The general pricing level was badly influenced by electricity and fuel price hike within one month.High loans interest swallowed profits of enterprises, prompting them to increase salary and related allowances. The people and enterprise community were in much concern for their live hoods, production efficiency, and recovery capacity.Enterprises bear more burdensThe recent retail fuel price reduction on August 22 could not relieve consumers from worrisome. Mr. Nguyen Van Hieu, residing at Chanh My Ward in Thu Dau Mot City said: “I was expecting that the price should be reduced, at least, by VND 500 per liter. The reduction by VND 300 in such a stage was useless in easing daily costs.” Electricity price increase causes troubles to enterprises. In this photo: furniture for exportation hold the major positions of industries in Binh Duong  Humble reduction of fuel price dissuaded consumers who were more disappointed by the electricity price raising from August 1.Chair of Binh Duong Wood Processing Association, Mr. Huynh Quang Thanh asserted that business operations and production of enterprises had been back on track in the preliminary success of government’s measures to save ‘dying’ enterprises; however, the effects of recent price hike would eventually make enterprises lose their grip.The increment of electricity price by 5% worried the enterprises for they would be obliged to more production costs and expenses not adjustable immediately in their economic contracts.Thanh informed that the effects should be prominent due to high power consuming characteristics of wood processing industries, causing many enterprises to bear more costs of input materials among other costs and expenses which might be increased by 10 to 15% - great effects on business and production.Of the same opinion, representative of Thuan An Woodwork JSC in Thuan An Town said that they were facing problems in seeking for purchase orders and would, now, confront the price hike and witness their ineffective business operations in the face of fierce competition.Favorable funding neededUnder statistical data of Binh Duong Branch of State Bank of Vietnam, credit growth rate in banking sector in recent months saw delight with smooth flow of funding for enterprises especially small and medium enterprises.For VND credit funding, in the first 6 months of the year, general credit balance of Binh Duong reached VND 59,395 billion or 10.38% higher than the beginning of the year and 21.09% higher than previous term.Credit growth was considered as optimal signal for enterprises to get more funding; however, the credit structures of banks was only offering enterprises with 3-6 month loans with a humble quantity of medium and long term contracts.As the matter of fact, enterprises were not very optimistic and not planning for long-term investment.Director of Lien Phat Co. Ltd., Truong Thi Thuy Lien informed that the two shoe producers under her management were long-term customers to one major bank; however, they were under scrutiny for new loans. Commercial banks were offering 6.5-7% of interest rates of loans to healthy and active enterprises; however, for more risky enterprises, the rates should be up to 10% with shorter terms.Lien asserted that the interest rates should be adjusted to below 6% per annum to encourage enterprises to operate in larger gap of profits and costs.Meantime, Thanh asserted that bank interest rates stayed put while many enterprises were making loans of relatively high interest rates (13-14% a year). Some prospective members of his enterprises were accepting short-term loans to fulfill their purchase orders. This represented low trust of enterprises in building up long-term businesses. Besides, the credit loans interest rates of 12-13% a year seemed to be unaffordable by enterprises in the medium and long terms.Reported by Thanh Hong – Translated by Vi Bao