Manufacturers of Ulyanovsk Region Participated in Business Trip to Vietnam
The event, which aimed to promote food producers of the region, took place on 27 May. By order of Governor Sergey Morozov, the region pays particular attention to development of international relations in the field of trade, investment and cultural exchanges.
The meeting, which took place online, started a series of specialized business missions between the region and its potential foreign partners. They are organized by the Representative Office of Ulyanovsk Region under the Government of the Russian Federation with the participation of the Export Support Center and relevant ministries.
The Russian Export Center (REC) carried out the business trip; it had previously selected potential contractors and effectively promoted negotiations between the parties. Russian business community was represented by enterprises of the Ulyanovsk region, such as "Repyovskij krupozavod", "Nagatkinsky pererabatyvayushchy kombinat", "Rybny kray Dimitrovgrad", a trading house "Ulyanovsky hladokombinat", a peasant farm holding "Glebova E.V." and other leaders in production of high-quality food goods.
Enterprises of the region presented their goods and established business contacts with potential foreign partners. According to experts, Russian companies need to continue developing and come to the international market, where they will be commercially viable and get access to bigger orders. Results of the business mission also confirmed this idea. REC was invited to this event by the potential partners interested in Russian products. Vietnamese business community is interested in Ulyanovsk goods such as cereals, ice cream, fish and milk products. The parties are also going to discuss supply specifics in the future.
This year is remarkable - it will see the 70th anniversary since the establishment of diplomatic relations between Russia and Vietnam, which is a comprehensive strategic partnership now. This landmark event will also include the 2019-2020 cross-year of Vietnam in Russia and Russia in Vietnam.
“Vietnam is the largest trade and economic partner of Russia among ASEAN member states. We must increase bilateral trade turnover between out countries. Vietnam's market is untapped compared to the one in the European Union, but it has good opportunities for growth. There is a high demand for non-oil and gas materials, as well as Russian cereals, dairy products, sunflower oil, confectionery and pork,” - said Alexander Rumyantsev, Deputy Chairman of the Government of Ulyanovsk Region - Authorized Representative of the Governor in the Government of the Russian Federation. He emphasized that the Free Trade Agreement between the Eurasian Economic Union (EAEU) and the Socialist Republic of Vietnam provides significant advantages. For example, sunflower oil from Russia (zero duty) is replacing the one from Ukraine.
The Ulyanovsk region has a long-term friendly relationship with Vietnam. In particular, the Agreement on Cooperation with Nghe An Province, which is the largest in the country, was signed in 2007 and continues to flourish, moving to the new levels.
Promotion of domestic products at foreign markets is becoming particularly important for Russia nowadays. Vietnam takes the sixth place in the REC's rating of countries with the best potential for export. Over the first quarter of 2020, Russian exports to Vietnam increased by 76.09% compared to the same period last year and totaled US $265.01 million. The share of non-resource-based exports amounted to 61.43% (US $162.80 million). Products made of cereal, flour and milk, as well as confectionery, saw the highest increase compared to 2019.
For the Ulyanovsk region, the growth of foreign trade turnover is a strategic task of the agro-industrial industry for the next few years. In the first quarter of 2020, its exports increased by 30% (to US $1.3 million dollars). Among the main countries for grain export are Azerbaijan, Belgium, Belarus, Kazakhstan and Latvia; Kazakhstan, Armenia, Kyrgyzstan, Belarus and Germany are interested in food products.
Natalya Snezhinskaya, Deputy Minister of Agro-Industrial Complex and Rural Development of Ulyanovsk Region, said that the region has a major task to promote its goods at foreign markets. First of all, it is necessary to create a new mass of commodities, to develop the transport and logistics system and to remove tariff and non-tariff barriers.
The Deputy Minister added, “The ambitious challenge before us is to ensure up to US $35 million of exports in the agro-industrial complex. We see this task as a new stage of development where export is the driver for industry modernization. We must pay particular attention to increasing the volume of advanced processing and production of end-use value-added products.” She also said that it is necessary to complete an even more difficult task by the end of 2024 - to ensure up to US $72 million of exports in the agro-industrial complex.
According to Robert Kurilo, representative of the REC in Vietnam, Russian companies can use services of Russian Gastro House (a permanent demonstration and tasting pavilion with Russian foodstuffs in Ho Chi Minh City) to continue promoting their products at the market of the Republic free of charge. The pavilion regularly carries out tasting and marketing events for representatives of Vietnamese distributors and trading networks.
Speaking of the near-term prospect for the economy of the region, Alexander Rumyantsev mentioned the importance of business contacts between Vietnamese partners and a wide range of regional enterprises. “We are already preparing our companies for participation in business missions to other export areas. One can see that businesses are ready for such cooperation and are looking for new markets,” - said the Authorized Representative of the Governor of Ulyanovsk Region.