Price-stabilized goods: Not yet "covering" rural areas

(Baonghean) - The market price stabilization program, along with the drastic implementation of mechanisms and policies to remove difficulties for businesses, has helped control the consumer price index and limit speculative profiteering. This is the 5th year Nghe An has implemented the price stabilization program, however, this program still has shortcomings, has not met the needs of the people, and currently only reaches a small group of consumers.

To limit sudden price increases during holidays and Tet, and prevent adverse impacts on production and people's lives, many localities have implemented price stabilization programs for essential consumer goods. The program's goal is to create a stable source of goods for the market to ensure supply-demand balance, avoiding shortages that cause price fever. Participating in the program, enterprises are provided with temporarily idle budget funds by the State or use the budget to support bank loan interest rates. Participating enterprises are responsible for organizing production, business, and stockpiling of goods (on the list of price stabilization items of the program), ensuring quantity, quality, price and other conditions; Registering prices and committing to sell price stabilization goods at prices 5-15% lower than market prices.

Despite the difficult economic situation, on the occasion of the Lunar New Year of Giap Ngo in 2014, Nghe An still increased the source of money for businesses to purchase goods with 0% interest rate for 3 months, from 16.4 billion VND in 2012 to 20.3 billion VND in 2013. Accordingly, 6 businesses received interest rate support loans to proactively stabilize goods sources: Vietnam-Laos Economic Cooperation Investment Joint Stock Company, Huu Nghi Joint Stock Company, General Agricultural Products Import-Export Joint Stock Company, Son Hai Company Limited, Thanh Sang Food Import-Export Joint Stock Company, Duc Thanh Trading and Service Company Limited. There are 3 groups of goods that are stabilized during the Lunar New Year this year: 700 tons of rice (350 billion VND), 100 tons of sticky rice (1.8 billion VND), and 350,000 liters of cooking oil (11.2 billion VND).

It must be affirmed that the price stabilization program is a major policy, one of the measures contributing to curbing inflation and stabilizing the economy. However, after 5 years of implementation (from 2008 to 2013), the price stabilization program has not left an impression on consumer awareness. The price stabilization points of sale are still too few compared to people's needs, and are currently only deployed mainly in supermarkets and showrooms in the city of enterprises participating in the program, while the target audience is the poor, low-income people in rural areas, remote areas and remote areas have not benefited. Research at the Trade Center - Nghe An Friendship Joint Stock Company found that essential goods to serve the needs of the Lunar New Year have been fully gathered at the company's warehouses, but like every year, this year the company opened 2 price stabilization points of sale in Vinh City instead of bringing goods to the suburbs and rural areas.

Price stabilization counter of Nghe An Friendship Joint Stock Company on Phan Dinh Phung Street (Vinh City).

Mr. Nguyen Hong Thai, Director of the Trade Center, said: "From the beginning of October, the company proactively reviewed market demand, counted key items during Tet and made plans to import goods early. This year, we borrowed 4 billion 775 million VND from the price stabilization fund. Currently, the unit's reserve goods are about 30 billion VND with the main items being cooking oil, cigarettes, matches, confectionery, ham, beer, soft drinks of all kinds...; in December alone, the reserve goods of beer and soft drinks were 42,000 barrels, 1,000 barrels of matches, 100,000 liters of cooking oil. To avoid speculation, hoarding, and arbitrary price increases in some other types of distribution such as markets and grocery stores before and after Tet, the company has opened 2 price stabilization points of sale on Phan Dinh Phung Street and Le Loi Street (Vinh City)"...

Ms. Nguyen Thi Tuyet (in Mau 4 hamlet, Kim Lien commune - Nam Dan) said: "I heard that for many years now, the province has supported people by opening price stabilization points of sale, but in reality, our people have not benefited from it. If you want to buy stabilized goods, you have to go to Vinh city, and the travel costs exceed the preferential amount." Even for people in Vinh city, many people are still concerned: "Price stabilization points of sale are mainly located in the supermarket system, and most people have the habit of buying goods at markets and grocery stores, so the program only reaches a small group of high-income consumers.

As for workers with average and low incomes, there are few opportunities to benefit," said Ms. Le Thi Thuy (in Hamlet 16, Hung Loc Commune - Vinh City). Although the province and the Department of Industry and Trade have issued documents directing agencies and enterprises to strengthen inspection and control of compliance with legal regulations, take measures to ensure adequate supply of goods, especially essential goods, and absolutely not allow shortages, speculation, hoarding of goods, causing price fever, negatively affecting people's lives, but in reality, there has been a situation where some items subject to price stabilization are sold in stores and agents at prices equal to, or even higher than, the prices of similar items; the sale of price stabilization goods at supermarkets makes it difficult to control the phenomenon of some people taking advantage of buying price stabilization goods to sell outside.

Being granted interest rate support loans is a competitive advantage for businesses. From this source of capital, businesses can proactively source goods to regulate the market with stable prices even during peak shopping times. Thanks to that, businesses also create consumer trust. Ms. Tran Thi My Ha, Head of Trade Management Department - Department of Industry and Trade said: "According to regulations, each business participating in the price stabilization program must open at least 2 fixed points of sale with full banners, goods for sale must be arranged neatly, convenient for shopping.

On the occasion of Tet, compared to the consumption demand of goods of the people in the whole province of about 18,000 - 20,000 billion VND, the budget support is "insignificant". But the most effective thing of the price stabilization program is propaganda, creating a psychological effect, making some small traders and businesses not dare to speculate, lower prices, raise prices to make profits in front of the State's price stabilization policy. When necessary, where there are large fluctuations in prices, price fever, shortage of goods, the province will regulate the units participating in price stabilization. Implementing the work of keeping prices stable in the market, businesses have also expanded their retail network, organized mobile sales in rural areas; coordinated to organize Vietnamese goods markets in rural areas to help people access stabilized goods, with clear origins, guaranteed quality, and reasonable prices".

To ensure the practicality of the program, along with increasing information dissemination to all people, especially those who need to benefit from this program, the relevant agencies should, based on the law of supply and demand, review the items subject to price stabilization that are practical for the lives of the poor and low-income people. In addition, it is necessary to organize a distribution network for price stabilization goods to rural areas. There are measures to deal with supermarkets and agents that have registered to participate in the price stabilization program, but do not sell or sell at prices higher than the prices of similar items. Only then will the price stabilization program be truly effective and effective.

Ngoc Anh