22 Aug 2023 16:13

Potential market for Russian baby food in Vietnam is $56-58 million per year

MOSCOW. Aug 22 (Interfax) - The potential for the export of baby food from Russia to Vietnam is estimated at 6-8,000 tonnes and $56-58 million per year, a review by the Agriculture Ministry's Agroexport center said.

The main competitors for Russian products in the Vietnamese market are baby foods from Japan, Australia, Singapore, Ireland, South Korea and some other countries.

Russia entered the top three suppliers of these products (in physical terms) to the Vietnamese market in 2022, the review said. However, exports decreased to 2,300 tonnes from 3,400 tonnes in 2021. Russian products were 10.5% of all imports. In value terms, Russia moved to fourth place, with a decrease to $19.7 million from $28.1 million a year earlier.

In total, in 2022, Vietnam imported 21,600 tonnes of baby food worth $249.8 million. This is 23.9% lower than in 2021 in physical terms and 18% in value terms. In 2018-2022, imports increased annually by an average of 5.1% in weight and 5.9% in value," the review notes.

"Vietnam reduced purchases of baby food in 2022 from nearly all countries that were previously major suppliers. The largest decrease, 75.6% or 5,300 tonnes, was in shipments from Singapore. Japan, on the contrary, increased its exports 15.3% and displaced Singapore from its position as the largest supplier, which it held in 2021.

In 2022, Japan shipped 6,600 thousand tonnes of baby food to Vietnam worth $81.7 million, versus 5,700 tonnes worth $84.4 million in 2021.

The average import price for baby food in Vietnam in 2022 increased 7.7% to $11,551 per tonne. The most expensive products came from China, at $30,851 per tonne and from South Korea at $18,100 per tonne. The lowest prices were for products from France, at $5,800 and New Zealand, at $6,714 per tonne. Baby food from Russia shipped at $8,565 per tonne, which is 35.8% below the average price.

Trade turnover in agricultural products between Russia and Vietnam in 2022 reached $969.3 million, 4.5% more than in 2021, the review said. Russian exports to Vietnam decreased 37.5% to $213.8 million, while imports rose 29.1% to $755.5 million.