Prices remain reasonable for Tet with no shortages

HCM City (VNA) - The price of goods and services has either risen slightly or
remained stable nationwide during the Tet (Lunar New Year) holiday, said an official
from the Ministry of Finance (MoF).

There have not been any shortages of goods in markets during Tet this year, said
Nguyen Tien Thoa, Head of the Price Management Department under the MoF.

Pork, beef, chicken and aquatic products have been offered at prices 5-20 percent
higher than during other times of the year. The cost of many kinds of Tet flowers
and ornamental trees are 1.5-2 times higher than the same period last year.

Gold prices have increased slightly from 17.7 million VND (1,041 USD) to 18 million
VND (1,058 USD) per tael. The USD exchange rate on the free market also rose from
17,580 to 17,700 VND.

Prices of commodities such as petrol, oil, cement, fertilisers and air and city bus
fares have remained stable.

Commodities for the holiday are abundant in terms of quantity, variety and quality.
Distribution across the country has run smoothly, fully meeting demand. Services
including travel and tourism were also well prepared for people to enjoy
recreational activities and get about during the traditional festival.

Domestic products account for more than 80 percent of the market during Tet. In many
supermarkets and trade centres. Processed foods, frozen foods, confectionery,
beverages, fruits and gift baskets have sold well.

According to the official, the products are sold in the supermarkets at prices 5-10
lower than in traditional markets.

Meanwhile, the price of services such as motorbike and car cleaning, haircuts and
motorbike parking have doubled or tripled.

Thoa attributed the small variation of prices to a series of effort take by the
functional agencies.

First, he said, early implementation of the Prime Minister's instruction No
35/2008/CT-TTg on stabilising the market during Tet has been successful.

Second, in many provinces and cities, authorities have allocated local budget
reserves to assist enterprises to step up production and prepare a sufficient number
goods for supply during Tet.

For example, Hanoi provided 9,000 billion VND (529.4 million USD) to
enterprises in order to ensure a source of goods in reserve. A host of other
cities took similar measures.

Third, the State Bank of Vietnam has reduced the prime interest rate from 8.5
percent to 7 percent, creating conditions for commercial banks to lower their
lending interest rates to about 10.5 percent, which has given enterprises better
access to capital.

Fourth, the Ministry of Finance has cut import taxes on petrol and reduced corporate
income taxes. The measures aim to stabilise the prices of many other essential goods
such as oil, electricity and coal.

Finally, efforts to check and control markets, combat smuggling, trade and tax fraud
have also been accelerated. Inspection teams have been set up in many cities and
provinces to prevent enterprises from raising their products prices.-Enditem