Commercial Counselor Duong Hoang Minh works with Russian businesses (Photo: The Vietnamese Embassy in Russia)

On June 5, Deputy Prime Minister of Vietnam Tran Luu Quang started his working trip to attend the 27th Saint-Petersburg International Economic Forum (SPIEF) at the invitation of the Adviser to the President of the Russian Federation Anton Kobyakov.

Commercial Counselor of the Vietnamese Embassy in Russia Duong Hoang Minh shared in a recent interview that Deputy Prime Minister Tran Luu Quang's attendance at the 27th SPIEF shows the importance the Vietnamese Government attaches to the development of traditional friendship and comprehensive strategic partnership cooperation between the two countries.

He added that, in the past, Vietnam attended SPIEF at the level of Ministry leaders in charge of economics and trade. In recent years, with the cooperative relationship between the two countries becoming more and more extensive, Vietnam regularly sends high-level delegations to SPIEF. Of which, the Vietnamese delegation proactively joined in forum discussion on the situation and trends of economic development in Russia and the world, exchanging measures to promote economic, trade and investment cooperation between Vietnam and Russia and partners.

"Headwinds" negatively impact bilateral trade's prosperity

"After Vietnam and the Eurasian Economic Union (EAEU) signed the Free Trade Agreement (VN-EAEU FTA), trade turnover between Vietnam and Russia increased rapidly, reaching US $5.5 billion in 2021, increased nearly 90% compared to 2016, of which our exports to Russia reached US $3.2 billion, an increase of 100% compared to 2016. However, since the Russia-Ukraine conflict broke out (February 2022), the unfavorable geopolitical and economic situation has negatively impacted Vietnam-Russia bilateral trade. Vietnam's export turnover to Russia in 2022 decreased by over 51%," Minh noted.

In that context, the Vietnamese Embassy in Russia reported the situation and proposed recommendations to the authorities. Coordination with relevant units of both countries was also carried out to deploy many support measures and remove obstacles in bilateral trade, focusing on payment, transportation, trade and tourism between the two countries.

Meanwhile, the Trade Office of the Vietnamese Embassy in Russia has actively worked with industry associations to update information on the market situation and exchange measures to overcome difficulties for businesses.

"We coordinated many online working sessions to connect business cooperation between Vietnamese and Russian businesses in the fields of fisheries, agricultural products...and regularly exchanges and advises businesses directly on the market situation and cooperates with Russian businesses. The businesses receive support in resolving difficulties and disputes in contract implementation. We also consult Vietnamese businesses to participate in exhibitions in Russia," he said.

Minh recalled the Vietnam Day program in Russia in October 2023, which was hosted by the Vietnamese Embassy in Russia and the Ministry of Industry and Trade of Vietnam. It successfully organized an exhibition of high-quality Vietnamese goods at the Hanoi-Moscow Multifunctional Center with more than 50 businesses participating. The Vietnam-Russia Business Trade Forum with more than 200 delegates attended, which actively promoted Vietnamese products in the Russian market.

Favorable condition for Vietnam - Russia trade activities

The Vietnam Day program in Russia in October 2023 was hosted by the Vietnamese Embassy in Russia and the Ministry of Industry and Trade of Vietnam (Photo: The Vietnamese Embassy in Russia).

Up to now, with the joint efforts of the two sides, payment and transportation obstacles have been gradually resolved. Bilateral trade turnover, after a sharp decline in 2022, has initially recovered.

According to statistics from the General Department of Vietnam Customs, the import-export turnover of goods between Vietnam and Russia in 2023 will reach US $3.6 billion, an increase of 2.3% compared to 2022. In the first 4 months of 2024, Bilateral trade volume will grow by 55.9% over the same period in 2023, reaching US $1.57 billion. Of which, exports reached US $761.9 million (up 49%), imports reached US $806.7 million (up 62.6%).

Many export product groups have high growth in the first 4 months of 2024 such as seafood reaching 59.4 million USD (up 70.1% over the same period in 2023); cashew nuts reached 23.9 million USD (up 112.9%); pepper reached 9.9 million USD (up 121.9%); rice reached 2.7 million USD (up 285%); confectionery and cereal products reached 9.2 million USD (up 86.8%); Textiles and garments reached more than 259.7 million USD (an increase of 134.8%)...

Vietnam and Russia have established a comprehensive strategic partnership since 2012. In May 2015, Vietnam and EAEU, of which Russia is a member, signed the VN-EAEU FTA. Currently, after 8 years of implementation, nearly 90% of exported products from both sides have 0% or very low import tax. This is a very favorable condition for businesses of the two countries to strengthen economic, trade and investment cooperation.

To take full advantage of the VN-EAEU FTA incentives, while continuing to maintain a high bilateral trade growth rate this year and in the coming time, the Vietnamese Embassy in Russia and Trade Office of Vietnam in Russia have suggestions for the stakeholders. Enterprises of the two countries, especially Vietnamese enterprises, should increase trade promotion activities, especially participating in specialized exhibitions and fairs in each other's markets, thereby understanding the market and seeking potential business partners. Representative agencies in Russia will support them in coordination for business cooperation and investment.