The Bank for Investment and Development of Vietnam on April 7 signed a memorandum of understanding with the Bank for Foreign Trade of Russia to enhance the role and capacity, including financial, of their joint venture, Vietnam-Russia Bank (VRB).

The signing ceremony was held during the visit to Vietnam by Russian Prime Minister Dmitry Medvedev.

The agreement is expected to help the VRB better serve customers in the two countries, thus accelerating economic co-operation between Russia and Vietnam.

The bank will set up, if approved, a payment channel for Russian and Vietnamese businesses using their respective currencies, the dong and the ruble.

The two partners will seek permission from their governments for themselves and the VRB to participate in/serve key projects and bilateral programmes at the governmental level in areas including nuclear energy and defence.

The VRB is expected to provide services such as credit, deposit, foreign exchange, letters of credit, and others.

It was established in 2006 with both parent companies holding an equal 50 percent stake.

It has total assets of 447 million USD and outstanding loans of 269 million USD.
It serves as a payment hub for businesses in the two countries engaged in trade between themselves.-VNA