Markets stabilize prices, supermarkets implement "price lockdowns
In recent days, recording at some wholesale markets, traditional markets and supermarket systems in Ho Chi Minh City, the prices of many essential goods are still relatively stable. However, traders and consumers both said that they are closely monitoring market developments in the context of increasing raw material prices and transportation costs.
At a traditional market in Dien Hong ward, Ms. Dang Thi Thu Ha (a resident living near the market) said that fresh food prices have not fluctuated much. However, many people are still worried that if input costs continue to increase, retail prices may be affected in the near future.
Currently, the price is still stable, but if transportation costs increase, goods will definitely increase accordingly" - Ms. Ha shared.
Faced with market fluctuations, many retail systems said that they are proactively implementing price stabilization and price control programs to limit the impact on consumers.
Mr. Nguyen Duc Toan - CEO of MM Mega Market Vietnam - said that the State's management measures, including the use of the Petroleum Price Stabilization Fund, are a positive signal to help businesses be more proactive in business plans.
These measures contribute to creating conditions for the system to continue working with partners to control costs and maintain stable selling prices" - Mr. Toan said.
According to a business representative, the MM Mega Market system is implementing a "price lock" program for about 300 essential items until the end of March. The program focuses on popular consumer products to help people feel secure in shopping in the context of fluctuating input costs.
Businesses under pressure of costs and supply chains
From the perspective of manufacturing enterprises, many units said that input material costs are trending upwards recently.
Mr. Nguyen Dang Hien - General Director of Tan Quang Minh Production and Trading Co., Ltd. (Bidrico), informed that the price of plastic granules used in packaging production has increased sharply. Some types of plastic granules have now reached about 27,000-27,500 VND/kg and may continue to increase to 28,000-30,000 VND/kg, equivalent to an increase of more than 10% compared to before.
In the field of veterinary medicine and animal husbandry additives, Ms. Lam Thuy Ai - General Director of Mebifarm Joint Stock Company - said that many imported raw materials are also fluctuating rapidly. Amoxicillin antibiotic raw materials have increased to about 25USD/kg, compared to about 20USD/kg previously.
In addition, many types of vitamins and manufactured additives also recorded a price increase trend from the beginning of March.
When world oil prices increase to about 100-120 USD/barrel, energy costs in production may increase by 20-40%, leading to increased transportation costs and input materials. If oil prices exceed 130 USD/barrel, many manufacturing industries will face greater cost pressure," Ms. Ai assessed.
According to Ms. Ly Kim Chi - Chairwoman of the Ho Chi Minh City Food and Foodstuff Association, conflicts in the Middle East region currently do not directly affect the production activities of domestic food businesses, but are creating indirect pressure through costs and supply chains.
When oil prices increase, sea transportation, logistics and maritime insurance costs also increase, increasing the import costs of raw materials, packaging and cargo transportation of businesses. Meanwhile, the profit margin of the food processing industry is not high, so the ability to absorb increased costs is quite limited.
Many import-export businesses said that international transportation time is being extended because some shipping lines are adjusting routes to avoid security risk zones. This increases the Asia-Europe journey by 1-2 weeks, increasing costs and supply chain risks for the agricultural and food processing industries.
