Strengthening transport cooperation between Vietnam and Russia

Sunday, 16/06/2024 09:42
(CPV) - For Russia, Vietnam has always been an important partner in Southeast Asia. Vietnam is the first and only country in the region to have a free trade agreement with the Eurasian Economic Union. Currently, the Russian Government is trying to solve existing problems in transportation and logistics to increase trade turnover with Vietnam.
Cooperation in the field of logistics helps goods transportation time between Russia and Vietnam be shortened to only 9-12 days. (Photo: Saigon Port)

In this effort, sea transport is a potential field that Russia is looking to promote, in order to develop more direct transport services between the two countries, reducing time and cost of transporting goods.

Vietnam has 256 ports belonging to five seaport groups. Vietnam has also established 32 domestic and international transport routes, transporting ship routes to North America and Europe. Vietnam’s seaport system attracts 40 major shipping lines in the world, including Russia’s leading multimodal transport and logistics company-FESCO.

Deputy Director of Deputy Commercial Director for Development in Asian countries FESCO Group Alexander Priskoka realized the great demand of Russian goods suppliers for manufacturers in Vietnam, from which the company offered the most optimal plan for sea freight routes between Vietnam and Russia.

“Vietnam imports from Russia items such as sawn timber and other wood products, aluminum, construction materials, polymer materials, and minerals. Russia imports from Vietnam diverse food products, coffee, fruits and vegetables, rubber and tires, textiles and ready-made clothes.”

Previously, goods from Vietnam needed to go through Busan transit port in the Republic of Korea to reach Vladivostok port. Therefore, the shipping time for goods was very long. Currently, the container route for direct goods transport among Vladivostok Port, Hai Phong and Ho Chi Minh City and vice versa is operated by two shipping companies, Transit and Fesco, with an average frequency of one trip a week, so transport duration is much faster than before.

The opening of a direct sea transport route directly connecting Vladivostok Port with Ho Chi Minh City Port and Hai Phong Port helps shorten the delivery time to nine days to Ho Chi Minh City and 12 days to Hai Phong.

Deputy Director of Deputy Commercial Director for Development in Asian countries FESCO Group Alexander Priskoka 

“To become closer to Vietnamese customers, we are preparing to open FESCO’s own office in Ho Chi Minh City, continuing to develop our office network in Hanoi and Hai Phong. In this April, we relaunched container service from Da Nang port to Russia (transshipment through Ho Chi Minh port), and will develop this route,” Alexander Priskoka shared.

With the goal of turning Ho Chi Minh port into a major transportation center in this region, FESCO has organized a regional transshipment center based on SP-ITC terminal in Ho Chi Minh City. With this support, FESCO will unify container goods transported by transshipment routes from many Southeast countries, including Indonesia, Malaysia, Thailand, Philippines and Myanmar for onward shipping to Russia.

On May 22, the group exported the first batch of containers of one of Russia’s largest sporting goods retail chains from Da Nang to Vladivostok Marine Commercial Port. Strengthening cooperation with ports in Vietnam opens up more opportunities to develop trade exchange between the two countries.

In the current new context, Russia has focused on exporting to Southeast Asia, establishing industrial parks, transportation and logistics centers in countries in Africa and Southeast Asia. Vietnam needs to take advantage of opportunities and create favorable conditions for transportation between Vietnam and the Russian Federation, helping sharply increase import-export turnover between the two sides./.