Vietnam expands agricultural investment projects in Russia

During the working session between Deputy Minister Phung Duc Tien and the Governor of Vladimir Province, Mr. Alexander Aleksandrovich Evdeev, both sides engaged in discussions to address existing challenges and promote investment, trade cooperation in the fields of agriculture and environment between Vietnam and Russia.

Speaking at the meeting, Deputy Minister of Agriculture and Environment Phung Duc Tien expressed his pleasure in noting that in 2024, the bilateral trade turnover of agro-forestry-fishery products saw significant growth, reaching USD 1.34 billion - an increase of nearly 40% compared to 2023, despite the global economic downturn and logistical difficulties between the two countries.

Vietnam has strong potential to develop dairy products further, thanks to increasing consumer demand and favorable natural conditions for dairy farming. In recent years, the Vietnamese dairy market has experienced impressive growth, with its market size projected to reach approximately VND 135 trillion (nearly USD 6 billion) in 2024.

Notably, major brands such as TH True Milk have been pioneers in expanding their investments internationally, with a standout project being the dairy farming complex in the Russian Far East. This project involves a total investment of VND 5.2 trillion, a herd of 6,000 dairy cows, and a processing plant with a capacity of 250 tons of milk per day, contributing to the enhancement of the agricultural value chain between the two countries.

According to MAE leaders, agro-forestry-fishery enterprises from Russia and Vietnam need to further strengthen cooperation and promote agricultural trade. Deputy Minister Phung Duc Tien expressed his hope that, building on the foundation of traditional cooperation and mutual interest, Vladimir Province and Vietnamese enterprises will achieve major breakthroughs in agriculture and the processing industry in the near future.

The Governor of the Vladimir Region, Mr. Evdeev Alexander Aleksandrovich, affirmed that the friendly relationship between Vietnam and Russia is not only being strengthened at the national level but is also developing robustly at the grassroots level and among businesses.

He emphasized: "One of the solid foundations for tightening bilateral relations is economic cooperation. Trade turnover and investment between the two countries are continuously growing, and this is the right time for us to explore and develop new cooperative projects jointly."

The Vladimir Region has a long-standing tradition in dairy cattle farming, meat processing, and dairy product manufacturing. With its geographical advantage located to the east of Moscow, the region is well-positioned for logistics development, construction of processing centers, or transit warehouses to serve the agricultural supply chain between Russia and Vietnam.

Governor Evdeev expressed goodwill in opening the local market to Vietnamese agricultural products, powerful export items such as rice, coffee, and cashew nuts. He further shared that both sides have recorded positive cooperation outcomes, such as the successful export of tuna from Vietnam to Russia and meat from Russia to Vietnam, laying the groundwork for the expansion of bilateral agricultural trade.

Notably, the Governor of Vladimir revealed that the province is considering allocating an area for building a dairy processing plant by TH True Milk Group.

In 2024, the total export value of agro-forestry-fishery products to the Russian market reached USD 759.2 million, an increase of 38.2% compared to 2023. Meanwhile, the total import value of those products from Russia in 2024 reached USD 578 million, up 50.5% compared to 2023. 

Vietnam is currently presented with significant opportunities to export agricultural products to the Russian Federation through the Vietnam-EAEU Free Trade Agreement (FTA), which facilitates easier access for Vietnamese goods to this market.

This is a promising market for Vietnamese agricultural products such as tropical fruits, cashew nuts, coffee, and seafood. The sizable Vietnamese community in Russia acts as an important consumer base and as a bridge to promote its agricultural products to Russian consumers.