The Ho Chi Minh City People’s Committee called on local enterprises to help stabilise prices to avoid the usual price hike fever that goes hand in hand with Tet.
Local consumers often face soaring prices around Tet, specifically on food and other essential items. This causes many people to begin purchasing goods early to avoid the high costs during the festival.
According to statistics from the Ho Chi Minh City Department of Industry and Trade, the price of sugar at local markets has slightly increased to VND 21,000 (USD1.05) per kg because confectionery companies are starting to produce Tet products.
A study by the Thanh Nien Newspaper revealed that the wholesale sugar price is currently 27% higher compared to the same period last year and 3.2% higher than that of the beginning of this year.
Some sugar companies attribute the current rising prices to the shortage on the world market, plus the high demand from food and confectionery companies at this time.
However, four enterprises committed to stabilising sugar prices have already stored approximately 11,050 tonnes which is 35% higher than the average total monthly demand of local people according to a report from the Ho Chi Minh City Department of Industry and Trade.
To ensure enough supply for the Tet Festival, 14 enterprises in Ho Chi Minh City have prepared for their storage since June.
Consumers are seeing 8 groups of goods in the stabilisation programme which include sugar, cooking oil, rice, pork, vegetables, etc,. being sold at the same or lower than the rate registered by enterprises.
The price stabilisation programme has received increasing interest from local consumers, with the number of goods registered for the programme in September increasing 20-30% compared to the August numbers.
The programme will continue for the coming Tet Festival until March 2011. The enterprises will commit to keep the price 10% lower than the market price and supply enough goods for the city’s demand.
