Concerns about escalating commodity prices.

Việt Nam•22/10/2024

Not only vegetables, but also pork, chicken, seafood… and many other food and consumer goods have increased in price, causing concern among consumers.

Everything increased a little.

When the electricity sector announced a price increase, many food items immediately jumped in price as well. At noon on October 21st, Ms. Nguyen Thi Thanh (30 years old, residing in District 10) went around the market near her house but still couldn't buy the necessary food. “The prices of many food items have increased compared to the beginning of October, which surprised me. I went to many stalls, and every vendor reported price increases of 5-20%, and some even increased by up to 50% like vegetables. Now…” goods "It has already increased, and it will probably increase even more by the end of the year," said Ms. Thanh.

Vegetables, meat, and fish at the market have increased in price in recent days. Photo: UP

A survey of prices at many markets in Ho Chi Minh City, such as Hoa Binh (District 5), Hoa Hung (District 10), Nguyen Thai Binh (District 1), etc., shows that vegetables like lettuce, cabbage, tomatoes, and green beans are priced from 35,000 to 70,000 VND/kg; fresh rice noodles and vermicelli, which used to cost 12,000-20,000 VND/kg, have now increased by 5,000-7,000 VND/kg. “Vegetable production from Da Lat is sharply decreasing due to heavy rains; rising electricity prices have led to increased production of rice noodles and pho… These prices may continue until the end of the year. With rising prices, fewer customers are coming to the market, and wholesale sales are very sluggish,” said Ms. Minh, a small trader at Hoa Binh Market (District 5).

At wholesale markets, prices also tend to increase. Specifically, at Binh Dien wholesale market (District 8), the prices of many seafood items have increased compared to September, such as red tilapia at 100,000 VND/kg, mackerel at 170,000 VND/kg, and whiteleg shrimp at 180,000 VND/kg… Meanwhile, at Hoc Mon wholesale market (Hoc Mon district), pork prices have increased by 20-25% compared to the same period last year, currently priced at around 78,000-85,000 VND/kg.

Many eateries have posted new prices since mid-October, all increasing by 2,000-5,000 VND depending on the dish. “Every morning, I usually eat sticky rice or bread to fill my stomach before going to work, but the cheapest dish now costs over 20,000 VND. Pho, hu tieu, broken rice… are all from 50,000-60,000 VND. The vendors say it's because of the increase in electricity prices; meat and vegetables have also gone up in price. Everything has increased a little, so the prices of the food have to go up accordingly,” said Tran Van Tuan (25 years old, a ride-hailing driver).

Ms. Lan, owner of Thien Thao grocery store (Binh Tan district), was recently informed by a milk distributor that the price of fresh milk will increase by 5% at the end of this month. According to Ms. Lan, milk companies used to have many promotional programs, but recently they have almost disappeared. "To retain customers, we accept lower profits or even break-even," Ms. Lan said.

Not only milk, but cocoa and coffee prices are also rising rapidly. Currently, roasted and ground coffee costs between 160,000 and 250,000 VND; the price of cocoa as a raw material has increased 2.5 to 3 times compared to the same period last year; and the price of sugar has risen to 29,000-30,000 VND/kg, an 8% increase compared to the same period last year. This has led many manufacturers to worry that the prices of Tet confectionery that uses cocoa as an ingredient will have to change.

Businesses are looking for ways to avoid raising prices.

A series of rising input costs, from raw materials and electricity to transportation, are putting pressure on product prices in the market. Faced with this situation, businesses and supermarkets are trying every way to avoid raising prices. Ms. Nguyen Ngoc Huynh Anh, Head of Administration and Human Resources at Tafa Group ( Binh Thuan ), said that the company specializes in poultry farming and egg production. Tafa has a farm covering over 120 hectares with approximately 2 million chickens. Each year, the company supplies about 1 billion eggs to supermarkets, restaurant chains, hotels, etc., nationwide.

“We are affected by rising input costs; however, thanks to stable output, Tafa is trying to keep prices stable as usual this year. At the same time, we are committed to supplying sufficient goods for the Tet market with the best quality. Tafa plans to expand by adding 4 more farms by 2030 with a total expected number of approximately 6 million chickens. At that time, prices will be even more affordable when the products reach consumers,” said Ms. Huynh Anh.

According to Mr. Pham Thanh Binh, General Director of Bich Chi Food Joint Stock Company, due to the impact of conflicts in other countries, transportation costs for raw materials have increased. Mr. Binh predicts that purchasing power during Tet 2025 may be even weaker than in 2024. Currently, market demand is sluggish, so businesses cannot yet raise product prices and are struggling to continue production and business.

According to Mr. Nguyen Kim Doan, Vice Chairman of the Dong Nai Livestock Association, the supply of live pigs is trending sharply downward due to African swine fever. “The disease, along with storms and heavy rain, has caused the death of over 26,000 livestock and nearly 3 million poultry. Restocking in the North is facing difficulties. It is predicted that live pig prices may exceed 70,000 VND per kilogram in the near future, further pushing up retail prices at markets,” Mr. Doan said.

Meanwhile, Phan Van Dung, Deputy General Director of Vissan Livestock Industry Joint Stock Company, said that the high price of live pigs is causing businesses to face many challenges. Vissan is trying to control prices by reducing costs in non-essential stages to support consumers.

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Many businesses in Ho Chi Minh City are actively collaborating to secure the best-priced food supplies. Recently, the Bach Hoa Xanh retail chain signed a strategic cooperation agreement with CPV FOOD Co., Ltd. to increase the import of high-quality fresh chicken meat to serve consumers, especially to meet the high demand leading up to Tet (Lunar New Year). Ms. Nguyen Thi Huong Ngoc, Purchasing Director of the Fresh Food Division at Bach Hoa Xanh, said that the company has worked with many suppliers of meat, shrimp, eggs, etc., and most have committed to increasing supply at stable prices for the end of the year.

On the afternoon of October 21st, speaking to a reporter from Tien Phong newspaper, Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food and Beverage Association, said that despite rising raw material costs, essential food and beverage businesses in Ho Chi Minh City are striving to maintain prices to prevent inflation in the market.

Recently, the Ho Chi Minh City Department of Industry and Trade organized a conference to connect supply and demand with many localities to diversify sources of goods to serve consumer needs during Tet (Lunar New Year) and create outlets for regional products. According to Mr. Nguyen Nguyen Phuong, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, the Department has announced a market stabilization program for the end of 2024 and Tet 2025. It is expected that 69 key businesses will participate, an increase of 10 businesses compared to 2023. Notably, the amount of goods stabilized under the program's commitment will account for 21-32% of the market share in a normal month and approximately 24-41% of market demand during Tet 2025.

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