Businesses need to proactively cope with impact of Russia-Ukraine conflict

Local firms have been advised to swiftly grasp information on US embargos and negotiate with their American partners in order to avoid violating sanctions against Russia and other related markets, according to insiders.

Experts share their solutions to proactively cope with the impact of Russia-Ukraine conflict (Photo: VNA)

The recommendation was made by experts at a talk held on March 13 to discuss the impact of the Russia-Ukraine war, with the event being organised by the Leading Business Club (LBC) and the Business Association of High-Quality Vietnamese Products.

Economists pointed out that the country is likely to encounter difficulties in the event that the US and European nations impose sanctions on Russian oil and gas enterprises.

Tran Quoc Hung, CEO of the Institute of International Finance (IIF) in Washington DC, analysed that current tensions, coupled with Western sanctions, have caused shortages and pushed up the prices of many commodities such as oil and gas, grains and some strategic minerals, thereby making the business environment more difficult for global businesses.

Think tanks outlined that Vietnam can increase its participation in the EU market in a number of different areas, such as agricultural products and food to replace goods from Russia and Ukraine. In fact, the nation exports over 6.5 million tonnes of rice per year, ranking second in the world behind only India.

Vietnamese businesses have therefore been advised to increase their market share in the EU market by using up the rice export quota of 80,000 tonnes with a tariff rate of 0% under the terms of the EU-Vietnam Free Trade Agreement (EVFTA).

Simultaneously, the country should strive to develop high-quality specialty rice that is favoured by European consumers.

A number of experts have pointed out that the escalating global price of oil is anticipated to rise fuel prices in the nation, thereby leading to production and consumption costs to skyrocket.

Pham Quang Vinh, former Deputy Minister of Foreign Affairs, also underlined the necessity of harmonizing the interests of concerned parties and protecting the legitimate interests of Vietnamese enterprises in the international market.

Economist Nguyen Duc Thanh advised local enterprises to strictly monitor the price fluctuation of commodities in the global market in order to make proper adjustments and keep up with trends to utilise competitive advantages.

VOV