Mikhail Myasnikovich to Vietnam. The total sum of the contracts on shipping potash fertilizers to Vietnam in 2012 exceeds USD 250 million, he said.

BPC also signed agreements on cooperation with these companies in 2012-2014. The documents testify to the stability of the partnership between the Belarusian and Vietnamese companies, said Vladimir Nikolayenko.

A memorandum of cooperation between Belgorkhimprom and the Institute of Mining Science of the Vietnamese company Vimsat was signed during an official visit of the Belarusian governmental delegation to Vietnam. The document envisages partnership in the development of solid commercial minerals. “It might be coal, iron and copper ore. Vietnamese partners are interested in Belarusian technologies,” Sergei Shemet said.

Belgorkhimprom intends to cooperate with one more Vietnamese company, Vinachem. Belarusian experts will assess phosphate reserves in Vietnam. “We will study the issue and present our proposals,” the official said.

During the visit, representatives of BelAZ signed a contract with the Indonesian company Adiatama Group for the supply of 20 vehicles carrying capacity of 45 tons in 2012. This contract will be executed in three stages by three parties – in January, February and March. It is expected that the Belarusian equipment will be used to work in coal mines.

In the future, BelAZ hopes to expand presence in the Indonesian market. "We hope that future work on deliveries will continue. Our technique worked well, but it opens up prospects for cooperation", – Head of Business Development of Company Vladimir Sitnik said.

He recalled that during the visit to Vietnam BelAZ also signed a contract for delivery in this country 10 cars.

Vietnam is keen to buy Belarusian low power tractors, Director of Mekong Machinery Company (MTZ dealer) Tran Minh Tri told reporters.

Tran Minh Tri said that MTZ has signed a contract to deliver over 600 Belarusian tractors to Vietnam in 2012 (up 15% over year-on-year).

Low power tractors are especially popular in Vietnam as small land plots account for almost 70% of Vietnamese farmland. Tran Minh Tri lauded prospects of cooperation with MTZ and noted that Belarusian tractors make up about 80% of Vietnamese market.

Prime Minister of Belarus Mikhail Myasnikovich visited Mekong Machinery Company.

Belarus will take part in a project to produce electric energy from municipal waste in Vietnam, Chairman of the State Committee for Science and Technology of Belarus Igor Voitov told reporters.

“Waste management is top on the agenda in Vietnam. The country is seeking ways not only to recycle waste, but also to turn it into electric energy”, the Head of the Committee said.

The parties are considering various cooperation schemes, including establishment of a joint venture to run the project. This is likely to be the research center Tsentr. Companies from other countries might join the project later. An Italian company has already signaled its interest.

Igor Voitov informed that Belarus and Vietnam are studying a possibility to produce medical equipment together. “We are determined to unite our efforts to develop magneto-therapy and photo-therapy devices, ultrasound devices and test systems. A number of Belarusian companies have already voiced their willingness to produce this equipment in Vietnam,” Igor Voitov added.

Belarus is ready to help Vietnam set up commercial dairy farms, First Deputy Minister of Agriculture and Food Nadezhda Kotkovets told.

“Vietnam is working on the opening of commercial dairy farms. We have an opportunity to provide necessary technologies,” Nadezhda Kotkovets said. Belarus may also export cooling equipment to Vietnam, she added.

Belarus is planning to develop partnership with Vietnam in other areas, including veterinary medicine. “Belarus and Vietnam agreed to conclude an agreement between veterinary services to acknowledge inspection results in both countries, the official said.

Belarusian farmers are eager to design and manufacture agricultural equipment jointly with Vietnamese partners. “We are ready to export not only tractors but also a complex of technologies, design agricultural equipment,” Nadezhda Kotkovets added.

Vietnam, in turn, is ready to export coffee, tea, rice and other goods to Belarus. “With the assistance of the Vietnamese Agriculture Ministry, we will find concrete operators who will partake in such projects,” Nadezhda Kotkovets said.

Belarus and Vietnam are eager to set up a joint dairy in Vietnam, the First Deputy Minister of Agriculture and Food Nadezhda Kotkovets told.

“We asked Vietnamese specialists to mull over our proposal and set up a joint venture to sell products in the Vietnamese market,” Nadezhda Kotkovets said. Belarus is ready to supply powdered milk to produce dairy products in Vietnam. “We have a good potential to supply raw materials and competitive technologies,” Nadezhda Kotkovets said and that it makes no economic sense to deliver finished dairy products to Vietnam. Savushkin Product Company has already expressed eagerness to export powdered milk to Vietnam.

The market of Vietnam is a good opportunity for Belarus to expand export geography, Nadezhda Kotkovets added. Belarus is ready to welcome a delegation of Vietnamese experts to discuss the terms of the projects, present dairy technologies and equipment. Vietnam is also interested in the joint venture.

The two countries are also keen to boost Belarus’ export of meat products to Vietnam. “Minsk Meat Packing Plant is eager to ship finished goods to Vietnam. We do not see any barriers for it as we can preserve our products for a long time,” Nadezhda Kotkovets said. It is essential to develop logistics schemes to launch the delivery of goods. “We offered our Vietnamese partners to choose operators who will work with us,” Nadezhda Kotkovets concluded.

A program to implement the Minsk-Ho Chi Minh cooperation agreement for the next five years was signed in Ho Chi Minh.

The document was signed by Chairman of Minsk City Hall Nikolai Ladutko.