Exporting to Russia with love

illustration photo

According to the Ministry of Industry and Trade’s European Market Department head Dang Hoang Hai, two-way trade values between Vietnam and Russia stood at $2 billion in 2010.

“The bilateral trade relations between Vietnam and Russia are below expectations when compared to the  trade value between Vietnam and a small country within the European Union coming to $4 billion per year,” Hai said.

Russian trade office representative in Vietnam Kardo Sysoev Alexander attributed the two countries’ limited trade exchanges to product poor diversity and geographical distance.

Local exporters, however, said procedural hindrances were the core reasons behind poor bilateral trade.

Pharmaceutical manufacturer Mekophar representative said Russian partners often demanded various kinds of certificates in Russian language granted by Vietnamese competent agencies from exporters.

Thu proposed local certification bodies enact dual language certificates to help firms.

Vinh Long Import Export Joint Stock Company (Imex Cuu Long) representative said it was difficult for preliminarily processed agricultural produce to make a foray into the Russian market since the Russian food security body bars the import of such items.

To help bolster export to Russia, Vietnamese relevant authorities were negotiating a mutual recognition agreement with Russia, according to MoIT’s Dang Hoang Hai.

“The agreement would have been signed in November 2010 but it faced delays,” said Hai.

According to Hai, in 2011 the MoIT would complete the Vietnam-Russia free trade agreement (FTA) pre-feasibility study.

The two governments would embark on negotiating the FTA issues from early 2012 and strive to ratify the agreement two years later, Hai said.

Alexander said Vietnamese firms should take initiative to voice their problems at the forthcoming 15^th Vietnam-Russia Intergovernmental Committee in October as reality shows that many business impediments were addressed at the committee meetings.

From the business community, deputy general director Ngo Viet Hoai at Ba Ria-Vung Tau Seafood Processing Import Export Joint Stock Company suggested local exporters seek Russian partners through attending international exhibitions and try to sign a ‘principle’ contract with Russian food quality control body.

“The Russian body and partners will then come to check Vietnamese partner production factories in Vietnam and give a certificate for export to Russia carrying the Russian importer name if they find the Vietnamese factories up to scratch. Exports to Russia will then be simple if Vietnamese firms acquire such certificates,” Hoai said.