Cancellations in Russia had a ripple effect across the market

DNHN - To the tune of USD 838.79 million, Vietnam's export turnover to Russia dropped by 49.31% in H1 2022. Even after going through export processes, many shipments end up being cancelled, and those that are already in transit have to be rerouted.

Vietnam Customs, imports and exports between Vietnam and Russia reached 2.02 billion USD in the first half of 2022, representing 0.5% of Vietnam's total import and export turnover with the world. This is a decrease of 18.63%, or 412.95 million USD when compared to the same period in the previous year.

The United States racked up a $344.87 million shortfall in trade with Russia. By the end of June, Vietnam's total exports and imports amounted to USD 371.32 billion, and the country's trade surplus hit USD 740 million.

In terms of exports, Vietnam's export turnover to Russia was $838.79 million in the first six months of 2022, a 49.31 per cent decrease (equal to $817.93 million) from the same period in 2021.

Most Russian-made items have seen a significant decline. Exports of computers, electronic devices, and components plummeted the highest, at 73.83 per cent; phones and components fell by 71.65 per cent, and textile and garment exports declined by 40.02 per cent.

With the fruit and vegetable sector, Russia will be Vietnam's 9th biggest fruit and vegetable market in 2021, with an export value of almost 76.6 million USD, a roughly 41 per cent growth over 2020. The most important exports are pineapples, mangoes, and dragonfruits, although transactions have also been disrupted. As a result, vegetables and fruits will be down 40.88 per cent in the first six months of 2022.

Cashew goods fell by 36.86 per cent, while seafood fell by 34.55 per cent... in the first six months of 2021. Only three categories saw a rise in export turnover: rice (up to 90.48 per cent), rubber products (up 65.87 per cent), and coffee (34%).

According to experts, the Russia-Ukraine war at the end of February was the major reason why trade flows to Russia were badly impacted, with numerous export sectors plummeting.

Many export orders to Russia, according to some firms, could not be completed owing to transportation and payment problems. Many shipments, even those that have gone through export processes, are compelled to cancel, and even shipments that are already on their way must return to find alternate markets.

According to the Vietnam Trade Office in the Russian Federation, since Russia launched a special military operation in Ukraine, export turnover from Vietnam to Russia has dropped drastically and unexpectedly owing to sanctions imposed by other nations. The US, EU, and its alliances

However, there were indications of improvement in June 2022 compared to previous months, particularly for Vietnam's strong goods such as seafood, cashew nuts, coffee, tea, and pepper...

In the opposite direction, Vietnam's product import turnover from Russia reached 1.08 billion USD in the first six months of 2022, an increase of 22.38 per cent (equal to 216 million USD) over the same period in 2021.

Although Russian shipments to Vietnam climbed in value because global raw material prices increased, the quantity declined compared to the same time the previous year (all types of coal, fertilizer, iron/steel of all sorts...).

PV