Russian Direct Investment Fund and Vietnamese State Capital Investment Corporation create a USD500 million Russian-Vietnamese investment platform

Private equity wire, 16.05.2016

The Russian Direct Investment Fund (RDIF) and The Vietnamese State Capital Investment Corporation (SCIC) have signed a memorandum of understanding to establish a Russian-Vietnamese investment platform. RDIF and SCIC will identify attractive investment projects in bilateral trade, which are in line with Russian-Vietnamese strategic interests.

Under the agreement, RDIF and SCIC will each invest USD250 million in the platform. The funds will be directed towards projects that promote bilateral trade and foreign direct investment flows between the two countries, as well as business activities of Vietnamese corporations in Russia.

The signing ceremony took place today in Moscow in the presence of Dmitry Medvedev, Russian Prime Minister, and Nguyen Xuan Phuc, Vietnamese Prime Minister.

Kirill Dmitriev, CEO of theRussian Direct Investment Fund (RDIF), says: "Currently, the investment cooperation between Russia and Vietnam is mainly focused on energy projects. However, following last year's free trade agreement between the Eurasian Economic Union and Vietnam, RDIF has identified a major opportunity to strengthen cooperation between the two countries in a broader range of sectors beyond commodities. This investment platform will focus on leveraging these potentially high-growth opportunities for the mutual benefit of Russian and Vietnamese businesses."

Nguyen Duc Chi, Chairman of the State Capital Investment Corporation, says: "RDIF and SCIC are playing the same roles as the government's investment arms of both countries with important mandates to the economy. Thus, for SCIC, strengthening the relationship with RDIF, especially by signing a Memorandum of Understanding with RDIF, will enable RDIF and SCIC to set out efficient framework for identifying and realizing cooperation potential and effectively invest in projects in Russia and Vietnam for mutual benefit."