Vietnam-Russia economic, trade relations continue to thrive

Water filters manufactured by Russia-based Geyser Company are being sold in Vietnam (Photo: VNA)

Vietnam and Russia established a strategic partnership in 2001 and upgraded it to the level of comprehensive strategic partnership in 2012.

Bilateral trade enjoyed a strong surge as the Eurasian Economic Union (EAEU)-Vietnam Free Trade Agreement (FTA) took effect in October 2016. The effective implementation of the FTA is expected to help the two nations realise the target of 10 billion USD in two-way trade in the coming time.

In 2018, the Vietnam-Russia trade value hit 4.57 billion USD, a year-on-year jump of 28.63 percent, said Ta Hoang Linh, Director of the MoIT’s European-American Market Department.

Vietnam’s export turnover to Russia exceeded 2.44 billion USD, a rise of 12.81 percent against the same period last year, while Vietnam imported goods worth 2.1 billion USD from the European nation in the year, up 53.38 percent.

In the first four months of 2019, Vietnam-Russia trade revenues reached 1.52 billion USD, rising 5.92 percent compared to the same period last year.

Russia currently accounts for more than 90 percent of EAEU-Vietnam trade revenues. Vietnam’s major export items to Russia included electronic products, garment-textiles, footwear, aquatic products and coffee, among others.

According to the Vietnam Textile & Apparel Association, Russia is a promising market for Vietnamese garment-textile exporters. However, Vietnamese firms should conduct thorough market research to determine potential and demands of their partners, and frequently be in touch to maintain connections.

They are also advised to prepare business methods that are suitable in the modern context and work to ensure product quality and improvements, as well as brand building and trademark registration in the market.

At present, Russia ranks 24th among 129 countries and territories investing in Vietnam with 123 projects with total registered capital of over 932 million USD, mainly focusing on oil and gas, and energy industries.

Vietnam has run more than 20 projects in Russia with total capital of nearly 3 billion USD, notably TH Group’s dairy farms with registered capital of 2.7 billion USD.