Vietnam, Russia aim for stronger trade promotion in construction and furniture

The Eastern European country is viewed as a great potential market for foreign businesses, including those from Vietnam, whilst also serving as a gateway for goods to enter the European market.

In return, Russian businesses entering the Vietnamese market will not only have the opportunity to invest in the nation, but can also consider the country to be a bridge between Russia and the community of 10 ASEAN member states that consists of over 600 million consumers.

As a means of fully tapping into this potential, the Trade Promotion Department under the Ministry of Industry and Trade has co-ordinated with the Vietnamese Embassy and Trade Office in Russia, the Russian Embassy in Hanoi, and relevant agencies to hold an online trade conference between both sides. This is being done for the purpose of promoting trade in the field of construction and furniture.

The conference also aims to enhance connectivity between Vietnamese businesses and their foreign partners whilst simultaneously boosting trade exchanges amid the complicated developments caused by the COVID-19 pandemic.

With regard to import and export demand for construction and furniture products of Russian enterprises, Oleg Numerov, deputy head of the Forestry Business Department under the Russian Chamber of Commerce and Industry and first vice president of the Wood Processing and Wooden Furniture of Russia, said he hopes the event will give firms from both nations a deeper insight into each other’s market. It is anticipated that this will lead to the signing of more contracts in the near future.

Sergey Ianchenko, deputy chief representative of the Trade Agency of the Russian Federation in Vietnam, assessed that Vietnam boasts a high economic growth rate, along with great potential for broader trade ties. Since the enforcement of the Free Trade Agreement (FTA) in 2016 by Vietnam and the Eurasian Economic Union (EAEU), economic and trade co-operation between the EAEU and Vietnam in general, as well as between Vietnam and Russia, has recorded a number of important results.

This co-operation has greatly contributed to creating a driving force for each country's economic development, thereby enhancing investment and bilateral trade and service exchanges, along with expanding co-operation in the region. It is estimated that since the agreement first took effect in late 2016, the annual two-way trade growth rate between Vietnam and EAEU countries has reached an average of nearly 30%, according to figures given by Ianchenko.

Duong Hoang Minh, trade counselor of the Vietnamese Embassy in Russia, believes that amid the global spread COVID-19, trade co-operation between both countries has still been able to yield positive results. In terms of construction and furniture, the opening five months of the year has seen the import-export turnover of the two countries reach US$2.21 billion, up 21.4% over the same period from last year.

The nation mainly exports computers, phones and electronic components, garments and textiles, footwear, along with electronic machinery and equipment to Russia, whilst importing minerals, iron and steel, and coal of all kinds from the Eastern European nation.

Hoang Minh Chien, deputy director of the Trade Promotion Department, stated that trade promotion in the field of construction and furniture between the two sides is one of the activities set out in the national programme on trade promotion in 2012.

This is a practical activity aimed at supporting Vietnamese and Russian businesses to boost connectivity and exchanges online about co-operation possibilities once the pandemic is fully brought under control, he added.