Is there a phenomenon of 'price fever' during Tet?
Economist Vu Vinh Phu predicts that there will be no price "fever" during Tet, especially for consumer industrial goods, clothing, etc. However, some fresh products may increase by 10-20%.
Dealing with local price increases
According to Mr. Vu Vinh Phu, based on the volume of goods and the capacity of Vietnam's distribution system and the purchasing power of the market, it is unlikely that there will be sudden price fluctuations. However, before and after the Lunar New Year, some foods such as: chicken, fresh seafood, high-quality vegetables, hot ham of all kinds, and good beef will increase in price from 10 to 20%. The report of the Ministry of Industry and Trade said: The amount of goods to supply the market during Tet is ready. The total amount of goods in Ho Chi Minh City and Hanoi serving Tet is more than 43,000 billion VND.
Consumers have many opportunities to choose products. Illustration photo: Thanh Vu/VNA |
However, some trade experts are also concerned: The commodity fund prepared by localities for Tet needs to be clarified, in which the State trade system and supermarkets run by localities hold what percentage? Does it overwhelm the free market? Who decides the selling price of that commodity fund? Does the distribution network cover all local markets? That is what consumers care about most during Tet.
A representative of the Ho Chi Minh City Department of Industry and Trade said: The total value of goods for the 2 months before and after the 2018 Lunar New Year of manufacturing and supplying enterprises was nearly 18,000 billion VND, an increase of more than 743 billion VND compared to the previous year's Lunar New Year.
To avoid price hikes in the days leading up to Tet, the city's Department of Industry and Trade has prepared a 15-20% increase in price stabilization goods, with a total amount of over VND7,000 billion, an increase of 20-30% compared to last year. Based on the results of the 2017 Tet holiday and the forecast of people's consumption during Tet, the Hanoi Department of Industry and Trade has planned to increase the stock of goods by 10-15%.
Mr. Le Hong Thang, Director of the Hanoi Department of Industry and Trade, said: The Department will closely monitor the supply and demand of goods and services in the area, focusing on food, foodstuffs and essential goods and services for Tet; at the same time, it is requested that districts create conditions and support businesses and business households to organize the work of stockpiling goods well.
“Production and business enterprises and markets in the area need to proactively research the market, develop production plans, and reasonably reserve goods and raw materials to maintain stable production and business activities, ensuring the quantity of goods supplied to the market is of good quality and at reasonable prices,” said the leader of the Hanoi Department of Industry and Trade.
To stabilize prices during the 2018 Lunar New Year, Deputy Minister of Finance Tran Van has directed the Price Management Department (Ministry of Finance) to proactively implement measures to stabilize market prices. Previously, the Minister of Finance requested the Director of the Department of Finance to preside over and coordinate with local departments, branches and sectors to continue advising the People's Committees of the provinces to strengthen management, operation and price stabilization in the area.
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| Many promotional policies for Tet goods. Photo Internet |
In particular, do not allow the phenomenon of taking advantage of the increase in electricity and gasoline prices to increase chain prices, which is not consistent with the impact ratio of electricity and gasoline prices on the cost and selling prices of other goods and services. "Closely monitor the price declaration of enterprises; strictly control the price formation factors and the determination of selling prices for essential goods, price-stabilized goods, and goods on the price declaration list. Take timely measures to handle local price increases, avoid adjusting prices of many goods at the same time, especially before and after Tet," said the leader of the Ministry of Finance.
Carefully manage prices to avoid causing psychological inflation
A representative of the Price Management Department (Ministry of Finance) said: In 2018, price management will continue to be cautious, carefully assessing the impact of price adjustments on the socio-economic situation and the consumer price index (CPI) to have appropriate plans and roadmaps, avoiding adjustments at the same time.
This year, the National Assembly has approved a GDP growth target of 6.5 - 6.7% and inflation of 4%. “Keeping inflation at 4% is also a challenge, as solutions to boost growth in 2017 such as accelerating investment, loosening credit growth or continuing to implement the market roadmap for medical service prices for subjects not covered by social insurance in 2017 may have a delayed impact on CPI developments in 2018,” said a price management officer.
Therefore, according to the Ministry of Finance, the task of price management is to both promote growth and control inflation. The Price Management Department continues to study and perfect the legal system on prices, focusing on perfecting the management mechanism and price levels for services that have been transferred from the fee list to management according to the price mechanism; continue to perform well the task of standing to assist the Steering Committee on price management, and implement price stabilization measures for important and essential goods and services.
