Russia-Vietnam Trade Disrupted, But Growth Potential Remains
2023 Russia-Vietnam bilateral trade expected to be about US$3 billion
Bilateral trade between Russia and Vietnam had reached a record-high in 2021 of US$7.1 billion, however this has been halved by the impacts of sanctions upon Russia, according to Vietnam’s Trade Counselor Duong Hoang Minh.
He was speaking at the Vietnamese Embassy in Russia at a workshop in Moscow to promote bilateral economic and trade cooperation. Minh also said that the first four months of 2023 realized bilateral trade of US$1.01 billion. If annualised, this would suggest a 2023 total trade turnover between Russia and Vietnam of just over US$3 billion.
Nikita Kondratiev, of the Russian Ministry of Economic Development said that in 2022, bilateral trade faced difficulties, including supply chain disruptions, payment issues, and certain restrictions on investment.
Both speakers said that for the two countries to get back to a higher bilateral trade revenue, their businesses need to better take advantage of the Russia-Vietnam potential and opportunities. Both also recognised the problems in Western institutions and mechanisms that hinder the economic and trade activities between the two countries. particularly the issues relating to payment. Both sides pledged to cooperate to ease the issuance of visas for Vietnamese businessmen to Russia to seek cooperation opportunities and vice-versa.
Meanwhile, infrastructure and transport routes between the two countries have been improved. Russia’s FESCO shipping has introduced new direct routes from Vietnamese ports to Vladivostok, where goods can be transited across multiple destinations across Russia as well as onto Moscow and St.Petersburg. It has become common for example to see Vietnamese frozen seafood in Moscow supermarkets.
The two countries have also introduced a TransContainer service transporting consumer goods from Vietnam to Russia by rail. That transits China and Kazakhstan and enters Russia via its various border crossings with Kazakhstan and the Caspian Sea Volga River maritime routes near Astrakhan.
Our report on how Russian companies can access the Vietnamese market can be found here.
Russia and Vietnam have a free trade agreement with each other via the Vietnam-Eurasian Economic Union FTA.
Dezan Shira & Associates assist Russian companies into Asia and have three offices in Vietnam. For assistance with business establishment and trade matters in Vietnam please email vietnam@dezshira.com
The firms 2023 Guide to Doing Business In Vietnam can be downloaded here.
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During these uncertain times and with sanctions in place, our firm helps Russian companies relocate to Asia. We also provide financial and sanctions compliance services to foreign companies operating in Russia. Additionally, we offer market research and advisory services to foreign exporters interested in doing business in Russia as the economy looks to replace Western-sourced products. For assistance please email russia@dezshira.com or visit www.dezshira.com
