Overview of Vietnam - Russian Federation Trade Relations Before 1992

+ Turkey takes advantage of comparative advantages in trade relations with the Russian Federation by exploiting the complementary characteristics of the two countries' markets, while participating in the production process of goods in the host country for a number of goods in which they have advantages.

The above successful lessons of Türkiye are also experiences that Vietnam can refer to and apply appropriately to its conditions and circumstances in trade relations with the Russian Federation.

Maybe you are interested!

* *

Through studying the basic issues of theoretical and practical foundations of developing international trade relations in the context of globalization and international economic integration, chapter 1 of the thesis has achieved the following results and contributions:

1/ Systematize, analyze and evaluate theoretical issues explaining the basis of international trade through theories on international trade of each historical period: From the theory of the mercantilist school with representative Thomas Mun, emphasizing the role of trade, especially foreign trade activities, and supporting state intervention in creating barriers to protect foreign trade monopolies; To the theory of absolute advantage, represented by Adam Smith, arguing that the origin of international trade comes from the division of labor and production specialization, with the ideology of supporting free enterprise;

The theory of comparative advantage, represented by Ricardo, proves that any country benefits when participating in international trade. The theory of the Neoclassical school, represented by the Heckcher - Ohlin theorem, continues to perfect the theory of comparative advantage, along with considering opportunity costs as well as the law of proportional balance of production factors, to clarify the basis of international trade. The most common idea of these economic theories is to prove that the difference in resources between countries is the origin.

of international trade. Modern theory explains the basis of international trade through the theory of trade based on increasing returns to scale, the theory of technological gap and the theory of product life cycle. Nowadays, when considering the origin and basis as well as the impacts on international trade, people also mention competitive advantage, taste, position

Geopolitics, geo-economics, geo-strategy of countries in the region and the world in each historical period.

When studying the role of international trade in national economic development, the thesis focuses on examining the aspects of socio-economic development and foreign affairs.

Regarding the content of developing international trade relations, the thesis mentioned the following criteria: Increasing turnover, expanding import and export markets; Increasing exports of goods and services; Increasing export of services to earn foreign currency; Developing international trade relations in depth. The forms of developing international trade relations considered are: developing international trade relations based on bilateral and multilateral cooperation.

2/ The thesis analyzes and evaluates issues of globalization, regionalization, international economic integration as well as the impact of globalization and economic integration on international trade relations.

3/ Through studying the experience of developing bilateral trade relations of some countries, here is between China and the Russian Federation (the leading country among developing countries and only behind Germany, the US, Italy in terms of import and export turnover of goods with the Russian Federation), between Turkey and the Russian Federation, from there draw some lessons that Vietnam can apply in international trade relations with the Russian Federation.

The above research results are the necessary theoretical and practical basis for policy making and proposing solutions to develop trade relations between Vietnam and the Russian Federation in the new context.

Chapter 2

Current status of trade relations

Vietnam - Russian Federation 1992 - 2005

2.1. Overview of Vietnam - Russian Federation trade relations before 1992

2.1.1 Characteristics of the two countries' economies before 1992

2.1.1.1. Characteristics of the Russian Federation economy

The Russian Federation is a country with a geographical location spanning two continents - Europe, with the largest area in the world of 17.1 million km2 , of which 1/3 is in Europe and 2/3 is in Asia , bordering China to the South and Southeast, the Democratic People's Republic of Korea to the Southeast, Mongolia, Kazakhstan, Azerbaijan and Georgia to the South, Ukraine to the Southwest, Belarus, Latvia, Estonia, Finland and Norway to the West, the Arctic Ocean to the North, the Pacific Ocean to the East (Bering Sea, Okhotsk Sea and Sea of Japan), Kaliningrad province of the Russian Federation is located far from the main territory, bordering Poland, Lithuania and the Baltic Sea.

In terms of administrative structure, the Russian Federation is divided into 89 administrative territorial units called federal subjects, including 21 republics, 49 provinces, 6 regions, 1 autonomous province, 10 autonomous regions, 2 centrally-governed cities: Moscow and St. Petersburg. The 89 federal subjects are part of 7 regions: Central, North-West, South, Volga Delta, Ural, Siberia, Far East, and the Black Sea.

