Prices of about 300 consumer commodities, particularly dairy products, have jumped on the Hanoi market.
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| Frozen product prices went up by 5% |
According to Vu Vinh Phu, Chairman of Hanoi Supermarket Association, the prices on these products have gone up substantially. Dairy products have seen the biggest rise, going up by 8-10%.
At several supermarkets of Hanoi, prices of frozen products, particularly imported ones surged by 5%. Meanwhile, prices of fresh food such as vegetables, fish, pork and chicken actually dropped by 5-10%.
Nguyen Thai Dung, Vice General Director of Big C Thang Long Supermarket said, “At present, several suppliers want to increase their product prices but Big C is trying to stabilise prices by stockpiling as much goods as possible. In addition, we have negotiated with five milk producers including Meiji, Hanco, Mead Johnson, Duty Lady, and Abbott so that they will not raise their product prices from now until the end of this year. We are also negotiating with other dairy producers about this policy.”
According to Dung, from October 6-24, his supermarket has launched a special promotion programme. Under this programme, prices of about 100 essential commodities such as fish sauce, seasoning, cooking oil, noodles and other household products have decreased by 10-50%.
Phu added that among the 300 consumer commodities; cosmetic, dairy, domestic candies and cakes, cooking oil, sugar and imported candies and cakes had the biggest increase in prices of over 10%, 8-10%, 2-3%, 10% and 5-7% respectively.
Suppliers always attribute higher exchange rates and input costs to the rise in their product prices.
Phu said, “After each time that prices go up, consumers have to accept a new price tariff. Vietnamese goods depend too much on imported materials whereas our productivity is 2-15 times lower than other countries in the region and 30 times lower than other countries in the world.”
Phu added that Thailand could produce 120 tonnes of materials from 1 hectare of sugar-cane but Vietnam could produce only about 65 tonnes.
Furthermore, Vietnam’s distribution system has not been operated effectively. Products are not bought directly from farmers or manufacturers but through intermediaries. If each intermediary increases prices by 15%, retail prices will have a very big difference from the original prices.
“It’s necessary to invest in enhancing productivity, distributing and stockpiling enough production materials. Regulators need to manage price policies for long-term periods. They should not issue a regulation under which prices are not allowed to go up over 20% within 10 days because this regulation would give opportunities to enterprises to conduct their tricks by raising their prices about 10% each time,” recommended Phu.
At several supermarkets of Hanoi, prices of frozen products, particularly imported ones surged by 5%. Meanwhile, prices of fresh food such as vegetables, fish, pork and chicken actually dropped by 5-10%.
Nguyen Thai Dung, Vice General Director of Big C Thang Long Supermarket said, “At present, several suppliers want to increase their product prices but Big C is trying to stabilise prices by stockpiling as much goods as possible. In addition, we have negotiated with five milk producers including Meiji, Hanco, Mead Johnson, Duty Lady, and Abbott so that they will not raise their product prices from now until the end of this year. We are also negotiating with other dairy producers about this policy.”
According to Dung, from October 6-24, his supermarket has launched a special promotion programme. Under this programme, prices of about 100 essential commodities such as fish sauce, seasoning, cooking oil, noodles and other household products have decreased by 10-50%.
Phu added that among the 300 consumer commodities; cosmetic, dairy, domestic candies and cakes, cooking oil, sugar and imported candies and cakes had the biggest increase in prices of over 10%, 8-10%, 2-3%, 10% and 5-7% respectively.
Suppliers always attribute higher exchange rates and input costs to the rise in their product prices.
Phu said, “After each time that prices go up, consumers have to accept a new price tariff. Vietnamese goods depend too much on imported materials whereas our productivity is 2-15 times lower than other countries in the region and 30 times lower than other countries in the world.”
Phu added that Thailand could produce 120 tonnes of materials from 1 hectare of sugar-cane but Vietnam could produce only about 65 tonnes.
Furthermore, Vietnam’s distribution system has not been operated effectively. Products are not bought directly from farmers or manufacturers but through intermediaries. If each intermediary increases prices by 15%, retail prices will have a very big difference from the original prices.
“It’s necessary to invest in enhancing productivity, distributing and stockpiling enough production materials. Regulators need to manage price policies for long-term periods. They should not issue a regulation under which prices are not allowed to go up over 20% within 10 days because this regulation would give opportunities to enterprises to conduct their tricks by raising their prices about 10% each time,” recommended Phu.
According to the Ministry of Finance, Circular 122/2010/TT-BTC regulated very clearly that medical products were managed by the Ministry of Health, dairy products were managed by the Ministry of Finance, transportation fees were managed by the Ministry of Transport and other products were managed by Departments of Finance, Departments of Industry & Trade or People’s Committees of provinces. Accordingly, these agencies will submit their reports to the Price Management Department under the Ministry of Finance no later than October 10. The Ministry of Finance will thoroughly review price regimes submitted by enterprises. If their price regimes are not reasonable, they will be forced to decrease the prices. |
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