A factory of the MLB Tenergy Company in Yen Thanh district, Nghe An province. (Source: VNA)Hanoi(VNA) – With demand to import more than 10 billion USD worth of apparelproducts each year, Russia is a market with potential for Vietnamesegarment-textile businesses.
According to the Vietnam Textile & ApparelAssociation, businesses have received many jacket and jeans orders from Russiancompanies in recent years.
The garment-textile industry was predicted toget the most benefits when the free trade agreement between Vietnam and theEurasian Economic Union came into force in October 2016.
At present, Vietnam exports about 320 millionUSD worth of apparel each year to Russia, making up roughly 2 percent of thecountry’s total exports.
The figure is expected to exceed 1 billion USD,accounting for 10 percent of total exports, in the next few years.
Chairman of the Vietnam Textile & ApparelAssociation Vu Duc Giang said Russia has a cold climate, so its consumers havebig demand for jackets and jeans.
However, the problem is how to bring theproducts into the market at competitive prices since Russia still faceseconomic difficulties and sales of apparel in the market are not as strong asin the European Union, Giang said.
Additionally, the geographical distance betweenVietnam and Russia will make it difficult for businesses to complete payment,he said, adding that more bank branches should be opened in Russia for directpayment between businesses.
He advised businesses to study the marketthoroughly before exporting to Russia and other northern European nations, aswell as to make regular contact with partners for long-term cooperation.
Enterprises should have business strategies tocope with fierce competition on quality and price in the market, he noted.
It is necessary to create high-quality products,improve designs, and build brand names, he said.
According to the Vietnam Customs,garment-textile export turnover to Russia increased by over 30 percentyear-on-year to reach 110 million USD in 2016.-VNA
According to the Vietnam Textile & ApparelAssociation, businesses have received many jacket and jeans orders from Russiancompanies in recent years.
The garment-textile industry was predicted toget the most benefits when the free trade agreement between Vietnam and theEurasian Economic Union came into force in October 2016.
At present, Vietnam exports about 320 millionUSD worth of apparel each year to Russia, making up roughly 2 percent of thecountry’s total exports.
The figure is expected to exceed 1 billion USD,accounting for 10 percent of total exports, in the next few years.
Chairman of the Vietnam Textile & ApparelAssociation Vu Duc Giang said Russia has a cold climate, so its consumers havebig demand for jackets and jeans.
However, the problem is how to bring theproducts into the market at competitive prices since Russia still faceseconomic difficulties and sales of apparel in the market are not as strong asin the European Union, Giang said.
Additionally, the geographical distance betweenVietnam and Russia will make it difficult for businesses to complete payment,he said, adding that more bank branches should be opened in Russia for directpayment between businesses.
He advised businesses to study the marketthoroughly before exporting to Russia and other northern European nations, aswell as to make regular contact with partners for long-term cooperation.
Enterprises should have business strategies tocope with fierce competition on quality and price in the market, he noted.
It is necessary to create high-quality products,improve designs, and build brand names, he said.
According to the Vietnam Customs,garment-textile export turnover to Russia increased by over 30 percentyear-on-year to reach 110 million USD in 2016.-VNA
VNA
