Supply chain restructuring
In the context of strong fluctuations in input costs, logistics and global supply chains, many businesses in Ho Chi Minh City are adjusting production and business strategies. Mr. Tran Viet Anh - Chairman of the Board of Directors, General Director of Nam Thai Son Import-Export Joint Stock Company said that the company is proactively renegotiating with partners in the direction of extending delivery schedules and adjusting selling prices. However, the current problem is no longer simply selling goods, but finding stable raw material supply with customers.
In fact, the amount of raw materials currently available to businesses is only enough to maintain production for about two months at the old price level. From the third month onwards, if additional imports are required, raw material prices may increase sharply. This requires businesses and partners to negotiate, when one side is forced to increase prices to compensate for costs, while the other side finds it difficult to accept a sudden increase in the context that purchasing power has not recovered commensurately.
In a "dilemma", businesses are forced to return to internal strength, starting from tightening each stage of production. Raw material consumption norms are reviewed more carefully, minimizing waste. Efficient energy use and emission reduction not only help businesses "breathe" more financially, but also meet increasingly strict sustainable standards from the international market - a factor that is becoming a "passport" for export goods.
Mr. Tran Viet Anh said that this is the time when associations need to play a strong connecting role. Reviewing and announcing the raw material reserve capacity of the entire industry will help businesses have more data to proactively coordinate supply sources, limiting the risk of breakdowns.
Another notable change is the view on inventory. If previously, inventory was often seen as a cost burden, it is now seen as a "safe buffer zone". In the context of volatile raw material prices and unstable supply, maintaining a reasonable inventory level helps businesses be more proactive in production, avoiding passivity when the market reverses direction.
Inventory becomes a plus point for banks when it demonstrates the resilience of businesses, reflecting management thinking shifting from short-term optimization to balancing long-term efficiency and safety.
Promote green transformation and digitization to reduce long-term costs
From a logistics perspective, Mr. Dao Trong Khoa - Chairman of the Vietnam Logistics Service Business Association recommends that import-export businesses need to closely coordinate with transport units to find optimal routes and transportation methods in the face of fluctuations.
Businesses also need to build contingency scenarios, closely monitor the market and be flexible in financial management, when transportation costs may increase sharply. Optimizing logistics not only helps reduce direct costs but also contributes to energy saving through choosing routes and more efficient transportation methods.
Sharing the same view, Mr. Pham Binh An - Deputy Director of the Ho Chi Minh City Development Research Institute said that businesses need to shift from a "response" state to "proactive adaptation". The focus is on reviewing the entire supply chain, diversifying supply sources and markets, avoiding dependence on one transport route or risky area.
Businesses need to tighten contract risk management, adjust delivery terms, proactively work with logistics and insurance; and at the same time restructure cash flow, calculate costs and delivery times to maintain orders.
In the long term, this is an opportunity to restructure the supply chain flexibly and sustainably; combining energy saving, green transformation and cost optimization to improve competitiveness.
