Can Vietnam continue to import and export to Russia?

[ASEAN NOW News]

With the world agreeing that Russia is out or order to attack Ukraine apart from military muscle, the other weapon being used is sanctions.

 

This means financial and of course imports and exports.

 

As Russia and China are big investors in Asia do you think Vietnam will be under pressure to stop exports to Russia from the USA and Europe?

 

Remember Vietnam in the past few months has opened dialogue with Kamila Harris the US VP and Europe, especially France also has close ties too.

 

Facts and figures

 

Russia exported $161million and imported $454million from Vietnam, resulting in a negative trade balance of $293million according to a report posted on September 2021.

 

Between September 2020 and September 2021, the exports of Russia have decreased by $-1.11million (-0.69%) from $162M to $161M, while imports increased by $72.8million (19.1%) from $381M to $454M.

 

Now, the European Union is Russia's largest trading partner, accounting for 37 percent of its global trade in 2020. About 70 percent of Russian gas exports and half of its oil exports go to Europe. 

 

Vietnam’s biggest customer for exports is China and of course, China is closer to Moscow than Washington.

 

Vietnam Exports to France were US$3.26 Billion during 2020, according to the United Nations COMTRADE database on international trade. Could this be stopped?

 

Moscow Trip

 

President Nguyễn Xuân Phúc witnessed the signing ceremony between Vietnamese and Russian firms at the Vietnam-Russia Business Forum on Dec 1 in Moscow, Russia. — VNA/VNS

 

As widely reported in December 2021, Vietnam’s President Nguyễn Xuân Phúc asked ministries, agencies, and businesses of Vietnam and Russia to seek ways to lift two-way trade by fifteen times from the current US$5 billion and tripling investment in the near future.

 

Addressing the Vietnam-Russia Business Forum that drew eighty firms from both sides in Moscow, Phúc said Vietnam is one of the twenty most successful countries globally in terms of foreign direct investment attraction.

 

He suggested Russian firms study more about the Vietnamese market and vice versa to achieve better results and reach bilateral trade levels commensurate with the traditional, profound relations between the two countries.

 

Given the current situation, Vietnam’s President along with other Asian countries must decide where they stand on the world stage.

 

I am sure European leaders, and the US will be straight on the phone to garner support for the sanctions on Moscow.

 

It will be a hard call to make financially, but not morally hopefully.

 

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