Food prices begin upward climb

After a long period of attempts to keep prices unchanged, many essential goods and consumer goods’ prices have begun rising.

According to Saigon Co-op, the supermarket chain has received notice to raise prices 7-10 percent from 20 suppliers, mainly those of drinks and frozen processed foods, who cite increased costs of input materials.

Fresh food prices have also increased slightly due to the hot weather. Vegetable have risen by 2000-3000 dong per kilo, while eggs have increased by six percent. Chicken eggs now sell at 19,500 dong per unit of ten eggs, while duck eggs are around 26,000 dong.

According to Tuoi Tre newspaper, Don Duong in Lam Dong province, hailed as a “‘vegetable metropolis”, tomato prices have surged to 6500-7500 dong per kilo, a 10-12 fold increase over the beginning of 2010. Hot weather makes it difficult to grow these veggies and the demand for tomatoes in HCM City and neighbouring provinces has risen rapidly.

Big C also revealed that some suppliers, such as those of vegetable oil, have announced increases of four percent, while the supplier of Anlene has requested an eight percent increase.

Drink products have been relatively stable except for some fruit juices, especially imported products, which will rise eight percent. These products, however, account for just a small proportion in the total number of goods available at Big C

Price increases were mentioned back in April, but the supermarket has still been selling stored goods at old prices. The new price levels will be applied soon when inventories run out, according to Quynh Trang, Public Relations Director of Big C.

Nguyen Phuong Thao, Director of Maximark Cong Hoa, observed that suppliers send monthly notices on raising prices.

“The purchasing power remains weak after Tet (in February), so suppliers don’t dare raise prices sharply. In general, they offer gifts with price hikes, or they set slight increases, 5-7 percent in general,” Thao explained.

According to Saigon Co-op Mart, after trying to keep prices unchanged by negotiating with suppliers, the supermarket chain must raise prices after it sells out its inventory. Other supermarkets have reported higher purchasing rates for goods used in summer. Clothing and fruits are up by 40-50 percent over April.

Tags: Vietnam food prices