The Russia - Ukraine conflict is one of the main reasons behind the sharp increase in the price of certain fuels and raw materials for production and consumption, leading to higher logistical costs for textile companies. The Vietnam Textile and Apparel Association (VITAS) has therefore proposed the Ministry of Industry and Trade (MoIT) introduce solutions to remove difficulties facing textile exports, such as cutting logistics costs, including freight and port fees.

Mr. Phan Duc Hieu, Standing Member of the Economic Committee of the National Assembly (NA), told the “Evaluating the impact of the conflict between Russia and Ukraine on the Vietnamese economy” seminar held by VnEconomy on the afternoon of March 7 that the economy may indeed suffer. If Vietnam does not quickly identify appropriate policies, economic recovery will be difficult.

According to Mr. Petri Deryng, Portfolio Manager at the PYN Elite fund, the response of Vietnam’s stock market to the Russia-Ukraine crisis has been only moderate, with 95 per cent of transaction value coming from individual domestic investors. If the conflict become worse and lasts longer, however, the market will see negative developments in the weeks to come.