Exploring potential export markets from the Eurasian region

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The Eurasian region is a potential export market with a lot of room for cooperation in fields including textiles and garments. Illustration photo: H.Diu

The remaining space is still very large

Evaluating the Asia-Europe market, Mr. Ta Hoang Linh, Director of the Europe-America Market Department, emphasized that the Eurasia market (Eurasia) used to be the Vietnamese traditional collaborate and is now considered is a potential export market with a lot of room for cooperation.

This is a large inter-region of 28 countries, stretching from Eastern Europe to Central Asia, with a total area of about 23.5 million km2, a population of more than 400 million people and a total GDP of nearly 4,500 billion USD. This area is also very rich in mineral resources, especially oil, gas, non-ferrous metals, coal, grains...

Regarding trade cooperation, according to data from the General Department of Customs, in 2022, amid the global economic and political chaos, bilateral trade between Vietnam and other countries in the Eurasian region only reached 13.3 billion USD, down 9.7% over the same period in 2021.

In the first 9 months of 2023, trade in goods between Vietnam and Eurasia region countries will reach 9 billion USD, down 6.5% compared to the same period in 2022. Of which, Vietnam's exports to this region were 6.3 billion USD, down 1.2%; Imports reached 2.7 billion USD, down 19%.

Despite the recent plummet of bilateral trade, according to many experts, the Asia-Europe region is still a potential market for Vietnamese businesses because of its high turnover. Vietnam's exports to the Eurasian region only account for about 2.4% of Vietnam's total export turnover and about 0.4% of this region's total import turnover. Investment projects from the Eurasian region currently account for only about 0.3% of total foreign direct investment in Vietnam.

In addition, solid institutions and frameworks have been formed between the two sides as a foundation for the development of bilateral cooperation, including: Two Free Trade Agreements: Vietnam-EAEU FTA with the Economic Union Eurasia (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan); EVFTA with the European Union; Investment Protection Agreement between Vietnam and the European Union (EVIPA); 14 Joint Committees, Intergovernmental Committees; 1 bilateral economic cooperation consultation mechanism. The success of above cooperation mechanisms have played as a solid basis strengthen cooperation in many fields, especially economics, trade and investment.

In addition, this area is the habitat of a large Vietnamese community. Promoting information exchange, sharing trade experiences, and connecting between businesses in Vietnam and the Vietnamese community in this region will support Vietnam's trade and investment cooperation with Asia -Europe more effectively and substantively.

What to do to unleash your full potential?

Sharing trends and opportunities in economic, trade and investment cooperation with Azerbaijan (one of the countries in the Eurasian region), Ambassador of the Republic of Azerbaijan to Vietnam, Mr. Shovgi Mehdizada said, Cooperation opportunities between the two sides are still opened up especially in potential fields such as trade, energy, infrastructure, and cultural exchange.

From a business perspective, Mr. Nguyen Anh Tuan, Vice Chairman of the Board of Directors of Vietjet Aviation Joint Stock Company and Deputy General Director of Sovico Group, said that the Eurasian region used to be the traditional market of Vietnam and is promising to expand many cooperation potentials

Vietnam and the Eurasian region have a lot in common. Many successful Vietnamese entrepreneurs once studied and lived in Eastern Europe or Central Asia. Sovico - Viet jet believes that the study of Vietnamese businesses with the markets, cultures, and people in these countries in along with investment support policies are presquisites to turn existing potentials into cooperation and investment chances.

To concretize cooperation opportunities between Vietnam and the Eurasian region, Mr. Nguyen Anh Tuan proposed that management agencies strengthen cooperation with Eurasian countries through investment incentive policies and large-scale, national trade promotion programs, removing barriers to develop bilateral and multilateral trade activities. At the same time, it is necessary to open more air routes connecting Vietnam with Eurasian countries in order to strengthen economic and cultural exchanges between localities and countries.

The state needs to support Vietnamese businesses to participate in e-commerce platforms to find customers, increase export of goods, distribution... In addition, support policies on taxes, fees to develop air transport activities for goods, food, fruits... also contribute to creating new developments for bilateral and multilateral trade", Mr. Nguyen Anh Tuan proposed.