ID :
28316
Tue, 11/04/2008 - 14:11
Auther :
Shortlink :
https://oananews.org//node/28316
The shortlink copeid
Prices drop but purchasing power still down
HCM City (VNA) - A "belt tightening" policy is spreading among Vietnamese consumers, and signicantly reducing the market's selling power.
Since the beginning of October, prices of many commodities, including both
consumer and essential products, have dropped steadily.
In particular, gas prices slid from 282,000 VND per 12 kilo canister in
early October to 200,000 VND at present. Meanwhile, the price of steel is
down to 10 million VND per tonne, with an additional drop of 500,000 VND
expected early November.
Prices for most consumer products, including processed food, decreased
between 5 to 15 percent.
In spite of such sharp pricing drops, the market's purchasing power has
not improved, even continuing its downward trend, according to some
independent market watchdogs.
A CEO of a cooking oil company said that sales of cooking oil products
dropped by at least 20 percent from early October.
"Many consumers gave up their habits of buying and storing goods since they
expected lower prices", he said.
According to Tran Minh Chau, a retailer at District 1's Tan Dinh Market in
HCM City , soft drinks, spices and dried good products are staying put on
the shelves.
The clothing industry has also been hit by market woes. Turnover at some
shops specialising in trading clothes with famous brand names, such as
Milano, Salvatore Ferragamo, Chloe, Balenciaga, Marc and Bally, has declined
by 20 to 25 percent.
Meanwhile, the business office of the Zen Plaza trade centre in HCM
City reported that purchasing power of clothing and cosmetics products
there fell by 20 percent over the corresponding period.
Sales of electronics and electric goods on the market decreased by between
10 and 20 percent, according to Lien An Thach, director of the Cho Lon
Electric Engineering Supermarket.
In the latest survey by AC Nielsen, the Vietnamese are ranked ninth among
the most optimistic countries in a Global Consumer Confidence Index, a
decrease of two places compared with early this year.
The country's confidence index is 8 percent lower than the figure recorded
in the first half of the year.
Every six months, AC Nielsen conducts the Global Consumer Confidence Index
(GCCI), polling over 26,000 Internet users from 47 markets on their job
prospects, personal finances and spending habits, among others.
Survey results indicate that Vietnamese spending habits changed
significantly, with up to 49 percent of respondents saying that they would
deposit their savings in lieu of shopping and entertainment. Early this
year, most respondents said they used their expendable income for
consumption activities.
Nguyen Hong Huong, director of the Vinatex supermarket chain, said "Domestic
consumers do not want to spend much at this time partly because of the
economic crisis, and partly because they hope the consumer product prices
will drop further."-Enditem
Since the beginning of October, prices of many commodities, including both
consumer and essential products, have dropped steadily.
In particular, gas prices slid from 282,000 VND per 12 kilo canister in
early October to 200,000 VND at present. Meanwhile, the price of steel is
down to 10 million VND per tonne, with an additional drop of 500,000 VND
expected early November.
Prices for most consumer products, including processed food, decreased
between 5 to 15 percent.
In spite of such sharp pricing drops, the market's purchasing power has
not improved, even continuing its downward trend, according to some
independent market watchdogs.
A CEO of a cooking oil company said that sales of cooking oil products
dropped by at least 20 percent from early October.
"Many consumers gave up their habits of buying and storing goods since they
expected lower prices", he said.
According to Tran Minh Chau, a retailer at District 1's Tan Dinh Market in
HCM City , soft drinks, spices and dried good products are staying put on
the shelves.
The clothing industry has also been hit by market woes. Turnover at some
shops specialising in trading clothes with famous brand names, such as
Milano, Salvatore Ferragamo, Chloe, Balenciaga, Marc and Bally, has declined
by 20 to 25 percent.
Meanwhile, the business office of the Zen Plaza trade centre in HCM
City reported that purchasing power of clothing and cosmetics products
there fell by 20 percent over the corresponding period.
Sales of electronics and electric goods on the market decreased by between
10 and 20 percent, according to Lien An Thach, director of the Cho Lon
Electric Engineering Supermarket.
In the latest survey by AC Nielsen, the Vietnamese are ranked ninth among
the most optimistic countries in a Global Consumer Confidence Index, a
decrease of two places compared with early this year.
The country's confidence index is 8 percent lower than the figure recorded
in the first half of the year.
Every six months, AC Nielsen conducts the Global Consumer Confidence Index
(GCCI), polling over 26,000 Internet users from 47 markets on their job
prospects, personal finances and spending habits, among others.
Survey results indicate that Vietnamese spending habits changed
significantly, with up to 49 percent of respondents saying that they would
deposit their savings in lieu of shopping and entertainment. Early this
year, most respondents said they used their expendable income for
consumption activities.
Nguyen Hong Huong, director of the Vinatex supermarket chain, said "Domestic
consumers do not want to spend much at this time partly because of the
economic crisis, and partly because they hope the consumer product prices
will drop further."-Enditem
