Vietnamese exporters struggle with rising material prices
Vietnamese manufacturers and exporters are struggling to cope with rising material prices despite posting high export volumes in the first four months of the year.
HCM City (VNA) - V🌳ietnamesemanufacturers and exporters are struggling to cope with rising material pricesdespite posting high export volumes in the first four months of the year.
Datafrom the General Statistics Office (GSO) show that exports were estimated at 103.9billion USD during the period, up 28.3 percent year-on-year. Up to 19 types of goodsearned more than 1 billion USD in export revenue each, or 84.5 percent of thetotal.
Asof late April, garment exports were up 9 percent year-on-year to 9.5 billionUSD while footwear shipments had hit 6.4 billion USD, an 18.7 percent increase.
The Ministry of Industry and Trade has forecast that exports and imports willcontinue to thrive in the near future as new free trade agreements withpreferential tariffs are implemented, incl﷽uding the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP), the EU-VietnamFree Trade Agreement (EVFTA), and the UK-Vi𒀰etnam Free Trade Agreement (UKVFTA).
Companies, however,face challenges caused by rising material and transportation costs as well as theuncertainties over COVID-19 in the region.
Nguyen Quoc Anh, Director of the Duc Minh Rubber Company and Chairman of the Ho Chi Minh City Rubber Plastic Manufacturers Association, said that since early thisyear the price of materials, chemicals, and rubber additives have soared 60percent and show no signs of stabilising.
Many partners are hesitant to place orde🃏rs and arewaiting for prices to decline. Meanwhile, if companies were to sell their productsat previous prices they would incur losses despite rising volumes, he said.
Experts have suggestedbuilding industrial zones designed exclusively for manufacturing apparel andfootwear materials as well as devising a strategy to develop the supply ofdomestically-made materials for production and export, thus helping firmscontrol costs and tap the advantages contained in free trade deals./.
Vietnamese firms must improve product quality, strictly follow the rules of origin and ensure food safety to export goods to the UK under the recently signed UK-Vietnam Free Trade Agreement, speakers said at a seminar in Ho Chi Minh City on January 28.
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PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
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A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
Illustrative photo (Source: VNA) 
