STEEL MARKET NEWS: A Bright Spot in Vietnam-Russia Bilateral Trade
Since establishing diplomatic relations in 1950, despite the global economy facing numerous fluctuations, the bilateral trade relationship between Vietnam and Russia has continued to develop steadily. This stability is seen as a favorable condition for businesses on both sides to strengthen economic, trade, and investment cooperation.
Strong Growth in the Steel Market
Thanks to the Free Trade Agreement between Vietnam and the Eurasian Economic Union (Vietnam-EAEU FTA), various industries in Vietnam, including the steel industry, have benefited significantly.
According to reports from the General Department of Vietnam Customs, in the first seven months of 2024, bilateral trade between Vietnam and Russia reached 2.74 billion USD (an increase of 45.5% compared to the same period in 2023). Of this, exports reached 1.36 billion USD, an increase of 46.4%, while imports reached 1.38 billion USD (an increase of 44.6%).
Among the items exported to Russia, steel products were recorded as having the highest growth rate, with a trade value of 697.9 million USD, an increase of 166% in value and 240% in volume. Following this were confectionery and cereal products, reaching 18.1 million USD (an increase of 116%); seafood reaching 116.7 million USD (an increase of 105%); and textiles and garments reaching 458.9 million USD (an increase of 95.7%).
Bilateral Trade Between Vietnam and Russia Reaches USD 2.74 Billion in the First Seven Months of 2024
Source: Industry and Trade Newspaper
Opportunities and Challenges
Currently, Vietnam’s steel production technology is becoming increasingly advanced, with a well-developed logistics network and competitive production costs. These factors present significant advantages for Vietnamese steel enterprises.
However, the Russian market also poses several challenges for Vietnamese steel companies, such as strict requirements for product quality, adherence to environmental protection regulations, and competition from other steel producers worldwide. These challenges serve as a foundation for improving the quality of “Made in Vietnam” steel products.
Future Cooperation
In the future, with government support and preferential policies, the Vietnamese steel market is expected to develop even more robustly. Vietnamese steel enterprises need to seize this opportunity by investing in technology, enhancing promotional activities, and improving product quality by adopting internationally recognized steel standards to solidify their position in the global market.
Promoting bilateral trade between Vietnam and Russia not only helps boost export turnover but also plays a crucial role in strengthening the strategic relationship between the two nations, contributing to the sustainable development of Vietnam’s economy.
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