Opportunities arise for agricultural exports to Russia

Returning from WorldFood Moscow 2015, this company is preparing for its first export orders to Russia. Although prices are not as high as expected due to current difficulties in the Russian economy, the number of transactions proves that Vietnamese enterprises still have a chance to export to this market.

Russia limits its import quotas from Europe and the US. That is an opportunity for Vietnam. An agreement with Russia, Kazakhstan, and Armenia also creates favourable conditions for Vietnam to compete with other counterparts like Thailand and India.

Despite those opportunities, enterprises still face difficulties due to the economic situation and requirements of the exporter.

The Russian Rouble has depreciated, so Russian companies ask for lower prices than in the European market. Payments are slow. Thus, Vietnamese enterprises have to negotiate to receive payments as soon as possible.

Vietnamese enterprises can easily find information about the Russian market to promote trade, because it is one of Vietnam’s traditional export markets. However, according to the Export Promotion Centre, enterprises which have recently exported to this market should carefully consider if dealing with big customers.

With positive changes in product promotion and quality as well as a free trade agreement, trade between Vietnam and Russian sees great potential for further development. However, there should be more detailed promotion plans and strategies. Enterprises also need to do more to improve their competitiveness.