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Russia has high potential for VN
Head of the Europe Department of the Ministry of Industry and Trade Nguyen Chi Tam says Viet Nam needs to further strengthen economic and trade co-operation with Russia, which is a market of high potential.
Addressing a conference in HCM City yesterday on increasing the competitiveness of Vietnamese products in the Russian market, Tam said Russia is Viet Nam’s traditional and strategic partner and the country should boost its exports to the market.
The conference was organised by the Viet Nam Trade Promotion Agency (VIETRADE).
Tam said the Government should pay attention not only to political relations but also to strengthening economic and technological cooperation with Russia.
He also called on the Viet Nam Chamber of Commerce and Industry (VCCI) and Viettrade to organise more seminars and conferences to increase information exchange between Vietnamese and Russian enterprises.
The Government should also initiate financial support policies for trade promotion programmes that will facilitate deeper penetration of Vietnamese goods in the Russian market, he added.
Relevant agencies should also support enterprises in popularising their trademarks in Russia as well as in investing in modern technology to diversify their product range and increase products quality.
Tam called on the Animal and Plant Quarantine Department under the Russian Agriculture Ministry to lift the ban on seafood imports and create favourable conditions for Russian enterprises to import seafood products from Viet Nam.
So far, Vietnamese products that have been exported to Russia include apparel, shoes, agricultural products, seafood and handicrafts.
Two-way trade value countries last year reached US$1.6 billion, an increase of 62.4 per cent compared to 2007. Vietnamese exports to Russia hit $671.9 million, an increase of 46.4 per cent.
However, in the first three months of this year, the two-way trade turnover saw a year-on-year decrease of 23.6 per cent, with Viet Nam’s exports declining by 28 per cent.
Tam said the Russian market is open to foreign enterprises, but contains many business risks.
With limited capital, Vietnamese small and medium enterprises (SMEs) still hesitate to compete the market, he noted.
Besides, some differences relating to tariff and non-tariff barriers limited Vietnamese goods’ access to the Russian market.
The usual payment method, using Letters of Credit (L/Cs), is not popular among Vietnamese SMEs, preventing their signing business contracts with foreign partners, Tam said.
As of 2008, Russia had 59 investment projects in Viet Nam with a registered capital of $376.36 million in the fields of rubber, marine transport, raw material production and foodstuff processing.
One of the biggest projects is in crude oil pumping in the Bach Ho and Rong oilfields.
Viet Nam has 11 investment projects in Russia with a capital of over $34 million, mainly in foodstuff processing, apparel, shoes and furniture production.
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