“Since April 1st 2011, 9 commodity groups of food and foodstuffs are put into the price stabilization programme of Ho Chi Minh City. Ho Chi Minh City plans to spend VND 412 billion for this programme. The management for this will be more flexible than that of 2010,” said Deputy Chairwoman Nguyen Thi Hong of Ho Chi Minh People’s Committee in the recent meeting with local related offices and industries to discuss the implementation of the valorisation programme in Ho Chi Minh City in 2011.
Necessary goods supply increase from 14 to 41 percent
Deputy Head of Ho Chi Minh City Department of Industry and Trade Le Ngoc Dao said in 2011, nine commodity groups were chosen to be put into the valorisation programme including: rice, sugar, cooking oil, cattle meat, poultry meat, eggs, manufactured food, vegetable and fishery. The number of commodities joining valorisation in normal months, about 20 to 25 percent over market demand, will increase to 30 to 40 percent in Tet months.
As for the valorisation programme of necessary commodities in normal months, there will be six in eight ones (fishery is added to the list in 2011) which will increase by 14 to 41 percent against 2010, which is up to sales results, the demand of citizens for these commodities in 2010, as well as the supplying capacity of enterprises joining. In terms of manufactured foodstuff, this year the city will not valorise some high-ranking ones such as beef sausage.
More flexibly pricing
Deputy Chairwoman of Ho Chi Minh People’s Committee Nguyen Thi Hong primarily agreed with plan of valorising food and foodstuff proposed by Department of Trade and Industry on quantity and types. Accordingly, total budget for this year’s programme is VND 412 billion (an increase of VND 32.6 billion against 2010).
Ho Chi Minh City People’s Committee will approve and issue the plan to implement the 2012 Tet Holiday valorisation programme on necessary foods and foodstuffs in Ho Chi Minh City soon. On April 1st, Ho Chi Minh City reveals prices of valorised commodities, as well as the list of enterprises joining the programme. In addition to the 14 enterprises in 2010, there have been so far eight new ones registered to join the programme.
In order to condition enterprises to be more active in business and production and to build up adequate commodity supply during this year, Ho Chi Minh City will lend enterprises at zero interest rate in 12 months. Accordingly, pricing will be implemented more flexibly. Commodity prices are built up by enterprises and registered with the Department of Finance on the basis of adequate, accurate pricing framework and must be 10 percent lower than market price.
In case materials and input costs increase by over 15 percent from the time when enterprises registered, they will be allowed to increase prices. On the contrary, if market prices go down by 5 percent, which is then only 5 percent higher than valorised prices, enterprises must decrease prices correspondingly.
(Saigon Liberation)
Vietnamese
