Domestic businesses seek ways to adapt to Russia-Ukraine conflict

April, 22/2022 - 09:15

While the Russia-Ukraine conflict has left negative impacts related to transport, inflation and international payments on import and export activities, it could also create opportunities for businesses which adopted timely adaptation measures, experts have said.


Participants at the event. — VNA/VNS Photo

HCM CITY — While the Russia-Ukraine conflict has had negative impacts related to transport, inflation and international payments for import and export activities, it could also create opportunities for businesses that adopt adaptation measures, experts have said.

Speaking at a workshop, entitled "Adaptive solutions for import and export activities in the context of the Russia-Ukraine crisis" organised by the Việt Nam International Arbitration Centre (VIAC) in collaboration with the HCM City International Integration Support Centre (CIIS) on Wednesday, VIAC Chairman Vũ Tiến Lộc said the Russia-Ukraine conflict is considered one of the hot spots having direct impacts on the economies of many countries.

As Việt Nam's important trading partners in the Eurasian region, import and export activities between Việt Nam and Russia as well as Ukraine have also experienced significant changes. Businesses have not only faced disruption in the supply of raw materials and fuels but also impacts on the delivery of goods and increased transportation costs, he said.

Phạm Bình An, Deputy Director of the HCM City Institute for Development Studies, said Việt Nam's two-way trade with Russia and Ukraine reached about US$7.6 billion last year, accounting for 1.2 per cent of the country's total import and export turnover.

The Russia-Ukraine conflict has thus both directly and indirectly affected Việt Nam's economy, he said.

Vietnamese enterprises have not only faced difficulties in the direct imports of some products from Russia and interruption in exporting products to Russia and Ukraine, but they also have to face competition in purchasing raw materials from other markets, An said.

The disruption of the supply chain in the Russia and Ukraine markets has greatly affected seafood enterprises in Việt Nam as well as other countries when most of the raw materials are imported from Russia, Trương Đình Hòe, General Secretary of the Việt Nam Association of Seafood Exporters and Producers (VASEP) said, adding that orders have been continuously delayed and cancelled, resulting in congestion and losses for businesses.

To deal with the above-mentioned problems, Lộc suggested businesses should have long-term strategies to cope with market fluctuations. It was necessary for them to be equipped with solutions on risk management and handling disputes to be more resilient and resume business operations quickly in the near future, he said.

An agreed, saying that enterprises should actively diversify markets and supply as well as payment methods. He added that it is a must for them to study the incentives that free trade agreements, which have become effective, brought about to reduce costs and improve competitiveness.

Meanwhile, Hòe said, in response to the Russia – Ukraine conflict, seafood enterprises have adjusted business activities in a timely manner. Accordingly, enterprises have proactively carried out quick payment measures through channels from foreign and private banks.

Seafood enterprises are actively looking for opportunities to increase the market share of pangasius as there is a shortage of white fish supply in Europe, he said. — VNS