Trade Between Russia And Vietnam Is On A Halt – Trade Growth Expected In A Few Months
INTRODUCTION
The foundation of the relationship between Russia and Vietnam was formally set up on 30th January 1950 when the first ever Russian embassy was set up in Northern Vietnam. The Socialist Republic of Vietnam identifies Russia as one of the most active members/allies of its group. The Soviet Union was one of the initial countries that formed and built diplomatic relations with Vietnam.
Although the Soviet Union was dissolved in the year 1991, the friendly relations between Vietnam and Russia continued. Slowly and gradually the trade relations between both nations also got improved and by 2001, the bilateral trade between Russia and Vietnam touched USD 550 million. major Imports of Vietnam as per Vietnam Import data from Russia were machines, steel, textiles, and rice.
RUSSIA-VIETNAM TRADE TRENDS (2017-2021)
We are going to portray one of the most interesting tables that contain the total imports and exports that happened between Vietnam and Russia in the recent few years to make you understand what the trade scenario before the war between Russia and Ukraine was and what has changed now due to multiple sanctions and prohibitions applied on Russia.
RUSSIA-VIETNAM TRADE TRENDS (2017-2021) | |||
YEAR | VIETNAM > RUSSIA | RUSSIA > VIETNAM | TOTAL TRADE |
2017 | USD 2.16 billion | USD 1.39 billion | 3.55 billion |
2018 | USD 2.44 billion | USD 2.13 billion | 4.57 billion |
2019 | USD 2.66 billion | USD 1.83 billion | 4.49 billion |
2020 | USD 2.84 billion | USD 2.06 billion | 4.90 billion |
2021 | USD 3.20 billion | USD 2.30 billion | 5.50 billion |
As seen from the table, in all five years the Vietnam Export Data leads Vietnam Import Data due to which, Vietnam always enjoyed a trade surplus when trading with Russia.
Major items that were exported by Vietnam to Russia as per Vietnam Export Data in the year 2021 were electrical machines, articles of apparel and clothing, beverages, and mechanical appliances. On the other hand, if we look at Vietnam Import Data for the same year, then Vietnam imports iron and steel, mineral fuels and oils, meat, fertilizers, and small aquatic animals from Russia.
WHY THE TRADE BETWEEN VIETNAM AND RUSSIA HAS DECLINED?
According to the table mentioned above that the bilateral trade between Russia and Vietnam touched the highest mark of USD 5.5 billion in the year 2021. Due to the full-scale invasion of Russia into Ukraine, this trade has now been halved as multiple sanctions and policies are applied to Russia by the USA as a penalty for doing so. This fact has been stated by the trade counselor of Vietnam, Duong Hoang Minh.
As per Duong Hoang Minh, the bilateral trade between Russia and Vietnam has just touched USD 1.01 billion, and if the same trend continues, then in 2023 it will just manage to cross approximately USD 3 billion mark. The Russian official also stated in this regard and was optimistic that both countries would again perform better and would take advantage of both nations’ capabilities and skills.
Although, at present, there are multiple restrictions on Russia for trading its goods and services, in the near future when the situation will get under control, the trade between these nations would again shoot up and set new records.
The Cherry on the cake is that Vietnam and Russia have a Free Trade Agreement signed between them through Vietnam-Eurasian Economic Union FTA, which means there are no trade barriers between these two nations, and they have full liberty to trade their goods with each other. Just the wait is when these strict trade sanctions and policies applied by the US on Russia would get over and Vietnam Trade Data would start to experience a growth.
CONCLUSION
Russia and Vietnam are one of the best trade partners so far and completed their 50 years of friendship in the year 2001 when the Russian President came to Vietnam to meet the president of Vietnam and promised to boost their trade and bonding. The point to be noted is that the growth potential has not been affected due to this hindrance between Russia and Vietnam, just a small halt has come between them in the form of trade sanctions and policies.
For more such amazing content about Vietnam Import Data and Vietnam Trade Data of the latest times, keep visiting our website. If you need Import Export Data for any country in the most detailed format, contact us today.