The conflict between Russia and Ukraine is one of the main reasons for increasing prices in the market for a number of fuels and raw materials for production and consumption such as gas - oil, petrol, leading to logistical costs. higher...
Textile and garment exports to Russia in 2021 will reach 339 million USD.
According to the Vietnam Textile and Apparel Association (Vitas), Vietnam is a country with very high economic openness, deeply integrated into the global economy, so it is difficult to avoid the impacts of the Russia-Ukraine conflict.
All economic and production sectors, including the textile and garment industry, will be significantly affected by market fluctuations to growth, development, economic and trade cooperation, as well as import and export of goods. .
While both Russia and Ukraine are traditional and important trading partners of Vietnam in the Eurasian region. In terms of trade turnover, Russia ranked 1st, Ukraine ranked 6th.
According to statistics of Vietnam Customs, bilateral trade turnover between Vietnam and Russia in 2021 will reach 5.5 billion USD, up 13.8% compared to 2020. In which, exports will reach 3.2 billion USD ( increased by 13.2%) and imports reached 2.3 billion USD (up 14.9%). Particularly, textile and garment exports to Russia reached 339 million USD.
For the Ukraine market, in 2021, the trade turnover between the two countries will reach 720.5 million USD (up 50.6% compared to 2020), of which exports from Vietnam will reach 344.6 million USD (up 21 %), imports from Ukraine reached 375.8 million USD (up 94.2%). Textile and garment exports to Ukraine reached $8.7 million.
The Russian-Ukrainian conflict is causing many difficulties for businesses doing import and export to these two countries.
Specifically, according to the Vietnam Textile and Apparel Association, freight transport is congested and freight charges are high. This conflict is one of the main reasons for increasing prices in the market for a number of fuels and raw materials for production and consumption such as gas - petroleum, petrol, leading to higher logistical costs. .
Besides, the transportation and circulation of goods also face many obstacles. Currently, a number of shipping lines have refused to accept orders to transport goods from Vietnam to Russia, resulting in goods not being able to be exported, delaying collection of goods to rotate production.
There are many businesses that have export orders to Russia, which are now finished and ready for export, but no shipping company accepts export goods to Russia.
In addition, the air embargo will also lead to airlines having to choose longer routes, increased costs, increased pressure on the global logistics transport system and the price of goods.
Difficulty in payment of commercial contracts is also a big challenge. Due to the recent past, the US and Western countries have introduced a series of sanctions targeting the banking - financial system of Russia, such as banning transactions in USD with large Russian banks such as Sberbank. , VTB,…; restricting capital mobilization through the US market; freezing the assets of the Central Bank of Russia… The ruble exchange rate fluctuated and depreciated so strongly that some Russian importers proposed to suspend payments for 2-3 weeks to wait for the situation to stabilize.
Therefore, many Vietnamese banks are concerned that the Russian Bank cannot pay for export orders to Russia, so they do not dare to accept guarantees. In addition, express delivery units such as Fedex or DHL also do not transport export documents, so it is difficult for Russian banks to receive export documents to pay for Vietnamese businesses.
Therefore, right from the first week of March 2022, Vitas sent Official Letter No. 11/2022/VITAS-CS to the Ministry of Industry and Trade proposing and proposing solutions to remove difficulties for businesses, such as solutions to reduce costs. Inland logistics costs include freight rates, cutting costs of seaports and yards.
At the same time, it affects foreign carriers to cut sea freight, reduce surcharges related to logistics. Find another export method for your business like the railway.
On the other hand, it is necessary to promptly inform the State's policies, forecast the situation and solutions of ministries and sectors so that export and import enterprises with Russia and Ukraine know and find ways to adapt.
Vu Khue
https://vneconomy.vn/kien-nghi-go-kho-cho-doanh-nghiep-det-may-xuat-khau-sang-nga-va-ukraine.htm
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