Russian Deputy Minister of Economic Development Alexey Likhachev at the forum. (Source: VNA)

Hanoi (VNA) – Vietnam-Russia trade is likely to grow 50 percent per year when the Free Trade Agreement (FTA) between Vietnam and the Europe-Asia Economic Union (EAEU) takes effect in 2018.

However, trade activities between the two countries still face a number of obstacles in payment, customs and taxation policies, said Tran Bac Ha, Chairman of the Board of Directors of the Bank for Investment and Development of Vietnam (BIDV), said at a Vietnam-Russia business forum held in Moscow on November 12.

Ha cited that up to 90 percent of Vietnam’s exports to Russia use the Telegraphic Transfer (TT) payment method, which is riskier than the traditional Letters of Credit (LC).

Deputy Minister of Industry and Trade Do Thang Hai said his ministry will assist enterprises from the two countries in using local currencies for payments.

Russian Deputy Minister of Economic Development Alexey Likhachev informed that at an inter-governmental meeting in Hanoi on November 2, the countries will discuss many issues, including government assistance in trade and investment activities.

At the forum, the Trade Promotion Agency under the Ministry of Industry and Trade and the Russian Agency for Small and Medium Enterprises Support signed a four-party cooperation agreement on providing bilateral payment methods using local currencies.

There was also an agreement between Banknet and the NSPK (National Card Payment) system on connecting local card payment systems.-VNA