Assessment of factors affecting the dynamics of investment cooperation between Russia and Vietnam under the Free Trade Agreement between the EAEU and Vietnam

Abstract

Aim. The presented study aims to assess factors affecting the investment cooperation between Russia and Vietnam under the Free Trade Agreement (FTA) between the Eurasian Economic Union (EAEU) and the Socialist Republic of Vietnam (SRV).Tasks. The authors analyze the investment strategy and investment climate of the SRV at the present stage; assess the current state of investment cooperation between Russia and Vietnam; investigate the impact of the FTA between the EAEU and Vietnam on the investment cooperation between Russia and Vietnam; build regression models to assess the impact of different factors on the volume of bilateral direct investment from Russia and Vietnam; identify risks in the development of investment cooperation between Russia and Vietnam under modern conditions; determine areas for further cooperation.Methods. This study uses the following research methods: theoretical and comparative analysis, construction of econometric models, observation, synthesis, generalization, and description.Results. The conducted research shows that Vietnam is becoming one of the world’s most attractive countries for foreign investors. Despite low indicators, the investment cooperation between Russia and Vietnam has great potential. Analysis of regression models shows that the FTA between the EAEU and Vietnam has a positive effect on Russian-Vietnamese investment cooperation.Conclusions. The observed positive trends in the development of investment cooperation between Russia and Vietnam are complicated by sanctions imposed on Russia by unfriendly countries. Nevertheless, the FTA between the EAEU and Vietnam and the development of cooperation mechanisms under new conditions can facilitate the strengthening of investment cooperation between Russia and Vietnam by partially replacing Vietnam with Russia’s western counterparties in the fields of high technology, oil and gas, and agriculture.