The Eurasia region, comprising 28 countries stretching from Eastern Europe to Central Asia with a population of more than 400 million and a total GDP of nearly 4.5 trillion USD, is considered a potential export market of Vietnam, according to experts.
Statistics from the General Department of Vietnam Customs showed that due to fluctuations in the world economic and political situation, trade between Vietnam and Eurasia reached 13.3 billion USD in 2022, down 9.7% year on year. In the first nine months of this year, the figure dropped 6.5% year on year to 9 billion USD, with Vietnam’s exports falling 1.2% to 6.3 billion USD.
However, Director of the Ministry of Industry and Trade (MoIT)’s European-American Market Department Ta Hoang Linh said that the Eurasian market still boasts great potential for Vietnamese export products, as Vietnam’s export revenue to the region has accounted for just 0.4% of the total import value of this region.
Besides, the two sides have set up many institutions and solid frameworks serving as a foundation for bilateral trade cooperation, including the Vietnam - Eurasian Economic Union (EAEU) Free Trade Agreement, EU-Vietnam Free Trade Agreement (EVFTA) and 14 joint committees and inter-governmental committees, Linh noted.
The official underlined that these cooperation mechanisms have operated effectively, paving the way for businesses of both sides to strengthen cooperation in many areas, especially trade and investment. A large community of Vietnamese people in the region also support trade and investment between the two sides.
Vietnamese Trade Counsellor in Bulgaria Nguyen Thanh Hai said that the annual import demand of Central Eastern European countries has reached about 1.6 trillion USD, but Vietnam’s export turnover to these countries in 2022 only reached 7.8 billion USD, accounting for 0.5% of the total. This showed that there is still a lot of room for Vietnamese export enterprises to exploit the market.
Meanwhile, export turnover from Vietnam to the Western Balkans is currently still below 20 million USD each year and is mainly through intermediary countries in the EU.
Vietnamese Trade Counsellor in Russia Duong Hoang Minh said that the presence of Vietnamese products like spices, sauces, fresh and dried fruits, drinks, and foods is increasing in Russia and members of the Commonwealth of Independent States (CIS), including Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Uzbekistan.
However, he said that the Vietnam Trade Office in Russia has received negative feedback on Vietnamese products’ quality and labelling. At the same time, Vietnamese exporters also reported a number of problems with partners in these markets.
Minh said that the Vietnam Trade Office in Russia is willing to help domestic firms to verify information of their partners. He advised exporters to consider the use of rail freight for export to the CIS countries.
Linh said that amid the instability in the world economic situation, it is necessary for exporters to update the market information and policies in importing countries, while optimising marketing, payment and transport solutions.
The MoIT will work with Vietnamese Embassies in the region and Vietnam Trade Offices abroad to support domestic firms in tapping new cooperation opportunities and help them deal with difficulties during trade activities, the official said.