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Market prices remain unforeseeable in coming months

by 5m Editor
8 October 2007, at 11:25am

VIETNAM - It will be very difficult to predict market prices in the remaining months of this year, as there are many factors, that are beyond state control, said Deputy Prime Minister of Industry, and Trade Nguyen Cam Tu to reporters recently.

Economic experts have had high expectations of the Prime Minister’s directive and the Ministry of Finance measures to curb price hikes. It is forecast that the consumer price index (CPI) in September increased by only 0.3 percent.

However, in fact, the CPI in September rose to 0.51 percent, much higher than the predictions from the local market regulating team at the end of August.

The prices of ten key goods continued to rise sharply, especially food (1.26 percent), pharmaceuticals (0.91 percent), gas (VND10,000 per bottle), imported milk (30 percent).

The sharp increase in the price of milk is attributed to the rise in the material price, which accounts for up to 56-91 percent of cost price, according to deputy head of the Price Management Department, Vu Cong Chinh.

In addition, the advertising costs of milk companies remain high. For example, 20 percent of Dutch Lay’s costs are spent on advertising activities.

In the Hanoi market, the prices of beef, pork, and chicken have increased from VND7,000 -10,000 per kilo, and vegetables are up by 20-30 percent. The price hikes in food make it difficult for housewives to prepare meals for their families.

Mrs Pham Thu Ha, who lives in Nguyen An Ninh street, Hanoi said “Previously, I spent only VND35,000-40,000 on buying food but now I have to spend at least VND50,000.”

Source: Viet Mam Economy

5m Editor