East, these regions are not administrative units, the heads

Districts are appointed by the President and assist the President in exercising power in federal entities within the district.

In terms of population, the Russian Federation has nearly 150 million people, ranking 6th in the world, is a multi-ethnic, multi-religious country, the Russian Federation currently has over

100 ethnic groups, of which Russians account for 81.5%; Tatars 3.8%, Ukrainians 3%. The majority of Russians follow Orthodox Christianity, a large part of the population (nearly 20 million people) follows Islam, in addition there are other religions such as Buddhism, Judaism, Roman Catholicism.

Regarding natural resources, the Russian Federation has very rich natural resources, including: gas, oil (with an exploited output of only

behind ¶ Saudi Arabia), coal, rock salt, diamonds, uranium, aluminum, copper, gold, tin …

Regarding the state system, the Russian Federation is a republic, according to the Constitution the President is the head of state and ensures the implementation of the constitution throughout the country. The Federal Government, headed by the Chairman of the Government, exercises executive power. Legislative power belongs to the Federal Assembly consisting of two houses: the Federation Council (upper house) and the State Duma (lower house). The Russian Federation builds a pluralistic system according to the Western political party model, but currently the Communist Party of the Russian Federation is still the

the largest political party, well organized, with a clear platform and a large number of members

largest representative in the State Duma.

History records that the Soviet Union was once the world's superpower, because the Soviet Union

đ; once created a huge economic, military and scientific potential. As a pillar country in the previous socialist system with a rapidly developing economy and a centrally planned economic management mechanism, đ; provided a lot of assistance in all aspects to other countries in the socialist system, including Vietnam. After the collapse of the Soviet Union, in 1991, as the successor state of the Soviet Union, the Russian Federation đ; inherited 70% of the territory, 61% of the population, 90% of oil and gas, 80% of nuclear weapons and 10/17 nuclear power plants, 75% of the industrial potential in particular and 70% of the economic potential of the Soviet Union in general with a strong technical infrastructure, an infrastructure system ranked as high above.

world, has a developed science and technology, especially basic science. Most of the research institutes, universities, and major scientific centers of the Soviet Union

are all located on the territory of the Russian Federation, so the Russian Federation has a large number of scientific and technical staff; Russian people enjoy the superior education system of the Soviet Union, so the level of education is quite high; It is one of the two countries with the strongest potential for nuclear weapons and is a member of the United Nations Security Council. These are great advantages as a basis for the Russian Federation to move to a new period of development. However, the difficulties in the early years of market reform in the 90s, the crisis in all aspects of the economy - society, the overlapping challenges in all areas of the post-Soviet period have made the Russian Federation fall far behind developed countries. The difficulties of the Russian Federation's economy are reflected in the following aspects:

Economically , it was the breakdown of a unified economic entity built over a long period of time into independent states, the problems of uneven economic development between regions immediately became acute. The Council for Mutual Economic Assistance (SEV), of which the Soviet Union was the pillar, was dissolved, breaking important foreign economic relations. The collapse of the Soviet Union was the result of the long existence of a centrally planned economic management model, based on the public ownership of assets and means of production owned by the entire people and managed by the unified state. This highly centralized planning mechanism separated production and consumption, disregarded the law of supply and demand, and eliminated factors that were the driving force of the market. The economic and trade relations of the Russian Federation and other former Soviet countries were only within the scope of the Soviet Union. socialism, closed to Western countries, which have the most developed economies and science and technology in the world. As a result, the Russian Federation's economy fell into a state of stagnant production and shortages.

endless means of production, as well as essential goods to serve domestic needs.

The domestic goal of the Russian Federation when it separated into an independent entity in the international arena was to eliminate the centrally planned, subsidized economy, shift to a market economy and promote democratic reforms following the model of Western countries. However, after a few years of implementing this strategic goal, Russia not only failed to overcome difficulties but also faced new challenges and difficulties. Unrealistic economic programs and policies in the early 1990s such as "shock therapy", massive privatization, along with the unstable political situation pushed the economy deeper into the crisis.

