An export-oriented fish processing plant in HCM City. Vietnamese businesses face numerous challenges, residual from COVID and the ongoing Russia – Ukraine conflict. (Photo: nld.com.vn)Many have difficulty in exporting to Russia, Ukraine and Belarus, face risingtransportation costs and several Russian banks have been cut off from SWIFT,the leading international payment system.
Wood processing businesses importing materials such as timber from the twowarring countries are finding it difficult.
Many businesses are also still dealing with the supply chain disruption causedby COVID.
Nguyen Dang Hien, general director of beverage producer Tan Quang MinhManufacture and Trading Co., Ltd., said his company is recovering but stillstruggling with supply chain problems such as foreign partners closing downduring the pandemic and raw material imports taking longer than before.
This is driving up production costs, but businesses could not raise theirprices much, he said.
Truong Chi Thien, general director of Vinh Thanh Dat Foodstuff JSC, said withthe rising production costs, even products under HCM City’s price stabilisationprogramme for essential goods would have to have their prices increased afterMarch.
“We have asked HCM City’s Department of Finance to allow us to raise our pricesfrom April.”
The company is working with raw material suppliers, distributors and retailersto overcome its challenges, he said.
It also has to defer growth plans and research into new products and cut downon all unnecessary costs, only focusing on production and exploring newopportunities, he said.
Pham Duc Binh, director of pork retailer Thanh Binh Co., Ltd., said consideringthe recent challenges businesses should try to maintain its production and waitfor the economy to recover, and meanwhile cut down on unnecessary costs andinvestments.
Costs of materials sourced domestically are still stable, as are interestrates, he pointed out.
Hien said his company has been sourcing some of its raw materials domestically,and they have not been affected much by the global supply chain disruption.
“Businesses need help in accessing information about markets and potentialforeign partners since many of our partners have reduced production or closeddown.”
Pham Phu Ngoc Trai, chairman of Global Integration Business Consultants, said:“Businesses should not be panic too much over the Russia – Ukraine conflict orthe rising petrol prices. We need to recognise that Vietnam is deeplyintegrated with the global economy, and there will always be risks.”
Huynh Quang Thanh, general director of Hiep Long Wood Processing Co., Ltd.,said businesses struggling to import timber from Russia and Ukraine should lookat other markets and generally avoid relying too much on any one market./.
VNA
