As a result of the strengthening of the US Dollar against Vietnam Dong, the prices of various goods have risen; ranging from luxury items such cars to essentials such as gas, sugar, milk and beverages.

Oil retail prices rose three times in November to a record high of VND40,000 (USD2.2) per 12 kilogram tank. This is a 15% increase on the last price of VND22, 000 (USD 1.2) According to gas trading companies, the increase in prices in the domestic market has been due to evaluation of the US Dollars and a rise in the oil prices.

Many milk products prices increased by 5-7%.

Imported cars price has also been affected by the rising USD against VND; especially when payment is made in VND. Consumers now find that they have to pay millions, or in some cases, hundreds of millions of Vietnam Dong more than they did earlier in the month.

Toyota led the way on November 26th by increasing their retail prices. The price for the Land Cruiser, SUV model, rose from VND2.2279 billion (USD120, 000) to VND2.3125 billion (USD128, 000)

A spokesman from Toyota Vietnam said that this price increase “is in the line with fluctuating USD against VND exchange rate.”

Computer component prices have also been affected. The price of LCD screens and RAMs rose by 10 per cent compared with the same period last month.

Consequently, trading activities are being negatively affected because consumers are holding on for a fall in the exchange rate.

At the end of November, rolling steel and steel bars prices rose again to VND200,000 (USD11) per ton, VND300,000 (USD16.6) per ton respectively due to steel billets, wasted steel prices and the rise in exchange rates.

The actual offering prices of rolled steel and steel bar went up to only USD10-20 per ton. However, due to the increase in the exchange rate and petroleum, the imported prices rose sharply.

Meanwhile commodity prices in supermarkets also rose. Sugar has the highest increase at VND17, 500 (USD0.97)-18,500(USD1.02) per kilogram. The rise in sugar price leads to the increases in other commodities such as milk, jam, candies, and beverages. In December, it is expected that Bibica, Vinamilk, Pepsi and Coca Cola, Hanco Foods and other candy companies will have between 3-10% rise in prices of their products. The only exception in 2009 will be Mead Johnson.

In addition, vegetables prices in the open markets are rising gradually due increase in petroleum prices.