City of HCM (VNS/VNA) – Companies in Vietnam are facing new challenges brought by the Russia-Ukraine conflict in addition to lingering COVID-19[female[feminine
problems.
Many are struggling to export to Russia, Ukraine and Belarus, are facing rising transport costs and several Russian banks have been cut off from SWIFT, the main international payment system.
Wood processing companies that import materials such as wood from the two warring countries are struggling.
Many businesses are also still dealing with the supply chain disruption caused by COVID.
Nguyen Dang Hien, general manager of beverage producer Tan Quang Minh Manufacture and Trading Co., Ltd., said his business was recovering but was still struggling with supply chain issues such as the shutdown of overseas partners during the pandemic and imports of raw materials taking longer than before. .
That drives up production costs, but companies wouldn’t be able to raise prices much, he said.
Truong Chi Thien, general manager of Vinh Thanh Dat Foodstuff JSC, said with rising production costs, even products under HCM City’s price stabilization program for essential goods are expected to see their prices increase after March.
“We have applied to the Ministry of Finance of HCM City to allow us to increase our prices from April.”
The company is working with raw material suppliers, distributors and retailers to overcome its challenges, he said.
It should also defer growth plans and new product research and reduce all unnecessary costs, focusing only on production and exploring new opportunities, he said.
Pham Duc Binh, director of pork retailer Thanh Binh Co., Ltd., said that given recent challenges, companies should try to maintain production and wait for the economy to recover, while cutting costs and unnecessary investments.
Domestic material costs are still stable, as are interest rates, he said.
Hien said his company sources some of its raw materials domestically and has not been affected much by the global crisis. supply chain disruption.
“Companies need help accessing information on markets and potential overseas partners, as many of our partners have reduced production or closed their doors.”
Pham Phu Ngoc Trai, President of Global Integration Business Consultants, said: “Companies should not panic too much about the Russian-Ukrainian conflict or rising oil prices. We must recognize that Vietnam is deeply integrated into the global economy and there will always be risks.
Huynh Quang Thanh, general manager of Hiep Long wood processing Co., Ltd., said companies struggling to import timber from Russia and Ukraine should look to other markets and generally avoid over-reliance on one market.
