Despite weak purchasing power, prices of some products still surge by 10-15 percent.

According to representatives of supermarket systems, the purchasing power still declines by 30 percent, depending on the locality, compared to the time before the Covid-19 pandemic.

Besides the reason that people face financial difficulties due to the prolonged social distancing, urging them to cut spending, another reason is that they are still afraid of going to crowded places. Despite weak purchasing power, prices of some products still surge by 10-15 percent. For instance, although the price of pork from the farm has dropped sharply to below VND50,000 per kg, currently, pork price in supermarket systems is still at a high level of around VND100,000 per kg, depending on the types of pork. Besides, prices of most imported food have also climbed.

According to statistics of the HCMC Department of Industry and Trade, retail sales of consumer goods in the past ten months were estimated at nearly VND401.51 trillion, down 15.5 percent compared to the same period and accounting for 58.8 percent of the total retail sales of consumer goods and services in the area.

Facing weak purchasing power, supermarket systems have activated many promotional campaigns to boost demand. “With the current relatively complicated market situation, most products have started to increase prices. Therefore, it is practical to coordinate with brands and partners to lower prices and share pressure on expenses with consumers,” said Mr. Nguyen Ngoc Thang, Director of Co.opmart’s operations division.

Accordingly, from November 4 to November 22, nearly 1,000 points of sale across the country of Saigon Co.op will simultaneously run many promotions, discounts, point rewards, and shopping refunds. Noticeably, there is a discount program of up to 47 percent for more than 11,000 essential products, a discount of more than 50 percent for all kinds of milk, cooking oil, soft drinks, kitchen utensils on weekends, and a 50-percent discount on ao dai, shirts, and cosmetic products as gifts for the Vietnam Teachers' Day.

Similarly, Satra retail system and 186 Satrafoods convenience stores have launched promotions to stimulate demand.

Emart supermarket has also deployed a promotional campaign, with thousands of products at extremely low prices, to support consumption and help customers stabilize their lives.

Poultry egg producer Ba Huan also offers many discounts and gifts, such as buying ten egg trays and getting one free.

A representative of the HCMC Department of Industry and Trade said that Ms. Phan Thi Thang, Vice Chairwoman of the municipal People's Committee, had just approved the policy to organize the concentrated promotion program proposed by the department.

Accordingly, to ensure the safe and effective pandemic prevention for the promotional program, the People's Committee of HCMC assigned the Department of Industry and Trade to coordinate with the Department of Health to issue a set of criteria for assessing the level of safety against the Covid-19 pandemic for enterprises participating in the promotional fair held in the city.

The Department of Industry and Trade of HCMC is in charge of coordinating with the departments of Industry and Trade of other provinces and cities to strengthen connection activities and supply of goods and encourage businesses to join the promotional program of HCMC.

The program that will take place from November 15 to December 31 aims to support new individuals and organizations to participate in business activities, expand the existing distribution system after the pandemic, and create a foundation to improve commercial efficiency.

The first round of this annual program will take place from June 15 to July 15 and the second round from November 15 to December 15.

All businesses and traders operating in the city can register to participate in the program," said a representative of the Department of Industry and Trade.

Source: SGGP

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