Many companies have begun restructuring operations, tightening cost controls and preparing contingency plans to sustain production, retain markets and safeguard workers’ incomes.

Vietnamese export-oriented manufacturers are striving to sustain production and protect jobs as rising fuel prices and the spillover effects of the Middle East conflict place mounting pressure on operations.

Recent volatility in petrol and oil prices has sharply increased logistics costs. According to Bùi Mạnh Toàn, Chairman and General Director of Vietnox JSC, transportation expenses have risen by between 30 per cent and 60 per cent, including domestic transport, ocean freight and container charges.

Previously, transporting a container of goods from Long An, now part of Tây Ninh Province, to Lạng Sơn Province cost around VNĐ70 million. The cost has now exceeded VNĐ100 million.

For companies where logistics accounts for a large share of production costs, the increase is directly affecting competitiveness. Vietnox Agri, an agricultural export subsidiary of Vietnox, said higher transport costs have significantly pushed up product prices, while firms have limited room to adjust selling prices due to their dependence on international markets.

Supply chain disruptions have also extended delivery times, generating additional warehouse and container storage costs. For fresh agricultural products, delays can affect quality and risk damaging credibility with overseas partners.

Transport partners proposed raising fees by about 10 per cent compared with levels before the Middle East conflict, while customers in the United States and Europe were requesting faster delivery schedules to reduce risks.

At the same time, raw material prices were also trending upward due to higher energy and transport costs, narrowing profit margins. With global demand still weak, some foreign partners were delaying orders or cutting purchasing volumes.

A survey by the Hồ Chí Minh City Export Processing and Industrial Zones Authority covering 231 enterprises showed that 52 firms, about 22 per cent, have adjusted production plans to cope with rising input costs. Nearly 12 per cent have had to extend delivery schedules due to higher transport expenses and changes in logistics routes.

To mitigate the impact, companies are focusing on cost optimisation and operational efficiency.

According to Dr Mạc Quốc Anh, Vice Chairman and Secretary General of the Hà Nội Small and Medium Enterprises Association, businesses should restructure cost management and export contracts to improve flexibility, negotiate risk-sharing mechanisms with partners, diversify logistics routes and expand markets.

Experts note that in an increasingly uncertain global environment, corporate resilience depends not only on financial resources but also on management quality and the ability to adapt quickly to changing conditions. 

Source: VietNamNews