Russian President’s Vietnam visit to open up fresh opportunities for trade links

The two countries originally set up bilateral diplomatic ties in 1950 and moved to upgrade mutual relations to a comprehensive strategic partnership in 2012.

Vietnam also signed a free trade agreement with the Eurasian Economic Union (EAEU), which includes Belarus, Kazakhstan, Russia, Armenia, and Kyrgyzstan.

The past five months of the year witnessed two-way trade hit US$1.96 billion, up 51.4% on-year. Vietnamese exports to and imports from the Russian market reached US$955.6 million and US$1 billion, respectively, with annual increases of 44.7% and 58.4%.

Most notably, the value of Vietnamese seafood, cashew nuts, peppercorns, textile-garment, and machinery-equipment shipped to its Eurasian partner surged by between 87% and more than 100% to reach US$76.4 million, US$28 million, US$12.5 million, US$320.8 million, and US$90.1 million, respectively.

According to details given by the Vietnamese Trade Office in Russia, many Vietnamese agricultural exporters have now connected with suppliers for supermarket chains in Russia. However, for sustainable shipments to this market, Vietnamese businesses need strategic planning in order to develop supply systems there. Moreover, proactive participation in thematic exhibitions and trade fairs is crucial to learning more about the vast Russian market and seeking partnerships.

Joining the Russian Energy Week Forum last year, Vietnamese Minister of Industry and Trade Nguyen Hong Dien and Russian Minister of Energy Nikolai Gregorievich Shulginov signed memoranda amending the government-to-government agreement on the operation of joint ventures Vietsovpetro and Rusvietpetro. This highlights both sides’ strong support for bilateral ties in the energy and oil sectors.

Meanwhile, on the sidelines of the forum, the Vietnamese Minister engaged with representatives of Russian major oil and gas firms such as Zarubezhneft, Gazprom, and Novatek, with discussions mainly focusing on project implementation to boost collaboration between the two countries and their businesses in the coming time.

As part of efforts to intensify trade exchanges with the Russian market, the Ministry of Industry and Trade has devised plans to launched trade promotion activities and incentivize local authorities, associations, and enterprises to send delegations to specific sectoral exhibitions in Russia towards achieving greater market penetration.

Source: VOV