Southeast Asia Information Port (www.dnyxxg.com) reports that since the establishment of diplomatic relations in 1950, Vietnam and the Russian Federation have enjoyed robust relations in most areas, culminating in the formation of a comprehensive strategic partnership in 2012. Furthermore, since the entry into force of the Vietnam-Eurasian Economic Union Free Trade Agreement (EAEUFTA), bilateral trade has made significant progress, creating favorable conditions for strengthening economic and investment cooperation between enterprises of both sides. Therefore, Russian President Vladimir Putin's upcoming official visit to Vietnam will open new opportunities for bilateral relations, propelling them towards prosperous development.
Reliable Partner
According to experts, after the signing of the Vietnam-Eurasian Economic Union Free Trade Agreement, trade between Vietnam and Russia grew rapidly, reaching US$5.5 billion in 2021, an increase of nearly 90% compared to 2016; of which, Vietnam's exports to Russia reached US$3.2 billion, an increase of 100% compared to 2016. However, following the conflict between Russia and Ukraine (February 2022), the instability of the geopolitical and economic situation negatively impacted bilateral trade between Vietnam and Russia. In 2022, Vietnam's exports to Russia decreased by more than 51% year-on-year. Therefore, the Commercial Section of the Vietnamese Embassy in Russia actively updates market information, explores measures to alleviate difficulties faced by businesses, promotes business cooperation between enterprises of both countries in the fields of aquatic products and agricultural products, and assists Vietnamese enterprises in participating in exhibitions in Russia.
The head of the European and American Markets Department of the Vietnamese Ministry of Industry and Trade revealed that despite the continued impact of geopolitical fluctuations, trade in goods between Vietnam and Russia showed positive changes in 2023. The total import and export volume reached US$3.63 billion, a slight increase of 2.3% compared to the same period in 2022; of which, Vietnam's exports to Russia reached US$1.74 billion, an increase of 12%. Vietnam's imports from Russia reached US$1.89 billion, a decrease of 5.2%.
In the first five months of 2024, the total import and export volume between the two countries reached US$1.96 billion, an increase of 51.4% compared to the same period in 2023; of which, Vietnam's exports to Russia reached US$955.6 million, an increase of 44.7%; Vietnam's imports from Russia reached US$1 billion, an increase of 58.4%. Vitaly Stepanov, CEO of the Moscow Export Center, stated that Vietnam is an important market for Moscow, and the center has taken a series of measures to strengthen business relations with Vietnam. More than 100 companies have already held negotiations with Vietnamese partners. In particular, the opening of a "Made in Moscow" booth at the Vietnam International Trade Fair marks a new milestone in promoting relations between businesses of the two countries.
Deepening Bilateral Relations
The Commercial Counselor of the Vietnamese Embassy in Russia stated that in recent years, the Commercial Office has assisted many Vietnamese companies in supplying agricultural products to supermarket chains there. Furthermore, Vietnamese companies should proactively participate in exhibitions to understand the market and find business partners.
To fully utilize the preferential policies of the Vietnam-Eurasian Economic Union Free Trade Agreement and maintain the growth rate of bilateral trade, the Commercial Office of the Vietnamese Embassy in Russia suggested that companies from both sides strengthen trade promotion. The Vietnamese representative office in Russia has consistently provided assistance to companies from both sides in promoting investment and business cooperation. During a working meeting with Russian Energy Minister Nikolai Shulginov, Vietnamese Minister of Industry and Trade Nguyen Hong Dyen and Russian Energy Minister Nikolai Shulginov reached an agreement on future cooperation directions and signed an amendment protocol to the intergovernmental agreement on the operation of the joint venture between the Vietnam-Soviet Petroleum Joint Venture and the Russo-Vietnamese Petroleum Joint Venture.
Particularly during the "Russian Federation Energy Week" forum, Minister Nguyen Hong Dyen held talks with leaders of major Russian oil and gas companies to promote cooperation between enterprises of the two countries.
To understand the Russian market and find customers, enterprises should participate in large-scale exhibitions in the market. Business associations should closely monitor the situation in the Russian market and take timely countermeasures. In particular, it is necessary to carefully examine the information of potential partners before signing cooperation agreements.
The Ministry of Industry and Trade will focus on supporting enterprises in proactively conducting trade promotion activities, encouraging localities, associations, and enterprises to organize trade promotion delegations to help enterprises penetrate potential markets and contribute to the sustainable growth of exports between Vietnam and Russia. (End)
