Seafood exporters antsy to make inroads into Russia
Russia has lowered its import tariff to 0.8% on agricultural products, which is much lower than the hitherto average rate of 13.2%, which provides a good opportunity for seafood businesses to become more price competitive in the market.
The lower tariffs in connection with the Free Trade Agreement (FTA) between Vietnam and the Customs Union (Russia, Belarus and Kazakhstan) in the offing will provide local seafood yet more chances to step-up exports.
Russia imports on average roughly 4.1 to 4.3 million tonnes of seafood annually, according to the Russian Seafood Directory.
However, demand for seafood products from non traditional import markets has been on the rise as a result of a ban on agricultural and seafood products from Norway, the US, Canada, which has been in effect since last August.
However, Vietnamese seafood imports by Russia have not been consistent and have fluctuated wildly. For example, they hit only US$100 million in 2013 but reached US$205 million in 2005.
Although Vietnam is among the top ten seafood exporters to the market it has accounted for only 3.6% of the market share.
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To boost agricultural and seafood exports to Russia, Deputy Prime Minister Hoang Trung Hai has asked the Ministry of Industry and Trade (MOIT) to spur negotiations to sign the FTA with the Customs Union.
The Ministry of Agriculture and Rural Development (MARD) has also been actively negotiating cooperative agreements on food hygiene and safety with the Russian Ministry of Agriculture.
Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP), says Russia is considered a highly lucrative market for local seafood products.
Particularly in light of the reduction of the import tariff to 0.8% and additional benefits that will result from the signing of the FTA, local businesses should get prepared to grasp the opportunity, Hoe says.
Recently, local firms have been successfully overcoming import restrictions imposed by many countries around the globe, however, the most important thing is for them to ensure they comply with food hygiene and safety standards, Hoe says.
Although Russia is a WTO member it has its own evaluation system. That’s why out of the 602 Vietnamese seafood processors who have met requirements to export products to EU, only 25 of them have been allowed to ship to the Customs Union.
The Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) recently conducted a fact-finding tour of Vietnam to evaluate its food hygiene and safety (FHS) controls.
As a result of their review in October 2014, they identified 41 businesses meeting requirements to export product to Russia.
Experts say to stimulate exports to Russia, local businesses will have to improve the quality of products, financial capacity and trade conditions as well as actively establishing relations with importers, supermarkets and overseas Vietnamese businesses in Russia.
In addition, they should actively take part in fairs and exhibitions and invite Russian importers to attend international seafood events and visit breeding and processing in Vietnam.
However, many local seafood exporters are getting antsy and are ready to make inroads into the Russian market and satisfy the increasing consumer demand.
