Talking with Tuoi Tre newspaper late last week, a representative from Central Group, the owner of Big C supermarket, said the high discount rates of 40-50 percent are shown in contracts signed between Big C and suppliers, and the rates are based on mutual agreement.

The retailer affirmed that it has applied the discount policy for a long time, even before it took over the supermarket chain. In the future, the work of seeking local supplies will continue to be implemented in a transparent way and discount rates will depend on cost prices, he said.

Experts all affirmed that the Price Law and the documents guiding the implementation of the law donor include any provision on the discount rates suppliers have to pay when bringing goods to supermarkets. The discount rates will be defined after the two parties negotiate and come to agreement.

According to Nguyen Tien Thoa, chair of the Price Inspection Association, the state only controls the prices of some kinds of products, and, therefore, can only control the discount rates of some kinds of products. As for other products, the selling prices and discount rates are negotiable.

However, under the Price Law, in some specific cases, for example, when prices of goods, including the products controlled or not controlled by the State, soar to high levels, the Consumers’ Right Protection Association has the right to ask the State to put certain products under control temporarily to ensure reasonable prices or discount rates.

Thoa believes that Vietnam’s enterprises should seek support from the association.

Meanwhile, Vu Vinh Phu, former director of the Hanoi Trade Department, commented that letting supermarkets and suppliers negotiate and set discount rates is a way to block Vietnamese goods.

He said a supplier, in order to bring vermicelli to a foreign owned supermarket, was required to pay VND20 million in ‘underground fee’. It was also told to pay discount rate and other kinds of fees. The unreasonable fees then pushed the vermicelli price up and made it uncompetitive.

High prices could be a reason for foreign retailers to dislodge Vietnamese products from supermarkets and display foreign products instead. Meanwhile, Vietnamese products are expensive because of unreasonable expenses.

Phu stressed that foreign retailers indirectly refuse Vietnamese goods, and therefore, gradually kill Vietnamese manufacturers. Meanwhile, consumers have to pay high prices for Vietnamese goods.

Kim Chi

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