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
With the demand to import more than US$10 billion worth of apparel products each year, Russia is a market with potential for Vietnamese garment-textile businesses.
According to the Vietnam Textile and Apparel Association, businesses have received many jackets and jeans orders from Russian companies in recent years.
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.
At present, Việt Nam exports about $320 million worth of apparel each year to Russia, making up roughly 2 per cent of the country’s total exports.
The figure is expected to exceed $1 billion, accounting for 10 per cent of total exports, in the next few years.
Chairman of the Vietnam Textile & Apparel Association Vũ Đức Giang said Russia had a cold climate, so its consumers had a big demand for jackets and jeans.
However, the problem is how to bring the products into the market at competitive prices since Russia still faces economic difficulties and sales of apparel in the market are not as strong as in the European Union, Giang said.
Additionally, the geographical distance between Việt Nam and Russia will make it difficult for businesses to complete payment, he said, adding that more bank branches should be opened in Russia for direct payment between businesses.
He advised businesses to study the market thoroughly before exporting to Russia and other northern European nations, as well as to make regular contact with partners for long-term co-operation.
Enterprises should have business strategies to cope with fierce competition on quality and price in the market, he noted.
It is necessary to create high-quality products, improve designs, and build brand names, he said.
According to the Vietnam Customs, garment-textile export turnover to Russia increased by over 30 per cent year-on-year to reach $110 million in 2016. — VNS