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VietNamNews

Tile makers increase retail prices

Update: May, 13/2014 - 09:20
A worker of the Viet Nam-Italy Ceramics Plant in nothern Thai Nguyen Province operates a production line. A sharp increase in transportation costs has forced manufacturers to raise prices. — VNA/VNS Photo Hong Ky

HA NOI (VNS) — The Viet Nam Building Ceramic Association (VIBCA) held an emergency meeting with 100 ceramic tile and sanitary ware manufacturers in order to reach consensus on recent retail price hikes following an increase in transport costs.

VIBCA chairman Dinh Quang Huy attributed the increase to the fact that vehicles were now being inspected more closely to ensure road safety, which raised transport costs by 15-20 per cent, reports Dau Tu newspaper.

All sales agents and outlets nationwide adjusted prices starting April 20. These adjustments varied depending on the response from the market as well as their individual capacity.

Truong Ngoc Minh, Deputy Director of Tien Son Granite JSC, said the sharp increase forced manufacturers to raise prices based on market share and consumption volume.

While raising prices, producers were determined not to make the market volatile, said Huy.

Cement and steel makers, who are similarly affected by increased transport costs, are also considering raising prices. A representative of Nghi Son Cement Company said his transportation partner had doubled fees from VND300,000 to VND600,000 per tonne.

Viet Nam Cement Industry Corporation (Vicem) plans to discuss raising retail prices and restructuring the distribution network with its member companies this month. In addition, Vicem will examine the feasibility of using other means of transport such as waterways and railways to lower transportation costs, said Nguyen Thanh Tung, director of the Vicem office.

In Ha Noi, most cement, steel and ceramics tile distributors have increased retail prices by 5 to 10 per cent.

Tran Thanh Dat, director of Thanh Dat Company, said his company received a notice that prices had been raised from a manufacturer last week. — VNS


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