HCM City businesses struggle with order shortage, rising costs

One of the biggest problems facing businesses in Ho Chi Minh City is the lack of new orders, according to the latest report by the Ho Chi Minh City Business Association.

Specifically, 37% of businesses in the southern city stated that they are experiencing difficulties in finding new orders. Additionally, 38% of businesses reported an increase in input material prices, forcing them to contend with increasingly high production costs. This challenge is further compounded by 50% of businesses believing that consumer demand is sharply declining, directly affecting their revenue and profits.

Furthermore, 39% of businesses indicated that they are lacking working capital, while 20.7% are experiencing difficulties in recruiting labor. These factors are making the business situation, especially for small and medium-sized enterprises (SMEs), more challenging than ever.

Despite these difficulties, 69.5% of businesses reported an increase in sales revenue, though a significant 30.4% reported a decrease. High input costs (raw materials, labor, etc.) have caused 39% of businesses to face declining profits, affecting entrepreneurs' confidence in business prospects.

Nevertheless, the survey also recorded some positive signs. Some businesses are still maintaining and increasing investment, with 33.7% of surveyed businesses stating that they will increase recruitment in the near future, a positive sign for the economy.

In terms of confidence, 63% of the businesses rate the current business environment as positive, and 85.7% believe that the business situation will improve in the future.