Firms told to prepare for increased trade with Russia

Friday, 2015-02-06 11:43:32
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NDO/VNA - The targeted US$10 billion two-way trade between Vietnam and Russia by 2020 will be feasible if domestic businesses work out thorough market research and marketing strategies.

Local firms were warned of the market’s inaccessible distribution network, particularly in relation to big supermarket chains, fierce competition from other countries, tough negotiation on means of payment, and time-consuming methods of transporting goods.

They were advised to update their technologies in order to improve product quality and enhance brand and product promotion, as well as increase their participation in fairs and exhibitions which will help them seek trustworthy partners and distributors.
Bilateral trade turnover hit US$3 billion for the first time in 2014, according to data from the Vietnamese Ministry of Industry and Trade (MoIT) show.

The MoIT’s Europe Market Department said Russia is a traditional market of Vietnam, buying mainly agro-products like seafood, coffee, pepper, tea, vegetables, cashew, and rice.

However, bilateral trade accounts for only a small proportion of both countries’ total trade revenue, while direct investment into one another’s country remains modest.

Vietnam and Russia have reached an agreement on building the first nuclear power plant in Vietnam, and the oil and gas production affiliation has been remarkably productive.

Bilateral economic and trade relations will be fostered with the conclusion of the negation on a free trade agreement between Vietnam and the Eurasian Union, which groups Russia, Belarus and Kazakhstan. The deal is expected to be signed this year.