Illustrative image (Photo: AFP/VNA) Moscow (VNA) – The tension in the relationship between Russia and the West has directly affected business activities of the Vietnamese community in Russia, according to a senior expert from the Institute of Economics under the Russian Academy of Sciences.
Dr. Nguyen Quoc Hung - a senior researcher at the institute emphasised that the West’s sanctions have a severe impact on Russia's economy and investment environment.
The impact of Western sanctions on Russia’s financial system will become more severe as it may create problems for Russian banks' access to world markets, and ban international businesses from investing in Russia’s energy projects, he said.
According to the researcher, to deal with these problems, Russia has been building a national payment system to create an alternative to the SWIFT payment system and considering other measures.
Russia's economic growth may slow down significantly in 2022 due to the impact of the Russian central bank’s tight monetary policy, and the policy of fiscal consolidation of the country, Hung said, adding that unpredictable developments of the COVID-19 pandemic will be likely to put pressure on the Russian economy.
These problems directly affect business activities of Vietnamese people in Russia, when decreased income of Russians will result in a decline in the purchasing power and changes in buying habits.
However, production activities of Vietnamese expats in Russia are faring better, Hung said.
Despite difficulties, Vietnamese people in Russia have always been dynamic he said, adding he believes the community will be able to swiftly change their business models to overcome challenges caused by the COVID-9 crisis./.
