HO CHI MINH CITY: Several food companies in Ho Chi Minh City are being forced to keep prices steady as a key competitive strategy to weather difficulties, as input costs continue to rise while domestic consumption slows.
While persisting with short-term measures, such as optimising production costs, businesses are also working on longer-term strategies, including increasing the proportion of locally sourced materials, greening production, stabilising prices and maintaining market share.
Ho Chi Minh City-based Vinh Thanh Dat Food JSC, which supplies poultry eggs, joined the 2026 market stabilisation programme in early April, committing to prices 5% to 10% below market rates.
In order to offset rising transport costs, it has adopted route-optimising software to cut distances and fuel use.
“The company is urging order consolidation and minimum thresholds to reduce delivery trips, while cutting energy use, streamlining operations and eliminating non-essential costs to stabilise prices and weather the crisis,” said Truong Chi Thien, its general director.
At Anh Kim Food Production JSC, where fuel is a major cost, the firm has negotiated with suppliers to stabilise input prices.
However, volatile fuel costs have made suppliers wary of long-term contracts, forcing the company to seek alternatives.
“With weak demand, the company is keeping prices low and accepting lower profits, while optimising operations to cut fuel costs,” said Nguyen Thi Thu, chair of the company.
According to Ly Kim Chi, chair of the Ho Chi Minh City Food and Foodstuff Association, fuel price volatility is pushing up logistics and input costs, especially for imported materials, making cost control key to maintaining prices and operations.
“For essential goods, profits are already very low, especially for companies participating in market stabilisation programmes.
“However, businesses are actively seeking ways to adapt to fuel price shocks. Food prices have remained stable, with retailers not raising prices,” Chi said.
“Companies are optimising production, saving fuel and improving logistics efficiency, thereby reducing dependence on fuel and keeping prices stable.”
According to Thai Hong Kien, director of MDF Thai Le Co and head of the Business Association of Dong Thanh Commune, Ho Chi Minh City, firms face weak domestic and global demand alongside rising input costs, with those relying on imports under great pressure from supply shortages and higher prices.
Strengthening linkages within domestic value chains is seen as an effective solution, enabling firms to secure local supplies and reduce reliance on imports.
“Sourcing from domestic suppliers offers many advantages, including easier price negotiations and more control over distribution.
“Within the association, several supply chains have been established where one company’s output becomes another’s input, reducing dependence on imports and allowing better control over prices and markets,” he said.
Many Vietnamese businesses have proactively diversified their supply sources, shifting towards domestic materials to minimise risks from global supply chains, he added.
FOrion Food Vina Co Ltd, for instance, has over the past decade through its “Homegrown Potatoes” programme built a value chain from farming areas to the market by providing quality seeds, transferring cultivation techniques and purchasing outputs.
This model not only supports sustainable production and improves farmers’ livelihoods but also ensures stable raw material supplies for factories.
Alongside supply localisation, green transformation is also a practical tool for cost savings.
According to Thu from Anh Kim Food Production JSC, the company is considering replacing equipment that uses fossil fuels with electric systems powered by cleaner energy to mitigate the impact of fuel price fluctuations. — Viet Nam News/ANN
