Electronics Prices Drop as Unsold Inventories Mount

Many shops are discounting electronics goods, including LCD and Plasma TVs, because of large inventories that need to be sold by the beginning of the year, the VietNamNet reported.

 

Purchasing power has fallen by 40 per cent-50 per cent due to economic difficulties, according to a survey of managers of the electronic centers in Ho Chi Minh City.

 

Companies want to get rid of stock so they can launch new products to compete with imported goods expected to flood the market after January 1, when Vietnam's trade commitments under the World Trade Organization (WTO), of which it is a member, require lower import tariffs on foreign electronics goods.

 

Many of the foreign products will be priced similarly to locally made products, with some of them 5 per cent-10 per cent lower, according to electronics importers.

 

The price of electrical appliances, including refrigerators, air-conditioners and washing machine has fallen by 5 per cent-10 per cent compared to last month.

 

City electronics centers are offering 20 per cent-30 per cent discounts on electrical appliances, such as rice cookers, gas cookers, irons and sauce-pans. (VietNamNet)