Many opportunities for Vietnamese agricultural products to enter the Russian market

VCN - Vietnam's agricultural, forestry, and fishery products have many opportunities to promote exports to the Russian market. However, to realize these opportunities, Vietnamese firms need to carefully study the market and make good use of the incentives of the Free Trade Agreement between Vietnam and the Eurasian Economic Union (VN- EAEU FTA).
Agro-fishery firms must Agro-fishery firms must "live" before thinking about recovery
Facing with five difficulties, the agricultural sector wants to socialise testing Covid-19 and vaccination Facing with five difficulties, the agricultural sector wants to socialise testing Covid-19 and vaccination
China is changing drastically, giving up the China is changing drastically, giving up the "habit" of seasonality to trade agricultural products
Many opportunities for Vietnamese agricultural products to enter the Russian market
Vietnamese firms need a strategy to supply agricultural and processed agricultural products to Russia’s retail systems. Photo: Internet

Exports increased by more than 34%

According to the General Department of Customs, Vietnam's agricultural, forestry, and fishery exports to Russia have grown strongly since the beginning of 2020. In the first seven months of this year, exports of agricultural, forestry, and fishery products to this market increased by 34.2% over the same period last year, reaching US$323.26 million.

Typical items with high growth in export turnover compared to the same period last year are: seafood up 66%, vegetables up 47.6%, cashew nuts up 59.76%, pepper up 71.3%, coffee up 3.5%, especially rubber up 230.8%. However, there are still several items with a decrease in export turnover to this market, such as tea, rice, wood, and wood products.

According to the Ministry of Industry and Trade, Vietnam's rice exports to Russia decreased because its price was about US$100-150/ton higher than that of other countries, making it difficult to compete, especially with rice from India.

Regina Budarina, Vice President of the Russia-Vietnam Friendship Association, said: "Vietnam's rice products are quality and branded, but Russian consumers prefer Indian rice due to competitive prices."

Besides, the fact that Russian consumers tend to use parboiled rice also reduces the competitiveness of Vietnamese rice.

Vietnam has been the largest coffee supplier to Russia for years. However, Vietnamese branded coffee is not widely available in Russia’s supermarket chains. The main reason is because Vietnamese coffee is imported into Russia in the form of raw materials (about 99% of Vietnamese coffee exported to Russia is raw coffee, only 1% roasted coffee).

According to the Vietnam Trade Office in Russia, some Vietnamese agricultural and processed agricultural products have gradually approached the Russian retail systems such as pomelo, dragon fruit, chili sauce, and dipping sauce, but the number of items is still limited.

Promote market research

Regina Budarina said there were opportunities for Vietnamese goods to enter the Russian market, especially agricultural products, food, and beverages. However, many Vietnamese products are not well known in Russia despite the great market demand. For example, fresh Thai mangoes in Russia are abundant, but Vietnamese mangoes are quite rare without many channels for consumption. Therefore, customers must go to Vietnamese markets or Vietnamese cafes.

From the perspective of Russian enterprises, Tatiana Aptel, representative of X5 Group (a corporation with a large retail network in Russia), said X5 Group currently has more than 17,352 convenience stores across Russia. X5 Group is very interested in Vietnamese products such as fresh food, tropical fruits, dried fruits, and seafood.

"The group has a process from bidding, importing, and then moving to distribution places. We can import goods directly from foreign enterprises with the cooperation motto of equality, transparency, and openness," said Tatiana Aptel.

Based on the potential and strengths of Vietnamese products, Regina Budarina said that to access the Russian market, Vietnamese firms need to follow the shortest path, which is to promote market research. On the one hand, businesses must spend a lot of money on this activity, but in the future, it will be useful for their activities in Russia. At the same time, organizations of Vietnamese enterprises should hold regular seminars and exhibitions to bring Vietnamese brands closer to the Russian market. On the other hand, to reduce transportation costs, they should study transportation by rail through China; establish more Vietnam - Russia commercial offices for small and medium enterprises to participate in exchanging experiences.

According to Nguyen Thi Thanh, chairwoman of the Vietnam - Europe International Business Association (Vietnam Private Business Association), Russia is a special market that Vietnamese businesses are interested in, looking forward to promoting cooperation, investment, technology transfer, contributing to promoting two-way import and export. The current limitation of Vietnamese and Russian enterprises is the lack of information about each other's markets. "In the future, we will choose units with specific goods and full information to support and accompany in promotion and deeper trade with Russian partners," said Thanh.

The Vietnam Trade Office in Russia has connected many Vietnamese firms to export agricultural products such as ginger, grapefruit, and vegetables to the Russian supermarket chain. However, Vietnamese firms still have difficulties in supplying goods in large quantities and for the long-term.

"To export stably to the Russian market, Vietnamese firms need to build a supply system in the host country to supply supermarket chains," said a representative of the Vietnam Trade Office in Russia.

Additionally, to increase the export turnover of agricultural, forestry, and fishery products to Russia, Vietnamese firms need to study carefully, take advantage of the incentives of the Vietnam - EAEU FTA, boldly invest in the production and consumption of goods in this large market.

Along with the connecting efforts of trade promotion organizations and domestic industry associations, amid the pandemic, the Vietnam Trade Office in Russia will continuously promote activities to provide information to connect trade, support businesses in the online environment as well as provide direct support, organize seminars, and trade businesses, which focuses on each specific industry and field to create opportunities and facilitate Vietnamese goods to enter the Russian market.

By Duc Quang/ Ha Thanh

Related News

Opportunity to accelerate agricultural export to China

Opportunity to accelerate agricultural export to China

VCN - For many years, China has been Vietnam's largest trading partner. Trade between Vietnam and China has maintained a stable and sustainable growth momentum.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
To open the door for industrial processing and manufacturing products to demanding markets

To open the door for industrial processing and manufacturing products to demanding markets

VCN - Vietnam's processing and manufacturing industry has made strong progress in 2024, with positive growth and becoming the main driving force of the economy. However, to maintain growth momentum and expand market share in demanding markets, businesses need to address challenges in quality standards, raw material costs and strict compliance requirements from international partners.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version