DIGIVESTASI - Putin Praises Dedolarization of Russia-Vietnam Trade Transactions. Russian President Vladimir Putin has praised the dedolarization efforts in trade transactions with Asian partners, particularly Vietnam. Currently, about 60% of transactions between Russia and Vietnam are conducted using their respective national currencies, avoiding the US dollar and euro. Putin's commendation was made in an article for the official newspaper of the Communist Party of Vietnam, published on the Kremlin's website on Wednesday, June 19, 2024, ahead of his visit to the Southeast Asian country.

Putin stated that both nations are seriously committed to enhancing mutual trade and promoting investments in Russian rubles and Vietnamese dong. "Such transactions accounted for more than 40% of bilateral trade last year, and in the first quarter of this year, the share increased to nearly 60%," Putin said, as reported by Russian Today on Thursday, June 20, 2024. He emphasized that this step aligns with the global trend of reducing the use of widely criticized currencies in international trade and investment.

Putin also highlighted the importance of the Vietnam-Russia Joint Venture Bank, established by both countries in 2006 to strengthen their economic ties. According to official statistics, bilateral trade increased by 8% in 2023 and continues to grow. Putin added that the energy sector remains a strategic area of cooperation. "Food, mineral resources, machinery, and equipment are exported to Vietnam. Many Vietnamese goods, including clothing, fruits, vegetables, and other agricultural products, are in demand in the Russian market," he noted, praising the role of the free trade agreement between the Russia-led Eurasian Economic Union (EAEU) and Vietnam.

The EAEU, founded in 2015, originated from the Customs Union of Russia, Kazakhstan, and Belarus, and later expanded to include Armenia and Kyrgyzstan. In 2016, Vietnam became the first non-regional country to join the bloc as a free trade partner. The group also has three observer states: Cuba, Moldova, and Uzbekistan, with Iran expected to join. The union is designed to ensure the free movement of goods, services, capital, and labor among its member states.

By focusing on the specific achievements and goals highlighted by Putin, the summary emphasizes the significance of dedolarization in the Russia-Vietnam relationship and the broader geopolitical and economic context. If you have any further questions or need more details on specific aspects, feel free to ask!

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