Focusing on stabilising markets for Tet Holiday

The Prime Minister has instructed ministries, departments, and localities to intensify measures to stabilise prices and markets in the last months of 2010 in order to ensure the growth rate of 6.5 % and Consumer Price Index of 8 %. Accordingly, the Ministry of Industry and Trade together with localities prepared plans to ensure the supply of goods, necessary services for production and consumption from now until the first quarter of 2011, and goods demand for Tet Holiday of 2011.

Ensuring supply of 12 major commodities

The last months have witnessed many fluctuations in goods markets; goods consumption has generally increased along with good weather for construction, the wedding and Christmas seasons, and growing demand for manufactured goods.

The Ministry of Industry and Trade is determined to ensure the supply of 12 key commodities including food, construction steel, sugar, fertilizer, salt, cement, breeding feed, petroleum, paper, coal and medicine.

Cement and salt supplies already exceed market demand. The domestic supply of rice will be over 8 million tonnes (of which export is only 0.6 million tonnes), which fully meets the demand for domestic consumption and export. Sugar production will meet the market demand of 200,000 tonnes, steel consumption in the fourth quarter will reach 1.2 to 1.3 million tonnes.

In term of petroleum, Dung Quat oil refinery will operate to its full designed capacity, which is about 6.5 million tonnes per year. Thanks to abundant supply, some oil trading enterprises have proposed to the Ministry of Industry and Trade reducing oil imports in 2010. According to Ms Dam Thi Huyen, Deputy General Director of Petrolimex, reserves will increase by 20 % and oil prices will be stable from now until the end of the year.

Domestic demand for fertilizer is forecast to increase in the near future, with purchasing for the winter crop around 3.6 million tonnes. Basically, the pharmaceutical market remains stable, with domestic and imported medicine prices fluctuating slightly depending on imported input material prices and changes in exchange rates.

Supply and demand for manufacturing materials and necessities is ensured; according to the Ministry of Industry and Trade, there will be no goods shortages or price fever.

Regarding worries about high interest rate on loans, the State Bank commits to balance monetary policy in the last months and control interest rates on loans for exports.

Localities need action

Besides activities of sales, special offers and promotions at the end of the year, some big provinces and cities are actively building their goods reserves and market stabilizing programmes. Hanoi and Ho Chi Minh City, the two biggest markets, have been implementing price stabilization programmes for necessities over the last months this year until Tet Holiday 2011.

In Hanoi, with the budget of VND 350 billion borrowed from the City, enterprises taking part in the price stabilization programme have designated 360 outlets for price stabilization, double the number in 2009. In these places, prices are guaranteed regardless of market fluctuation.

Mr Nguyen Van Dong, Deputy Head of Hanoi Department of Industry and Trade, said that from now to the end of the year, the city will expand its goods distribution network. Regulation enforcement will be more frequent, and violations will be quickly handled by the department. The People’s Committee of Hanoi has decided to establish 500 price stabilized retail outlets within the city and surrounding districts and towns.

To restrain any Consumer Price Index increase, Ho Chi Minh City is building up material sources to provide enterprises through cooperating with departments of Industry and Trade in the south east and south key economic areas.

The Ho Chi Minh Department of Industry and Trade has designated nearly 1,894 outlets of 14 enterprises for price stabilization in 2010 and Tet Holiday 2011. According to Mr Vong A Loc, Manager of Financial Plan Faculty, Ho Chi Minh Department of Industry and Trade, the number of price stabilized outlets has increased by 25.7 % in comparison with Tet Holiday 2010. From June 2010, the supply of necessities has been ensured in Ho Chi Minh City.

Ms Tran Thi Huong, Head of Ba Ria Vung Tau Department of Industry and Trade, has proposed and gained approval for a VND74 billion programme to build goods reserves for price stabilization in the end of 2010. 30 % of those stabilized goods will be sold in remote areas.

According to reports from 56 out of 63 provinces and cities, most localities have solutions to stabilize prices in their areas. – VCCI

Tags: Vietnam Tet 2011, Vietnam Tet holiday