Illustrative image (Source: VNA)Hanoi (VNA) – With a wide and diverse retailsector, Russia has been considered a promising market for agro-forestry-fisheryproducts of Vietnam.
Statistics showed that in 2019, Russia spent over 5 billionUSD on importing fresh fruits, along with 1.3-1.5 billion USD on processedvegetable, fruits and nuts, more than 2 billion USD on meat, over 2.4 billionUSD on fisheries products.
Many Vietnamese products are Russians’ favourite, especiallywooden furniture and farm produce. The market also has high demand for tropicalvegetables and fruit.
In the first two months of 2020, Vietnam earned 8.2 millionUSD from exporting vegetables and fruit to Russia, up 246.1 percent year onyear, including 6.7 million USD of processed products, a rise of 293.5 percentover the same period last year.
At the same time, Vietnam is Russia’s top supplier of coffeein 2019, with 154.3 million USD, making up 24.5 percent of the country’s totalspending on the product.
According to the General Department of Vietnam Customs, inthe first two months of 2020, export revenue of Vietnam’s afro-forestry-fisheriesproducts to Russia reached 68.5 million USD, up 0.3 percent year on year, withsharp a rise seen in exports of vegetables, fruit, rice, and peppercorn.
Deputy Minister of Agriculture and Rural Development PhungDuc Tien advised businesses to focus more on the Russian market to make fulluse of the market potential and the sound strategic partnership between the twocountries.
He said that the ministry has directed relevant agencies toguide and support enterprises in administrative procedures in line withrequirements of importers.
However, he pointed out that exports to Russia only accountfor about 1.6 percent of Vietnam’ total exports of agricultural products. Henoted that although many Vietnamese products meet requirements of the Russianmarket, but they face barriers in export procedures.
Specifically, Vietnamese products have been charged with hightax rate in the market, and high logistics cost has also impacted competitivenessof the products. Technical barriers, currency exchange and low level ofproducts’ processing have also been obstacles of Vietnam.
Experts held that in order to increase exports to Russia,Vietnam should promote the processing industry. Meanwhile, State agencies andbusinesses should work more closely together, with more support from the Statein policy.
They advised businesses to stay active in giving proposalsand voicing their needs to State agencies./.
VNA
