Consumer prices have risen more than 16 percent so far this year, forcing families to make significant cutbacks in their food budgets and leaving market vendors struggling to make ends meet.
The latest statistics from the General Statistics Office (GSO), released late Tuesday, show the consumer price index jumped 16.4 percent in the first three months of 2008 compared to the same period last year, driven by sharp spikes in food and energy prices.
The government has raised interest rates and frozen retail fuel prices until June in a bid to slow inflation but that does not seem to have eased the financial squeeze on lower income earners.
Supermarkets last week announced they had raised prices by between five and 20 percent, with some luxury items, such as cakes and candy, up by one-third.
“I’ve noticed a significant increase in prices, particularly in pork and fish,” said Phuong, who was shopping Wednesday at Tan Dinh Market in Ho Chi Minh City’s District 1.
“It’s really difficult for those with low incomes and even for middle income people.”
Tan Dinh Market shopkeeper Nga, who sells baguettes, said her daily profit had dropped by 50 percent this year.
“Sales have been slow,” she said.
“It’s the worst it’s been in the past 30 years.”
Nga had no idea what the government could do to assist struggling families and businesses.
“The only comfort is that the price of power has not increased yet,” she said.
Fabric seller Pham Thi Hoang Mai estimated her sales were down 40 percent this year.
Mai said she could not raise selling prices to make up for slower sales “because there are no customers.”
Mai is among those finding it tough to provide for her family.
She has been cutting down on the amount of meat she buys.
“I used to buy one kilogram of pork, now I buy half a kilogram or less,” she said.
“I’m just waiting for everything to go back to normal, particularly the price of fuel.”
Since the Tet (Lunar New year) holiday, noodle stall owner Vo Thi Thanh Thuy has raised her prices by VND2,000 (13 US cents) a bowl, from VND15,000 to VND17,000, because of the higher price of pork, meat and other ingredients.
“I can’t increase the price too much because it would scare customers away,” she said.
“You can see none of the vendors are busy today,” she said, pointing to the row of food stalls.
She herself has been struggling with falling sales in the last few months.
But not all vendors were gloomy.
Flower stall owner Truong Thanh Nga and fruit shop owner Hai said their businesses had not been affected by inflation.
Neither business had experienced any decrease in sales volume or customer numbers, they said.
Spiraling inflation has led many, including State Securities Commission Deputy Chairman Nguyen Doan Hung, to question if the government’s target of 9 percent economic growth can be achieved this year.
Vietnam recorded gross domestic product (GDP) growth of 8.5 percent last year as it attracted a record US$20.3 billion in foreign direct investment.
The booming economy has attracted many foreigners, many of whom have hardly noticed the price rises.
Franck, the manager of the trendy Alibi Club in HCMC’s District 1 who preferred to by known by his first name, said his business had so far not been affected by rising inflation.
“Most of my customers are foreigners,” he told Thanh Nien.
Rather than experiencing a slowdown in customers, Alibi had actually been busier than ever, he said, adding he had not been forced to increase the prices of anything on his menu.
Australian expat Tom Vovers has noticed the price of food, clothes and taxis increasing this year.
From a business point of view, Vovers said staff costs at his human resource company HR2B had increased by about 20 percent as the company kept up with market trends.
By far the biggest cost increase, however, has been in office rent.
Vovers said the rent on HR2B’s office in HCMC’s District 3 had doubled this month.
CPI SURGE
■ The 16.4 percent increase in the consumer price index (CPI) owes mainly to a sharp rise in food prices, especially rice, and the cost of housing and construction materials, according to the latest General Statistics Office (GSO) data.■ Food and beverage prices - which make up more than 40 percent of the CPI basket - rose 25.9 percent against the same period last year.■ Rice and other grains increased by 21.5 percent while the cost of other foodstuffs went up by 28.4 percent, echoing a widespread complaint in Vietnam about the rising cost of living, which has sparked labor strikes.(Source: AFP)
The latest statistics from the General Statistics Office (GSO), released late Tuesday, show the consumer price index jumped 16.4 percent in the first three months of 2008 compared to the same period last year, driven by sharp spikes in food and energy prices.
The government has raised interest rates and frozen retail fuel prices until June in a bid to slow inflation but that does not seem to have eased the financial squeeze on lower income earners.
Supermarkets last week announced they had raised prices by between five and 20 percent, with some luxury items, such as cakes and candy, up by one-third.
“I’ve noticed a significant increase in prices, particularly in pork and fish,” said Phuong, who was shopping Wednesday at Tan Dinh Market in Ho Chi Minh City’s District 1.
“It’s really difficult for those with low incomes and even for middle income people.”
Tan Dinh Market shopkeeper Nga, who sells baguettes, said her daily profit had dropped by 50 percent this year.
“Sales have been slow,” she said.
“It’s the worst it’s been in the past 30 years.”
Nga had no idea what the government could do to assist struggling families and businesses.
“The only comfort is that the price of power has not increased yet,” she said.
Fabric seller Pham Thi Hoang Mai estimated her sales were down 40 percent this year.
Mai said she could not raise selling prices to make up for slower sales “because there are no customers.”
Mai is among those finding it tough to provide for her family.
She has been cutting down on the amount of meat she buys.
“I used to buy one kilogram of pork, now I buy half a kilogram or less,” she said.
“I’m just waiting for everything to go back to normal, particularly the price of fuel.”
Since the Tet (Lunar New year) holiday, noodle stall owner Vo Thi Thanh Thuy has raised her prices by VND2,000 (13 US cents) a bowl, from VND15,000 to VND17,000, because of the higher price of pork, meat and other ingredients.
“I can’t increase the price too much because it would scare customers away,” she said.
“You can see none of the vendors are busy today,” she said, pointing to the row of food stalls.
She herself has been struggling with falling sales in the last few months.
But not all vendors were gloomy.
Flower stall owner Truong Thanh Nga and fruit shop owner Hai said their businesses had not been affected by inflation.
Neither business had experienced any decrease in sales volume or customer numbers, they said.
Spiraling inflation has led many, including State Securities Commission Deputy Chairman Nguyen Doan Hung, to question if the government’s target of 9 percent economic growth can be achieved this year.
Vietnam recorded gross domestic product (GDP) growth of 8.5 percent last year as it attracted a record US$20.3 billion in foreign direct investment.
The booming economy has attracted many foreigners, many of whom have hardly noticed the price rises.
Franck, the manager of the trendy Alibi Club in HCMC’s District 1 who preferred to by known by his first name, said his business had so far not been affected by rising inflation.
“Most of my customers are foreigners,” he told Thanh Nien.
Rather than experiencing a slowdown in customers, Alibi had actually been busier than ever, he said, adding he had not been forced to increase the prices of anything on his menu.
Australian expat Tom Vovers has noticed the price of food, clothes and taxis increasing this year.
From a business point of view, Vovers said staff costs at his human resource company HR2B had increased by about 20 percent as the company kept up with market trends.
By far the biggest cost increase, however, has been in office rent.
Vovers said the rent on HR2B’s office in HCMC’s District 3 had doubled this month.
CPI SURGE
■ The 16.4 percent increase in the consumer price index (CPI) owes mainly to a sharp rise in food prices, especially rice, and the cost of housing and construction materials, according to the latest General Statistics Office (GSO) data.■ Food and beverage prices - which make up more than 40 percent of the CPI basket - rose 25.9 percent against the same period last year.■ Rice and other grains increased by 21.5 percent while the cost of other foodstuffs went up by 28.4 percent, echoing a widespread complaint in Vietnam about the rising cost of living, which has sparked labor strikes.(Source: AFP)
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