Many agricultural import-export enterprises are concerned about their solvency difficulties before Russia’s exclusion from the SWIFT international payment system. Enterprises expect the State management agency to take timely support measures to help businesses ensure import-export activities with the Russian market.
Mr. Dao Huu Duy Anh, General Director of Duc Giang Chemical Group Joint Stock Company, said that the tension between Russia and Ukraine will certainly seriously affect the fertilizer market in Vietnam. “Russia is a huge exporter of NPK fertilizers to Vietnam, so the Russia-Ukraine tension will definitely affect the fertilizer industry, fertilizer prices may continue to increase due to the affected supply,” he said. Duy Anh said.
Import and export enterprises “stand still” when Russia is excluded from SWIFT:
According to statistics of the General Department of Customs, in 2021, Vietnam imported from Russia 386,193 tons of fertilizer, an increase of 7.9% in volume compared to 2020. The amount of fertilizer imports from Russia accounted for 10% of the fertilizer used in the whole country. . Entering January 2022, Vietnam imported 322,731 tons of fertilizer, equivalent to 153.6 million USD. In which, Vietnam imported 53,773 tons of fertilizer from Russia, equivalent to nearly 29.6 million USD.
With Duc Giang Chemical Group Joint Stock Company, although it does not import NPK fertilizers from Russia but can produce it itself, due to the increasing source of imported raw materials, businesses are also having a “headache”. In addition, the leader of Duc Giang Chemical Group Joint Stock Company said that Russia’s exclusion from the SWIFT international payment system will make payment with Russian customers difficult. “I think payment is almost impossible, unless using virtual currency,” Mr. Duy Anh said.
Similarly, Mr. Duong Nghia Quoc, Chairman of Vietnam Pangasius Association informed, although the proportion of Vietnamese pangasius in the Russian market is not too large compared to other markets such as the US and China, but with the With the current Russia-Ukraine war situation, especially with Russia being excluded from the SWIFT payment system, it is certain that pangasius exporters to the Russian market will be affected.
“The export will be more difficult, the goods may not be able to go right away. As reflected by some businesses to the Vietnam Pangasius Association, there have been a number of businesses that have not been able to pay for their orders delivered immediately after Russia was removed from the SWIFT payment system. Some businesses in difficulty have taken action to ask for help and recommendations to remove, “Mr. Duong Nghia Quoc added.
Similar to the pangasius industry or fertilizer, processing, cashew nut exports are also affected.
There have been a number of pangasius exporters who have not been able to pay for orders delivered immediately after Russia was removed from the SWIFT payment system. Photo: N.T
What will import-export businesses do after the news that Russia is eliminated?
Mr. Dang Hoang Giang, General Secretary of the Vietnam Cashew Association shared: “The removal of Russia from the SWIFT payment system will certainly cause businesses to face many difficulties in payment, especially for Russian customers because SWIFT is currently present. is a popular method of sending electricity, used by most banks in the world and Vietnam to make payment transactions safely.
According to statistics of the General Department of Customs, Russia is currently ranked 11th out of 104 cashew export markets of Vietnam, accounting for 1.63% of the market share, with an export value of USD 61.8 million in 2021. Mr. Giang said that although Russia is not yet the main export market of Vietnam’s cashew industry, Russia’s exclusion from the SWIFT payment system is also very concerning because it will affect the overall export balance.
Faced with concerns due to the impact of the Russia-Ukraine war, the Vietnam Cashew Association is considering a plan to lower the export target set for 2022 to $3.8 billion, and is working with the Association’s businesses. discuss response plans. The representative of the Vietnam Cashew Association also suggested that the State Bank of Vietnam soon have information and support businesses to ensure import-export activities with the Russian market.
From the perspective of the pangasius industry, Mr. Duong Nghia Quoc added that immediately after receiving feedback on the difficulties of enterprises, the Association quickly reported to the Ministry of Agriculture and Rural Development, the Ministry of Industry and Trade, and recommended the functional sectors. soon find ways to solve difficulties for enterprises.
What organizations does SWIFT include and who governs it?
SWIFT is an acronym for Society for Worldwide Interbank Financial Telecommunication. The system was established in 1973 to replace telegrams and is used by more than 11,000 financial institutions to send messages and secure payment orders.
SWIFT recorded an average of 42 million messages per day in 2021 and 82 million in February 2022. These messages are about stock trading, trading… SWIFT is headquartered in Belgium and is managed by a 25-person board, including representatives from Russia. SWIFT is a neutral organization, operating under Belgian law and in compliance with EU regulations.
According to the Russian National Association of SWIFT, about 300 Russian banks and institutions use SWIFT, more than half of the credit institutions participating in this system making Russia the second largest country after the US in terms of number of users.