Local enterprises proactively adapt to market volatility

Amid complex global developments, particularly conflicts in the Middle East, production, business activities, and tourism in many localities have been affected to varying degrees. In Tuyen Quang Province, export, manufacturing, and tourism enterprises are actively implementing flexible solutions to adapt to market fluctuations and maintain stable operations.

Song Lo Tea Joint Stock Company is striving to expand its markets amid volatility linked to developments in the Middle East.

Instability in the Middle East has created ripple effects across the global economy, especially in maritime transport, logistics, and fuel prices. These factors are directly impacting production and export activities of many businesses, including those in Tuyen Quang.

Song Lo Tea Joint Stock Company is among the enterprises experiencing clear impacts, as the Middle East accounts for around 30–40 percent of its total tea export volume. Due to the regional conflict, several of the company’s shipments are currently delayed at Bandar port. According to the company, about 400 containers of Vietnamese goods are reportedly congested at the port, leading to prolonged delivery times.

In addition to transport disruptions, businesses are also facing rising input costs. Increases in fuel prices have pushed logistics costs higher, while fertilizer prices, imported plastic resin used in packaging production, and transportation expenses have also risen, significantly raising overall production costs.

In response, the company has proactively adjusted its market strategy. Alongside maintaining traditional markets, it is expanding exports to new markets such as Thailand, Malaysia, Indonesia, and the Philippines. Exports to Thailand in 2025 have already generated additional orders, helping reduce reliance on a few traditional markets.

According to the Tuyen Quang Provincial Business Association, many enterprises in the province are restructuring production plans, strengthening cost management, saving energy, and optimizing production processes to ease pressure from rising input costs. At the same time, diversifying export markets, expanding partnerships, and exploring new markets are seen as key solutions to reduce dependence on traditional markets.

The tourism sector has also been affected by the global situation. In response, tourism businesses have developed flexible travel packages that allow itinerary changes or tour cancellations when necessary, while focusing more on short-distance trips and domestic destinations.

With proactive adaptation from the business community and support from authorities and professional associations, the local economy is expected to gradually overcome current challenges and continue its stable development in the coming period.

Thu Trang