The ASEAN+3 (Association of Southeast Asian Nations plus China, Japan and Korea)''s economic growth is expected to normalise this year as the COVID-19 pandemic recedes. However, rising geopolitical uncertainty over Russia-Ukraine is overshadowing the outlook.
HCM City’s industrial production saw positive growth in the first quarter of the year despite the continuing difficulties caused by COVID-19 and recent challenges such as rising petrol prices and the Russia – Ukraine conflict.
The Russia–Ukraine tensions are forcing Viet Nam to look for alternative suppliers of fertilisers to cope with the shortage of supply and rising prices.
Vietnamese enterprises should prepare to deal with ramifications of the ongoing Russia-Ukraine conflict like rising oil prices and long-term impacts of sanctions on Russia, experts say.
The conflict almost certainly will drive global oil prices up, disrupt the global supply chain and inflationary pressures. As a result, firms will likely be more hesitant to make investments, consumers cut back on spending and lower demand for credit.
Việt Nam’s livestock industry is likely to be hurt due to the increase in raw materials and animal feed prices since the Russia-Ukraine conflict began, the Agribank Securities JSC (Agriseco) has said.
The West cutting Russia off the Society for Worldwide Interbank Financial Telecommunication or SWIFT is unlikely to produce a significant impact on Viet Nam and Vietnamese businesses, said industry experts and banking regulators.