Russia wants to cooperate in tourism and fashion with Vietnamese businesses

The comment was made by Mr. Alexander Stuglev, Chairman of the Board of Directors and CEO of the Roscongress Fund, at a meeting on the sidelines of the Eastern Economic Forum (EEF) in Ho Chi Minh City on July 4.

The Roscongress Foundation, established in 2007 by order of Russian President Vladimir Putin, is the organizer of annual economic events in the country. According to Mr. Alexander Stuglev, Russia and Vietnam have many promising areas of cooperation, including energy, transportation, construction, tourism, fashion and information technology.

“Russia has a great demand for agricultural investment and agricultural product imports. The development of the tourism industry, leading to the demand for infrastructure construction and garment consumption, are all opportunities for Vietnam,” said Mr. Stuglev.

For example, Russians are expected to spend more than $2.8 billion on fashion this year and increase to $4.74 billion by 2029. In the first 10 months of 2023, the country imported more than $343 million worth of textiles and garments from Vietnam, up 91% over the same period in 2022.

According to the General Department of Customs, Vietnam-Russia trade turnover last year reached 3.6 billion USD, up 2.3% compared to 2022. The most exported items to Russia are coffee, electronics, seafood, and rubber. In contrast, Vietnam imports a lot of coal, fertilizer, seafood, meat, etc. from this country.

The CEO of the Roscongress Foundation expects bilateral trade to increase to $15-20 billion in the future because there are many opportunities for cooperation. “Crisis brings new challenges and potential. Recent global geopolitical changes open up opportunities for small and medium-sized businesses,” he said.

On the Vietnamese side, Ms. Nguyen Thi Tuyet Mai, General Secretary of the Vietnam Textile and Apparel Association (Vitas), said that companies in the industry identified Russia as a large market. Before Covid-19, the association organized 3 delegations to participate in the fair in Moscow and is in need of promoting and expanding buyers in this market.

TH Group is currently the largest Vietnamese agricultural investor in Russia. Mr. Ngo Minh Hai, Chairman of TH, said that the group has completed phase 1 of the dairy farming and processing project, with a herd of cows producing 40 liters per cow per day.

“Russia’s vast nature and land are suitable for large-scale high-tech agricultural development. Agricultural investment policies here are transparent and attractive,” he said.

Vietnam and the Eurasian Economic Union (EAEU), of which Russia is a member, signed a Free Trade Agreement (VN-EAEU FTA) in 2016. In the first five months of 2024, export turnover to Russia reached nearly 956 million USD, an increase of nearly 45% over the same period last year.

Since 2015, the EEF has been an annual international forum in Vladivostok, to encourage investment in the Far East. Last year, the EEF witnessed 373 signings worth 45 billion USD. The meeting in Ho Chi Minh City is part of a series of activities inviting international businesses to participate, held in 8 countries before coming to Vietnam.