Goods for the Lunar New Year: Many aspects remain to be considered!

(Baonghean) - By this time, many businesses, supermarkets, and stores in the province have stockpiled goods in preparation for the Tet holiday season. In addition, the Provincial People's Committee and relevant agencies have implemented a plan to support businesses in stockpiling goods; and simultaneously intensified market inspection and control to protect consumer rights.

Ready to supply goods for Tet (Lunar New Year)

According to Ms. Tran Thi My Ha, Head of the Trade Management Department of the Department of Industry and Trade, the difficult economic situation has significantly affected people's spending. To ensure the rights and interests of the people, the Department of Industry and Trade and many businesses have completed price stabilization plans very early to serve people's needs. The total value of goods that businesses produce, stockpile, and supply to the market is approximately over 100 billion VND, focusing on stabilizing prices during the two months of Tet (Lunar New Year) until February 28, 2014. Therefore, prices of goods will not increase. Currently, although businesses are still concerned about the ability to consume goods during Tet, they are still preparing plans to supply goods fully and are committed to ensuring a stable supply and prices for essential goods such as sugar, rice, glutinous rice, and cooking oil, preventing shortages and sudden price increases.

Implementing the price stabilization program of the Provincial People's Committee, the Nghe An Agricultural Products Export Corporation borrowed 4.25 billion VND to prepare 100,000 liters of cooking oil and 100 tons of white rice. Due to the strong increase in demand for essential goods during Tet (Lunar New Year), the company invested 20 billion VND to prepare hundreds of tons of rice and glutinous rice to meet market demand and protect consumer rights. In addition to the 4.775 billion VND in support funds, the Vietnam-Laos Economic Cooperation Investment Joint Stock Company invested an additional 15 billion VND to sign contracts to purchase Tet goods for reserve, increasing its stock fourfold compared to normal business months; of which 70% of the goods are delivered to consumers in districts and towns throughout the province.

From the beginning of October 2013, Huu Nghi Joint Stock Company proactively reviewed market demand and compiled statistics on key goods for the Tet holiday to plan for early import. Currently, the company's inventory is approximately 30 billion VND, with main items including cooking oil, cigarettes, matches, confectionery, sausages, beer, and various soft drinks. Not only meeting the quantity of goods needed for Tet, businesses are also proactively strengthening distribution channels, ensuring that goods are delivered to consumers at stable prices through mobile sales programs. This not only facilitates the circulation and distribution of goods throughout the province but also contributes to stabilizing market prices, preventing shortages and price spikes.

Customers choose to buy confectionery at Intimex Supermarket.

Not just now, but for months now, supermarkets have been planning to ensure sufficient supply of goods and strive to stabilize prices during the Tet holiday. At BigC Vinh supermarket, cold cuts and traditional Tet items such as sausages, ham, and banh chung (traditional rice cakes) have been meticulously prepared, with a 20% increase compared to last year, including about 20 different types of Tet gift baskets and boxes designed with prices ranging from 65,000 to 2,000,000 VND, featuring products from reputable and high-quality brands. In addition to directly increasing Tet goods reserves, many supermarkets have also partnered with and signed contracts with manufacturers and suppliers, ready to supply a considerable amount of additional goods when needed. At markets, especially the Vinh wholesale market, goods for Tet have also been stockpiled and displayed in a wide variety by traders. From dried goods like bamboo shoots, vermicelli, wood ear mushrooms, shiitake mushrooms, and meatballs... to cakes, candies, jams, and nuts, there's an abundance of hundreds of different varieties and designs.

"There are still many aspects to consider..."

Raw materials, labor, distribution plans... businesses have all prepared for the Tet holiday season. However, with the economy not yet showing much improvement and purchasing power remaining sluggish, expectations for the biggest business season of the year are only for a "slight" increase, not much more. This is the general assessment of manufacturing and trading businesses regarding current purchasing power. According to Mr. Nguyen Hong Thai, Director of the Trade Center - Huu Nghi Joint Stock Company: "Purchasing power is currently at a level of maintenance rather than growth; consumers are being frugal with their spending, so we expect purchasing power to be concentrated in the days leading up to Tet. Under such business conditions, we intend not to develop new products but to focus on our strengths and keep prices stable."

