This was the forecast made by the Ministry of Trade at the end of November. Many enterprises are preparing commodities for the Lunar New Year (Tet) holidays despite the event taking place almost two months later. Businesses have also forecast that although commodities are growing in both terms of quality and quantity, prices will still go up, even much higher than in last New Year holidays.
Plentiful commodities for Tet
A representative from the Hanoi Trade Department said that every year the department asks local companies for a report on their preparation plans for Tet. The commodities are reported to have risen by 15-50 per cent so far, which can ensure sufficient goods for the New Year.
The meat processor Vissan Import Export Corporation (Vissan) ranks first in goods reserve preparation with 3,300 tons of pig meat, 300 tons of bull and steak and nearly 2,500 tons of various foodstuffs. Vo Hong Hai, director of Vissan's Hanoi branch, said his firm has prepared 80 per cent of materials to produce commodities for Tet since the end of November. Most of the commodities to be produced are calculated by the Ho Chi Minh City branch. The company expects to produce goods of 20-40 per cent higher than the last year. Its northern branch is expected to earn revenues of more than VND20 billion during the New Year.
The Aquatic Product Trading Company (APT) has prepared materials since July. Amid the bird flu pandemic, the company has decided to invest VND40 billion, an amount three times higher than calculated, into reserving the frozen, processed and fresh aquatic products. It has 1,500 tons of fresh water fish reared by households, 400 tons of frozen aquatic products, and 100 tons of dry fish, 200,000 canned food boxes and 250,000 liters of fish sauce to provide to the market on Tet occasion.
A representative from Unimart supermarket in Van Ho Trading Center said its fresh foodstuff, frozen aquatic products and canned foods made from pig and cow to replace poultry meat, rose by more than 20 per cent on-year.
Ta Thi Lien, head of the Planning Department of the Hanoi Food Company, under the Hanoi Trade Corporation, said that the poultry meat accounted for 30 per cent of total consumption power in the previous years. However, due to the bird flu epidemic, pig and cow meat surges to 35-40 per cent and aquatic products even to 50 per cent. The company plans to put into market some 200 tons of processed products, 70 tons of seafood, 120 tons of canned food, 100 tons of pork. The company will open dozens of points of sale and introduce its products in Metro supermarkets in Hanoi and Haiphong. The company targets 70 per cent of retail sale with key markets of Hanoi, Haiphong, Thai Nguyen, Hai Duong, Thanh Hoa and will expand to Nghe An and Danang.
As some other companies start launching the hygienic chicken to the market, many companies are also looking to sell chicken.
"If allowed, our company will sell chicken right before Tet," Lien said.
At present, her company is selling hygienic chicken meat at 51 Le Dai Hanh at price of VND45,000/kg.
Cakes have been also produced from the end of the third quarter with the output rising by 8-50 per cent against the last year.
Bien Hoa Confectionery Company is preparing to produce 3,000 tons of cakes, while Vinabico confectionery maker will turn out 800 tons of cakes for Tet.
Reasons for price hike
The Ministry of Trade in November forecast that commodities for this New Year will rise by 20 per cent from last year. Enterprises have the same ideas.
Hai from Vissan said that his company is assigned to stabilize prices, however, its commodities will also rise by 5-10 per cent.
”The price hike is attributed by the increase in materials, transport charges, and oil and gas price but not bird flu,” he said. However, if the hygienic poultry meat is not put onto market soon, it will push up prices of other products.
Lien from Hanoi Food Company shared the view. She said: “We are trying to keep prices stable, but it has already risen by 8 per cent. The prices will likely surge by 10 per cent during Tet holidays.
The Ministry of Trade has asked the provincial and municipal trade departments, enterprises trading oil and gas, agricultural products, general products, clothes, electrical and mechanical appliances, to prepare to deal with the complex fluctuations of commodity prices during Tet holidays.
The deputy minister Phan The Rue highlighted that businesses should widen their sale network, improve service quality and insure food sanitation and safety. They must give reports on markets and prices of commodities for Tet to the ministry before January 12, 2006.
Kim Phuong
Vietnamese
