The volume of export flows sent by Moscow industrial enterprises to the Israeli market increased almost seven times in January-May 2020. The corresponding message was posted on the official website of the mayor of Moscow.
Vladimir Efimov, deputy mayor of Moscow on economic policy and property and land relations, said that the upward trend in exports of industrial products from Moscow to Israel can be traced from year to year. So, from January to May 2020, the capital's entrepreneurs have managed to get 47.8 million dollars in this market. This figure is seven times higher than in January-May 2019, and almost twice as much as in the last 24 months.
Such impressive results Muscovites managed to achieve through the export of the following groups of industrial goods to Israel:
The Moscow mayor's website also reports that despite the coronavirus pandemic and the resulting restrictions, the total volume of export trade by Moscow businesses in the first five months of 2020 remained at the level of the previous year and amounted to more than $290 million.
However, despite the optimistic start of the year and the active foreign economic activity of Moscow industrialists, in the first three quarters of 2020 Russia's total exports to Israel decreased by 27.71% ($325.1 million) compared to the same period of 2019.
As for exports of industrial products to other countries, the capital's enterprises also managed to show a high positive trend here. Thus, in the first five months of 2020, Moscow businessmen increased export volumes to Mexico almost three times (up to $10.25 million), and to Vietnam - 2.5 times (up to $11.7 million). These states mainly buy engineering products, mechanical equipment, cosmetics, medical products and chemical products.
In 9 months of 2020, non-energy exports from Moscow to Vietnam totaled $57.21 million, or 8.5% of all non-energy exports that our country made during this period. This is 143.7% more than the previous period ($23.48 million). According to Vladimir Yefimov, the breakthrough occurred because the capital's businessmen signed contracts with Vietnamese partners for supplies of new groups of goods. For instance, polypropylene.
The Vietnamese export list also included:
Food industry products (dairy and flour products). Their sales generated $7.60 million (an increase of 13.7% compared to last year);
mechanical equipment, computers and other technical devices. Vietnam purchased it for $3.72 million (up 292.1% from 2019);
Packaged drugs. They were sold for $3.03 million (141.9% more than last year).
Alexander Prokhorov, head of Moscow's Investment and Industry Department, said the Vietnamese market is extremely attractive for our fellow industrial goods producers. According to the official, the most popular products in Vietnam are focused on the specific needs of the population. Prokhorov also cited the spending structure of the state's residents for 2019:
According to experts of Mosprom (the capital's center for export support and development), among all states in the Asia-Pacific region, Vietnam's consumer market is one of the most dynamic and rapidly developing. According to an analysis conducted by experts of the center, since 2015, the consumer spending of the Vietnamese has increased annually by about 8%. The dynamics of this coefficient among other countries of the region is much lower - only 4.7%. In addition, there is a good purchasing power of citizens of the Republic: in 2019, it was more than $ 8,000 per capita. Mosprom explains this by the following factors:
Most of the population (69.2%) of Vietnam are able-bodied citizens. The unemployment rate in the republic is one of the lowest in the region - about 2%;
The republic's authorities are actively developing its major cities and financial centers. This has a favorable effect on the standard of living of the population and contributes to the strengthening of all sectors of the economy.
Mosprom believes that over the next five years, the Vietnamese market will become more active, and the needs of the population of the republic will grow. According to experts, in 2021 the total demand of the Vietnamese people for food will be about $85.71 billion, and by 2025 it will reach $125.28 billion.
Mosprom employees also note that Moscow city authorities have been providing comprehensive support to Moscow companies trading with Vietnam for several years in a row. Thus, in 2019, a business mission to Vietnam for Moscow food and FMCG producers was organized with the assistance of the center. As a result, our compatriots managed to agree with Vietnamese partners on regular deliveries of confectionery products, beverages, diet food, goods for diabetics.
In conclusion, let us recall that the capital center "Mosprom" was created specifically to help domestic entrepreneurs to enter the international market. He helps businesses to build foreign trade relations, selects proven international buyers, etc. Specialists of the center assist companies in such spheres as analysis of their readiness for export activity, audit of foreign economic activity, consultations on certification of goods, their customs registration and logistics. According to Natalya Shuvalova, general director of the center, specialists of the institution do not use a general algorithm of work, but try to find an individual approach to each company, taking into account specific features of its activity, work experience at the international markets and other factors.