Vietnamese agricultural products entering the Russian market are facing difficulties

Vietnam’s business daily reported on August 11 that at present, some Vietnamese agricultural products and processed agricultural products have gradually entered the Russian retail market, but the quantity is still limited. Vietnamese enterprises still face difficulties in long-term stable and large-scale supply.

Russia has a huge retail and consumer market and a wide variety of imported goods. It is a potential market for Vietnamese agricultural products. In terms of commodity structure, the agricultural products of the two countries basically do not compete directly, but complement each other. Especially under the tariff incentive of the agreement between Vietnam and the Eurasian Economic Union (eaeu), Vietnamese agricultural products will have more opportunities to enter the Russian market.

According to the statistics of Vietnam’s General Administration of customs, Vietnam’s agricultural exports to Russia have a good growth momentum in recent years. Especially in the first half of this year, the export volume of many commodities increased year-on-year, such as vegetables and fruits increased by 50.8%, cashew nuts increased by 47.6%, pepper increased by 61.9% and rubber increased by 266.6%.

However, there was also a decline in exports of some commodities, such as coffee, tea and rice (down to 75 per cent). According to the introduction of Vietnam’s business office in Russia, the main reason for the reduction of Vietnamese rice exports to Russia is that the price of Vietnamese rice is about 100-150 US dollars / ton higher than that of other countries (especially India), so its competitiveness is low. In addition, Russian consumers prefer to use steamed rice, which also reduces the competitiveness of Vietnamese rice.

In terms of coffee, although Vietnam has been the largest coffee supplier in Russia for many years, Vietnamese brand coffee can hardly be found on the shelves of Russian supermarket chains. The main reason is that the coffee exported by Vietnam to Russia is mainly unprocessed coffee (accounting for 99%).

In 2019, Vietnam exported 86000 tons of coffee to Russia, with an export volume of US $153 million, accounting for 39.4% of the total export and 24.3% of the total export. At the same time, Italy only exported 15600 tons of coffee to Russia, but the export volume reached US $105 million, because all Italian coffee exported to Russia is processed brand coffee.

Business office of the Consulate General in Ho Chi Minh City

Post time: Aug-16-2021