The fluctuations of the Russian rouble have badly affected trade between Vietnam and Russian, with Vietnamese businesses facing particular difficulties in payment processes. In order to maintain business ties between the two countries, firms are asking for solutions.
The rouble has lost more than half its value against the dollar last year. This situation has already seen Vietnam’s tourism agencies lose half of its Russian tourists. However, in the first half of this year, the rouble has significantly increased in value, from 70 roubles a dollar USD to 55 roubles. However, Vietnam’s travel companies were surprised by the fluctuations in the rouble.
Le Cong Nang, Head, Communication Department, Vietrantour Company said: "We made plans for the Russian market over a year ago and it was prepared based on the situation at that time. The fluctuation in the value wasn’t planned for and it changed our long term strategy. It also badly affected the prices of land tours that we agreed with foreign partners."
For orders of outsourcing garments with Russian partners over the coming 3-6 months, Vietnamese businesses also faced many difficulties in fixing prices. Rosviet is a Russian business with a factory outsourcing garments in Hải Dương Province. The company has had to find many solutions to deal with the decrease of orders from Russia.
Sergey Zvezdin, Director, Rosviet Joint Stock Company said: "Currently, businesses of the two countries are very worried so we have to cut manufacturing. We need to ensure delivery times are met and inventories stay low to decrease the company’s losses."
And things might not get any easier for the foreseeable future as experts warn that the rouble’s value is subject to influences from many factors. In order to maintain trade with Russia, solutions are required from Vietnamese businesses and the participation of the banking systems of the two countries.
Sergey Dudin, Chairman, Simbirsk Association of Cultural and Trade said: "Using the US dollar in trading is a reasonable solution at this time. The banking systems of both countries should establish a mutual exchange currency as another way to solve the problem."
The State Bank of Vietnam and the State Bank of Russia are working to establish a mutual payment system for the two countries. This will be further discussed in the meeting of Russia-Vietnam banking working group, which will take place in September this year./.
