Are we seeing the end of many services and industries?

The burden of rising costs especially on fuel is starting to hit hard in several industries across Vietnam

We reported recently that bus operators are struggling to maintain regular services as the price of fuel accounts for 50% of their costs.

Many have been forced to cut the number of trips to cut costs. They cannot raise fares as the competition is still strong and with the increase in the cost-of-living passengers cannot handle any increases.

Vietnam has over 45,000 people owning vessels and are reliant on the fishing industry.

However, as diesel costs have doubled year on year to VND30,000 per litre to fill up the average boat takes 330million litres a month.

With lower catches than in previous years if they do take their boats out most are losing per trip.

With only one in ten boats making a profit, many fishermen are having to sell their boats and are getting other jobs to pay the bills.

Grab bikes and taxis are also suffering and are leaving to work in offices or factories.

Bottom line is no one is not affected by the rising prices so the next few years will be very tough.

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