Successful than expected
4 businesses join the Fair are mainly marine products, including: Ba Ria - Vung Tau Import-Export Aquaculture Processing Joint Stock Company (Baseafood), Thinh An Co. Ltd, Chang Hua Co. Ltd, Thuan Hue production services and trade joint stock company. There are two private companies which have not had code on the Russian market yet and the target set for this trip is only to compare themselves to others. However, the result is very surprising: With the samples found to provide fair, businesses attracted the special attention of the Russian market. All four companies found out opportunities to do long-term, in which two companies have the code into Russia  signed  the official contracts, the two no – code companies have signed principle contracts to promote the implementation procedures for application code.

The most success in this trip is Baseafood Company. In fact, Baseafood has had long-term and exported more goods to Russian market. However, with the signing of four official contracts at the fair, an agreement worth a total of 19 million USD (including a new customer signing a purchase worth $ 15 million), Basefood has achieved great success at the fair. Deputy General Director of Baseafood, Mr. Nguyen Cong Huyen said thin dried squid for winter is appreciated highly by Russian customers. With this "open door", the product of Baseafood will better access to the Russian market in the near future.

Thinh An Co., Ltd has a small-scale production with capacity 4,000 tons of surimi products per year, but the company has not promoted at full capacity because they do not have many markets. Last two years, this company actively sought clients through fair to expand the scale operation. Mr. Wu Dong Ho, director of Thinh An Co. Ltd, said: “Coming to the Fair without code may only try their luck. But the potential import of the Russian market is very large. Total production of customers’ order is estimated up to 7000-8000 tons, while our capacity is only 4,000 tons per year, this is a great opportunity for business. In the coming time, we will try to complete the procedures for applying for the code into this market”.

Thuan Hue production services and trade joint stock company has the target for the trip is only to find opportunities. However, at this Fair, the company has discovered that some products of this company "polished" with packaging, well looking label under a Korean brand, and have higher cost than dozens of times the price company has sold out. Thuan Hue business owners have decided not to partner "used up" their brands anymore. Ms. Dong Thi Hue, director of the company said, after the fair, the company will build more factories in Loc An following European standards, import the production line from South Korea, and manufacture the instant high-class products which is exported straight to the Russian market, not just outsourcing to the third party with meager price.

Opening market
With four contracts signed in the Expo, the company has facilities to work with Department of Veterinary Sanitary Fisheries, Ministry of Agriculture and Rural Development of Vietnam; simultaneously the Russian customers will also work with Department of Food Safety of Russia to carry out procedures for building code for Vietnam enterprises into the Russian market. Two no-code companies prepare actively to change and upgrade the facilities in order to ready to welcome delegations of Russian Department of food safety for inspecting the factory so that they certificate the conditions of food safety in shipment Russian market.

Director of Trade Promotion Center, Department of Trade and Industry, the focal point agency which let the businesses join the Fair, Mrs. Truong Thi Xuan Loc judged: Base on the result that businesses reap through the trip, we can confirm the effectiveness of the trip as well as the potential of the Russian market. All businesses are evaluating the Russian market are very good, the quality of the products of these companies were brought to meet the standards and requirements of the Russian market. This shows that the competitiveness of products from BR – VT enterprises is high. This is an opportunity not only for four companies which participated in the fair but also for all of the businesses of export marine processing products in the province, it is because most of these enterprises have some same products.

However, to get a look at the fact that, Russia is the potential market, but also has many difficulties and risks. Specifically, fee for opening letter of credit (L / C) in Russian banks is higher than other countries; hence, most Russian enterprises do not want to open L / C to guarantee the payment, they choose other modes of payment to reduce costs, this way has potential risk for the seller. Therefore, understanding thoroughly the partners, enhancing mutual trust to do business handshake is very necessary.

The demand of import in Russian market is about 200 billion dollars annual, of which, consumer goods making up 20% to 30%. Especially, the garments, agricultural products ... hold a high level in imported density. Every year, Vietnam’s exports to Russia reached more than 670 million USD.

Hong Nhung - Ha Phan

Source: Vung Tau Newspaper

Translated by Vietfish Community