Companies invest ahead of Tet
HCM CITY (VNS)— Businesses in HCM City have spent VND6.68 trillion (US$320 million) on goods to prepare for the three months before and after the Tet holiday (Lunar New Year), an increase of nearly VND1.3 trillion ($61.9 million) compared with expenditures for the previous holiday period.
|People in HCM City shop for food which will be in abundance before and after the Lunar New Year holiday. — VNS Photo
This figure includes VND3.43 trillion ($164 million) of essential goods under the price-stabilisation programme, up by VND605.7 billion compared to the amount spent during the previous holiday period, according to the city's Department of Industry and Trade.
The department released the figures at a meeting last week to review preparations for the upcoming Tet holiday, which will fall in early February next year.
The department forecasts an abundant supply of goods during Tet, with stable prices on most goods. Price fluctuations will continue on fruit and vegetables, which have been affected by inclement weather.
Le Ngoc Dao, deputy director of the Industry and Trade Department, said Sai Gon Co-op had goods valued at VND3.35 trillion ($159.5 million) in reserve, with essential goods under the price-stabilisation programme representing VND912.3 billion ($43.4 million).
Vissan has goods in reserve worth VND1 trillion; Pham Ton Co, VND814.5 billion; Sai Gon Food JSC, VND231 billion; and Ba Huan Co, VND165.2 billion.
Dao said despite the difficulties caused by the global economic crisis, these businesses had pledged to supply goods at stable prices and prevent price hikes during Tet.
The volume of goods to be supplied by these businesses, especially essential goods such as cooking oil, sugar, poultry meat, eggs and processing food, are expected to meet over 50 per cent of customer demand.
In addition, the department has met with representatives of beverage, confectionary, cooking-oil manufacturers and poultry husbandry farms from neighbouring provinces to predict future supply.
Speaking at a meeting last week, Nguyen Phuoc Trung, deputy director of the city's Department of Agriculture and Rural Development, said the recent imports of poor-quality poultry meat had negatively affected the city's poultry-husbandry industry.
Low-quality, cheap imports compete with the ample supply from the local husbandry industry.
Because of lower consumer purchasing power, local poultry producers have had to cut prices, making it difficult for the local husbandry industry to have a sufficient supply of poultry during the Tet holiday.
Trung said businesses should sign contracts to buy goods directly from producers, instead of purchasing them through intermediaries.
Nguyen Thi Hong, deputy chairwoman of the city's People's Committee, said a distribution network had been set up in the city, including supermarkets, shops, traditional markets, mobile shops, and fairs in rural areas.
The quality of the distribution network's service must be improved to better connect customers with suppliers, Hong said.
She said the prices of goods would increase greatly if there were too many intermediaries in the distribution network. — VNS