To help maintain growth momentum as well as reduce risks in exports, especially in the face of the conflict between Russia and Ukraine, the Ministry of Industry and Trade has issued many recommendations to businesses, especially in need of calm. to actively deal with all emotions.
Chief maintain
Leather shoes is a in the other the face row export the owner. Ms. Phan Thi Thanh Xuan, Vice President of the Vietnam Leather, Footwear – Handbag Association (Lefaso) said that the current production pace of enterprises, especially leather and shoemaking enterprises in the South region is good.
Many enterprises in the industry have export orders at least until the end of the second quarter of 2022, which is a good basis for fast production enterprises to regain their growth after being affected by the epidemic.
The Export Department (Ministry of Industry and Trade) said: Maintaining the pace even when the whole country has a relatively long Lunar New Year holiday, in February 2022, exports about 22.95 billion USD. In 2 months, total export turnover reached 53.79 billion USD, up 10.2% over the same period in 2021.
In contrast, the import turnover of goods in February 2022 was estimated at $25.28 billion, up 21.9% over the same period last year. Generally, in the first two months of 2022, goods import turnover was estimated at 54.73 billion USD, up 15.9% over the same period last year.
Thus, in the first 2 months of 2022, the balance of trade in goods is estimated to have a trade deficit of 937 million USD (the same period in 2021, there is a trade surplus of 1.6 billion USD). While the economic sector had a trade deficit of 3.96 billion USD, the foreign-invested sector, including crude oil, had a trade surplus of 3.02 billion USD.
However, in addition to the happy signs that export orders have been received until the end of the second quarter, for a few days, Ms. Pham Thi Hong – Director of Hong Thinh Co., Ltd. has continuously contacted customers in Russia to inquire about the situation. as well as solving backlog of orders and payment documents.
According to Ms. Pham Thi Hong, having a familiar relationship, every year enterprises export a large amount of products of this market.
In particular, from the beginning of the year until now, orders for Russian songs have doubled compared to the same period of the year. However, there was a conflict between Russia and Ukraine and the method of applying sanctions to Russia, the company’s export orders were stopped.
According to the Ministry of Industry and Trade, Russia is a potential market for Vietnam, both for edge and export. The data shows that in 2021, Vietnam exports to Russia 3.2 billion USD; imports from this country 2.3 billion USD, up 15%.
Russia’s main export items include phones and components, accounting for 33%; computers and electronic products 13%, Textile 10.5%, coffee 5.4%, seafood 5.1%.
As for Ukraine, the export turnover is not large, less than 1 billion USD, but this back is for the trader of the media, the important of Vietnam in the Asia-Europe region.
In 2021, the trade turnover between the two countries will reach 720.5 million USD, an increase of nearly 51% over the same period in 2020. Fisheries, footwear, electronic computers… are the main export products of Vietnam. South to this country.
According to the leader of the European and American Markets Department (Ministry of Industry and Trade), Vietnam will be significantly affected, directly and negatively on production, import and export, inflation and supply; transportation, storage of goods, payment of commercial contracts… Enterprises with cooperation projects with Russia, Ukraine, Belarus and other countries involved in the crisis will also be affected.
Accordingly, before that was the supply of raw materials, naturally when this conflict was one of the main reasons for the increase in gas prices – petroleum, wheat, aluminum, nickel, corn … due to the production market share. export and export Russia, Ukraine with large items.
Payment of commercial contracts with Russia will also be difficult, after the US and Western methods introduced a series of sanctions targeting Russia’s budget system, freezing the assets of the Central Bank of Russia. .
These penalty tools will affect the payment of many contracts using USD payments in the short term. Moreover, the ruble depreciated very strongly, causing some Russian importers to ask to stop paying for 2-3 weeks to wait for the situation to stabilize.
Not only that, some shipping lines have allowed to receive orders from Vietnam to Russia. Transport value will continue to soar along with delays in transit which will have an important impact on the commercialization of goods.
