Retailers exploit currency devaluation

Within a few days of the State Bank of Viet Nam’s devaluation of the dong, sellers of many goods and services in HCM City have put up prices.

Le Duc Thuy, Chairman of the National Committee for Financial Supervision said in reality, prices of many imported products have already been calculated based on unofficial rates for a long time, which means the recent 9.3 per cent dong devaluation would not have a significant impact.

Le Dinh An, director of the National Centre for Socio-Economic Information and Forecasting, said the central bank’s move last Friday aimed to narrow the gap between official and unofficial rates and it would not exert significant pressures on prices.

Several shops selling imported motorbikes on Cach Mang Thang Tam and Ly Tu Trong Streets said they have hiked prices in proportion to the devaluation of 9.3 per cent.

A Honda Air Blade motorbike imported from Thailand has gone up from VND66 million (US$3,300) to VND71 million-72 million ($3,550-3,600). A Honda PCX now costs VND86 million ($4,300).

Though most motorbikes were imported before Tet at the old exchange rate, the sellers have hiked their prices nevertheless.

The director of a District 1-based company that imports computer components said next week his firm would increase prices by 3 per cent.

Dan Sinh Centre in Yersin Street, District 1, said it had been informed by suppliers of electrical appliances that prices would be increased.

Lam Van Hoang, owner of an appliances shop in District 1, said many shops had already increased prices of popular products by up to 7 per cent.

Steel prices have been increased slightly. Viet Nam Steel General Co has hiked prices by VND800,000 ($40) per tonne to VND15.81 million-16.37 million ($790-818).

Steel retails at VND18 million-19 million ($900-950).

By the end of this week Pomina and Vina Kyoei Steel will hike prices by VND300,000-400,000 ($15-20).

Le Ngoc Dao, deputy director of the City Department of Industry and Trade, said to ensure importers do not hike prices of goods they had imported before the devaluation, the Department planned to step up inspections until the end of next month.

Nguyen Van Binh, deputy inspector of the City Department of Finance, also warned there would be inspections of prices in the market. — VNS

Tags: vietnam retail industry, Vietnam retail market