Eurasia remains untapped market for Vietnam exports

As Vietnam exports only accounted for 0.5% of total imports of the Eurasian region worth US$1.4 trillion in the first 10 months of 2020, the opportunity remains large for Vietnamese traders to further penetrate this market.

Processing cashew for exports at Hanoi Trade Corporation (Hapro). Photo: Sinh Vu.

Such view was shared among experts at the International Trade Forum on cooperation with partners from Eurasia region held on December 10 in Hanoi.

“The long-standing relations between Vietnam and countries in the region continue to serve as a foundation to boost trade, investment and economic cooperation among all parties involved,” said Vice Minister of Industry and Trade Dang Hoang Anh at the forum.

Among 27 trade partners of Vietnam in the Eurasia region, 11 are members of the EU and five under the negotiation process to join the bloc. Five countries, including Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, formed the Eurasian Economic Union (EAEU).

Vietnam currently has free trade agreements in place with both the EU and EAEU.

In addition to FTAs, Vietnam and the Eurasia region have also created legal framework to boost bilateral cooperation, including 14 inter-governmental committees and mechanism for economic cooperation.

“Given preferential treatment in place, Vietnamese enterprises are having numerous advantages to actively engage in trade cooperation with their countries in the region,” Mr. Anh noted.

The Ministry of Industry and Trade (MoIT) is committed to removing trade barriers and establishing favorable legal environment to facilitate trade and investment between Vietnam and its partners, he stressed.

Ta Hoang Linh, head of the MoIT’s European – American Market Department, said bilateral trade relations between Vietnam and Eurasian countries are growing strongly.

Customs statistics showed two-way trade turnover between Vietnam and the region surged 20.78% year-on-year in 2019 to US$10.4 billion, accounting for 2% of Vietnam’s exports worldwide. Of the sum, Vietnam’s export turnover to Eurasia rose 6.43% to US$7.2 billion.

“Amid the disrupted global trade activities caused by the Covid-19 pandemic, Vietnam’s trade turnover with Eurasian countries still post an impressive growth of 17.98% in the first 10-month period at US$10.34 billion,” Mr. Linh informed.

Upon breaking down, Vietnam’s exports stood at US$7.18 billion, up 16.15% year-on-year, and imports of US$3.16 billion, up 22.35%.

To continue boosting bilateral trade relations, Mr. Linh expected Vietnamese trade missions abroad to continue playing a key role in promoting trade and the images of Vietnam globally, especially export staples of vegetable, electronics, garment, wooden products and footwear, among others.