High-Tech Partnership: Russian AFK Sistema’s Strategic Push to Boost Localization and Innovation in Vietnam

Strategic economic relations between Vietnam and global partners continue evolving beyond traditional trade and investment, with a new focus on long-term value creation through technology, skills development, and deeper integration into global value chains. A recent development illustrates this shift: AFK Sistema, the largest private conglomerate in the Russian Federation, expressed its commitment to raising localization levels and advancing technology cooperation in Vietnam, underlining both countries’ interest in high-quality collaboration.

About AFK Sisterma and What It Means for Vietnam

Founded in 1993 and headquartered in Moscow, AFK Sistema is Russia’s biggest private corporation, employing around 300,000 people across sectors such as telecommunications, digital services, high-tech, e-commerce, healthcare, agriculture, pharmaceuticals, and forestry industries.

At a high-level meeting with Vietnamese Prime Minister Phạm Minh Chính, Chairman Vladimir Petrovich Yevtushenkov affirmed AFK Sistema’s intention to increase localization efforts, transfer technologies, and participate in comprehensive workforce training initiatives in Vietnam. The company’s aspiration to become a global leader in high-technology investment underscores the strategic nature of its vision for cooperation.

Localization and Technology Transfer: A Win-Win Strategy

Vietnam has consistently prioritized deeper integration into global supply chains and uplifting the domestic industrial base. Attracting multinational investors who bring not only capital but also technology, expertise, and skills aligns with the government’s broader economic transformation goals.

AFK Sistema’s proposed initiatives include:

• Increasing the share of domestic sourcing within its operations in Vietnam.
• Transferring advanced technologies that can improve productivity, sustainability, and competitiveness.
• Providing professional training and skills development for Vietnamese workers.

By committing to localization, foreign investors like AFK Sistema help cultivate higher-value participation from Vietnamese enterprises in sophisticated manufacturing and services industries — a key requirement for long-term competitiveness.

Government Support and Strategic Partnership

Prime Minister **Phạm Minh Chính reaffirmed Vietnam’s commitment to strengthening its Comprehensive Strategic Partnership with Russia, emphasizing the country’s openness to expanding cooperation in diversified sectors, including technology, energy, and innovation.

Vietnam’s leadership continues to pursue policies that welcome foreign partners willing to contribute to sustainable industrial upgrading. This includes mechanisms such as simplifying investment procedures and enhancing bilateral business facilitation systems — initiatives that can support conglomerates like AFK Sistema in expanding their footprint and delivering mutual value.

Strategic Implications for Vietnam’s Economy

The interest of AFK Sistema in increasing localization and transferring technology is significant in several ways:

• Industrial Upgrading: Expanded technology transfer may help strengthen sectors such as digital tech, telecommunications, and advanced manufacturing, which are critical for moving Vietnam up the value chain.
• Workforce Readiness: Collaborative training programs can enhance the skills of Vietnamese professionals, aligning with the country’s strategic focus on building a skilled labor force for future economies.
• Foreign Investment Dynamics: A diversified FDI base that includes major players from Russia complements Vietnam’s engagement with partners from Europe, East Asia, and North America — reinforcing resilience and diversification.

Broader Context: Deepening Vietnam–Russia Economic Collaboration

AFK Sistema’s ambitions are part of a wider trend of expanding economic cooperation between Vietnam and Russia across multiple sectors, from tech and infrastructure to energy and digital transformation. Vietnam actively seeks stronger Russian investments in areas such as database systems, cybersecurity, and pharmaceuticals, reflecting its priorities in the digital and biotech arenas.

Meanwhile, partnerships in strategic infrastructure — including nuclear energy development and industrial projects — illustrate the multi-sector potential of Vietnam–Russia collaboration.

A Positive Trajectory for High-Value Partnership

AFK Sistema’s commitment to boosting localization, transferring technology, and investing in human capital signals a promising evolution in foreign direct investment partnerships with Vietnam. By focusing on quality, innovation, and capacity building, such collaborations support Vietnam’s transition to a more sophisticated and integrated economy, enhancing its competitiveness in global markets.

As multinational partners increasingly align with Vietnam’s development goals, bringing not just capital, but technology and skills, the country’s economic landscape is poised for sustainable, high-impact growth.

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