Politically , the political developments following the collapse of the Soviet Union remained unstable and extremely complicated, with the most prominent feature being the contradictions and power struggles between factions and parties. The most intense of these was the struggle between President B. Yeltsin's forces (advocating the establishment of a presidential republic) and the forces led by Vice President Ruskoi and Chairman of the Supreme Soviet Khasbulatov (advocating the establishment of a parliamentary republic). Although the President's faction won, the 1993 constitution was passed, marking the birth of a new political regime in the Russian Federation - the presidential republic, but the contradictions between political forces still smoldered throughout the second half of the 90s of the 20th century, mainly the contradictions between the National Assembly and the President on issues related to the country's domestic and foreign policies.

In terms of society, due to political and economic crises, failure in the Cold War and the collapse of the Soviet Union, it has had a strong impact on spiritual life, creating a deep division in people's thoughts and attitudes. Along with political instability, legal gaps have appeared, causing

The basis for the increase in crime, violence, and lack of personal security. Ethnic, racial, and religious conflicts are still a potential risk for separatism to appear and directly affect the security, social order, unity, and territorial integrity of this large, multi-ethnic country.

Thus, the main characteristics of the Russian Federation after the dissolution of the Soviet Union; which have decisive significance for the socio-economic development of the country, as well as the foreign relations of the Russian Federation are:

- The economy is transformed from centralized planning management with the leading role of the state to market management modeled after Western countries.

- The State has shifted to playing a guiding role to exploit the country's advantages, while the non-state economic sector is the dynamic force in the market.

- The economic structure has changed along with the change in ownership regime. The economy is moving towards privatization, the role of the private economy

be promoted, non-state enterprises are proactive in their operations

production, business and especially import-export business - fields that were previously monopolized and managed by state-owned enterprises.

- From an economy that only prioritizes relations with countries in the socialist system on the principle of mutual assistance and the foreign trade sector being a state monopoly, now implementing an open economic mechanism,

multilateralization and diversification in foreign relations, the principle in foreign relations with foreign countries is mutual benefit and priority according to the strategy of each period.

- If in the past, the Soviet Union's foreign relations focused more on political relations, now the Russian Federation's foreign relations focus more on economic interests.

2.1.1.2. Characteristics of Vietnam's economy

The Socialist Republic of Vietnam has a land area of 330,991 km2 , a land border of 3,730 km, located almost in the center of the region.

Southeast ¸ . The North borders China, the West borders Laos PDR and the Kingdom of Cambodia, the East and South face the Pacific Ocean, the Southwest borders the Gulf of Thailand. Long coastline with two archipelagos of Truong Sa and Hoang Sa in the East Sea, Vietnam's sea area is about 1,000,000 km 2 .

Regarding administrative structure, Vietnam has 64 provinces and centrally-run cities.

Central in three regions North, Central, South (previously there were 53 provinces and cities).

Continuously for 30 years from 1945 to 1975, the Vietnamese people were forced to wage a war to defend their country, the economy was severely devastated, difficulties and shortages piled up. Foreign trade activities were under the exclusive management of the state, foreign trade relations were mainly concentrated with countries in the socialist system.

After the country's reunification with the historic milestone of April 30, 1975, Vietnam was completely independent and unified, the task of building and developing the socialist-oriented economy became the top priority. During the 10 years from 1975 to 1985, the highly centralized planning management mechanism, in-kind distribution and subsidies were still mainly implemented. With the starting point of a poor and low-income economy, and being heavily devastated by war, by 1985, Vietnam's economy had completely fallen into a crisis and a spiral of inflation, with difficulties piling up on difficulties, and being surrounded and embargoed by a number of external forces. The economy grew slowly and did not actually develop, production could not meet consumption, so the economy had to rely increasingly on external debt and aid, hyperinflation was rampant, prices increased exponentially and reached their peak.

score to 774.7% in 1986.

Before 1986, the basic characteristic of Vietnam's economy was operating under a centralized planning mechanism, with the state economic sector holding the majority of the capital.

Comment