The hike of VietNam textile products penetrated the Russian market

In recent years, businesses of VITAS (Vietnam Textile & Apparel Association) have received many orders of the Russian enterprises request to sew products such as jacket, jeans ... With the big demand by importing over USD 10 billion of textile and garment products each year and although Vietnamese garment still accounts for a small share in Russia, this is considered as a potential market for Vietnamese enterprises.

The garment-textile industry was predicted to get the most benefits when the free trade agreement between Việt Nam and the Eurasian Economic Union came into force in October 2016. — Photo baotintuc.vn
 

Textile and garment industry is considered as the most beneficial sector when the FTA between Vietnam and the Eurasian Economic Union (EEA) comes into effect recently and this is expected to generate a big boost for exports to the Russian market.

Textile and garment exports to Russia are expected to reach over $ 1 billion or 10% of the world market's capacity in the next few years. Currently, Vietnam exports only about US $ 320 million worth of textiles annually, equivalent to more than 2% of the market share. This is not commensurate with the potential of Vietnamese enterprises and the size of the Russian market. Mr Vu Duc Giang - President of VITAS said that Russia has a rather cold climate so the Russian market has a great demand for such items as jackets, jeans, T-shirts, khaki... These are the items that garment enterprises receive the most demand in recent years.

However, the problem is how to import goods to the Russian market at the current competitive price. Because, the Russian economy is still difficult, the cost of exporting products to this market is not as good as the European Union market. Moreover, Mr Giang said that the geographic distance between Vietnam and Russia is quite far so it will be more difficult to do payment. Although BIDV branches have been opened in Russia for direct payment but in the future, if the volume of exports to Russia gradually increases then more branches will be needed to support direct payments.

 

Source: VITAS