Despite an abundance of "promotional" deals, prices are rising in anticipation of Tet.
As Tet quickly approaches, commodity retail markets have been flooded with promotional campaigns causing sales to escalate in both Hanoi and Ho Chi Minh cities. This rise in buyer power has in turn caused many prices to go up.
This increase in buyer power has trickled over to prices, and many prices are on the rise. Despite the rise in prices, good deals can still be found. Many shops, stores, and supermarkets in Hanoi have launched an array of promotions on clothing, shoes, cosmetics, electronics and other domestic items with discounts of up to 50 percent, buy 1 free 1 deals, lucky draws and more. “Made in Vietnam” products have attracted a hoard of buyers with the slogan “Vietnamese use local products” and a special price reduction programme.
Retail market in Hanoi heating up
Many shoppers are eager to find deals. “We are students, we want to buy many things but we don’t have much money. Promotions give us a chance to buy what we want,” said Van, a student at the National Economics University.
There are a lot of goods specifically for Tet being sold on the streets at places like Hang Ngang, Hang Duong, Hang Buom and the old quarter.
“We have been selling goods for Tet since late December but the demand will rise even more starting next week,” said Nhung, a seller on Ba Trieu Street.
Although promotions and good deals can be found, many items have seen prices surge as well as high demand thanks to Tet. The market shows an increase of 5-20 percent on food items such as pork, beef, chicken, sea food and canned foods.
Prices on the rise during Tet
“The nearer Tet gets, the more prices will rise,” said Luong, a seller at Thanh Cong market.
During Tet, the consumer price index will be higher and retail sales go up by 20 percent compared with other months, according to the Hanoi Department of Industry and Trade.
Meanwhile, purchase power in Ho Chi Minh City has also strongly increased along with prices.
Purchase power increases in two weeks before Tet
Prices on many goods such as candies, beverages, sugar, milk, eggs, and jams are also on the rise. The prices on beers, imported alcohol, and tobacco are increasing as well according to Nguyen Thuy Trang, a buyer living at District 3. Retail beer price has gone up by VND10,000-15,000 ($0.5-0.8) per box.
Various goods for Tet preparation
Small businesses have reported that prices go up but not dramatically because the government is carrying out price support and people now tend to go shopping at supermarkets rather than traditional open markets.
“I feel safe when I buy goods in supermarkets because the quality is ensured. This year, goods for Tet become varied and Vietnamese goods are improved in terms of samples and quality,” said Nguyen Nhu Quynh, a buyer living at District 5.
According to Bui Hanh Thu, Deputy Manager of Saigon Co.op, the company has bought 7,850 tones of goods to meet the demands of local people. In addition, it has also launched many promotional programmes.
Big C supermarket has implemented 3 promotional programmes applied on 1,400 products, discounting them from2-50 percent. “Purchase power and prices have increased gradually since mid January,” said Duong Thi Quynh Trang, PR Manager of Big C Vietnam.
Supermarkets and shopping center lure customers with promotions
The Department of Industry and Trade of Ho Chi Minh City predicted that the purchase power here will increase 30-40 percent and goods will be more diversified this year.
Ho Chi Minh City advanced 13 enterprises VND422 billion ($22,505) from the city’s budget in order to stabilise prices during Tet. Demand has remained high in Vietnam, and there are good deals to be found despite the rise in costs for many other goods.