Amid increasingly unpredictable global economic fluctuations, particularly as prices of essential goods from fuel to input materials continue to rise, business community is striving to overcome challenges in order to sustain operations and safeguard employment.

The current biggest challenge facing enterprises across the province is the sharp surge in operating costs. As a mountainous province with an economy largely driven by agricultural exports and transport services, it has experienced a chain reaction from rising fuel prices.

Mr. Hoang Danh Huu, Chairman of the Members’ Council of EDE Farm Service Trading Co., Ltd., stated: “Domestic delivery costs have now doubled, while this is an expense that enterprises must cover for distributors. In addition, PE packaging prices have increased two to threefold, and the cost of imported machinery has also escalated due to higher sea freight rates”.

Rising input material prices placing pressure on enterprises. (Photo: Coffee products being packaged at An Thai Investment and Development JSC)

Meanwhile, the agricultural sector is also heavily affected. Prices of fertilisers, agrochemicals, and other input materials have risen sharply, pushing up production cost of coffee, pepper, and macadamia nuts. This not only creates difficulties for farmers but also places direct pressure on enterprises engaged in procurement and export processing.

Another challenge is cash flow management. Demand for working capital has increased significantly, while access to preferential loans remains constrained by collateral requirements and interest rates. Simultaneously, purchasing power in the provincial market has shown signs of slowing as consumers tighten spending to cope with rising prices. Construction and real estate enterprises have also been notably impacted by continuous fluctuations in building material prices.

Proactively weathering the “price storm”

Rather than waiting for market stabilisation, enterprises have proactively implemented decisive strategies. Mr. Le Van Vuong, Director of Vuong Thanh Cong Manufacturing and Trading Co., Ltd., said the company has chosen to adapt flexibly, working closely with transport partners as well as customers to reach mutual understanding, instead of imposing unilateral price increases.

Foreign customers learning about MISS EDE branded products of EDE Farm Service Trading Co., Ltd.

Mr. Nguyen Thanh Long, CEO of Long Group JSC, shared that the enterprise has actively applied digital transformation and A.I in management along with operations to monitor real-time transport routes. It has also established long-term strategic linkages with suppliers to ensure stable supply, thereby reducing operational costs.

Alongside internal efforts, solidarity within the provincial business community has become a firm pillar of support. Through the provincial Business Association, enterprises have strengthened connectivity and prioritised use of each other’s products as well as services to reduce intermediary costs and build a sustainable local value chain.

Simultaneously, business community also expects swift implementation of State support policies on taxes, fees, and access to credit in order to provide additional resources for recovery plans as well as long-term development.

Translated by KHUONG THAO