Russia enhances its agricultural imports from Vietnam

According to the General Statistic Office, Vietnam's exports to Russia in the first five months of the year amounted to 955.7 million USD, showing a year-on-year increase of 44.82% (equal to a growth of 295.8 million USD).

The export groups with the biggest turnover were textile, which reached 320.9 million USD, showing a year-on-year spike of 97.27%; and agricultural goods, which reached 331 million USD, virtually doubling in value, etc.

Vietnam experienced a significant increase in imports from Russia, with the value of these products exceeding 1 billion USD. This represents a growth rate of 58.22% compared to the previous year, corresponding to a turnover of 370.2 million USD. Among these products, many items have notable import values, including fertilizer (152.3 million USD), various categories of coal (471 million USD), and chemicals (37.7 million USD).

By the end of May, the trade balance between Vietnam and Russia appeared favorable, with Vietnam's imports from Russia totaling approximately 50.3 million USD.

Russian consumers are showing interest in Vietnamese agricultural products

When compared to the European, American, and Japanese markets, Russia has not yet become a significant export market for Vietnamese agricultural products. Nevertheless, there is significant potential and unexplored opportunities for market expansion.

According to previous statistics, Vietnamese agricultural products sold to Russian markets have shown strong growth in the first five months of the year. Preliminary statistics from GSO indicate that the export turnover of Vietnamese agricultural products to Russia amounted to approximately 331 million USD, substantially doubling compared to the previous year.

Coffee emerged as the most prominent product, with a 39% increase in export turnover to reach 161.6 million USD, compared to the previous year of 2023. The fish industry achieved the second highest revenue, reaching 76.4 million USD, representing an increase of 87.7%. Cashew exports amounted to 28 million USD, experiencing a significant spike of 81.8%. Vegetable and fruit exports reached 26.8 million USD, showing a growth of 25.2%, among others.

Other items, such as rubber, rice, wood, and lumber, have shown significant growth in their export value from January to May. Rubber was valued at 15.6 million USD, representing a 24% increase, while wood and lumber were valued at 3.1 million USD, reflecting a 47.5% increase, among other items.

Pepper had a precise value of $12.6 million, exhibiting a growth rate of around 97%. This suggests a significant opportunity for this spice product in a frigid environment market such as Russia.

Mr. Nguyen Do Anh Tuan, Director of the Department of International Cooperation at the Ministry of Agriculture and Rural Development, has stated that the shipping of goods from Vietnam to Russia has grown increasingly convenient. Transportation businesses from Russia have established direct lines connecting Ho Chi Minh City, Hai Phong, and Vladivostok.

In addition, the implementation of new shipping routes has resulted in increased transportation speed, leading to shorter transit durations. In addition, the railway transportation infrastructure facilitates supplies to Russia, hence enhancing the variety of transportation choices.

Furthermore, the tariff benefits that resulted from the Vietnam - Eurasian Economic Union Free Trade Agreement signed in 2015 have further enhanced the competitiveness of Vietnam's agricultural exports in the Russian market.

Nevertheless, the agricultural collaboration between Vietnam and Russia continues to encounter numerous constraints. The primary focus of cooperative efforts is on trade, research and technology, and technical collaboration. Russian FDI in Vietnam is negligible.

In contrast, the only significant agricultural investment from Vietnam to Russia is TH True Milk's dairy farming project valued at 2.7 billion USD.

In order to establish a long-term presence in the Russian market, the Vietnam Trade Office in Russia has facilitated the connection between several Vietnamese firms and local grocery chains for the export of agricultural products.

In addition, the Vietnam Trade Office recommends that Vietnamese enterprises develop strategies and establish supply systems in Russia to cater to supermarket chains. In order to have a comprehensive understanding of the market and establish commercial partnerships in this traditional sector, it is advisable for them to engage in specialized exhibitions and fairs actively.