According to data from the Ministry of Industry and Trade, the price of imported gasoline in this cycle continued to increase by 3 USD per barrel compared to the previous 15 days, sometimes reaching 78 USD, causing associated costs to continue to increase.
Along with gasoline prices, input materials for manufacturing industries have increased sharply in recent times.
Mr. Hoang, owner of an animal feed production business in Dong Nai, said that for the past 2 months, the business has had almost no profit because the price of input materials has increased, while the price of products sold must be maintained.
`Covid -19 is causing consumption to decrease, meanwhile, the price of imported raw materials from the world market has increased rapidly, making our business quite struggling,` Mr. Hoang confided.
Workers are packing eggs at Vinh Thanh Dat Food Company.
Mr. Truong Chi Thien – General Director of Vinh Thanh Dat Food Company said that they are facing difficulties from two sides: Covid -19 and input costs.
Meanwhile, rising input costs cause businesses to recalculate their business plans.
His company is having a `headache` because it has to calculate options to balance additional costs so as not to incur losses or lose customers.
Although the enterprise has an existing animal feed processing factory, Mr. Le Xuan Huy, Deputy General Director of CP Vietnam Livestock Company, said that the continuous increase in input material prices is the reason for pushing up the price of live pigs.
It’s difficult, but we have to follow the market. Vissan’s management said they still have to apply new raw material prices from the beginning of April according to the supplier.
According to Bloomberg, prices of animal feed ingredients on the world market began to increase from October last year and have increased dramatically since the beginning of this year, on average 30-35%.
For Vietnam, according to the General Statistics Office, animal feed raw materials are mainly imported (80-85%), animal feed import prices in the first 4 months of this year increased by nearly 6.7% compared to the same period last year.
Specifically, the price of the product group of animal feed ingredients for the processing industry in April increased by 2.48% over the previous month and increased by 13.49% over the same period in 2020. In the first 4 months of the year, the product group
Not only the livestock industry, steel and wood businesses… are struggling even though orders increased sharply compared to last year.
Mr. Nguyen Dinh Phuc – General Director of Steel Corporation said that the corporation’s consumption output increased by about 2% and reduced exports to increase supply for the domestic market.
A representative of Hoa Phat Group said that they are also facing risks because input material prices are increasing and there is no end in sight.
Regarding wood businesses, Mr. Nguyen Chanh Phuong, Vice President and General Secretary of the Ho Chi Minh City Handicraft and Wood Processing Association (HAWA), said that the price of input materials for the wood industry in the domestic market is increasing.
Facing the `storm` of increasing prices of input materials, according to Mr. Phuong, wood businesses are looking for ways to take advantage of domestic materials instead of ordering them in foreign markets.
Meanwhile, steel industry enterprises choose to buy reserve goods to avoid further price increases, but they also face high risks if prices go down.
As for the `bosses` of the livestock industry, they are having to balance costs to ensure that their products have the lowest price increase.
In addition to increasing raw material purchases, finding alternative sources of goods, and balancing costs, many businesses also said that they may have to increase product prices in the near future to avoid heavy losses.
The General Statistics Office also recently noted that businesses need to increase raw material reserves for production to avoid shortages when prices increase.