According to data from the General Department of Customs, in the first 7 months of 2023, two-way trade turnover between Vietnam and the Russian Federation reached 1,88 billion USD, down 15,8% (first 6 months of 2023 down 20,9%). compared to the same period in 2022 and down 37,8% compared to 2021.
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| Export of ceramic products to the Russian market grew by 3 digits |
In particular, export turnover from Vietnam to the Russian Federation recovered quite quickly. If Vietnam's exports to the Russian Federation in the first quarter of 2023 decreased by 32%, the first 7 months of 2023 will decrease by 3,2% compared to the same period in 2022, reaching 931,1 million USD.
Meanwhile, Vietnam's import turnover of goods from the Russian Federation in the first quarter of 2023 decreased by 49,2% to 7 months of 2023, reaching a decrease of 25,2%, reaching 950,8 million USD. The trade deficit as of the end of July 7 is 2023 million USD.
In the first 7 months of 2023, some of Vietnam's strong export products have grown significantly compared to the first 7 months of 2021 - the time before the Russia-Ukraine military conflict. Specifically, coffee exports increased by 58,1%; Rice exports increased by 263,1%; Rubber exports increased by 31,5%; Export of rubber products increased by 107,8%.
Compared to the first 7 months of 2022, many products have strong export turnover such as rubber products increased by 383,9%; Ceramic and porcelain products increased by 225,4%; confectionery and cereal products increased by 59,2%. Some products showed signs of export recovery such as cashew nuts increased by 19,6%; handbags, wallets, suitcases, hats, umbrellas, umbrellas increased by 49,1%; textiles and garments increased by 79,7%.
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| Vietnam's export turnover of goods to Russia in the first 7 months of 2023 |
According to data on August 4 from the World Bank (WB), with a total GDP of 8 billion USD, the Russian Federation is the 5.510th largest economy in the world based on purchasing power parity, behind China, the US, and India. India, Japan. The World Bank also forecasts that the Russian economy will continue to maintain this position by 5.
According to the latest assessments of the Russian Federation, the Russian economy may achieve growth of 2 - 2,5% in 2023, after decreasing by 2,1% in 2022.
According to the Vietnam Trade Office in the Russian Federation, currently, after nearly 7 years of implementing the Vietnam - Eurasian Economic Union Free Trade Agreement (EAEU FTA), import taxes on most export products The two sides' exports have decreased to 0% or at a very low level, creating favorable conditions for Vietnamese and Russian businesses to increase trade and investment cooperation in each other's markets.
Western businesses withdrew from Russia, creating a large gap in the market. This is an opportunity for Vietnamese businesses with strengths in garments, footwear, agricultural products, consumer goods, and consumer electronics to increase exports and investment in Russia. Businesses that cooperate with Russia should carefully research, consider increasing, investing, and establishing businesses in Russia to organize production and consumption of garments, footwear, processed agricultural products, and other goods. consumption in Russia, taking better advantage of the Free Trade Agreement with the Eurasian Economic Union.
In the opposite direction, Vietnamese businesses can import from Russia raw materials, fuel... to serve domestic production and consumption.
Currently, the Russian Federation and Vietnam have relaxed visa regulations for each other's citizens. From August 1, 8, Vietnamese citizens can apply for an electronic visa to enter Russia. From August 2023, Russians can stay in Vietnam for up to 15 days visa-free.
Besides the advantages, according to the Vietnam Trade Office in the Russian Federation, the two countries still mainly use USD and Euro in import and export payments, and have not used other strong foreign currencies. Meanwhile, Vietnamese banks are very concerned when working with Russian banks due to fear of secondary sanctions by the West, especially for payments for imported goods from Russia.
The geographical distance between the two sides is relatively far, the main shipping routes from Vietnam to Russia face many difficulties due to Western embargoes after the conflict with Ukraine, which negatively impacted transport. import and export goods between the two countries.
The capacity of international rail transport routes through China and Mongolia to EAEU FTA countries is still low, and depends on third countries so the efficiency is not high.
On the other hand, the fact that the two sides have not yet resumed direct flights to Hanoi and City. Ho Chi Minh also limits travel, trade, tourism, transportation... between the two countries, thereby hindering the development of bilateral economic - trade and investment cooperation.
According to the plan, from October 12 - 15, 10, the Embassy and Trade Office of Vietnam in the Russian Federation will organize Vietnam Week at Hanoi - Moscow Trade Center. The event will include display and promotional activities introducing Vietnamese goods and businesses (about 2023 booths), and trade connection seminars connecting Vietnamese and Russian businesses. This is an opportunity for Vietnamese businesses to promote and promote trade in goods in this market.
The Vietnam Trade Office in the Russian Federation also requests ministries and branches to encourage/support localities/associations/businesses to organize trade promotion delegations (about 10 - 15 businesses) to attend exhibitions. Specific majors such as garments, furniture, consumer goods, food, beverages, coffee, tea, etc. in the Russian Federation in 2023 - 2024.
