Russian food import ban benefits Vietnam

The ban is valid from August 6 and will last for one year.

To meet the shortfall of banned foodstuffs for its more than 140 million population, Russia is now actively seeking alternative sources of supply, reports the Vietnam Trade Office in Russia.

Vietnamese business strengths lie in the production of fruit, vegetables, meat and agricultural products and Russian businesses are desirous of expanding cooperation for these items, Phan Quang Niem, Trade Counsellor to Russia says.

He states that Russia is enhancing imports from former Soviet Union countries and actively working with Latin American nations to import seafood, fruit and vegetables Vietnamese businesses should not miss out on this golden opportunity to prosper.

The Moscow Ministry of Industry and Trade is working with the Vietnamese Trade Office on measures to increase cooperation between the two nations and facilitate Vietnamese businesses stepping up operations in Russia, Niem said.

Vietnamese Entrepreneurs’ Association Vice Chairman Duong Hai An in Russia and Director General of the Volga-Viet Company, said taxes on Russian agriculture is very low, even at zero, which benefits Vietnamese businesses.

Currently, Volga-Viet cultivates on 80 ha, but its fruit and vegetables have not been enough for the market in the past. The Russian ban on food imports provides Volga-Viet a great opportunity to expand cultivation to supply agricultural products to Volgograd, Moscow and some other localities.

An said the crisis in relationship between Russia and Western countries will not be resolved over night. It is time for Vietnamese businesses in Russia and at home to seize the opportunity to penetrate the Russian market.

Phan Van Hau, a Vietnamese businessperson in Tambov province, said his company specialises in garments, however, the Russia embargo affects European countries and in turn negatively affected his exports.

His company is now planning on grasping the opportunity and invest in agriculture.

Market analysts are saying that Russia offers huge opportunities for Vietnamese businesses, especially with negotiations for a free trade agreement between Vietnam and Customs Union (Russia, Kazakhstan and Belarus) coming to an end.

In addition to objective factors like the great geographic distance between the two countries, lack of information about trading customs and support from local authorities, the passiveness of Vietnamese is the significant issue.

Niem underscored the point that businesses need to be proactive in accessing the market. If they want to boost exports to the market they should accelerate trade promotion activities through attending seminars, fairs, exhibitions and seeking partners.

In addition, ministries should support businesses, he adds.

Bilateral trade and investment relations have seen rapid growth over the past years hitting nearly US$1.76 billion in the first half of this year, according to Russian Customs.

Russia ranks the 18^th largest foreign investor in Vietnam with 97 projects valued at US$2 billion. Vietnam has also pumped US$2.4 billion into 17 Russia-based projects.

(Source VOV)