As fuel prices continue to rise, their impact is becoming increasingly visible in everyday life, from smaller breakfast portions to mounting pressure across supply chains.
Suppliers are increasingly proposing widespread price hikes on goods. Photo: Thach Thao.
For more than a week, the child of Le Thi Nhan, a sixth-grade student in Dinh Cong, Hanoi, has been complaining that a VND10,000 (US$0.40) sticky rice breakfast is no longer filling. The reason, according to the family, lies in higher fuel costs, which have pushed up transportation expenses and rice prices. Vendors have responded by reducing portion sizes while keeping prices unchanged.
As the household’s primary financial manager, Nhan has felt the effects more clearly than most. Previously, filling up her motorbike cost around VND140,000 (US$5.70). Just yesterday, the same tank required VND180,000 (US$7.30).
“Ordering online now comes with an extra VND5,000-10,000 (approximately US$0.20-0.40) per delivery. Even at the market, vegetables and fish are all more expensive, with sellers citing higher fuel prices,” she said, noting that the list of goods increasing in price has become too long to track.
What is particularly concerning, she added, is that while prices have established a new baseline, incomes remain unchanged. As a result, many households are being forced to recalculate their spending to avoid financial strain.
“Over the past two weeks, I’ve stopped driving to work,” said Nguyen Van Tuan, a resident of Ecogreen City in Hanoi.
In the current context, he explained, saving wherever possible has become a priority. “It seems I’m not the only one. Yesterday afternoon, I went down to the parking basement and saw cars still packed tightly, with no signs of movement. The security guard told me this has been happening for about 10 days now - residents are using their cars less and leaving them parked,” he said.
The pressure is not limited to households. Businesses are also feeling the strain, particularly those dependent on fast logistics.
Le Anh Tu, who runs a seafood shop in Tay Ho District, said delivery costs have surged to the point where he is losing money on each order.
“Seafood needs to be delivered within an hour. With transport fees rising sharply, I’m now losing VND30,000-100,000 (US$1.20-4.10) per delivery,” he said, adding that profits have nearly disappeared.
At the same time, consumers are tightening their spending, leading to slower sales. “If this continues, prices will inevitably have to rise in line with fuel costs,” he noted.
The impact is now spreading toward supermarkets, where suppliers are increasingly pushing for price adjustments.
At a recent meeting with the Domestic Market Management and Development Agency under the Ministry of Industry and Trade, Nguyen Thi Bich Van, Communications Director at Central Retail Vietnam, said most suppliers have requested price increases, while the company’s internal operating costs have risen by more than 15% in recent months.
“Although over 90% of our goods are domestically sourced, cost pressures remain due to rising input prices such as fertilizers, animal feed and fuel,” she said.
A proposal to reduce taxes on petroleum products aims to curb rising prices in the market. Photo: Nam Khanh.
According to Van, retail prices have so far been kept stable thanks to inventory reserves. However, this is only a short-term solution. In the medium and long term, pricing will depend heavily on market conditions and input costs.
Nguyen Minh Tam, Procurement Director at WinCommerce, which operates more than 4,700 retail outlets nationwide, said 70-80% of suppliers in the system have already submitted requests for price adjustments.
“Any price fluctuation will directly affect the purchasing behavior of millions of customers,” he said, adding that the company is negotiating with suppliers to limit increases.
However, the ability to hold prices steady is diminishing. Some suppliers have even temporarily halted deliveries while waiting for price revisions. If the trend continues, retail prices could rise by 5-20% depending on the product category.
Tam pointed out that geopolitical tensions in the Middle East have driven global energy prices higher, putting pressure on logistics, transportation and input materials across multiple sectors. These factors are now feeding into production and distribution costs throughout the supply chain.
To help stabilize prices, Nguyen Thi Bich Van proposed further reductions in environmental taxes on fuel to lower input costs, as well as extending temporary value-added tax (VAT) cuts for the retail sector to support consumption.
Businesses have also called for extended deadlines on corporate income tax, VAT payments and land rental fees to ease cash flow pressures.
Vietnamnet.vn
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