The Vietnam-Russia trade is expected to increase greatly after Russia joined the world trade organization WTO in mid December and the free trade agreement (FTA) between Vietnam and the Customs Union of Russia, Belarus and Kazakhtan is signed in 2012.

Russia enjoys WTO in mid December. What changes in the Vietnam-Russia trade relation do you expect to see after the event?

A long lasting traditional relation has been existing between Russia and Vietnam. In recent years, despite the global economic crisis, the bilateral relation between Vietnam and Russia still keeps developing. In 2010, the import-export turnover of the two countries reached 2.45 billion dollars of which Vietnam exported 1.11 billion dollars worth of product. In the first nine month of 2011, Vietnam’s exported to Russia increase by 63 percent in comparison with the same period of 2010. The Vietnam-Russia import-export turnover is expected to reach 3 billion dollars in 2012.

After Russia joins WTO, the bilateral relation between the two countries will have more comfortable condition to develop, since there are many similarities in the legal framework to be applied. Later, when an FTA is signed, tariff and non-tariff barriers will be removed, thanks to which Vietnam goods will be able to more easily penetrate Russia.

Vietnam has agreed to kick off the negotiation for FTA with the Customs Union of Russia, Belarus and Kazakhstan in 2012. How has Vietnam prepared for the negotiation?

After Russia joins WTO, Vietnam and Russia will have more condition to speed up the negotiation for FTA, because the Russian officials in charge of WTO negotiation are also the ones in charge of FTA negotiation.

The joined taskforce of Vietnam and the Customs Union has completed two parts of the report on the possible impact of FTA, while the last part would be completed by March 2012. With the high determination of the two parties, we expect to start the negotiation in 2012.

The Russian side even has the ambition of reaching FTAs with other Asian countries after wrapping up the FTA with Vietnam. Russia considers Vietnam as the gateway for it to approach other Asian markets.

Meanwhile, Vietnam considers the FTA with the Customs Union not only the opportunity to foster the trade relation with Russia and the Customs Union, but also to expand the trade relations with the countries of the former Soviet Union.

Could you please tell us about the main export items of the two countries?

Vietnamese and Russian communities do not compete directly with each other. Vietnam mainly exports farm produce, electric equipments, wooden furniture, essential commodities and imports steel, fertilizer, machine and equipments.

Russia is a large and easy-to-please market, but Vietnamese businesses still find it difficult to access the market. Why?

Not only Vietnam but other countries all meet difficulties when exporting products to the market. Russian tariffs are higher than that of other countries, while custom procedures and the measures to examine products’ quality are very complicated and strict.

But we hope that after joining WTO Russian customs will follow the common rules, thus facilitating exporters.

What measures will MOIT apply to support Vietnamese businesses access the information about the Russian market?

We will organize workshops and trade fairs. MOIT and Vietnam chamber of commerce and industry VCCI are supporting the building a website that provides information about Russian market. Vietnam’s advantage is that it has many people who finish training courses in Russia and well understand the Russian market. However, I have to say that the market and the taste of Russian customers have changed a lot. Therefore, I believe that it is necessary to organize trade fairs to learn more about the market.

December 14, 2011

Source: Vietnamnet