Take advantage of the fiscal space of seafood and textile and garment in the Russian market

Since the Free Trade Agreement between Vietnam and the Eurasian Economic Union (VN-EAEU FTA) took effect, trade turnover between Vietnam and Russia has increased rapidly, reaching USD 5.5 billion in 2021, which has increased nearly 90% compared to 2016. Vietnam's exports to Russia reached USD 3.2 billion, an increase of 100% compared to 2016.

However, after the Russia-Ukraine conflict (February 2022), bilateral trade between Vietnam and Russia was affected, causing Vietnam's export turnover to Russia in 2022 to decrease by more than 50% compared to before.

In 2023, although still affected by geopolitical fluctuations, goods trade between Vietnam and Russia has changed positively. The two countries' import-export turnover reached USD 3.63 billion, a slight increase of 2.3% over the same period in 2022. Of which, Vietnam's exports to Russia reached USD 1.74 billion, an increase of 12%.

In the first 5 months of 2024, the import-export turnover of goods between the two sides reached USD 1.96 billion, an increase of 51.4% over the same period in 2023. Of which, Vietnam's exports to Russia reached USD 955.6 million, an increase of 44.7%.

The Europe-America Market Department (Ministry of Industry and Trade) said that export commodity groups from Vietnam to Russia with high growth include: seafood reaching USD 76.4 million, up 87.8% over the same period; cashew nuts reaching USD 28 million, up 82.4%; pepper reaching USD 12.5 million, an increase of 96.2%; textile and garment reaching USD 490 million, up 125%; Other machinery, equipment, tools and spare parts reaching USD 90.1 million, an increase of 102%.

In the opposite direction, Vietnam's imported goods increased sharply from Russia, including ores and minerals, reaching USD 9.7 million, coal of all kinds, chemicals, all sorts of fertilizers, other common metals, components, Automotive Parts...

By the end of May 2024, Russia has 186 projects in Vietnam, with a total investment capital of approximately USD 1 billion. Vietnam has about 25 investment projects in Russia, with a total investment capital of about USD 3 billion. In particular, the two sides promote cooperation in the oil and gas sector, with two typical enterprises, Vietsovpetro and Rusvietpetro.

With a population of about 150 million, Russia has a significant demand for food items. In mid-June 2024, Deputy Minister of Agriculture and Rural Development Tran Thanh Nam received and worked with Mr. Gennady Bezdetko, Ambassador Extraordinary and Plenipotentiary of the Russian Federation to Vietnam.

At the meeting, the Deputy Minister emphasized: "Vietnam always values ​​and wishes to develop a cooperative relationship with the Russian Federation, especially in the context of new opportunities and challenges in the global market."

In the immediate future, the Ministry of Agriculture and Rural Development leader hopes that the Russian side will quickly consider recognizing additional seafood facilities that are allowed to export to the Russian Federation. In addition, it increases support for technologies serving the field of marine farming.

"Currently, the number of Russian export enterprises granted rights to Vietnam has increased many times compared to the number of Vietnamese enterprises granted rights to Russia, especially enterprises producing and processing meat products," the Deputy Minister said.

Along with the efforts of the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, with the focal point of the Vietnam Trade Office in Russia, has connected many Vietnamese businesses exporting agricultural products to supermarket chains here.

However, to export sustainably to the Russian market, the Trade Office recommends that Vietnamese businesses need to have a strategy and build a supply system in the host country to supply supermarket chains. At the same time, proactively participate in specialized exhibitions and fairs to learn about the market and find business partners.

"Representative agencies in Russia are always ready to coordinate, advise and support business cooperation and investment connections for businesses from both sides. This is the foundation for Vietnamese businesses to enhance trade promotion," shared the Trade Office.

On the sidelines of the Forum "Energy Week of the Russian Federation," Minister of Industry and Trade Nguyen Hong Dien pledged to find solutions to support businesses in proactively organizing trade promotion activities. He also encouraged businesses to organize their own delegations to attend exhibitions in each field, such as textiles, furniture, consumer goods, food, beverages, and the mechanical engineering industry...

Mr. Kharinov Vyacheslav, Chief Representative of the Russian Federal Trade Representative Agency in Vietnam, said that trade between Vietnam and Russia has a lot of fiscal space development when strong products complement each other. Initial technical barriers are gradually being removed. The two countries also have opportunities to cooperate to develop high-tech industries.