After the evening shift from 6pm to 10pm at a restaurant and receiving VND200,000, Hoai, a worker at Pouyuen Vietnam in HCM City and a single mom - hurriedly left the restaurant to pick up her eight-month baby from a neighbor’s home. At 11pm, when the child fell asleep, she finished her day.

Hoai’s life has been hit by the recent “price storm”. Her VND7 million monthly salary is not enough for basic needs. Babysitting service, formula milk and diapers cost her VND4 million, and she has to pay for room rent and other expenses. She has to do extra work at the restaurant as a waitress.

“When I return to my room at night, I’m so tired that I just want to sleep. I hope that my income gets better and I don’t have to take extra jobs to have more time with my daughter,” Hoai said.

Hue and her husband from Ha Tinh province have been working in HCM City for eight years. The four-member family lives in a 15sq.m rent room. The couple’s total income is over VND10 million/month, of which VND7 million goes for house rent, tuition and the rest sent to their parents. Hue has to do a second job at a restaurant to earn VND2-3 million/month. 

Meanwhile, Duc Hue, a small trader at Nguyen Tri Phuong Market, HCM City, said her customers have dropped by half and they have also cut spending. Previously, she bought new products to serve her customers every week, but now she does this only once every 2-3 weeks.

According to the HCM City Industry and Trade Department, in the first five months of 2022, goods were abundant, but purchasing power was weak. People spent money mainly on essential goods. 

HCM City Association of Interprovincial Passenger Automobile Transport and Tourism’s Chairman Le Trung Tinh complained that the passenger transport sector is undergoing tough days. The fuel cost has soared but transport firms dare not raise service fees as demand is weak.

The association has proposed that the Ministry of Transport, the Ministry of Industry and Trade and the Ministry of Finance seek permission from the Government and National Assembly to further reduce the environmental tax and luxury tax. 

Under the impact of the Russia-Ukraine conflict and the petrol price surge, it is predicted that Vietnam’s inflation this year will rise to 3.8 percent and 4 percent in 2023.

Experts suggest that financial and credit solutions to support businesses are needed quickly, and with simple procedures.

Tran Chung