PM highlights big opportunities for Russian investors in Vietnam

Hanoi, November 9 - Neftegaz.RU. Prime Minister Nguyen Xuan Phuc received Russian Ambassador to Vietnam Konstantin Vnukov and CEO of Novatek Leonid Mikhelson in Vietnam on November 6.

He held that bilateral cooperation has yet to match its potential, asking the Russian ambassador and Novatek to promote their role as a bridge for leading more Russian investors to Vietnam, also in the energy industry.

Many prestigious organisations in the world have forecast high economic growth and great energy demand in Vietnam, which will open up considerable opportunities for investors from Russia and other countries, the PM noted.

He highly valued Novatek’s capacity and experience in the energy sector, saying that if they are determined, the company and its partners will reap success in Vietnam.

Novatek Chairman Mikhelson said Russian companies admire Vietnam for successfully containing COVID-19, which will consolidate their confidence in investing more in the country.

Russian enterprises boast strength in various areas, including energy, and wish to invest in Vietnam, he said, adding that as Vietnam has a dynamic and fast growing economy and has joined many new-generation free trade agreements, there is much investment room for them here.

Companies at the center of Vietnam-Russian attention include Zarubezhneft, Gazprom, Novatek, Rosneft.

Rosneft in May 2018 started drilling at the LD-3P well, part of the Lan Do “Red Orchid” offshore gas field in Block 06.1, which is 370 km southeast of Vietnam.

Vietsovpetro, a joint venture set up in 1981 with a 51% stake held by PetroVietnam and 49% by Russia’s wholly state-owned Zarubezhneft, operates in petroleum exploration and production on the southern continental shelf of Vietnam.

The company exploited 4.74 million tons of condensate and 234 million cubic meters of natural gas, earning revenue of US$1.97 billion in 2017, up 3.5% on year. In the 2015 visit, Dmitry Medvedev said that the two countries would continue running the joint venture for a long time, at least until 2030.

In Medvedev’s visit to Hanoi in November 2018, the two sides also agreed to build a nuclear technology research center worth $350 million.