However, fully benefit from the FTA, further trade promotion activities in these nations, especially Russia is essential. This issue was discussed at a recent conference in Danang, which introduced the Russian market and a high-quality Vietnamese goods fair set to take place in Moscow.
When the FTA takes effect, 90% of items will enjoy reduced tariffs. Some of which might enjoy tariff exemptions. This poses good opportunities for Vietnamese enterprises but there are certain obstacles.
Do Van Bich, General Director, Cosani Ceramic JSC, Danang City said: "Vietnamese enterprises don't know much about Russian market, Russian consumer habits and demand. We also don't understand distribution channels there clearly. In the past, it was hard to make payments, there used to many risks that obviously worried businesses.
Banks in Vietnam and Russia are working together to improve payment processes. Vietnamese authorities are also supporting enterprises in finding outlets and partners in Russia. However, these are not the only key factors to penetrate the market.
Nguyen Chi Tam, Former Director, Department of European Market, Ministry of Industry and Trade said: "Products from all around the world are exported to Russia. Consumers have many options so businesses must pay great attention to quality, price and other factors. It requires great efforts from enterprises to get the most out of the FTA".
To promote trade in Russia, a high quality Vietnamese goods fair 2015 will take place in November and December. Businesses will enjoy free booths, a 50% discount on flights to Russia and promotional programmes. This is a chance for them to introduce their products, partners and distribution channels in Russia.