The twelfth lunar month is considered the most profitable month of the year for small traders selling essential goods, but now they are facing sluggish business. Another reason for their concern is the erratic price fluctuations. This is not due to the sellers themselves, but rather to the suppliers and distributors. According to Ms. Nguyen Thi Le, owner of a confectionery shop on Ho Tung Mau Street (Vinh City): "Last year, my shop had just stocked 800 cases of Larue beer to prepare for Tet (Lunar New Year) sales when the manufacturer launched a promotion: buy 20 cases and get 1 free. Worried about weak demand and a repeat of last year's situation, I didn't dare stock too much beer this year. However, I also regret that if demand increases sharply in the days leading up to Tet, I might run out of stock due to a lack of reserves. Since the end of December, the price of beer has increased by an average of 10,000 VND per case. With the current distribution and business practices, the price of goods being pushed up during Tet is partly due to manufacturers and suppliers, not just small retailers like us."

In previous years, around the end of November in the lunar calendar, civil servants, employees with stable incomes, and urban residents would begin their Tet shopping. In rural areas, although later, Tet shopping also started in early December. However, this year, even though Tet is just around the corner, both buyers and sellers are feeling down, waiting for the days leading up to Tet to see if the situation improves. Ms. Nguyen Thi Kim Anh (an employee at Sacombank) said: "Every year, I would choose and buy clothes, shoes, and sandals for the whole family from the beginning of December. Because at that time, there are usually more goods available, the designs are beautiful, and there are fewer shoppers, so I don't have to jostle with crowds and have time to choose. This year, the economy is difficult, salaries and bonuses have been cut significantly, so I have to carefully consider and only spend on necessary expenses during Tet." For people in rural areas, having children who work far away means they don't rely on the money their workers bring home for shopping and other expenses. Ms. Nguyen Thi Phuoc (from Hamlet 4, Nam Cuong Commune, Nam Dan District) said: "I have two children working as factory workers in Ho Chi Minh City. Every year, at this time, they would send money home for me to buy things in advance, but this year they told me they won't be coming home for Tet because their salaries and bonuses aren't enough."

According to relevant authorities, one of the main reasons for the low purchasing power this year is the economic downturn, with many businesses facing difficulties in production and operations. This is especially true for businesses with a large number of employees, such as the construction and banking sectors. The difficulties in production and business have led to reduced wages and bonuses for workers, forcing people to tighten their spending, resulting in relatively low purchasing power this year. Notably, in the last months of the year, wholesale markets have shown a slight increase of 5-8% in the prices of some essential goods such as beef, pork, and chicken. This has encouraged livestock farmers to increase their herds and raise more animals as they begin to make a profit, contributing to a significant increase in supply for the Tet holiday market.

Therefore, if localities do a good job of preventing and controlling diseases from now until the Lunar New Year, with abundant supplies of pork, chicken, and beef, food prices for Tet this year are expected to fluctuate little. Specifically, large distributors and retailers in Vinh City have already completed their Tet preparations and inventory plans. Supermarkets and major stores and agencies have already planned to stock many essential consumer goods, increasing their stock by 2-3 times compared to normal months. Furthermore, due to the relatively low purchasing power in recent times, to stimulate consumption and enhance competitiveness, retailers are implementing many promotional programs, discounts, and commitments not to drastically increase product prices in order to attract and retain customers. In addition, in recent years, the consumption habits of many people have also changed. Instead of stocking up on food to last a whole week during Tet like in the past, people now only buy enough for the three days of Tet. From the second to the third day of Tet, most local markets and supermarkets have resumed normal operations, so the pressure on supply during the Tet holiday will no longer be present, and the phenomenon of "stock shortages" and price increases like in previous years will be less likely to occur.

Ngoc Anh