Cost fluctuations and internal pressures
26868 Company Limited, a manufacturer of industrial lime, accounts for approximately 37% of Viet Nam’s lime export turnover. Its Chief Executive Officer Do Tien Thanh said the production cost of one tonne of lime had risen from around 1.3 million VND at the end of 2025 to 1.7–1.8 million VND in July 2026, an increase of nearly 40%.
Cumulative increases in costs related to extraction, transporting raw materials to factories, logistics, and associated supplies have driven up production costs. To maintain competitiveness, the company has had to recalculate its raw material procurement, production organisation, and product distribution plans, while accepting narrower profit margins.
Secretary General of the Viet Nam Association of Seafood Exporters and Producers (VASEP) Nguyen Hoai Nam said rising oil prices had at one point caused freight rates for refrigerated containers exported to the US to surge from 6,000 USD to 9,000–10,000 USD within just one day of a quotation being issued.
Meanwhile, the costs of packaging and imported raw materials have also increased, making it difficult for seafood businesses to maintain profits even when they have orders. More concerningly, many businesses are facing difficulties accessing credit, directly affecting their ability to purchase raw materials and fulfil export contracts. Therefore, their priority at present is to secure access to credit, followed by borrowing costs. Without access to capital, businesses risk missing growth opportunities even when they have orders.
These difficulties show that market volatility can significantly alter business performance, particularly for companies with low profit margins, dependence on imported raw materials, or reliance on borrowed capital. However, the pressure does not come solely from external factors; it also exposes shortcomings in financial management, cost control, and capital utilisation. Businesses may generate revenue but still face liquidity shortages if receivables are slow to recover, inventories are large, or loans fall due for repayment.
Nguyen Quang Vinh, Vice President of the Viet Nam Chamber of Commerce and Industry (VCCI), said businesses needed to proactively develop multiple scenarios rather than rely on a single forecast, while identifying indicators and fluctuation thresholds so that plans could be adjusted in a timely manner. This is particularly necessary as changes in international monetary policies, trade, and energy prices continue to affect production and business activities.
In reality, many businesses are still accustomed to addressing difficulties only after they arise: seeking alternative suppliers only when raw material prices increase, considering payment options only when exchange rates fluctuate, and looking for loans only when cash flow runs short.
This approach weakens their negotiating position, forces them to accept higher costs, and makes it difficult to ensure business plans are implemented. Therefore, changing management mindsets and proactively identifying and preventing risks must become regular requirements for businesses.
Do not wait for difficulties to arise before seeking solutions
According to Dr Nguyen Duc Hien, Deputy Head of the Party Central Committee's Commission for Policy and Strategy, businesses need to review their resources, operational structures, and financial costs in preparation for 2027. The priorities are to control cash flow, receivables and payables, inventories, and payment schedules; determine capital requirements for each period; and avoid tying up capital while still having to borrow from banks to maintain operations.
At the same time, they should balance loan maturities and limit the use of short-term capital for long-term investment to reduce repayment pressure.
For import-export businesses, exchange rate risk management should be factored in from the contract negotiation stage. Balancing foreign currency income and expenditure, choosing payment times, and using appropriate risk-hedging instruments will help limit additional costs. In addition, businesses should diversify suppliers and consumer markets, and negotiate price adjustment mechanisms in the event of sharp fluctuations in raw material and transport costs.
Drawing on the company’s operational experience, Do Tien Thanh said it had considered negotiating long-term supply arrangements, centralising procurement, and introducing mechanisms for negotiating adjustments to selling prices when input costs exceeded agreed thresholds. This approach incorporates risk-sharing at the contract-signing stage.
In the long term, the company aims to reduce fuel consumption and invest in technology to lessen its dependence on fossil fuels and lower production costs. However, it hopes that policies to reduce lending interest rates will be implemented soon to ease financial pressure in a timely manner.
According to Deputy Director of the State Bank of Viet Nam’s Forecasting and Statistics Department Dao Van Ha, the State Bank of Viet Nam has instructed credit institutions to balance their funding sources and direct credit towards production and business activities, priority sectors, and growth drivers, including small and medium-sized enterprises. To date, 20 banks have announced preferential credit programmes with a total value of approximately 416 trillion VND, disbursing 54.3 trillion VND to around 30,000 customer transactions.
In addition, the State Bank is continuing to study policies to support credit institutions in expanding cash-flow-based lending, while instructing them to improve lending processes and procedures and shorten approval times in compliance with the law.
Businesses themselves must improve their management capacity, control costs, and prepare contingency plans for adverse scenarios, rather than basing their plans solely on favourable conditions. These are important factors enabling businesses to seize commercial opportunities, preserve resources, and strengthen their competitiveness in the face of unpredictable market fluctuations in the time ahead.
