VN garment textile businesses focus on Russian market

Vietnamese garment-textile businesses having received many jacket and jeans orders from Russian companies in recent years, it sees Russia as a potential market with demand to export more than USD 10 billion worth of apparel products each year, according to the Vietnam Textile & Apparel Association.

Chairman of the Vietnam Textile & Apparel Association Vu Duc Giang said Russia has a cold climate, so its consumers have big demand for jackets and jeans.

The garment-textile industry was predicted to get the most benefits when the free trade agreement between Vietnam and the Eurasian Economic Union came into force in October 2016.

According to the Vietnam Customs, garment-textile export turnover to Russia increased by over 30 percent year-on-year to reach 110 million USD in 2016.-
At present, Vietnam exports about 320 million USD worth of apparel each year to Russia, making up roughly 2 percent of the country’s total exports.

The figure is expected to exceed 1 billion USD, accounting for 10 percent of total exports, in the next few years.

However, the problem is how to bring the products into the market at competitive prices since Russia still faces economic difficulties and sales of apparel in the market are not as strong as in the European Union.

Additionally, the geographical distance between Vietnam and Russia will make it difficult for businesses to complete payment, he said, adding that more bank branches should be opened in Russia for direct payment between businesses.

The businesses are advised to study the market thoroughly before exporting to Russia and other northern European nations, as well as to make regular contact with partners for long-term cooperation.

Enterprises should have business strategies to cope with fierce competition on quality and price in the market. However, it is necessary to create high-quality products, improve designs, and build brand names.

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