HCM city shoppers welcome lower prices for some essential goods

The Ho Chi Minh city government’s efforts to stabilise market prices has resulted in lowered prices for some daily essentials, according to a trade official.

In the last few days, the price of a number of daily essentials such as rice, pork and cement has dropped between 5 and 20%.

Vissan, the country’s biggest supplier of meat, has dropped its price for a kilo of pork by VND9,000 (10%) at all city supermarkets, the third such drop in June.

Most meat, processed food and fruit have reportedly been priced 10% lower than in May when prices peaked.

Pham Hoang Ha, director of the city’s Department of Trade, said VND400 billion (US$25 million) had been disbursed from the city budget to help companies stockpile commodities.

The city has also asked seven major trading companies, including the Sai Gon Agricultural Corporation, the Sai Gon Trading Corporation, the Huynh Gia Huynh De and An Phu Sinh meat companies, to reserve essential foods such as rice, meat products and seafood to curb speculation and prevent further price hikes.

Market watch officials are making regular inspections of markets and shops to control price hikes and are organising meetings with trading companies to discuss solutions to producers’ problems.

The directors’ board of Sai Gon Co-op said several supermarkets had agreed to reduce their profit by 50% in response to the Government policy to control inflation.

Cement prices in the city market have also dropped by VND10,000-13,000 to VND70,000 a bag as a result of the local administration’s efforts to regulate production and distribution as well as curb speculation.

The Consumer Price Index or CPI in June rose by 2.14% compared with 3.91% in May. June’s CPI has been the lowest for the first half of this year.

In an effort to prevent price hikes in coming months, the city’s Trade Department has proposed a plan to co-operate with the Finance Department to establish a Price Stabilisation Fund to provide funding for businesses to boost production and reserve essential commodities.

To ensure food security and maintain export volumes, Ha said more capital for businesses was needed to expand production, especially for daily essentials and exports.

The city’s trading sector plans to create wholesale and retail sale networks and upgrade supermarkets, major markets, storehouses and cold storage areas. It will also promote on-line shopping and e-payment methods.