Trade deal set to double Vietnam, Russia turnover to $10 bln

By VnExpress   October 5, 2016 | 03:41 pm GMT+7
Trade deal set to double Vietnam, Russia turnover to $10 bln
Textile and garment products are among Vietnam's major exports to Russia. Photo by Reuters

Revenue is expected to grow from $4 billion to $10 billion in less than five years.

Trade revenue between Vietnam and Russia is expected to more than double in the coming years following a free trade agreement that becam effective on Wednesday.

Alexey Popov, Russia’s General Consul in Ho Chi Minh City, said at a press briefing on Tuesday that Russian exports to Vietnam increased 15 percent last year and a massive 50 percent so far this year, while bilateral trade has grown by over 30 percent in the first nine months of 2016.

The Vietnam – Eurasian Economic Union Free Trade Agreement signed in May last year is going to lift that growth and push bilateral trade turnover from the current $4 billion to $10 billion in less than five years, he said.

Vietnam imports a large amount of meat, cheese, butter, wheat, steel products and cars from the Eurasian Economic Union, which comprises Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia. Nearly 1,000 Vietnamese companies are exporting agricultural products, garment products and leather shoes to the union.

A report from the Vietnam Textile and Apparel Association estimated that Vietnam’s revenue from garments and textile exports to the Eurasian Union will increase at least 50 percent following the trade deal.

The free trade deal has also added momentum to the tourism sector. Vietnam welcomed around 300,000 Russian visitors in the first nine months of 2016, up 26.5 percent from a year ago. 

Related news:

>Vietnam manufacturing growth climbs to 16-month high in September

>Giant Russian agro-firm to export pork to Vietnam

>Vietnam struggling to reach export target this year

Tags: Vietnam trade