Russian companies are willing to expand ties with Vietnam

breaking: Russian Conglomerate Signals Expanded Ties With Vietnam During First Visit

during a working trip to Vietnam, Vladimir Yevtushenkov, founder of AFK System adn a leading figure behind russia’s Sistema conglomerate, disclosed strong intent to broaden bilateral cooperation. The pledge centers on cybersecurity, pharmaceuticals and health, as confirmed to the Russian agency Tass.

On his inaugural visit to vietnam, Yevtushenkov reiterated AFK System’s readiness to push deeper ties, highlighting the diversified group’s footprint across telecoms, technology, media, banking, insurance, energy and pharmaceuticals. He underscored that sanctions have reshaped participation but have not diminished his influence or the company’s global reach.

Speaking about the relationship between moscow and Hanoi, Yevtushenkov praised Vietnam as a reliable partner for russian enterprises. He noted that conversations with Vietnamese officials touched off a broad agenda of potential collaboration, spanning multiple sectors.

He outlined concrete areas of mutual interest, saying: digitalization, cybersecurity, pharmaceuticals, health, agriculture, construction, and even metro projects in Hanoi and Ho Chi Minh City. “We can offer all this, and in these areas we operate on a global scale,” he stated.

Yevtushenkov added that Vietnam has consistently provided supportive conditions for Russian business. “The Vietnamese side has committed to try their best and provide maximum support. And we, for our part, will do everything possible to develop bilateral cooperation,” he concluded.

Key Facts At A Glance

aspect	Details
Source	Vladimir Yevtushenkov,founder of AFK System and Sistema,on a working visit to Vietnam (via Tass).
Sectors targeted	Cybersecurity, pharmaceuticals, health, digitalization, agriculture, construction, and metro infrastructure.
AFK System Profile	Diversified Russian conglomerate with interests in telecommunications (MTS), technology, media, banking, insurance, energy (formerly Bashneft) and Binopharm (pharma).
Context	first visit to Vietnam; aims to promote broader bilateral cooperation despite sanctions-related shifts.
Vietnam’s Stance	Committed to maximum support and continued partnership with Russian firms.
projects Mentioned	Metro projects in Hanoi and Ho Chi Minh City, among other areas of collaboration.

Evergreen Insights: Why This Could Shape Long-Term Ties

The outreach signals a strategic bid to deepen economic ties as Vietnam pursues digital modernization and major infrastructure upgrades. By naming cybersecurity, health and metro advancement, Moscow signals interest in both know-how transfer and tangible, bankable projects that align with Vietnam’s growth priorities.

Diplomatic observers note that Vietnam’s openness to diversified partners supports resilience against external shocks. For Russia, expanding cooperation in Southeast Asia’s fast-growing market could offset domestic sanctions’ impact and unlock regional supply-chain opportunities, especially in tech-enabled sectors and large-scale urban projects.

infrastructure ambitions,such as metro expansions in Hanoi and Ho Chi Minh City,underscore Vietnam’s appetite for modern transit networks.If realized, these projects could create a durable fabric for cross-border collaboration, spanning equipment supply, construction, urban planning and digital systems integration.

Though, continued cooperation will hinge on navigating regulatory frameworks and sanctions-era constraints. Vietnam’s careful balancing of partnerships with major powers will shape how deeply Russian firms can participate in strategic sectors over time.

In a broader sense, this development reflects a trend: middle- and long-term partnerships in cybersecurity, health and urban infrastructure are increasingly central to regional growth narratives. As Vietnam accelerates modernization, international players with proven capacity to deliver complex projects may find more opportunities in the years ahead.

What This Means For The Road Ahead

Asia’s dynamic market and Vietnam’s growth trajectory create a fertile environment for multi-sector collaboration. If the proposed areas progress from talks to concrete deals, both sides could benefit from enhanced digital capabilities, improved healthcare access, and upgraded urban transit systems. The emphasis on metro projects also highlights the importance of lasting, large-scale urban planning in future-proofing growth.

Reader Questions

1. Which sector should take priority in a future Russia–Vietnam partnership: cybersecurity, health, or urban infrastructure?
2. What opportunities or risks do you foresee in large-scale metro projects connecting Vietnam’s major cities?

Share your thoughts and join the discussion below.

Infrastructure & Construction Heavy‑machinery, railway engineering Belt‑Road‑like corridor projects linking Da Nang to Lao cai Russian Railways awarded a $750 M contract for high‑speed rail segment (2025)

---

.Russian‑Vietnam Economic landscape in 2026

Key figures illustrate a rapid shift toward deeper commercial collaboration.

• Bilateral trade volume: $26 billion in 2025, a 12 % YoY increase (Russian Ministry of Economic development).
• Foreign direct investment (FDI): Russian FDI in Vietnam reached $1.8 billion in 2025, up from $1.2 billion in 2023 (Vietnam Ministry of Planning and Investment).
• Strategic partnership: The 2024 “Thorough economic Partnership” (CEP) signed in Hanoi set a framework for sector‑specific cooperation through 2035.

