The prices of gasoline, oil, gas and input materials of many production fields from animal feed, fertilizer, construction materials to transportation charges have all increased, which is driving the prices of consumer goods and foodstuffs simultaneously to go up. To reduce the burden on consumers, local authorities need to strengthen control and stabilize market prices.

Essential commodities are moving to increase according to the price of gasoline. Customers pick up their favourite goods at a the Co.opmart Da Nang. Photo: QUYNH TRANG

Many items climb up in price

As recorded at traditional markets on Sunday, the price of pork products increased by VND10,000 /kg/type of meat. At grocery stores, the price of cooking oils went up by 5-7% month-on-month. Currently, the price per litre of Happy Koki cooking oil is valued at VND40,000, Neptune at VND53,000, Simply at VND56,000 and Tuong An at VND47,000.

In a similar vein, most dairy products increased by several tens of thousands of VND/can.

A branch representative of the Acecook Viet Nam Joint Stock Company in Da Nang said that, since last year, the situation of importing raw materials and petrol prices has continuously increased, but the company has kept prices stable in a bid to share difficulties with consumers.

However, the current prices of input materials and transportation costs have soared so the company had to increase the selling price for all products from March 1, with a price increase rate of 6-7%.

According to representatives of supermarkets, many producers and suppliers have proposed to increase prices of some essential items, focusing on food, fresh food and spices. However, supermarkets are trying to maintain negotiations with them in a bid to keep prices stable because the cost of transportation and the price of raw materials has been contracted by enterprises in advance. If gasoline prices continue to increase sharply, in the long run, they will definitely have to adjust commodity prices upward accordingly.

Director of MM Mega Market Nguyen Tien Duong said that the threefold increase in petrol prices had a direct impact on transportation and packaging costs; not to mention international shipping costs also affected by the hike in world gasoline prices.

In addition, the increase in the price of raw materials such as flour and butter also affects the cost of products, leading to all sectors being affected in price. Meanwhile, along with the escalating fluctuations of gasoline and oil prices, the prices of many construction materials have gone up.

A recent survey in Da Nang market revealed that, construction steel prices have been continuously adjusted by enterprises. After steel, cement prices are soaring.  Specifically, the Xuan Thanh Cement Joint Stock Company announced to increase the selling price by VND100,000 /tonne for bag and bulk cement products (including VAT 8%) from March 20 whilst the Vicem Ha Tien Company also announced the adjustment of cement prices from March 23 for all kinds of cement bags and jumbo bags with a rise of VND100,000/tonne (including VAT).

At some building material stores, the prices of materials are at a high level, increasing by about 10% as compared to the time before Tet. Specifically, leveling sand costs about VND150,000 - VND200,000/m³, building sand (used to mix concrete) at about VND 400,000 - VND450,000/m³; brick and pipe about VND1,300- VND1,400/piece; construction stones such as black stone, green stone at about VND310,000/m³; iron box, corrugated iron increasing by about VND500/kg.

Similarly, many large enterprises in the livestock industry have just announced to increase the price of animal feed.

Accordingly, the MMS Feed Joint Stock Company (Proconco & Anco Factory system) decided to increase the selling price per kg of pig and broiler feed by VND300, poultry and piglet feed by VND240, other types by VND200.

The De Heus Co., Ltd. also announced an increase of VND300 in the selling price per kg of concentrated feed products for pigs and chickens, an increase of VND 240/kg of feed for piglets and laying poultry; a rise of VND200/kg for the rest of the feed (not applicable to aqua feed). This increase applies to customers in the Central and Southern regions.

More effective measures needed to stabilize the market

Many supermarkets in the city are trying to prevent the price of goods from abnormal fluctuations so that consumers can shop with peace of mind.

The price of some foods in supermarkets is cheaper than in traditional markets, which is the assertion of many consumers today.

Ms. Luong Thi Xuan residing in An Hai Dong Ward, Son Tra District expressed: "In the market, items from vermicelli, rice, cooking oil to fruit and vegetables all increased by VND3,000 to VND5,000. Small traders said that increased transportation costs pushed up commodity prices. Going to the supermarket for goods,

I find the price of some products is cheaper than that in traditional markets. Therefore, functional sectors need to organize price stabilization points in densely populated areas and industrial park and ensure price control so that people can shop with peace of mind.

Gasoline and oil are very important input fuels for the economy. Amidst the fact that the supply of this item is still volatile, it is inevitable that domestic consumer prices will “dance” along with it and inflation is expected.

In order to ensure the balance of supply - demand and stabilize the market, the Da Nang Department of Industry and Trade has sent a written request to the municipal Market Management Department to strengthen inspection work, with a focus on inspecting activities of registration, declaration and listing of prices of goods and services and selling at the displayed prices of essential items at trade centers, supermarkets and markets to promptly detect acts of speculation, unreasonable price increases and illicit profits, false rumors causing scarcity of goods and services and destabilising the market.

The Department also requested commercial centres, supermarkets, convenience store chains, and large trading companies supplying food, foodstuffs and some essential goods to increase stockpiling and supply of goods according to the plan, ensure the smooth and timely supply of essential goods at reasonable prices to the people and avoid disruption of the supply chain.

Meanwhile, from the perspective of macro analysis, lecturer Tran Xuan Quynh from the Faculty of E-commerce, the Da Nang University of Economics proposed the enhancement of the State's role in controlling domestic petroleum supplies.

Other macro management tools such as monetary policy and interest rates can be used reasonably to control inflation.

In addition, the role of local governments and market management agencies should be promoted in a bid to ensure a smooth and smooth supply chain of goods, avoid speculation, hoarding, and unreasonable price increases.

From a business perspective, the role of technology should be focused in operating activities to reduce costs and maximize business efficiency.

Reporting by QUYNH TRANG – Translating by A.THU