VN-Russia trade booms, but there’s room to grow

11-Sep-2018 Intellasia | VNS | 6:00 AM Print This Post

Vietnam and Russia have enjoyed booming bilateral trade, but more efforts are needed to match potential.

According to the general Department of Vietnam Customs’ data, Vietnam has recorded a trade surplus each year with Russia since 2011. Two-way trade turnover has risen and hit a record $5.23 billion in 2017, up 36 per cent on-year.

In the first seven months of this year, the trade surplus reached $265 million, down 39 per cent against the same period last year.

The decline was thanks to stronger growth in imports compared to exports.

Ending July, Vietnam sold goods worth almost $1.47 billion to Russia while spending $1.2 billion on imports from the country. These figures represented growth of 21 per cent in exports and 55 per cent in imports year-on-year.

Russia was the 19th largest trading partner of Vietnam in the first seven months.

It is a key market for Vietnam’s key export products such as telephones and components ($710 million, up 15.6 per cent), computers and electronic devices ($120.6 million, up 81 per cent) and coffee ($113 million, up 64 per cent).

On the opposite side, wheat was Vietnam’s top import product with value of $358.4 million, 32 times more than the same period of last year and accounting for nearly 30 per cent of the total import value.

In the first seven months, Vietnam imported coal from Russia for the first time with value of $145 million, being the second highest import value item. Besides, iron and steel, fertiliser, machinery and spare parts and petroleum were among the main import items.

These six products accounted for 75 per cent of the total value of Vietnam’s imports from this market.

According to Vladimir Buianov, chair of the Russia-Vietnam Friendship Association, the two countries still have a lot of cooperation potential.

“The current results are clearly too low. I think the $10 billion trade value target will be achieved within 2-3 years, with just one kick,” Buianov told Vietnam News Agency.

More discussion and agreements have been made by the two countries but they still need to be put into action, he said, suggesting cooperation expansion among small and medium enterprises.

Russia currently ranks 23rd among countries and territories investing in Vietnam with total registered capital of $931.6 million (including projects valid as of August 20), according to the Foreign Investment Agency under the Ministry of Planning and Investment.

Russia’s projects are mostly in oil and gas, manufacturing, mining, transport, telecommunications and aquaculture and fishing.

Meanwhile, Vietnam has invested in 18 projects in Russia, with combined registered and added capital of $2.4 billion by the end of March 2018.

Most of the investment comes from projects invested by Rusvietpetro joint venture, Hanoi-Moscow Trade Centre Investment JSC and a dairy cow breeding and milk processing in Moscow of TH Group.

To date, 17 projects are among Vietnam-Russia prioritised projects, which were approved at the 20th session of the Vietnam-Russia Intergovernmental Committee for Economic-Commercial and Scientific-Technological Cooperation in September 2017.

These projects are in oil and gas, transport, agriculture, electricity, construction, industry and high technology. The two sides are working on a plan to carry out the projects.


Category: Economy, Vietnam

Print This Post

Comments are closed.