09:06 | 16/08/2015 Trade
(VEN) - A high quality Vietnamese goods fair will take place in the Russian capital of Moscow, from November 12 until December 12. The fair is expected to contribute to increasing the presence of Vietnamese goods in the Russian market, especially in the context of the free trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EEU) to take effect next year.
Vietrade Deputy Director Ta Hoang Linh introduces the fair
Opportunities for Vietnamese goods
Nguyen Chi Tam, former Vietnamese Commercial Counselor in Russia, said Russia was currently subject to an EU embargo and faced numerous difficulties in ensuring a sufficient supply of goods for domestic consumers. Early next year when the FTA between Vietnam and the EEU takes effect, many tax lines applied to exports will decrease or eliminated. If Vietnamese businesses make the most of these opportunities to make Vietnamese goods familiar to Russian consumers, they will be able to increase exports to Russia in the long term.
Ta Hoang Linh, Deputy Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, said trade between Vietnam and Russia remained modest compared with the potential of the two countries, reaching just US$3.75 billion in 2014. The high quality Vietnamese goods fair therefore is expected to offer a chance for businesses of the two countries to seek customers and export opportunities.
With total exhibition area of 15,000sq.m, the fair will allow Vietnamese businesses to present their products and meet Russian companies to discuss measures to promote trade. Participants will include about 100 businesses from sectors where Vietnam has advantages and Russia has demand, such as textiles and garments, leather and footwear, handicrafts, agricultural products, and interior furniture.
Business support measures
According to Nguyen Phuong Dong, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, the department had organized two meetings with 100 businesses of the city to seek companies from suitable sectors to participate in the fair. Many businesses in the city want to access the Russian market but still lack information about the market and partners.
Hanoi Investment, Trade and Investment Promotion Center Deputy Director Nguyen Thi Mai Anh said the Hanoi People’s Committee had assigned the center to help businesses participate in the fair to seek opportunities for increasing exports. On July 23, the center organized a workshop to disseminate information about the fair among Hanoi’s businesses.
On the sidelines of the fair, a seminar will be organized to present new opportunities for Vietnamese exports to Russia and EEU countries, in addition to market surveys, contract signing, and investment promotion activities.
Regarding the mode of payment - one of the biggest concerns pertaining to exports to Russia, Le Ngoc Lam, official from the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), said the government and the State Bank of Vietnam recently assigned BIDV to implement the Vietnam-Russia bilateral payment project. Together with the Vietnam-Russia Joint Venture Bank, BIDV will offer a payment channel helping minimize risks for businesses exporting to Russia.
The high quality Vietnamese goods fair is jointly organized by the Vietnam Business Association in Russia and the Hanoi-Moscow Trade Center Investment Joint Stock Company (Incentra). This will be one of the activities responding to the FTA between Vietnam and EEU, contributing to raising bilateral trade between Vietnam and Russia to US$10 billion by 2020.