10:14 | 11/05/2017 Cooperation
(VEN) - Trade between Russia and Vietnam increased 26 percent in 2016, in part as the result of a concerted trade promotion push through fairs and exhibitions.
As many as 600 Vietnamese firms participate annually in Russian trade fairs, earmarking financial resources for these activities despite their generally strained budgets.
At a recent conference on promoting trade and investment cooperation between Vietnam and Russia through fairs and exhibitions, Luong Ngoc Nhan from the Vietnam Association of Small and Medium-sized Enterprises noted that some Vietnamese goods have secured a niche in the Russian market, such as garments and textiles, handicrafts, coffee and cocoa.
But despite the great potential of such activities, red tape and other impediments get in the way, according to participants at the conference, organized by the Vietnam Trade Promotion Agency.
Ho Ngoc Quan, deputy director of the Vietnam Trade Promotion Agency’s Export Promotion Center, said firms participating in fairs and exhibitions face many hurdles, including the clearance of goods at customs agencies and border gates. In particular, food and foodstuffs require quarantine papers and import documents.
Hoang Ve Dung, deputy director of the Vietnam National Textile and Garment Group, warned that the new Vietnam-Eurasia Economic Union Free Trade Agreement (VN-EAEU FTA) sets out quotas. Firms exceeding the permitted export volume risk being slapped with anti-dumping duties.
The geographic distance between the two countries poses additional difficulties for businesses.
Addressing these difficulties, First Deputy General Director of Expocentre, Nikolay Gusev, said Expocentre has a subsidiary company specializing in transport service that could help Vietnamese businesses in clearing goods.
Vietnamese goods are exported to Russia by sea. The Russian government is considering a transportation infrastructure for goods by rail, which could help Vietnamese companies save costs, he said.
Expocentre also provides support for businesses participating in fairs and exhibitions in Russia. Businesses will receive support in building pavilions at appropriate costs, he said.
Russian Minister-Counselor Vadim V. Bublikov said Vietnam and Russia’s participation in the VN-EAEU trade pact has contributed to bringing relations between the two countries to new heights. “The Russian Embassy in Vietnam is ready to support Vietnamese businesses to participate in fairs and exhibitions in Russia and provide up-to-date information for Vietnamese businesses in terms of partners and markets,” Bublikov said.