MOSCOW TIME: 15.08.2020 14:25:56

Export/Import

Vietnamese firms plan penetration into potential Russian market

Vietnamese firms plan penetration into potential Russian market

With the population of 143 million people, GDP per capita approximating US$17,000 a year and the increasingly developing middle class which accounts for 10-25 percent, lots of Vietnamese firms estimated that Russia is a highly potential market for Vietnamese agricultural, forestry and fishery products so they have been planning penetration into this market.

Among them, director of Minh Phat Food Company said that it has many times attended fairs in Russia to seek partners to export canned tuna which has been exported to the Middle East.

Meantime, representative of Dakao Vietnam Company said that Russia is a new market in the cashew production and processing field. Formerly, Vietnamese firms majorly sold their products in the US, China and the Middle East. The company has been paying attention to market expansion and hopes that Russia will become a big market of the company.

Since Vietnam - Eurasian Economic Union (EAEU) Free Trade Agreement took effect in 2016, the tariff rates imposed on many items have reduced to 0 percent facilitating Vietnamese goods export to the Russian market which is in high demand of garment, textile, footwear items as well as agricultural-forestry-fishery products comprising phantasies fish and shrimp.

Mr. Dmirtriy Makarov from the HCMC branch of the Office of Trade Representation of the Russian Federation in Vietnam said that Russians do like mango. In comparison with mango from other countries, Vietnamese mango is much more delicious. So Vietnamese firms should increase export of the fruit to Russia.

Among export items to Russia, garment-textile and footwear are two major products of Vietnam’s light industry. Still, Vietnam Textile and Apparel Association commented that export intensification to the Russian market has faced lots of difficulties and barriers requiring careful market research to clarify importers potential and expectation and regular contact to create long term tie.

The association prompts Vietnamese firms intending to promote investment in the Russian market to build a strategy to penetrate into Russia, develop human resource in the market and improve competitive ability.

Economic experts said that in order to create a foothold in the Russia market, products must ensure clean standard. Farm produce export firms need to build a close and long term link with production households to create value chain and share responsibility as well as profit, update and take advantage of policies of the state in a timely manner to improve competitiveness of their export products. In addition, they should participate in goods associations and industries to create position for their products in the market. From that they can broaden advertising and connect with the community of 10,000 Vietnamese people in Russia to increase investment and speed up export.

Moreover, they should improve packing, design and change language for customers in Russia to fully grasp information about products.

According to Mr. Vu Ba Phuc, head of the Trade Promotion Agency under the Ministry of Industry and Trade, Vietnamese firms need to ensure product quality in long term and pay attention to payment term to promote export to Russia.

In order to raise Russia-Vietnam bilateral trade turnover to US$10 billion in 2020, the ministry will continue focus on supporting businesses and goods industries, better take advantage of incentives from free trade agreements and forecast trade barriers to inform businesses so that they can have more efficient access directions to the market.

Source:SAIGON ONLINE

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Vietnam Russia Export Import

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