Fear of losing competition…
In recent days, the increase in gasoline prices is making many businesses stand still. Because it is common practice that when gasoline increases, many types of services and other input material prices will increase accordingly, which is inevitable.
For example, in the field of logistics, Mr. Nguyen Van Tu – General Director of Nhat Tin Development and Investment Joint Stock Company (Nhat Tin logistics) – said: This business is providing transportation services in particular and other logistics solutions in general for the majority of partners and corporate customers across the country. There is an agreement and agreement on freight rates between the parties when signing the contract and Nhat Tin logistics is still applying the announced freight rates throughout the cooperation process. Therefore, when the price of petrol increases, it puts a lot of pressure on direct operating costs at the enterprise because the cost of gasoline for a fleet of more than 450 trucks is increased by 5-7%, while the freight rate does not change. change.
In the same situation, Mr. Le Dang Tam – Director of VIJAI Logistics Vietnam International Co., Ltd – said: In the operation of logistics enterprises, petrol accounts for 35-40% of freight rates. Therefore, if the company does not increase the logistics fee according to the cost of gasoline, the enterprise will suffer a corresponding loss. This means that businesses will have to have a negotiating plan with customers, in case customers do not share, they have to cancel orders. “In the transportation and logistics business in general, there is no obligation for businesses to keep the price the same, but there will be an adjustment of freight rates according to fluctuations in the petroleum market. Therefore, the adjustment of freight rates is inevitable,” said Mr. Tam.
For manufacturing and exporting enterprises – this increase in petrol prices seems to deal another blow to them because from 2021 up to now, they have all faced a dizzying increase in the prices of shipping charges, container charges, and so on. cost of input materials, cost of anti-epidemic…
Mr. Nguyen Dinh Duc – Director of Nha Trang Garment Accessories Joint Stock Company (ISE) – worries: The sharp increase in gasoline prices puts businesses under a lot of pressure, affecting the resumption of production. Mr. Duc explained that, when the price of gasoline increases, the cost of transporting input materials will increase, and the cost of transporting output products will increase and the company has to bear these transportation costs. Besides, the prices of goods and raw materials will adjust according to the price of gasoline, so the price of yarn and fabric may increase in the coming time. “We are in a difficult position. If we don’t increase the cost of our products, we will have to make up for our losses, and if we increase the cost of our products, we won’t be able to compete,” said Mr. Duc.
Synchronized solution to reduce operating costs
In the context that it is difficult to adjust the prices of products and services, many synchronous solutions have been launched by businesses to reduce costs. For example, with Nhat Tin logistics, Mr. Tu said that he has applied technology and scientific processing to operate, as well as using new trucks to optimize, reduce and control costs. At the same time, it is necessary to strengthen internal staff training on how to operate trucks as well as provide knowledge to save fuel during use. However, in the future, if gasoline prices continue to increase, Nhat Tin logistics may have to adjust selling prices to ensure business continuity as well as ensure commitments on service quality.
Meanwhile, for manufacturing enterprises, according to Mr. Phan Van Co – Marketing Director of VRICE Co., Ltd., this enterprise is having to balance to reduce the cost of goods to an acceptable level, and at the same time reduce the purchase of rice at the present time. at to avoid losses.
As for Chanh Viet Investment and Trade Joint Stock Company, Mr. Nguyen Van Hien – CEO of the company – said that he is proactively locating input materials as well as closing the lemon processing value chain for many years, so the benefit from gasoline prices is only 5-7%. “With this increase, we will accept a corresponding reduction in profit to keep the price of export goods as well as orders being distributed in the country” – Mr. Hien informed.
