Business
Vietnam, Russia promote cooperation in exporting goods
Russia has been one of the traditional markets for Vietnamese exports, including farm and seafood products, since the 1990s.
Viet Nam and Russia will promote co-operation to resolve the difficulties of Vietnamese enterprises in exporting goods to the European country, experts said.
Nguyen Binh Giang, head of the Import-Export Department under the Ministry of Industry and Trade (MoIT), made this announcement at a seminar on exporting farm, forestry and seafood products to Russia held here last Friday.
However, at present, the total volume of Vietnamese farm, forestry and seafood exports to Russia accounted for a mere 1.5 per cent of Russian demand. In contrast, the exports accounted for 6.1 per cent of demand in China, 23.6 per cent in the United States and 10.7 per cent in Japan, Giang noted.
He added that the total volume of these exports accounted for 50 to 60 per cent of total Vietnamese exports to Russia in 2009 and dropped to 10 per cent in 2012.
In the first seven months of this year, the total value of exports to Russia reached US$204.9 million, or 1.61 per cent of the total national export value of farm, forestry and seafood exports.
Giang attributed the reduction to strict competitiveness in the pricing, as well as design, packaging, quality and transport of exports to other countries receiving the same exports as Russia.
He also cited the strict application of non-tariff barriers, such as regulations on quality, safety and hygiene, on these exports.
Giang observed that Russian tariffs were reduced after the European country became a World Trade Organisation member, but its tariffs on some Vietnamese farm products, including tea and rice, remained high.
According to the Import-Export Department head, the enterprises of the two countries encountered difficulties in processing payments due to difficulties in the conversion of the rubble and dong currencies.
Nguyen Ton Quyen, general secretary of the Viet Nam Wood and Forestry Product Association, said the volume of wood and forestry exports to Russia remained small because enterprises in the domestic wood industry lacked information on the market and their partners in Russia, including customers' preferences and tariff policies.
The cost of transporting wood products from Viet Nam to Russia remained high and has sparked an increase in selling prices, Quyen noted.
Vietnamese enterprises also faced payment challenges with Russia partners because they lacked knowledge on the European country's payment policies, especially with regard to the rubble, and often gave and received payment in US dollars and Euro, he added.
If the enterprises succeed in entering the Russian market, the export value of wood and forestry products from Viet Nam can reach $10 billion, which is higher than the current $6 billion to $7 billion, Quyen said.
A representative of the Viet Nam Fruit, Vegetable and Farming Product Corporation said most Russian importers have deferred payment within a 60-day period without any guarantee, so Vietnamese enterprises have faced considerable risks and were discouraged from increasing exports to Russia.
The An Binh Import and Export Company, which specializes in rice exports, complained of the high inspection fee for exports to Russia because the European country had only one office in charge of inspecting the goods.
These measures will create favourable conditions for the processing of payments among enterprises of the two countries and ensure the competitive ability of Vietnamese companies, Giang noted.
Meanwhile, Viet Nam's ministries and sectors should conduct research on the Russian market and provide the information to domestic enterprises and associations. They should also support the trade promotion activities of domestic enterprises and associations in the Russian market.
The MoIT said Viet Nam and the Customs Union that includes Russia, Belarus and Kazakhstan were currently conducting negotiations on a free trade agreement calling for preferential tariffs on the imports and exports of these countries.
However, at present, the total volume of Vietnamese farm, forestry and seafood exports to Russia accounted for a mere 1.5 per cent of Russian demand. In contrast, the exports accounted for 6.1 per cent of demand in China, 23.6 per cent in the United States and 10.7 per cent in Japan, Giang noted.
He added that the total volume of these exports accounted for 50 to 60 per cent of total Vietnamese exports to Russia in 2009 and dropped to 10 per cent in 2012.
In the first seven months of this year, the total value of exports to Russia reached US$204.9 million, or 1.61 per cent of the total national export value of farm, forestry and seafood exports.
Giang attributed the reduction to strict competitiveness in the pricing, as well as design, packaging, quality and transport of exports to other countries receiving the same exports as Russia.
He also cited the strict application of non-tariff barriers, such as regulations on quality, safety and hygiene, on these exports.
Giang observed that Russian tariffs were reduced after the European country became a World Trade Organisation member, but its tariffs on some Vietnamese farm products, including tea and rice, remained high.
According to the Import-Export Department head, the enterprises of the two countries encountered difficulties in processing payments due to difficulties in the conversion of the rubble and dong currencies.
Nguyen Ton Quyen, general secretary of the Viet Nam Wood and Forestry Product Association, said the volume of wood and forestry exports to Russia remained small because enterprises in the domestic wood industry lacked information on the market and their partners in Russia, including customers' preferences and tariff policies.
The cost of transporting wood products from Viet Nam to Russia remained high and has sparked an increase in selling prices, Quyen noted.
Vietnamese enterprises also faced payment challenges with Russia partners because they lacked knowledge on the European country's payment policies, especially with regard to the rubble, and often gave and received payment in US dollars and Euro, he added.
If the enterprises succeed in entering the Russian market, the export value of wood and forestry products from Viet Nam can reach $10 billion, which is higher than the current $6 billion to $7 billion, Quyen said.
A representative of the Viet Nam Fruit, Vegetable and Farming Product Corporation said most Russian importers have deferred payment within a 60-day period without any guarantee, so Vietnamese enterprises have faced considerable risks and were discouraged from increasing exports to Russia.
The An Binh Import and Export Company, which specializes in rice exports, complained of the high inspection fee for exports to Russia because the European country had only one office in charge of inspecting the goods.
These measures will create favourable conditions for the processing of payments among enterprises of the two countries and ensure the competitive ability of Vietnamese companies, Giang noted.
Meanwhile, Viet Nam's ministries and sectors should conduct research on the Russian market and provide the information to domestic enterprises and associations. They should also support the trade promotion activities of domestic enterprises and associations in the Russian market.
The MoIT said Viet Nam and the Customs Union that includes Russia, Belarus and Kazakhstan were currently conducting negotiations on a free trade agreement calling for preferential tariffs on the imports and exports of these countries.
