VietNamNet Bridge – The prices of many kinds of plastic bags have been increasing dramatically in the last few days. Especially, some package shops have closed the doors these days, which has made the plastic bag supply short.

Plastic bags now cost twice

Khai, a small merchant, who specializes in wholesaling plastic bags to the sellers at the markets in HCM City such as Tan Binh, Pham Van Hai and An Dong, said the prices of plastic bags have increased by 100 percent these days. Showing some bags, he said that the price of this type of products has increased from 31,000 dong to 70,000 dong. “The small merchants at the markets complain that they are too expensive, but they still have to accept the price, because they need bags for the buyers to put products,” he said.

At the Binh Tay Market in district 6, the prices of colorful plastic bags have increased by two folds. Some kiosk owners have increased the price from 40,000 dong to 65,000 dong, while some others to 70,000 dong or 80,000 dong.

Long, the owner of a fashion shop on Nguyen Trai Street in District 1, said that he usually bought plastic bags on the Cho Lon Market area. However, since the price has unexpectedly increased too dramatically, he had to go to Binh Tay Market to seek bags. However, he has realized that the prices are the same everywhere.

Some merchants have noted that the plastic bag prices have begun increasing slightly since January 1, 2012. However, the bags have become too expensive since January 3.

The lack of plastic bags has also become a headache to the merchants at the markets in Mekong Delta provinces. Merchants in Can Tho City said they cannot understand why plastic bags have become so expensive. Previously, they just had to pay 25,000-37,000 to buy a kilo of plastic bag, while they now have to pay 70,000 dong.

“I have never seen the prices escalating so dramatically in the last 15 years.” Said Nguyen Kim Anh, the owner of Dia Cau plastic bag shop in Can Tho City. Especially, some bag shops at the Cai Khe trade center have closed the doors because they cannot access the supply sources.

Producers dare not make products

Nguyen Phuoc Dong, Director of Vafaco, a packaging company, said that the company has to pay 40,000 dong more for every kilo of plastic bags its makes out since January 1, 2012, as stipulated by the Law on Environment Protection.

He said that even biodegradable bags, which have the production cost higher by 10 percent than normal products, also have to bear the environment tax. In principle, the environment friendly products do not have to bear tax. However, no state agency has come forward to prove that they are environment friendly.

A representative of Saigon Co-op said the distribution chain has been using degradable bags at some supermarkets. The volume of degradable bags consumed is about 60 tons per month, accounting for 50 percent of the total plastic bags consumed in the whole system. However, the distribution chain still has to bear tax for the bags like other normal kinds of bags.

Maximark has been using degradable bags for the last four years. Before the New Year holiday, the supermarket received the notices from three plastic bag suppliers on the price increases. Nguyen Phuong Thao, Director of Maximark Cong Hoa said that the higher prices of plastic bags would certainly affect the operation costs of the distribution chain.

Retailers have been trying to minimize the use of plastic bags, persuading customers to use the same bags many times.

C. V