Many goods have increased in price.

Việt Nam•17/10/2024

Vegetables and other food items are 10-50% more expensive than at the beginning of the year, coupled with rising electricity prices, causing concern among consumers.

For over a week now, Ms. Thao from Binh Thanh District (Ho Chi Minh City) has been worried about the escalating prices at the market. "Before, I only needed 20,000 VND to buy 350 grams of lettuce and herbs, but now I have to spend 30,000 VND," she shared.

Surveys at traditional markets and grocery stores in Ho Chi Minh City show that the price of green vegetables has increased by 10-20% compared to the previous month and is nearly double that of the same period last year. Vegetables such as lettuce, herbs, tomatoes, pumpkins, and sweet potatoes have become 30-50% more expensive.

In Thai Binh - one of the localities affected by Typhoon Yagi , Ms. Nguyen Hoa (Thai Binh City) was also surprised to find that each bunch of sweet cabbage cost more than double the previous price, reaching 10,000 VND.

Ms. Phuong, a small trader at Bo Market ( Thai Binh City), said that the supply of goods after the storm is less because the crops of local households were damaged. Fresh produce at the market is mainly imported from other places, so prices have increased.

Not only vegetables, but the prices of pork, chicken, and seafood have also skyrocketed. Each kilogram of red snapper costs around 100,000 VND, while filleted snakehead fish costs 350,000-400,000 VND. Pork prices have also increased by 20-28% compared to the same period last year, ranging from 100,000-180,000 VND per kilogram, depending on whether it's pork belly or loin.

Agricultural products (coffee, pepper, cocoa, etc.) have also established new price levels. According to the Vietnam Coffee and Cocoa Association, each kilogram of pepper costs approximately 250,000-270,000 VND, and roasted and ground coffee costs 160,000-250,000 VND. Sugar prices have also risen to 29,000-30,000 VND per kilogram, an 8% increase compared to the same period last year. Many essential consumer goods are at high prices, putting significant pressure on consumers.

"Each item is getting a little more expensive, pushing up our family's daily meal costs by 10%," shared Ms. Lan Anh (Go Vap District, Ho Chi Minh City).

According to businesses, rising commodity prices are due to supply shortages and a sharp increase in input costs. Mr. Hoang Thanh Hai, Director of Hai Nong Safe Vegetable Cooperative (Cu Chi District, Ho Chi Minh City), said that after Typhoon Yagi, vegetables from the South had to be transported to the North, causing prices to rise. In addition, prolonged rain during the recent typhoon in the South caused severe damage to vegetables, resulting in a 50% reduction in yield for many households.

Similarly, regarding pork, Mr. Nguyen Kim Doan, Vice Chairman of the Dong Nai Livestock Association, said that the supply of this product has decreased sharply due to African swine fever. "The disease, along with storms, has caused the death of more than 26,000 livestock and nearly 3 million poultry. Restocking in the North is difficult," Mr. Doan said, predicting that live pig prices could exceed 70,000 VND per kilogram in the near future, pushing retail prices at markets up further.

Vissan's Deputy General Director, Phan Van Dung, also stated that the high price of live pigs poses many challenges for the company. The company is trying to control prices by reducing costs in non-essential areas to support consumers.

According to a report by the General Statistics Office, food prices have increased sharply in provinces and cities directly affected by Typhoon Yagi and its aftermath. Of the nearly 0.3% increase in the consumer price index (CPI) in September, the food group contributed 0.9% – the highest adjustment since February.

Ms. Tran Khanh Hien, Director of Research at MB Securities Company, commented that the CPI has tended to decline since August mainly due to the adjustment of world oil prices. According to her, Typhoon Yagi only affected the prices of vegetables and fruits in the short term. These products did not have a significant impact on the consumer price index basket, while pork, rice, etc., account for a larger proportion.

Overall, in the first nine months of the year, the CPI increased by 3.88% compared to the same period last year. However, analysts remain optimistic about the average inflation rate for the nine months, which decreased from 4.1% in the previous six months to 3.9%. This shows that Vietnam is controlling inflation well, creating room to achieve the annual target of 4-4.5% as set by the National Assembly.

However, prices of goods and services face challenges in the last quarter of 2024 and the beginning of next year, as electricity - a key input for production - increased by 4.8% from October 11th, reaching 2,103.11 VND per kWh (excluding VAT).

According to calculations by the Vietnam Electricity Group (EVN), households using 200-400 kWh per month will pay an average of 32,000-47,000 VND more; for consumption over 400 kWh, the cost is 62,000 VND. The additional cost for businesses and services is 247,000 VND, and for manufacturing it is 499,000 VND per month.

Ms. Minh Thu's family (Long Bien, Hanoi) paid approximately 1.6 million VND (including VAT) for electricity in September, for over 570 kWh of consumption. She estimates that with a 4.8% increase in electricity prices, her bill next month will be about 78,000 VND higher. She considers this amount acceptable, but worries that prices will be even higher during the summer months and that many goods and services will also see price increases in line with the rising electricity costs.

Meanwhile, the statistics agency stated that the adjusted energy prices caused the CPI to increase by approximately 0.04%. "The impact of electricity prices on the CPI will become more apparent in the first quarter of 2025. However, the pressure will not be too strong unless there is an additional double impact from oil prices," commented Ms. Tran Khanh Hien.

Experts from MB Securities predict that the CPI could fall to 3.5%, with annual inflation around 3.8-3.9%. Similarly, Associate Professor Dr. Dinh Trong Thinh, an economic expert, believes the impact on the CPI is negligible, around 0.04%. Therefore, annual inflation is around 3.8-4.1%, still within the target. However, he noted that regulatory agencies need to closely monitor the market to avoid a situation where prices of goods and services fluctuate wildly.

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