Vietnam-Russia Relations: New Prospects for Trade and Logistics in 2024

The Expanded BRICS Leaders’ Summit in Kazan, Russia (October 23-24, 2024), presents new opportunities for trade cooperation and supply chain development between Vietnam and Russia. Prime Minister Pham Minh Chinh’s participation not only reaffirms the special relationship between the two countries but also opens up access to the large BRICS market.

In the first nine months of 2024, Vietnam-Russia bilateral trade turnover reached USD 3.52 billion, marking a 40.4% increase compared to the same period in 2023. Exports totaled USD 1.78 billion (up 50.1%), while imports reached USD 1.74 billion (up 31.6%), signaling a robust recovery in international trade and freight transportation between the two nations.

A vital highlight of Vietnam-Russia economic cooperation is the strong growth in the energy and oil sectors, driven by large-scale projects.

Export sectors showing impressive growth include seafood (up 94.7%), rice (up 130.9%), textiles (up 117.7%), and machinery (up 68.7%). On the import side, major products include fertilizers, coal, automobile parts, and transportation vehicles. This diverse trade demands specialized logistics solutions to efficiently transport these goods.

According to Dương Hoàng Minh, Vietnam’s Commercial Counselor in Russia, the largest driver of this growth has been overcoming transportation challenges. Sea routes like Vladivostok-Hai Phong-Ho Chi Minh City and the Vietnam-China-Russia international railway have improved significantly. Moreover, the reopening of direct flights and relaxed visa regulations have facilitated trade and investment activities.

Challenges and Opportunities

Despite positive developments, the logistics sector still faces challenges amid global economic uncertainty. To better leverage the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA), businesses from both countries must strengthen their cooperation in production and cross-border supply chain development. Russian companies are encouraged to invest in production in Vietnam to take advantage of export opportunities to FTA markets.

The Vietnam Trade Office in Russia advises exporters to actively participate in specialized trade fairs in Russia to explore the market and expand their logistics networks. Many businesses have successfully expanded cooperation in transportation and distribution through direct engagement in such events.

With these positive developments in Vietnam-Russia trade relations and the logistics sector’s growth, bilateral trade turnover is expected to continue increasing. Focusing on developing logistics infrastructure, optimizing transportation routes, and enhancing cross-border logistics collaboration will be key to driving trade between the two nations.