Vietnam and the Russian Federation do not want goods to take a detour

With a special geographical position located in the dynamic development area of ​​the world, where the flow of goods is very concentrated and exchanged, Vietnam is considered to have a very favorable geo-economic advantage to boost production. import-export and logistics services, creating a driving force for Vietnam to strengthen trade cooperation with many countries and regions around the world.

Many Russian businesses want to cooperate with Vietnamese enterprises to open a direct sea transport route between the two countries.

Great cooperation potential

The Russian Federation is a traditional and important leading trade partner of Vietnam in the Eurasian region. In the period 2017 - 2022, the growth rate of bilateral trade turnover between Vietnam and the Russian Federation has achieved positive results with an increase of 5.3% per year. This is also the premise for freight transport and logistics cooperation between the two countries.

At the "Round table to discuss cooperation in the field of freight transport and logistics", Ms. Nguyen Mai Linh, Head of the Trade Facilitation Department, Import-Export Department (Ministry of Industry and Trade), information, there are 3 routes of Freight transport is being exploited by Vietnam and the Russian Federation, that is by sea, by air, and by railway.

Sea freight from Vietnam to Russia can be through 2 directions. Route 1 is to go through the Suez Canal and docks at St. Petersburg. Direction 2 is to go through the ports of the Far East (of which the two largest ports are Vladivostok and Vostochny) and from there via railway or other road means to Moscow, Western Russia, and intra-regional countries. EAEU or beyond to the whole of Europe.

At the beginning of 2022, the Government of the Russian Federation launched a mechanism to subsidize coastal shipping on the Northern Sea Route (NSR) with the goal of expanding freight volumes, and significantly reducing freight times. from Asia to Europe (15 days shorter than using the Suez Canal).

Air freight transport from Vietnam to the Russian Federation mainly still uses direct flights to Moscow and some other major cities of the Russian Federation.

Currently, there are 5 airlines in Vietnam (Vietnam Airlines, Vietjet Air, Pacific Airlines, Bamboo Airways, and Vietravel Airlines) that have operated combined cargo transportation on passenger flights. However, there is no airline specializing in transporting goods by specialized aircraft.

Railway freight transport from Vietnam to Russia is currently via the Asia - U international container railway, departing from Gia Lam station (Vietnam) to China's domestic stations, then dividing 03 directions: to Kazakhstan to the Russian Federation; to Mongolia into the Russian Federation; to Inner Mongolia - China into the Russian Federation, from there can also be transported to the countries within the EAEU.

Vietnamese and Russian businesses discuss cooperation in the field of freight transport and logistics.

However, at the discussion session, many opinions said that the development of direct transport services between Russia and Vietnam by sea still has a lot of potentials. Dr. Belov Alexey, the representative of the Far Eastern Federation of Russia, said that the two countries can completely bring shipping services to a new level. It is necessary to study the transport route directly connecting the port of Vladivostok (in the east of Russia) to the ports near Ho Chi Minh City and Hai Phong, instead of taking the current detour.

Many comments, freight rates are still high, and shipping time is still long. Therefore, Mr. Priskoka Alexander Mikhailovich, Deputy Director of Commercial and Business Development in Asia, FESCO Group said that if Vietnam - Russia opened direct sea routes without going through intermediaries, the time would be shortened. Shipping from 9-12 days, in Vietnam will also partially solve the worry of empty containers.

Create all favorable conditions for the development of logistics services

To develop Vietnam's logistics service industry, Ms. Linh said that the Ministry of Industry and Trade will continue to improve policies and laws on logistics services; improve the capacity of logistics infrastructure; improve enterprise capacity and service quality; develop the logistics service market…

At the same time, coordinate with industry associations and businesses to enhance activities of introducing, promoting, displaying products, and connecting trade by online and hybrid methods (directly combining online) applications. livestream technology on digital platforms for items in which each party has strengths.

On the other hand, continue to implement synchronously and effectively the activities of disseminating information about the Vietnamese market and the Russian Federation market to the business community and industry associations of the two countries in many other forms with more in-depth and substantive content.

Agree to strengthen cooperation in transportation and connect goods trade, trade-in logistics services between the two countries at all levels (states, associations, enterprises) to promote bilateral trade and export to other countries.

In addition, encourages import-export businesses to increase the exploitation of the international container railway from Vietnam through China to the Russian Federation and other countries within the Eurasian Economic Union as well as the international shipping route. multimodal transfer (railway combined with seaway between Vietnam and the Russian Federation, whereby connecting railway from Moscow to Vladivostok and then going by sea to seaports of Vietnam)... in order to diversify modes of transport, optimize logistics costs, increase the competitiveness of goods, effectively exploit the advantages of each party.

A representative of the Ministry of Industry and Trade also said that Vietnamese logistics still have many opportunities for Russian businesses to exploit. Because according to the assessment of the IMF, Vietnam is one of the five fastest-growing developing economies in the Asia-Pacific region. Vietnam has now become the third largest economy in ASEAN with a GDP of over $413 billion.

Vietnam's international trade activities have grown strongly, helping to increase import and export turnover, expand markets and diversify types of goods. Total import-export turnover from 2010 to now has increased by 4.65 times, from 157.1 billion USD in 2010 to 730.2 billion USD in 2022. Exports increased by an average of 18%/year…