(vasep.com.vn) Vietnam seafood industry is now awaiting for the Free Trade Agreement between Vietnam and the Customs Union, known as VCUFTA ( consisting of Russia, Belarus and Kazakhstan) to be officially signed. In addition to tax benefits, VCUFTA will help Vietnamese seafood industry with opportunities in Russian market.
According to VASEP, seafood exports to Russia have grown remarkably. Pangasius export turnover in February alone was over US$ 3 million, representing US$ 45.5 thousand increase from January. Other seafood exports also saw dramatic rises. Total export turnover in February therefore upped by 96% month on month. As a result, cumulative seafood export turnover reached US$ 12.7 million. Export turnover of Vietnam to Russia is expected to continue growing strongly.
According to Ms. To Thi Tuong Lan, Deputy General Secretary of VASEP, Vietnam seafood products has set its own position in the Russian market, especially for products such as shrimp, pangasius and surimi. Russian market is open for Vietnam seafood industry, export turnover in this market has been growing rapidly. As Russia banned imports the US, Canada, Norway, Australia within one year, Vietnamese enterprises can expand businesses in this market.
VCUFTA - a problem solver
Russia is market of uncertainty. Receivable collection period is reather long at 45 days, high shipment costs and the depreciation of the ruble are some difficulties that trouble companies when doing business with Russia.
Beside, food safety regulations of Russia and Customs Union are not harmonized with international rules. VCUFTA will bring this challenge to the end. This agreement will be more compatible with global food safety norms. Along with this, the agreement offers Vietnamese businesses tax incentives. Vietnam's seafood exporters will avoid a lot of risks then.