The ongoing conflict in the Middle East has driven up oil prices, freight rates and costs of multiple key inputs, putting new pressure on manufacturers in Vietnam as they are scrambling to keep orders and production stable. Cost pressures spread across manufacturing Military tensions involving the United States, Israel, Iran and the wider Middle East are driving up costs across global commodity and logistics markets. In Vietnam, many manufacturers say they have recently received repeated price hike notices from suppliers, prompting them to review inventories and prepare contingency plans. Le Mai Huu Lam, general manager of Cat Van Loi Company, a producer of industrial support products in the mechanical engineering sector, said the firm relies mainly on steel and PVC as input materials. Their prices have risen sharply since the U.S.-Israel war on Iran began. PVC prices have climbed about 30%, while steel prices have inched up roughly 5%, significantly increasing production costs. “However, with market demand remaining weak, we cannot raise selling prices in line with higher input costs. That means our profit margins are being squeezed,” Lam said. He added that manufacturers are facing a difficult balancing act between rising global input costs and what customers are willing […]
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