Expanding the market to the Russian Federation brings many significant advantages to the Vietnamese textile and garment industry. The Russian Federation, with its developed economy and diverse consumer needs, creates great opportunities for Vietnamese textile and garment enterprises to exploit new markets. This not only helps increase the industry’s exports but also promotes technological innovation and expansion of production scale, contributing to the sustainable development of the national economy.
Although Vietnam’s export turnover to the Russian Federation has increased significantly in recent times, it still accounts for a modest proportion in the total import turnover of this product group of your country. Therefore, cooperation in this field between the two sides still has a lot of potential for growth.
According to data from the General Department of Vietnam Customs, in 2023 the export turnover of textiles and garments to the Russian Federation will reach 490 million USD, an increase of 125% compared to 2022. In the first 4 months of 2024, Vietnam has exported nearly 260 million USD of textile and garment products to this market, an increase of 134% over the same period in 2023.
The Russian market is one of the large and potential consumer markets for textiles and garments from Vietnam. With a population of more than 140 million people and the world’s 11th largest economy by GDP (World Bank, 2023), Russia provides a large platform for developing textile exports.
Potential textile and garment export market
The promotion of textile and garment exports from Vietnam to Russia is driven by the diversification of consumer demand in this market. Russia is not only a market for consumer goods but also an economy that is developing other industries such as construction, tourism and services, and has high demand for clothing and products. textile products.
According to data from the International Trade Center, the export value of clothing and textile products from Vietnam to Russia has increased significantly in recent years. For example, in 2022, Vietnam exported textiles and garments to Russia with a total value of about X million USD, an increase of X% compared to the previous year. This increase shows the great potential that the Russian market brings to Vietnam’s textile and garment industry.
In addition, the implementation of trade agreements such as the Vietnam – EAEU (Eurasian Economic Union) Free Trade Agreement, has also created import tax advantages for textiles and garments from Vietnam. into Russia, helping to improve the competitiveness of these products in the Russian market.
Trade conditions for textile and garment export
Vietnam and Russia signed a Free Trade Agreement (FTA) on May 29, 2015. This is an important step to help textile and garment products from Vietnam compete more strongly in the Russian market. through import tax benefits.
According to the FTA Agreement, many textile and garment products from Vietnam are exempt from import tax or have very low taxes when exported to Russia. For example, in 2019, items such as knitted clothing from Vietnam were imported tax-free in Russia, while non-FTA countries had to pay 12-20% tax. The agreement also applies to products such as knits, sweaters and textiles from Vietnam, helping to reduce import costs and reduce retail prices in Russia.
In addition, textiles, garments and knitted goods from Vietnam are subject to reduced or additional tax exemptions based on region and detail. This makes Vietnamese textile and garment products more competitive in the Russian market and supports the industry’s export expansion.
Participating in the Russian market can help Vietnamese textile and garment enterprises access global supply chains
Textile and garment export access to global supply chains
Participating in the Russian market can help Vietnamese textile and garment enterprises access global supply chains, thereby improving competitiveness and production efficiency.
Russia has a fairly developed transportation infrastructure, including road systems, railways and sea routes through large seaports like St. Petersburg, Vladivostok and Novorossiysk. This makes it possible for goods, including textile products from Vietnam, to be easily transported to final consumption points within Russia or other markets in the region.
Russia’s membership in the Asia-Pacific Economic Dialogue Alliance (APEC) and other important trade agreements such as the ASEAN-Russia General Free Trade Agreement and the Vietnam Free Trade Agreement – Eurasia Economic Union (EAEU) provides Vietnamese businesses with import tax and trade regulatory advantages, helping to reduce costs and time for exporting products.
The Russian market is a gateway for Vietnamese textile and garment businesses to access the global supply chain, including connecting with manufacturers, distributors and other international trading partners across the world. world. This helps enhance competitiveness and improve production efficiency through consumption and cooperation with suppliers and partners with quality and competitive prices.
Participating in the Russian market not only opens up opportunities to access global supply chains but also helps Vietnam’s textile and garment industry take advantage of international trade and cooperation advantages to improve competitiveness and production efficiency.
Vietnam’s textile and garment industry is facing many favorable opportunities when expanding into the Russian Federation market. The increasingly close economic cooperation between the two countries, along with the reduction of trade barriers, has created favorable conditions for Vietnamese textile and garment enterprises to penetrate and develop in this market. Furthermore, Russia’s demand for textiles and garments is still increasing, providing great opportunities for export expansion.
Competition in price, product quality and reputation of Vietnam’s textile and garment industry in the international arena are also important factors that help this industry assert its position in the Russian market. Therefore, with careful preparation and reasonable strategies, Vietnam’s textile and garment industry is fully capable of fully exploiting the advantages and potential in the Russian Federation market, contributing to promoting export growth. exports and improve global competitiveness.