Commodity turnover between Russia and Vietnam growing due to grain

20.09.2017

The commodity turnover between Russia and Vietnam increased to USD 373 Ml in the first half of 2017 that is up 21% year-on-year. Apart from other factors, this gain was achieved due to the Free Trade Area Agreement between the Eurasian Economic Union and Vietnam, which had come into force, reports UkrAgroConsult.

This agreement envisages step-by-step liberalization of the customs tariff down to its total zeroing for more than 80% of products. In particular, Vietnam has zeroed import duties for agricultural commodities such as beef, milk and dairy products, flour, wheat and meslin, linseed and rapeseed.

In the first half of 2017, Russian exports to Vietnam grew more than 10 times in value terms against the same period in 2016: they totaled USD 170 Ml. The rise in exports resulted from higher supplies of wheat, corn and linseed.

As a reminder, Russian exporters began supplying wheat and corn to Vietnam in 2016. Russia exported some 125 KMT of wheat and over 800 KMT of corn to Vietnam in the 2016/17 season.

 

UkrAgroConsult

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