Rising input costs, slowing export demand and prolonged geopolitical tensions are making the business environment harder to predict. Businesses grapple with unpredictable markets Unlike earlier periods marked by a lack of orders, many firms now say their main challenge is uncertainty. Prices for raw materials, transport, exchange rates and demand become volatile all at once, making it tough to plan production over the long term. Lam Thuy Ai, general director of Mebifarm JSC, said manufacturers rely heavily on imported inputs, some accounting for up to 70% of total costs. Rising fuel prices, logistics expenses and exchange rates are pushing up production costs, while weak demand limits firms’ ability to raise selling prices. Speaking at a business forum held by the HCMC Union of Business Associations (HUBA) on March 21, Thuy Ai said companies are concerned not only about rising costs but also about how long current conditions will last, making it harder to decide whether to import materials, expand production or hold cash. Without clearer signals, firms struggle to build business and production plans. In plastics packaging, Le Hong Trien, director in charge of the domestic market at Vina Star Packaging, said resin prices have risen 40–45% in line with […]
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