Business news

11 Jun 2018

Belarus keen to expand its presence in dairy market of Vietnam

MINSK, 11 June (BelTA) - Belarus is keen to expand its presence in the dairy market of Vietnam, Director of the National Center for Marketing and Price Study Valery Sadokho said during the Belarusian-Vietnamese business forum, BelTA has learned.

“Vietnam buys from 50,000 tonnes to 80,000-90,000 tonnes of powdered milk annually. Belarus is among the world’s top producers of powdered milk, butter, cheese, while Vietnam is only 20% self-sufficient in dairy products importing 80% from abroad,” Valery Sadokho said.

Vietnam has been developing its own dairy industry but the import has been on the rise due to the growing population (currently it is about 93 million).

In turn, Vietnam produces the goods which Belarus imports. These include seafood, including shrimp, tropical fruits and vegetables, fish, starch (today Belarus is expected to sign a contract to purchase tapioca starch from Vietnam worth $6 million). Vietnam is also one of the largest exporters of rice, coffee and pepper. According to Valery Sadokho, Belarusian and Vietnamese companies need to establish direct contacts and trade without intermediaries. This will help make products cheaper.

Valery Sadokho drew attention to the fact that the new opportunities for cooperation between the two countries opened after the Free Trade Agreement between Vietnam and the Eurasian Economic Union came into force in October 2016. Duties on many goods were markedly reduced or zeroed. Duties on a number of positions will be cut down further in the coming years.

Vietnamese Ambassador to Belarus Le Anh noted that today the main objective of bilateral cooperation is to increase the Belarusian-Vietnamese trade to $500 million ($180 million in 2017). With regard to the establishment of new joint ventures, Vietnam plans to build a milk plant. Vietnam, in turn, could deliver tea and coffee for further packaging in Belarus, the Ambassador noted.

Attending the Belarusian-Vietnamese business forum are more than 100 people - representatives of agricultural producers, industrial, pharmaceutical, construction and investment companies.