On June 9, Deputy Mayor of Ho Chi Minh City Nguyen Thi Hong, approved a major programme outlined to stabilise prices of essential foods and foodstuffs in 2010 and the next Lunar Year - the Year of Cat. The market stabilisation programme aims to prevent either a shortage of goods or a surge in prices before, during and after Tet when prices usually peak for the year.
Sending to traditional markets
After seven years of implementing the market stabilization programme during Tet, or Vietnamese traditional Lunar New Year Holiday, the largest city of Vietnam has decided to apply an intensive programme with the aim of keeping markets and prices stable for the whole year. Nguyen Thi Hong, Vice Chairwoman of the Ho Chi Minh City People’s Committee, said the programme will help balance the supply of essential foods and foodstuff, ensure consumers’ demands, and contribute to meeting the city’s social and economic targets set for 2010.
The programme will create a volume of staple goods that can meet the daily needs of local residents, especially in cases of unexpected fluctuations in the market.
Before, during and after the Lunar New Year 2011, stabilised products will be essential goods. Prices of goods supplied through this programme will be lower than market rates by a margin of at least 10 percent.
One new point of the programme is that lower-priced staple goods will be not only be provided via modern distribution channels, but small traders at traditional markets will also supply them. Recent successes of egg provider Ba Huan and food manufacturer Vissan have proved this new approach. Besides, the city has also initiated the “Vietnamese Market Day” campaign to introduce and sell made-in-Vietnam goods in suburban districts, industrial parks and export processing zones.
Tightening prices
To carry out the programme successfully, beyond supply, the management and supervision of selling prices is crucially important. Commenting on this aspect, Deputy Mayor Nguyen Thi Hong said: Businesses taking part in the programme must register soft prices with the city’s Department of Finance. Their selling prices are required to be at least 10 percent lower than market prices announced by the Ho Chi Minh City Statistics Office at the time when goods suppliers register for their participation in the programme. During this programme, businesses are not allowed to raise the price. If market prices drop more than 5 percent, or stabilised prices are only 5 percent lower than market prices, they must lower their selling prices accordingly.
Besides, businesses taking part in the program are required to have abundant supplies, a wide distribution network, and arrange their goods in a manner convenient to consumers. They are also required to register all retail outlets for soft-price goods with the city Department of Industry and Trade. Stabilised goods must be put at easy-to-see places.
VND380 billion to stabilise eight groups of essential goods
To stabilise food and foodstuff prices in 2010 and the Lunar New Year 2011, Ho Chi Minh City will spend VND380.6 billion (US$20 million) to store eight groups of essential goods. Particularly, VND265.7 billion will be used to support prices in 2010 and VND114.9 billion will be used for stabilization of goods during the next Tet. Participating businesses will be granted zero-rate loans to keep their prices constant and their supplies stocked. Eight kinds of essential consumer goods will be supported, including rice, sugar, cooking oil, beef, poultry, eggs, processed food and vegetables. The validity is from June 1 to December 31, 2010.
In case consumers find any supplier failing to meet requirements under the programme, they can inform authorities through the hotline numbers +84-8-38297550, 38296282; Fax: +84-8-38273908.
P.V
Vietnamese
