Customer apathy amidst inflated fireworks prices

A quiet market

During the lead-up to Tet last year in Hanoi, acquiring fireworks at their original prices proved to be challenging. The reporter from SGGP Newspaper had to visit authorized dealers sanctioned by Z121 Factory (the fireworks manufacturing unit in Phu Tho Province), but purchasing remained elusive. Every dealer reported being out of stock, claiming a shortage of fireworks. Surprisingly, when inquiries were made on social media, fireworks were readily available at prices two to three times higher than the factory's listed prices.

This year, although the Lunar New Year is less than a month away, the market is unusually quiet and lackluster. Dealers and business owners are resorting to various strategies to manipulate prices and create a virtual price frenzy. However, there is minimal interest from potential buyers. Numerous individuals have reported that, during the previous Tet holidays, prices were initially inflated to two to three times the usual rates. As Tet drew near, sellers engaged in a competitive race to significantly reduce prices, inundating the streets with their merchandise. Therefore, this year, many people are being cautious and refraining from making purchases hastily.

It marks the third Tet since the Z121 fireworks series, produced by the Z121 Factory under Chemical 21 Single Member Limited Liability Company, has been authorized for sale in the market. From August 2023, the factory has openly disclosed the prices for each type on its website, ensuring public awareness and urging dealers to adhere to the specified pricing.

Accordingly, the prices for fireworks are ranging from VND330,000 to VND438,000 per rack.

Over the past month, across social media platforms such as Zalo and Facebook, traders have been rushing to form groups to sell fireworks at prices exceeding the factory's listed prices by VND100,000-VND300,000 per rack. In some cases, traders have even asked for prices nearly VND400,000 per rack higher.

Traders are seeking ways to generate artificial excitement to raise selling prices. According to regulations, beyond authorized dealers, each buyer is limited to purchasing a maximum of three fireworks boxes. However, these traders assert that customers can buy as many boxes of fireworks as they desire.

However, based on the investigation by SGGP newspaper, the current number of people inquiring about purchases and expressing interest in posted advertisements for fireworks is significantly lower compared to last year. Nguyen Duc, residing in Van Phuc Ward, Ha Dong District, believes that as Tet approaches, prices are gradually aligning with the levels set by the factory. Last year, he had to queue up to buy fireworks from authorized dealers. However, as Tet approached, even at the Van Phuc flower market, fireworks were readily available, and the prices were only slightly higher by about VND100,000.

Pham Thu Hang, residing in Duong Noi Ward, Ha Dong District, shared her experience, "Last year, as I noticed the prices of fireworks escalating every day, I hastily purchased a fireworks rack for over VND1.2 million, fearing it would become even more expensive closer to Tet. However, a few days before Tet, that particular type was only priced at VND800,000."

Many individuals also express that the prices, nearing almost a million Vietnamese dong per box of fireworks, do not align proportionately with their perceived value. "I would consider buying if it's around VND300,000-400,000 per box; however, if it's too expensive, I can do without it," said Vu Van Son, residing in Thanh Xuan District in Hanoi.

A fireworks trader named M.V.K. disclosed that due to indications of a slow market this year, many traders are investing money in advertising their pages to attract customers.

No fear of shortages

According to Chemical 21 Single Member Limited Liability Company, this year, to meet the demand for celebrating the Lunar New Year with fireworks, the company will increase the supply compared to last year. Colonel Chu Viet Son, Secretary of the Party Committee and Chairman of Chemical 21 Company, stated that in 2023, the factory produced more than 6 million racks of various fireworks, doubling the production compared to 2022. To serve the Tet market this year, there are over 400 stores (almost double the previous number) selling and introducing fireworks nationwide.

According to regulations, dealers are required to sell at the prices specified by the factory, and any attempt to raise prices is considered a violation. Information from the Ministry of Industry and Trade reveals that during the last Tet holiday, two fireworks dealers in Hanoi were suspended for intentionally selling above the regulated prices. Therefore, there is no anticipated shortage of fireworks this year, and buyers should remain vigilant against schemes aimed at inflating prices for profiteering.

Concurrently, buyers should bear in mind that engaging in fireworks buying and selling activities on social media platforms (outside the authorized dealerships of Z121) violates regulations. In addition, if purchasing from unregulated sources, there is a significant risk of obtaining counterfeit or imitation products falsely bearing the trademark of the Ministry of National Defense.

In Vietnam, currently, only the Z121 Factory is authorized to legally produce and supply fireworks to the market. To be granted permission for usage, buyers must be fully provided with valid invoices and documents (with their names specified on the invoices) to present during inspections by relevant authorities. According to regulations, only the buyer whose name is on the invoice and their household members are permitted to use the fireworks, and any act of reselling or gifting them is strictly prohibited.