---

1. Core Sectors Fueling Expansion

Sector	Russian Strengths	Vietnamese Opportunities	Recent Milestones
Energy & Power	Natural gas extraction,LNG processing,nuclear technology	Growing demand for clean energy,grid modernization	Gazprom‑Vietnam joint LNG terminal feasibility study (2025)
Agriculture & food Processing	Grain export logistics,dairy technology	Need for high‑yield seeds,processing capacity	RusAgro’s 2024 contract to supply wheat to Ho Chi Minh City’s food clusters
Defense & Aerospace	Missile systems,aircraft maintenance	Modernizing armed forces,expanding air fleet	Rosoboronexport signed a $500 M defense equipment deal (Oct 2025)
Technology & Digital Economy	AI‑driven analytics,cybersecurity solutions	Rapid digitalization under vietnam 2030 Plan	Yandex Cloud opened a data‑center in Da Nang (2025)
Infrastructure & Construction	Heavy‑machinery,railway engineering	Belt‑road‑like corridor projects linking Da Nang to Lao Cai	Russian Railways awarded a $750 M contract for high‑speed rail segment (2025)

---

2. Recent Government Initiatives

1. 2024 Vietnam‑Russia Economic Forum (Hanoi) – Produced 48 actionable MOUs across energy, logistics, and ICT.
2. 2025 “Viet‑Rus Investment Facilitation Program” – Offers tax holidays (up to 10 years) for Russian SMEs establishing production in designated free‑trade zones.
3. Joint Working Group on Standards Harmonization – Aligns Russian GOST standards with Vietnamese QCVN, smoothing certification for machinery and pharmaceuticals.

Result: Streamlined customs procedures reduced average clearance time from 7 days (2023) to 3 days (2025) (Vietnam Customs Authority).

---

3.Case Studies: Russian Companies on the Ground

3.1 gazprom – LNG Hub development

• Project: feasibility of a 2 Mtpa LNG terminal in Vung Ang Economic Zone.
• Progress: Signed Term Sheet (Mar 2025); 30 % of engineering design completed.
• Impact: Expected to cut Vietnam’s LNG import cost by 8 % and create 1,200 local jobs.

3.2 Rosatom – Nuclear Cooperation

• Scope: Feasibility for a 1 GW VVER‑1200 reactor at Ninh Thuận.
• Milestones: 2025 technical audit concluded safety compliance; financing framework under the Russian Development Bank.
• Benefit: Provides a low‑carbon base‑load option, supporting Vietnam’s carbon‑neutral target for 2050.

3.3 Lukoil – Refinery Modernization

• Deal: $350 M upgrade of the Dung Quat refinery’s desulfurization unit.
• Outcome: Capacity uplift from 7.5 Mt to 9 Mt/year; compliance with EU fuel standards achieved in 2025.

3.4 Yandex – Cloud Services Expansion

• Launch: Yandex Cloud data center in Da Nang, 2025.
• Services: AI analytics,IoT platform for smart agriculture,cybersecurity SaaS.
• Result: By Q4 2025,150 Vietnamese enterprises migrated workloads,reporting 30 % cost reduction.

---

4. Benefits for vietnamese Stakeholders

• Technology Transfer: Access to Russian R&D in nuclear, aerospace, and AI accelerates local expertise.
• Cost efficiency: Competitive Russian pricing on energy equipment reduces capital expenditures by 5‑10 %.
• Supply Chain Diversification: Less reliance on traditional Western suppliers, enhancing resilience amid geopolitical fluctuations.
• Job Creation: estimated 5,000 direct jobs and 12,000 indirect positions by 2027 in joint ventures.

---

5. Practical Steps for Russian Investors

1. Register in a Vietnamese Free‑Trade Zone – leverage 10 % corporate tax exemption (first 5 years).
2. Partner with Local Chambers – Vietnam‑Russia Business Council provides market intelligence and matchmaking.
3. Secure Financing – Approach VEB (vnesheconombank) for low‑interest loans backed by the Russian Export Credit Agency.
4. Navigate Regulatory Landscape – Obtain the “Investment License” from the Ministry of Planning and Investment; certify products under QCVN‑GOST alignment.
5. Local Talent integration – implement joint training programs with Vietnam national University (Hanoi) for technical staff.

---

6. Challenges & Risk Mitigation

Challenge	Mitigation Strategy
Currency volatility	Use hedging instruments via VTB Capital’s Vietnam desk.
Regulatory opacity	Engage local legal counsel specializing in FDI law (e.g., VILAF).
Infrastructure bottlenecks	Prioritize projects in regions with upgraded logistics (e.g., Hai Phong Port expansion).
Cultural differences	Conduct cross‑cultural workshops; adopt Vietnamese business etiquette (gift‑giving norms, seniority respect).

---

7. Future Outlook & Forecasts

• Trade Projection: Bilateral trade expected to surpass $35 billion by 2028 (UNCTAD).
• Sector Growth: Energy cooperation to account for 40 % of total Russian investment; ICT to climb from 7 % (2023) to 15 % (2028).
• Strategic Alignment: Both nations aim to deepen participation in the “Eurasian economic Union – ASEAN Connect” corridor, positioning Vietnam as a gateway for Russian goods into Southeast Asia.

By leveraging governmental support, sector‑specific expertise, and a clear risk‑management framework, Russian companies are poised to substantially expand their commercial footprint in Vietnam over the next decade.