​The price of input materials for production increases continuously

The price of input materials has increased sharply

In the field of mechanical engineering - manufacturing, Mr. Vu Van Toan, Director of Trang Minh Duc Trading Production Co., Ltd. Located in Buu Long Ward, Bien Hoa City, an enterprise specializing in manufacturing and supplying all kinds of stone crushers to customers from the North to the South of Vietnam said that the recent continuous increase in the price of raw materials for machine manufacturing made businesses very worried. For production, all steel used for sieving of the company has to be imported because domestically produced steel cannot meet the requirements. Products are domestically produced but raw materials are still imported, making enterprises unable to fully prepare for production.

“The price of manufactured iron and steel has to be imported and increases time to time, which makes it difficult for our production. Although the price of materials increases, we will also announce the adjustment of the selling price of machinery products to the market, but this will also affect partners and customers "- Mr. Toan shared.

In the field of consumer goods production, Mr. Dang Tran Hoang Thuy, Director of Thien Trieu An Production Trading Co., Ltd specializing in processing fruit drinks, purified water and energy drinks in Bien Hoa City said that up to now, businesses have not recovered from the Covid-19 pandemic. Due to the impact of the epidemic, the product market of enterprises is narrowed because the customer segment has a significant part of workers in factories and enterprises. Income is affected, many items have to be spent, so the consumption of goods in this area is greatly affected. Currently, businesses are still trying to rebuild the market.

“Input raw materials increase every month, but we cannot adjust the price of the products we produce continuously, because it will immediately affect the consumption of consumers” - Mr. Thuy said more about the pressures of enterprises.

Unpredictable prospects

Due to the impact of world political developments, the world petroleum market as well as the domestic market is also complicated. Many experts, forecasting agencies, and analysts believe that gasoline prices will not stop at this increase at this time. Meanwhile, petroleum reserves in many countries decreased and gasoline demand increased as countries implemented economic recovery measures.

Petrol is an essential commodity, one of the most important to operate the economy, the increase in gasoline prices leads to a lot of other costs such as logistics, raw materials and energy to operate the plant, which will make businesses facing a difficult problem in the goal of stimulating domestic demand to recover. Mr. Nguyen Trinh Huan, Deputy Branch of Bien Hoa City Young Entrepreneurs Association, Director of Viet Son Nguyen Company Limited (Bien Hoa City), an enterprise specializing in the design and construction of advertising signs, interior decoration, said that although businesses have prepared to be flexible to cope with the circumstance, it is difficult to keep up with reality. The complicated developments in the post-Covid-19 era and the world economic situation are still unpredictable.

Raw materials for production depend mainly on China, but the country is implementing the blockade policy of "Zero Covid", so they often close cities and border gates, causing a lot of difficulties for imports. Along with that is the situation of armed conflict between Russia and Ukraine over the past time, causing the prices of raw materials and gasoline to "increase" continuously, directly affecting the production and business plans of enterprises.

According to Mr. Huan, businesses and members in the area are under a lot of pressure while selling the products with high prices. Meanwhile, the situation of importing raw materials and goods is facing difficulties due to the shortage of goods and raw materials and the lack of cargo ships, and the price of gasoline continuously sets new peaks, making the prospect of recovery become unpredictable.

Nam Vu