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.

The 4th Summit organized by the Vietnam Energy Partnership Group (VEPG) will aim to summarize the achievements and positive contributions of VEPG during more than 4 years of operation as the main dialogue forum. High-level policy connecting the Government of Vietnam with development partners and stakeholders with the goal of promoting the development of Vietnam’s energy industry.
It is expected that the conference will take place on January 24, 2022 in both face-to-face and online form with the participation of more than 150 delegates who are representatives of central ministries, agencies, and national ambassadors. , development partners, non-governmental organizations, private enterprises operating in the energy sector. The VEPG Secretariat directly coordinates and supports activities throughout the event.

VEPG was established in June 2017 under an agreement between the Government of Vietnam and development partners. Activities of the Vietnam Energy Partnership Group are chaired by the Minister of Industry and Trade and co-chaired by representatives of the European Union and the World Bank in Vietnam.

The summit aims to summarize the achievements and positive contributions of the VEPG in more than 4 years of operation as a high-level policy dialogue forum connecting the Government of Vietnam with development partners and stakeholders. related to the goal of promoting the development of Vietnam’s energy industry.

The conference also introduced five new technical working groups, including: Strategic planning for the power sector, renewable energy, grid integration and grid infrastructure, energy efficiency and energy markets.

“Together, sustainable energy transition in Vietnam” – VEPG’s new slogan clearly affirms the Group’s goal in the new development phase to continue to ensure close cooperation, effective support and contribute shaping the country’s energy transition. The conference calls for cooperation with non-state actors such as the private sector, civil society and academia.

The Ministry of Industry and Trade has been assigned by the Government the task of developing the Electricity Master Plan VIII with the contents closely following the orientations and principles of Resolution 55-NQ/TW, paying special attention to major contents related to the structure of the electricity sector. electricity industry, power source, and synchronize with the development of electricity system and electricity infrastructure.

2021 is the first year of implementing the Resolution of the 13th Party Congress, and at the same time the first year of implementing and implementing Resolution 55 on orientations of Vietnam’s national energy development strategy to 2030. , with a vision to 2045 (Power planning VIII). In March 2021, the Ministry of Industry and Trade completed and officially submitted the Power Planning Project VIII to the Government.

In that context, Vietnam’s energy industry in general and the electricity industry in particular are facing many challenges. The Covid-19 pandemic is forecasted to continue to cause difficulties for businesses, unpredictable climate change, frequent and more destructive natural disasters. Meanwhile, Vietnam needs to focus on promoting sustainable energy transition, ensuring energy security, supplying enough electricity, investing and developing in the direction of green growth.

During the COP 26 Conference, Prime Minister Pham Minh Chinh identified Vietnam’s commitment to develop and implement stronger measures to reduce greenhouse gas emissions with its own resources, along with cooperation and support from the international community, both financially and in technology transfer, including the implementation of mechanisms under the Paris Agreement, to achieve net zero emissions by 2050. To achieve the target This requires the parallelism of the energy industry, ensuring a sustainable transition, towards a green, circular, people-centered economy, leaving no one behind.

In the first month of 2022, at Song Khoai Industrial Park (Quang Yen Town – Quang Ninh Province), Jinko Solar Vietnam Industry Co., Ltd. started production and launched the first product of the panel technology project. silicon Jinko Solar Vietnam. The project has an investment scale of over 8,380 billion VND (equivalent to 365.6 million USD). Although the investor has just been granted an investment registration certificate from the end of September 2021, only after nearly 4 months of construction, the investor has launched and produced the first product, 7 months ahead of the plan. initial. The project has an investment rate of 417 billion VND/ha (equivalent to 18.18 million USD/ha) – the highest among secondary projects in the current industrial zones of Quang Ninh province.Previously, at the end of March 2021, Quang Ninh awarded the investment registration certificate for the Jinko Solar PV Vietnam photovoltaic cell technology project with an investment capital of 11,499.86 billion VND (equivalent to 498 billion VND). million USD), land use area 32.6ha. Thus, the total investment capital of the two projects that Jinko Solar Group invests in Song Khoai Industrial Park is up to 19,882 billion VND (equivalent to 865.6 million USD). This project plays an important role in completing the chain of large-scale solar panel production in Vietnam of Jinko Solar Group. It is expected that when officially put into operation in April 2022, the project will create job opportunities for 2,200 local workers, and also add good news about the processing and manufacturing industry in 2022.

The report on socio-economic situation in January 2022 released by the General Statistics Office shows that, because it is the time to promote the consumption of industrial products, the industrial production index in January 2022 is estimated to decrease. 3.1% over the previous month and up 2.4% over the same period last year, of which the processing and manufacturing industry increased by 2.8% and contributed 2.6 percentage points to the overall growth.

Notably, electricity production and distribution increased by 5.1%, contributing 0.5 percentage points; water supply, management and treatment of waste and wastewater increased by 1.2%, contributing 0.02 percentage points; the mining industry alone decreased by 4.6%, decreasing by 0.7 percentage points.

Besides, the production index in January 2022 of a number of key secondary industries increased sharply compared to the same period last year. Specifically, metal ore mining increased by 21.9%; production of prefabricated metal products (except for machinery and equipment) increased by 16.8%; production of leather and related products by 12.3%; production of electrical equipment increased by 11.5%; production of costumes increased by 11.4%; textile increased by 8.8%; printing, copying records of all kinds increased by 8.4%; production of rubber and plastic products increased by 8.1%.

Meanwhile, the industrial index of a number of industries decreased, such as: Beverage production decreased by 2.7%; production of drugs, pharmaceutical chemicals and medicinal materials decreased by 3.6%; production of electronic products, computers and optical products decreased by 5%; wood processing and production of wood, bamboo and cork products decreased by 5.1%; crude oil and natural gas extraction decreased by 9.7%.

However, a number of key industrial products in January 2022 increased sharply compared to the same period last year, including: Alumin up 35.7%; bar steel, angle steel by 20.3%; powdered milk by 16.2%; mixed fertilizer NPK increased by 15.6%; MSG by 15.4%; processed seafood increased by 13.8%; automobiles by 11.7%; fabrics woven from natural fibers increased by 8.7%.