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New opportunities for Vietnam-Russia trade

19/06/2024    98

The upcoming official visit to Vietnam by Russian President Vladimir Vladimirovich Putin is expected to open up new opportunities in bilateral relations, aiming towards the prosperous development for both sides.

The countries established bilateral diplomatic relations in 1950 and upgraded them to a comprehensive strategic partnership in 2012. Vietnam has also signed a free trade agreement with the Eurasian Economic Union (EAEU) – which groups Belarus, Kazakhstan, Russia, Armenia, and Kyrgyzstan.

In the first five months of 2024 alone, trade between Vietnam and Russia reached 1.96 billion USD, up 51.4% year-on-year. Vietnam's exports to and imports from Russia amounted to 955.6 million USD and 1 billion USD respectively, annual increases of 44.7% and 58.4%.

Notably, the value of Vietnamese seafood, cashew nuts, peppercorns, textile-garment, and machinery-equipment shipped to its Eurasian partner soared by between 87% and over 100% to 76.4 million USD, 28 million USD, 12.5 million USD, 320.8 million USD, and 90.1 million USD, respectively.

The Vietnamese Trade Office in Russia noted that recent efforts have connected Vietnamese agricultural exporters with suppliers for supermarket chains in Russia. However, for sustainable shipments to the market, Vietnamese businesses need strategic planning to develop supply systems there. Moreover, proactive participation in thematic exhibitions and trade fairs is crucial to understand the market and seek partnerships.

Last year, while participating in the Russian Energy Week Forum, 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, reflecting the sides’ strong support for bilateral cooperation 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 companies such as Zarubezhneft, Gazprom, and Novatek, with discussions focusing on project implementation to enhance collaboration between the two countries and their businesses in the near future.

To boost trade with the Russian market, the ministry announced plans to study measures supporting businesses in organising their own trade promotion activities. Additionally, local authorities, associations, and enterprises are encouraged to send delegations to specific sectoral exhibitions in Russia, aiming to foster market penetration and sustainable commercial growth./.

Source: Customs News