In contrast to the bustling scene every year, this year, even though Tet is approaching, purchasing power is still the same as usual. Many small traders are worried about losses, and some are closing their stalls early for Tet.
On the afternoon of the 23rd of Tet, Ms. Tam, a peach blossom seller at a local market in Ha Dong (Hanoi), just opened her shop. "I'm sure I'll lose money this year, so I'm not interested in anything," she said.
Ms. Tam said that before the full moon, she had imported more than 500 peach branches to sell for this Lunar New Year. Although she had predicted difficulties, the amount imported was only two-thirds of that of previous years, but up to this point, more than half of them were still unsold. "This year, it is very difficult to make a living. People in the garden do not sell when it is cheap, and people do not buy when it is expensive," she lamented.
According to Ms. Tam, the price of small peach branches this year is only around 100,000 VND per branch, half of the previous year's price, but it is still not easy to close the deal. "Every year, I sell very well, customers buy in droves, even at 200,000 VND per peach branch, they do not bargain. Now that the economy is difficult, I sell at a high price, but they do not buy and switch to buying other things," she said.
A fashion clothing stall at Nha Xanh Market (Hanoi) is still empty despite discounts on the afternoon of February 1. Photo: Phuong Dung
In the same situation, Ms. Minh, who sells clothes at Nha Xanh market (Hanoi), also admitted that this year's Tet is quite difficult for small traders.
"There aren't many customers coming, and they're also more careful with their spending. Some people come in and try on clothes for an hour but come out without buying anything," she said.
At the same time, this year's fashion clothing is also sluggish due to unfavorable weather, as this winter has not had many cold spells.
But Ms. Tam and Ms. Minh are not the only ones struggling to make ends meet during this year's Tet holiday.
In Ho Chi Minh City, traditional markets and supermarkets also have weaker purchasing power than in previous years.
Ms. Loan, a pork vendor at Xom Moi market (Go Vap) said that last year on the 20th of Tet, there were many customers ordering pork in quantities of several kilograms, but now, close to Tet, there are only sporadic customers.
Similarly, a dried goods store at Ba Chieu Market (Binh Thanh) said that this year, due to sluggish purchasing power, she only imports affordable products. Last year, dried shrimp cost up to a million VND per kilogram, but now they are only sold for 400,000-600,000 VND. Dried squid prices have increased, so instead of selling 35 pieces per kilogram, she now only imports 70-100 pieces.
"Importing affordable goods, but purchasing power is not as bustling as every year. With this situation, I am worried about sluggish sales and no profit during Tet," said Ms. Hoa, a trader at Ba Chieu market.
Specializing in selling shoes at An Dong Plaza, Ms. Nhung said that there has never been a year when small businesses have faced such difficulties as this year. It is almost Tet but most businesses have to sell their products at a discount. This is a scene that has never happened before Tet in previous years.
"Yesterday I reduced the price of some items to 100,000 VND but the purchasing power was weak. Therefore, the next day I sold them at a loss of only 50,000 VND," said Ms. Nhung.
Many traders at An Dong market are also competing to sell their goods at up to 70% off. Many traders said they are selling at such low prices to clear out their inventory and not to make a profit. "This year, it's like there's no Tet because we're losing 30-40% on our sales," said Hang, a trader at this market.
Traders at An Dong Plaza market continuously reduce prices of products but still have no customers. Photo: Hong Chau
According to the management board of traditional markets, this year there will not be any sudden price increases like every year. Most vendors will sell until the 30th of Tet, possibly extending the sale until the evening to "get rid" of all their goods.
Ms. Dam Van - Deputy Manager of Nguyen Tri Phuong Market (District 10) said that purchasing power at the market is still sluggish. "We expect purchasing power to improve in the last week. This year, commodity prices are more stable than in previous years," Ms. Van said.
Mr. Le Hoang Phong, Deputy Director of Hoc Mon Agricultural Products Wholesale Market, said that the amount of goods coming to the market this year has increased significantly. From February 4 to 9 (December 25-30), the amount of goods increased by about 10%, and on some days it increased by up to 50% compared to normal. However, the revenue from this year's Tet market is only expected to be the same as last year due to weak purchasing power.
Retail expert Vu Vinh Phu explained that the decline in purchasing power is inevitable in the context of a difficult economy and the lack of improvement in production and business performance of enterprises. He cited a survey from the Institute of Workers' Economics of the Vietnam General Confederation of Labor, which said that workers' salaries are only enough to cover 75% of their living expenses. Farmers, who account for 70% of the social labor force, often have good harvests and low prices for their agricultural products, and their post-sale profits are not enough to cover the costs of growing and raising livestock.
At the same time, traditional market competitors, supermarkets, constantly launch "huge" promotional programs, which is also the reason why traditional markets are deserted. He gave an example: "A bottle of cooking oil normally sells for 120,000 VND, but during this Tet promotion, it is only over 100,000 VND, so people will choose to buy at supermarkets, instead of grocery stores."
Currently, supermarket chains say they are still stimulating demand with promotions of up to 50% off many products for people to shop for Tet. Even stable, low-priced items will continue to be discounted during this year's Tet.
At supermarket systems, egg prices have also decreased in line with Tet. Photo: Hong Chau
Mr. Truong Chi Thien, General Director of Vinh Thanh Dat Food Joint Stock Company (V.Food), said that although the price of eggs is stable at a low level, with very weak purchasing power, near Tet this year the company decided to reduce the price of chicken eggs by 10% at the points of sale of poultry eggs in Ho Chi Minh City.
Similarly, Ba Huan Food Joint Stock Company also reduced the price of chicken eggs by 10% from February 1 to 24 (December 22 to January 15). In addition, Ba Huan also reduced the price of some processed food items such as Chinese sausage, chicken, sausage, spicy chicken feet, etc. by 10%.
In addition to the reason that people are tightening their spending, another reason mentioned by expert Vu Vinh Phu is that traditional markets are gradually losing customers to online markets. However, Mr. Phu said that from the 23rd to the 29th of Tet, purchasing power will increase the most, so small traders should still have a plan to prepare goods to meet demand.
In the long term, according to experts, there needs to be sustainable solutions to stimulate consumption, including creating jobs and income for people, shortening the supply chain to reduce costs at the intermediary stage, and lowering prices. At the same time, he said that there needs to be solutions to help traditional markets, a model that accounts for 75% of the retail market share, promote their role. Traditional markets need to solve the problem of infrastructure investment, more effectively manage the quality of goods and food hygiene and safety, and ensure traceability...
According to Mr. Phu, in addition to serving the poor and low-income people, the market is also a meeting place and exchange place for all social classes, a tourist and investment destination, and a place to receive agricultural products that have not yet had the conditions to be brought into modern commercial channels.
"If the above problems are resolved, it will contribute to the development of the distribution system of each locality and region in the country," Mr. Phu added.
Hong Chau - Phuong Dung
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