September 17, 2009

Many Vietnamese seafood processors are proposing that the Russian Federal Service for Veterinary and Physio-Sanitary Surveillance (VPSS) increase the number of Vietnamese businesses permitted to export their products to the country.

The National Agro-Forestry and Fishery Quality Assurance Department (NAFIQAD) said Russia is expected to bring teams of inspectors to Vietnam to assess exactly which businesses qualify to export to its market.

At present, Vietnam has only 30 businesses permitted to export tra fish and seafood to Russia.

Head of the Ministry of Industry and Trades European Market Department Nguyen Chi Tam said that it was easy to make a profit in Russia as it is an open market but there are also a lot of potential risks.

Tam said there are many problems with this markets payment mechanism, especially for small- and medium- sized enterprises, as payment by letters of credit remains unpopular.

Furthermore, the use of tariff and non-tariff barriers when re-adjusting import and export activities are popular and hard to forecast, he added.

Head of the Management Department of Tra Exports to Russia Duong Ngoc Minh said that since his department was set up, Vietnamese seafood exporters and their Russian partners have reached a number of agreements on the quality, quantity and price of tra imports.

These agreements have helped to ease difficulties for tra farmers in the Mekong Delta, said Minh, adding that Vietnam's tra exports to Russia may reach 70,000-80,000 tonnes, worth US$1.2 billion to US$1.3 billion in total this year.