On the afternoon of March 3, the Ministry of Agriculture and Rural Development (MARD) said: Russia-Ukraine conflict and accompanied by strong economic sanctions from the West as well as a response from Russia, which has had a comprehensive and profound impact on the world economy, such as: Shut down the international payment system ( SWIFT) major international banks of Russia; freezing assets of banks and large corporations; prevent import and export; credit suspension, supply chain disruption, ruble devaluation, inflation increase, global stock market instability…
The Ministry of Agriculture and Rural Development assessed that Vietnam’s agricultural trade with Russia and Ukraine has also been significantly reduced due to the impact of the Russia-Ukraine conflict (illustration image).
According to the Ministry of Agriculture and Rural Development, Vietnam is not an exception to the negative economic impacts caused by the conflict between Russia and Ukraine, especially risks of international payments, disruption of the supply chain for export and import. (large shipping lines have announced not to ship to and from Russia, increasing shipping costs), increasing import input costs for basic goods, declining demand in Russia, Ukraine and related countries .
Vietnam’s agricultural trade with Russia and Ukraine has also been significantly reduced. Vietnam annually exports about 500 million USD to Russia (US$ 550 million in 2021) of agricultural – forestry – fishery products, including a number of items with significant export value such as seafood ($164 million), accounting for 3% of total seafood exports), coffee (US$173 million, accounting for about 6%), pepper and cashew (US$60 million, accounting for about 2%).
When the conflict broke out, export transactions to Russia were halted due to banking risks, lack of shipping and high costs. Businesses now have to monitor the situation to handle inventory or find ways to export to other markets.
In addition, Vietnam also imports from Russia and Ukraine (total imports of agriculture, forestry and fishery products from Russia into Vietnam in 2021 is about 500 million USD) many input materials for domestic agricultural production such as wheat. (under normal conditions, it can reach 1 million tons, accounting for about 20% of total wheat imports), maize (3% of total corn imports) as animal feed; fertilizers (10% of total fertilizer imports).
The lack of shipping lines and the increase in transportation costs make Vietnamese input importers stop trading with Russia and switch to finding suppliers from other countries such as Australia, South America, and South Africa. More importantly, supply shortages from Russia and Ukraine increase the cost of input materials for production globally. The price of input materials such as: Wheat, corn… has increased by 10-20%, fertilizer price has increased by over 20% recently, adversely affecting the livestock and farming industry.
From the above situations, the Ministry of Agriculture and Rural Development will closely monitor the situation, closely coordinate with the Industry Association and the State Bank to support payment for businesses that have exported goods to Russia but transacted with them. finances are stagnating.
In addition, the Ministry of Agriculture and Rural Development will work with industry associations such as VASEP, Coffee and Cocoa Association (VICOFA), Cashew Association, and Wood Association to discuss solutions to deal with immediate difficulties due to stagnation. Russian and Ukrainian markets; diversifying export markets, including markets that previously had a large amount of imports (EU, China, Middle East, etc.) from Russia and Ukraine for products such as seafood, wood and furniture. . Working with enterprises importing input materials to discuss solutions to stabilize input prices for domestic agricultural production.
According to VOV.com.vn
