Increasing demand to import over US $ 10 billion worth apparel products every year is making Russia a potential market for the garment and textile business enterprises in Vietnam. The Vietnam Textile & Apparel Association (VITAS) says that the businesses have received, and are receiving, several orders for jeans and jackets from Russian companies. “Russia has a cold climate and so its consumers have huge demand for jackets and jeans,” averred Vu Duc Giang, Chairman of VITAS.
Currently, Vietnam exports about US $ 320 million worth apparels to Russia every year, thereby making approximately 2 per cent of the country’s total exports. In next few years, it is expected that the figure may cross US $ 1 billion, which accounts for 10 per cent of total exports.
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The constraint, however, is how to bring the products into the market at competitive prices as Russia is still facing economic difficulties and sales of apparel in the market are not as strong as in the European Union, opined Giang. Also, the geographical distance between Vietnam and Russia may hamper business, especially with regard to payment. “More bank branches should be opened in Russia for direct payment between businesses,” added Giang.
He further asked business enterprises to analyse and study the market before exporting to Russia and other northern European nations, in addition to making regular contact with partners for long-term cooperation. Business enterprises should have strategies to beat the competitors on quality and price in the market, Gaing added.
According to the Vietnam Customs, last year there was a surge of 30 per cent year-on-year to reach US $ 110 million in the garment-textile export turnover to Russia.
