Food prices in Ho Chi Minh City have increased by up to 20% due to pressure from transportation and supply costs.
After the Lunar New Year, prices of essential goods increased sharply, driving up business operating costs by 15%. Retailers are now negotiating to keep increases within the 5-20% range.
The consumer goods market in Ho Chi Minh City is facing a new wave of price increases after the Lunar New Year holiday, with many essential items recording common increases ranging from 5% to 20%. The main cause is identified as escalating transportation costs and prices of agricultural inputs, creating double pressure on both consumers and production and retail businesses.
Price trends of goods at traditional markets
Observations at traditional markets in Ho Chi Minh City show a significant adjustment in the prices of fresh and dried food items. Specifically, fertilized duck eggs are currently priced at around 40,000 VND per dozen, an increase of 5,000 VND compared to the period before Tet (Lunar New Year). Other green vegetables and poultry eggs have also seen price increases ranging from 2,000 to 5,000 VND depending on the type.
Notably, supplementary items and functional foods experienced the most significant price fluctuations. The price of plastic bags used for packaging increased from 35,000 VND/kg to 42,000 VND/kg. In particular, milk for gym-goers saw a sharp increase from approximately 1.8 million VND to nearly 3 million VND per carton. This situation forced many households to tighten their spending, prioritize basic needs, and cook at home to reduce costs.
Businesses face pressure from operating costs.
Businesses and farms are struggling to maintain selling prices amidst rising input costs. At vegetable farms in Da Lat (Lam Dong province), agricultural input prices have increased by 30-40%, along with escalating transportation costs. To keep prices stable, some businesses are aiming to increase their order volume by at least 30% daily to offset the increased expenses.
In the organic food retail sector, the shipping cost per carton has increased from 50,000 VND to 70,000 VND, equivalent to a 40% increase. Although businesses are leveraging domestic supply to stabilize the market, pressure from rising prices of fertilizers, animal feed, and fuel is gradually narrowing the room for price stabilization.
Market trend forecasting and management solutions
Currently, about 70-80% of suppliers have proposed adjusting retail prices upwards. Some have even temporarily suspended deliveries to await the new price list. It is predicted that in the near future, if input costs do not decrease, retail prices in the market could establish a new benchmark with increases ranging from 5-20% depending on the product group.
In response to this situation, the authorities are compiling recommendations from the business community to report to the Government. Support policies and solutions to address difficulties related to operating costs and logistics are being considered to stabilize the market, ensure social welfare, and maintain sustainable production and business operations.
