Rising input costs driven by geopolitical tensions, higher energy prices and more expensive logistics are squeezing margins across manufacturing and distribution, while weak demand leaves little room for price increases. As a result, keeping prices unchanged to retain market share has become both a tough business decision and a government challenge. Higher costs… Businesses and industry groups say cost increases are being felt throughout the production and distribution chains. Vu Dinh Tuan of Petrovietnam Ca Mau Fertilizer said the Middle East accounts for about one-third of global urea supply. Ongoing conflict in the region has raised concerns over supply disruptions, pushing urea prices at times to US$700 per ton, or around VND19,000–20,000 per kilogram—well above domestic levels. Energy remains the biggest cost driver. Each US$10 rise in oil prices can add hundreds of billions of dong to gas input costs, he noted. At the same time, international logistics costs have risen by 20–30%, while domestic transport costs are up 15–20%, creating a double burden that feeds through the entire supply chain. Other sectors are facing similar pressures. Feed producers report input costs rising 15–19% in a short period. Cement makers are dealing with coal price increases of 7–10% and other […]
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