Vietnamese people in Russia are reeling from the economic crisis

The Vietnamese community in the Russian Federation mainly focuses on doing business and trading in wholesale markets in many regions across Russia. In Moscow, most of our relatives do business in Liubliu and Sadavod markets.

Suffering when the ruble depreciates

“Many Vietnamese in Russia are confused. A ruble that slips by almost half its value is a nightmare for all of us.” Duong Quoc Thien, a small trader in Moscow told VTC News.

In addition to the general negative impacts from the domestic market, Vietnamese markets in Russia also have other difficulties: The cost of renting premises and services is very high, input prices are high, and imported goods are difficult to import. difficult because many areas are blocked. Vietnamese traders mainly use dollars and euros to buy goods and raw materials for production from other countries and sell them in rubles to Russians. Now when the ruble falls, many Vietnamese have lost more than half of their assets.

“The difficulty cannot be overstated. The ruble depreciated much, commodity prices increased, the market stagnated. The business is almost halted or stopped altogether. Meanwhile, all daily expenses such as space rent, workers’ wages, personal and family living still have to be paid. The economic burden weighs heavily on the shoulders of many Vietnamese people.”Mr. Thien added.

The situation is difficult, many Vietnamese have to pay the ground, suspend their business and switch to hired labor. Expatriates everywhere are experiencing this common situation, from Moscow to areas with large Vietnamese populations such as Tula, Volgograd, Voronezh, Kazan…

Duong Thi Thin, a small trader in Voronezh, said that in the last two years, the epidemic COVID-19 The complicated developments made her life quite precarious. Now that there is a conflict between Russia and Ukraine, the situation is even more difficult.

“Since the outbreak of the war, the purchasing power of the Russian people has plummeted. Those Vietnamese people who are lucky enough to still be able to sell goods are both happy and sad. Because sometimes they can get goods to sell, tomorrow the wholesale price will be higher than yesterday’s retail price.”said Thin.

Difficulties pile up

According to Ms. Thin, nowadays, it is really difficult for relatives to come here to work and earn wages to send money to their families in the country. Wages are paid in rubles, while the USD exchange rate is high, the amount sent back is not much. Even at the current exchange rate, the salary of Vietnamese workers in Russia is lower than in the country.

For Ms. Nguyen Thi Huong, a Vietnamese employee working in the garment industry in Moscow, previously, her monthly income could be converted into foreign currency from 800-1,000 USD/month. And now, the amount of money she converts into USD to take care of her family in Vietnam has been reduced by more than half.

In addition, she said, because market prices change rapidly, garment companies also temporarily stopped importing input materials from abroad. As a result, wage workers like her are also without jobs, while the cost of living and living costs increase.

Many Vietnamese in Russia are continuing to listen and wait. If the bad situation continues, there will be 2 possibilities. Those who do not have family problems in Russia, working in the fields of garment, agriculture, construction, can return home. Meanwhile, people with families here still have to stay, to take care of their children’s education.

“This situation continues, I and many other Vietnamese workers have to quickly return home. Because if you stay, you won’t have money to spend, while you need money to send back to take care of your children and elderly parents in the countryside.” Huong said.

Solidarity overcome the crisis

Besides the group of Vietnamese who are mentally ready to return home, many people are still determined to stay and stick with Russia.

Tran Phi Na, who lives in Moscow, said that under the influence of sanctions from the West, the Vietnamese community understands the position of the Russians. Everyone is still trying to be optimistic about going to work. Many people get used to and accept these restrictions. A few minor inconveniences such as no more cultural events and music, less connections with foreign countries.

“Currently, not many Vietnamese in the wholesale markets in Moscow want to return at this time, because most households have the right to legally settle down. Everyone is still trying to save money, unite to help each other, and work together to overcome the crisis.”Ms. Na said.

In addition, Vietnamese people closely monitor the war situation, and expressed concern for people in conflict zones. In the wholesale markets with Vietnamese people doing business and trading, people call for donations of clothes, shoes and money to support the Ukrainian people, including Vietnamese who are fleeing.

According to Duong Thi Thin, currently, over 80% of Vietnamese in Voronezh believe in Russia’s ability to overcome the crisis. Everyone is still optimistic and trying to help each other during this difficult time.

“Vietnamese people, wherever they are, have a spirit of solidarity, love and support for each other, especially in tribulations and difficulties.”said Thin.

Vietnamese people who have lived in Russia for a long time understand that there will be an economic crisis like this every 7-10 years, so the Vietnamese also gradually adapt.

“Often in difficulty, wisdom emerges. Vietnamese people in Russia hope that, when the big Western business groups and retail chains leave, at that time Vietnamese garment factories and clothing and fast food shops will spring up and develop. development in Russia”Ms. Thin is optimistic.

Duong Quoc Thien said: “During this difficult time, it takes calm to find the light from the tunnel.”

“First, people have to balance their finances in spending and doing business because the difficulties are still long. The second is to thoroughly understand the supply and demand market. After large Western distribution corporations such as H&M, Zara, Nike, Adidas, etc. suspend their operations or withdraw, Vietnamese people can take advantage of the opportunity to dominate the market.” Mr. Thien said.

Under the influence of Western sanctions and embargoes before Russia’s special military operation in Ukraine, the ruble began to depreciate.

At the beginning of the campaign, the rate of ruble against USD and euro ranged from 80-86 rubles/1USD, 90-103 rubles/euro. With the increasingly fierce hostilities, the continuous sanctions of many countries and international organizations, the Russian economy was strongly shaken, the ruble depreciated non-stop. By March 10, the ruble had lost more than 50% of its value against the USD and the euro.