Stored goods to keep prices stable

Distributors in the cities of Ha Noi, HCM City, Da Nang and Can Tho plan to sell stored goods at lower than market prices by 5 per cent to ensure adequate supplies and keep prices stable as Tet (Lunar New Year) holiday nears.

In HCM City, distributors who have participated in a city programme to keep the prices of essential goods stable over the Tet holiday began to sell their stored goods by mid-month

City distributors can meet demand because they have stockpiled enough inventory in advance, according to the Department of Industry and Trade

These businesses have disbursed VND416 billion (US$22.5 million), or 98 per cent of the investment for the programme, with current inventories now reported at 35,000 tonnes higher than expected

Funds for the remaining 2 per cent of perishable fruits and vegetables will be disbursed 10 days before Tet

The department said the amount of goods during Tet would increase by 20 – 30 per cent compared to the rest of the year.

Chau Nhut Trung, general director of Huynh Gia Huynh De Co Ltd, said: “We will implement the policy of one price. Duck will be less than VND50,000 per kilo, chicken VND90,000 per kilo.”

According to Trung, besides the 120 tonnes of chicken and 200 tonnes of duck reserved for Tet as usual, the company had stored 300 tonnes of chicken and 500 tonnes of duck for the price stabilisation programme.

Pham Van Minh, director of Phu An Sinh Co Ltd, said the company had reduced chicken prices by VND4,000 to VND48,000 per kilo, and VND84,000-90,000 per kilo of special-fed chicken, 5 per cent lower than last year’s prices.

Le Quang Thuc Quynh, marketing director of Saigon Co-op, said the company had stockpiled an amount of essential goods worth VND1 trillion ($54 billion), one-tenth of which is lent with no interest by the People’s Committee.

There are 1,504 shops participating in the programme, three times the number of last year. The businesses also provide mobile shopping for customers in distant and remote districts.

Sai Gon Co-op plans to have 200 mobile shops to serve customers in remote districts and labourers at industrial parks.

More than 10 mobile carts of Huynh Gia Huynh De Co Ltd will travel into small alleys to deliver frozen poultry meat to low-income people at lower than the fixed prices, Trung said.

During the holiday, Phu An Sinh Company will increase the number of their selling sites from 109 to 139 shops. Similarly, 20 million eggs from Ba Huan will be delivered at 576 spots

Major supermarkets like Saigon Co-op, Big C, CitiMart and MaxiMart have already launched sales promotions.

Saigon Co-op said the chain had reduced the prices of processed food products, mainly Chinese sausage of Vissan, CP and Sagrifood.

Co-op Mart has also cut prices of 150 kinds of domestic cookies and jams by 30 per cent, and 1,500 garment products by up to 50 per cent.

Nguyen Huy Tuong, deputy chairman of the Ha Noi People’s Committee, said Ha Noi had given VND250 billion ($13.6 million) to enable11 enterprises to stock up on merchandise and launch onto the market goods at a 5- per- cent- lower price.

According to Nguyen Thi Nhu Mai, deputy director of the Ha Noi Department of Industry and Trade, consumer purchasing power is expected to increase by 20-30 per cent this year.

The city has instructed 11 key city enterprises to stockpile nine essential goods, including 4,510 tonnes of rice, 2,420 tonnes of meat, 940 tonnes of frozen seafood, 2,183 tonnes of fruit and vegetable, 2,174 tonnes of processed food products, 3,200 litres of cooking oil, 118 tonnes of sugar, 80 tonnes of cookies and candy and beverages.

More than 120 spots selling goods for Tet will apply the stable-price programme.

Da Nang’s Department of Industry and Trade said the city had reserved 20 tonnes of pork, and had provided VND3.4 billion ($185,000) to help businesses stock up on 100 tonnes.

The pricing programme will take place from February 11 – 13 and February 17-18 at 10 fixed spots in the city and on two mobile carts in remote areas.

Da Nang has also spent VND6.2 billion ($340,000) to buy 800 tonnes of rice to stabilise prices and support poor people to enjoy Tet.

Le Van Hung, deputy director of the Can Tho City Department of Industry and Trade, said the city had lent VND15 billion ($820,000) to four enterprises, including Co-op Mart Can Tho, Gentraco Corporation, Can Tho General Trading Joint-Stock Company, and Can Tho Foodstuff Fruits and Vegetable Joint-Stock Company. Sixteen other enterprises mobilised VND990 billion ($54 million) to stock up on essential goods for the Tet holiday this year, Hung said.

VietNamNet/Viet Nam News

Tags: Vietnam retail market