Moscow, May 18, 2016 – The Joint Stock Bank for Investment and Development of Vietnam (BIDV) inaugurated its representative office in Russia, becoming the only Vietnamese bank opening a commercial presence in Russia.

​Vietnamese Prime Minister Mr. Nguyen Xuan Phuc, Mr. Pham Binh Minh, Deputy Prime Minister and Minister of Foreign Affairs, and other members in the Prime Minister’s working delegation were in attendance.

The Russian Federation is one of BIDV’s key markets. Over the past 17 years, BIDV has cooperated with VTB – one of the largest banks in Russia in many commercial activities including: establishing agency relationships with 34 Russian financial institutions; financing investment projects such as Hanoi-Moscow Trade Center; coordinating with ministries and enterprises to hold conferences and forums;  being the focal point for Ho Chi Minh City and Moscow Province to sign a comprehensive cooperation. Especially, in November 2015, BIDV, VTB and VRB successfully launched the bilateral payment channel, facilitating the transactions between two countries.

In May, 2015, the Free Trade Agreement (FTA) between Vietnam and Eurasian Economic Union (EEU) was inked. Acknowledging the favorable conditions thanks to the FTA, in June, BIDV conducted research and decided to establish a representative office in Russia. In July, 2016, BIDV submitted documents to the State Bank of Vietnam (SBV) for establishment of BIDV’s representative office in Russia and the SBV approved the proposal.

In April 2016, the Central Bank of Russia issued Decision No. RN-33-1/9 issuing the operating license for BIDV’s representative office in Russia.

The establishment of the office marks a new development of BIDV in the giant Russian market. Together with BIDV’s representative office in the Czech Republic, the office in Russia will help expand BIDV’s operation in the Europe. The representative office will focus on: (i) connecting the two countries’ banking systems; (ii) promoting bilateral payment channel, enhancing trade and investment between the two countries; (iii) analyzing opportunities to establish BIDV’s commercial presence in Russia such as branch/subsidiary/financial company; (iv) closely coordinating with regulators and partners of the two countries to conduct activities, contributing to promoting the trade, investment and tourism between Vietnam and Russia.                                                      

Addressing the opening ceremony, the Prime Minister Nguyen Xuan Phuc spoke highly of BIDV’s achievements. Especially, since the establishment of Vietnam-Russia Joint Venture Bank (VRB) by BIDV and VTB in 2006, BIDV has played a pioneering role in promoting bilateral investment and trade. BIDV and VRB provided banking products and services to enterprises of the two countries, which not only actively supports enterprises to do business in Russia, but also strengthens the good relations between Vietnam and Russia.

The Prime Minister emphasized that the presence of BIDV’s representative office in Russia further cements the commitment and responsibility of BIDV in this market, as well as the close relations between Vietnam and Russia. This is a necessary step to connect banking systems of the two countries, facilitate bilateral payment channel and enhance cooperation between Vietnam and Russia in line with the two governments’ directions and business community’s desire.

According to BIDV Chairman Mr. Tran Bac Ha, the FTA between Vietnam and EEU has widened the cooperation opportunities between Vietnam and Russia. The two countries target a bilateral trade turnover of USD10 billion by 2020. To reach the target, the two countries must closely cooperate with regular exchange of information about investment and trade opportunities. In the long term, after having careful studied the market, it is possible that BIDV will open a branch/subsididary in Russia at an appropriate time.

Given the existing potential of the Russian market and the support from regulators, partners, through the representative office in Russia, BIDV expects to significantly contribute to the development of Vietnam- Russia economic cooperation to a new level.