Commodities prices still rising despite weak purchasing power

Yesterday morning, Nguyen Thi Hoa Thanh from Tan Phu District of HCMC visited regular booths in a nearby traditional market to shop for fruits and meat to prepare meals for her family of three. She complained that nearly all commodities have prices increase compared to the beginning of the year, costing her an additional sum of VND60,000 (US$2.4) per day for meals.

Le Hoai Nguyen, whose hometown is Dak Lak Province, sadly shared that his salary is still unchanged, yet commodities prices have already witnessed a rise. Take coach fare as an example. The route from HCMC – Buon Ma Thuot City used to cost him VND260,000 ($10.23) in January 2024, but it is now VND300,000 ($11.8).

A visit to popular traditional markets in HCMC like Ba Chieu (Binh Thanh District), Go Vap (Go Vap District), Nhat Tao (District 10) confirmed this state. Nearly all food and fruits are seeing a price rise of VND5,000 – 15,000 ($0.2 – 0,6) per kilo.

Phan Van Thuan, a a fruit juice vendor on Truong Chinh Street (Tan Binh District of HCMC) informed that he decided not to increase the prices of his products yet for fear of losing the current quantity of customers, although input materials in wholesale markets have their prices rise already. This means a lower profit for him.

Director Nguyen Binh Phuong of Business Development at Thu Duc Agricultural Produce Wholesale Market said that the supply of fruits and vegetables to the market is relatively stable. Recently, the prices of some items such as tomatoes and Da Lat lettuce (Lam Dong province) have increased due to low yield whereas some leafy vegetables have been affected by the weather.

This recent surge in consumer goods and food prices has directly impacted the businesses of small vendors at traditional markets and retail stores due to a decline in purchasing power.

In response, a few days ago, the Binh Tay Market Management Board (District 6, HCMC) collaborated with Penguin Tours to organize training sessions for vendors on welcoming visitors, aiming at enhancing sales capabilities and stimulating consumer demand. Previously, other markets in HCMC such as Ben Thanh (District 1) and An Dong (District 5) also implemented training programs for vendors on social media usage and customer service skills.

Thuy Mai, a vendor at Binh Tay Market (District 6), commented that after the training session, vendors like her have gained new skills in welcoming customers, including international tourists. Some also shared that with customers now having more options, sellers need to pay closer attention to their needs.

Therefore, to stimulate consumer demand, some items sold at Binh Tay Market, Ben Thanh Market, and other markets are being discounted by 5 -20 percent or accompanied by souvenirs if the purchase bill exceeds VND1 million ($39). For traditional markets in suburban areas with smaller scales, vendors are giving away cilantro or spring onion when customers buy green groceries.

Deputy Director Nguyen Nguyen Phuong of the HCMC Department of Industry and Trade stated that the department is always closely coordinating with inter-sectoral forces to monitor sudden price increases at retail markets and stores. In general, the price of goods at retail markets is affected by the daily supply and is flexibly adjusted by vendors hourly. The municipal Department of Industry and Trade is also coordinating with businesses and modern retail systems to supply goods at reasonable prices, offer many promotions, and stabilize the market to support consumers.