In addition, the work of transporting goods also does not cause airlines to choose longer routes, increasing costs, increasing pressure on the global logistics system and goods prices.
According to the leader of the Europe-America Market Department, bilateral trade between Vietnam and Russia will not avoid negative activities if the US and the West continue to strengthen strong and comprehensive financial sanctions. Russia.
Therefore, businesses that are exporting to Russia and Ukraine need to actively work with import partners on payment, delivery progress …
In addition, businesses need to make the most of incentives in free trade agreements (FTAs) between Vietnam and other countries to diversify markets.
In case businesses have difficulty exporting goods to Russia and Ukraine, they can contact the Vietnam Trade Office in these two countries for support and find solutions.
Active Vice
Notably, at the Government meeting in February, Prime Minister Pham Minh Chinh directed the establishment of a working group to promptly deal with and respond to the impact of the Russia-Ukraine conflict on Vietnam.
The rankings also save local leaders, businesses, traders, and long-distance drivers who need to ensure regulated production, safe packaging and transport of goods, in accordance with epidemic prevention and control requirements, to help parties open and connect with each other. and maintain the reopening of border gates.
Mr. Vuong Duc Anh, Chief of Office of the Vietnam Textile and Garment Group (Vinatex), said: For the textile industry, the industry’s leading export partners, including the US, reached US$15.9 billion and US$3.7 billion. USD, Korea 3.6 billion USD, China 4.4 billion USD…
Therefore, the value of imports and exports through Russia and Ukraine is very small, so the partners are large, so the direct impact on trade is very small, but the indirect impact is something to pay attention to.
According to Mr. Vuong Duc Anh, the concern is that the increased pressure on oil will cause the risk of development to continue to escalate, affecting the market. This will affect input production costs, leading to reduced profits or less competitiveness, when textiles can be a price and time sensitive commodity. Therefore, state management agencies need to make an assessment to have a main policy.
Dr. Le Quoc Phuong, former deputy director of the Center for Industry and Trade Information (Ministry of Industry and Trade), said that: Russia and Ukraine are not big partners of Vietnam, so the impact is not too great. However, indirect effects through oil prices or from countries applying sanctions against Russia and Vietnam are also issues that need attention.
Recently, the Ministry of Industry and Trade has reported to the Prime Minister about the stressful situation and possible risks to the economy. Accordingly, the Ministry of Industry and Trade proposes to the Government and ministries and branches a specific initial measure.
For example, for industry associations and enterprises engaged in export activities, the Ministry of Industry and Trade should note and apply risk prevention measures when entering into contracts with foreign customers, considering the focal point in choosing the right product. select the payment bank in the foreground operation.
Moreover, businesses need to make the most of the utilities in 15 FTAs between Vietnam and other countries to diversify markets. However, great care should be taken in import and export to avoid accidentally entering sanctions, especially trade-restrictive measures.
In particular, the Ministry of Industry and Trade also directed the entire Trade Office system in Europe to have the highest responsibility in supporting businesses that are having difficulty in import and export activities with Russia and Ukraine to find ways to change direction. suitable for schools in Europe.
End up the password of a goods in time to, the Ministry of Industry and Trade has been implementing many solutions synchronously; in which, focusing on effective implementation of FTAs that have taken effect, commitments in the World Trade Organization (WTO) and the ASEAN Economic Community.
Along with that, guiding businesses on the bases of important FTAs such as the Vietnam-EU FTA (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Global Economic Partnership Agreement area area (RCEP)…
As for export activities through border gates, Deputy Minister of Industry and Trade Tran Quoc Khanh said that besides the solutions of the authorities on creating benefits to notify goods, the Ministry of Industry and Trade constantly warned, the job open the password is easy, keep the password but better.
Therefore, the Ministry of Industry and Trade recommends that drivers and businesses implement the goal of “safe to export, export must be safe” to keep the border gate.
