Purchasing power is weak, input materials have cooled down, many types of goods, especially food, are currently priced tens of percent lower than the same period last year.
Ms. Oanh, the head of a shoe production line in Tan Binh District (HCMC), said that recently she has felt less stressed when going to the market to buy food every morning. "Eggs, meat, and vegetables are currently 10-30% cheaper than the same period last year, some items are even 50% cheaper," she said.
Vegetable stall at Xom Moi market (Go Vap). Photo: Thi Ha
Records at traditional markets and modern supermarket systems also show that the price of green vegetables has dropped the most. Specifically, vegetables such as lettuce, watercress, and mustard greens fluctuated at 25,000-35,000 VND per kg, down 30%. The price of spice vegetables decreased by half, in which tomatoes, cucumbers, and green onions are now 10,000-30,000 VND per kg (depending on the type).
Fresh foods such as pork, beef, and chicken have dropped by 10-30%. Currently, pork belly in traditional markets has dropped from 180,000 VND per kilogram to 150,000-160,000 VND; industrial chicken wings and thighs have dropped from 80,000 VND per kilogram to 45,000-60,000 VND.
Chicken eggs, from last year's peak of 45,000 VND (10 eggs), are now down to 32,000 VND, large industrial chickens have dropped from 10,000 VND per dozen to 30,000 VND. Fruits such as plums, lychees, and Hoa Loc mangoes have also dropped 10-20%...
Compare prices of some essential fuels and foods in June 2023 with the same period last year. Graphics: Dang Hieu
Goods have plummeted following traders due to a decrease in purchasing power in the market while supply is abundant. "This year, there has not been as much rain as in previous years, so vegetable production has increased. Meanwhile, purchasing power has decreased by 20-30% compared to the same period last year, causing prices of many goods to plummet," said Ms. Hien, a vegetable vendor at Xom Moi market (Go Vap).
A report from the Ministry of Agriculture and Rural Development shows that the supply of livestock, poultry, and vegetables in the first five months of the year increased by 3-5% compared to the same period last year. As a result, prices of many goods tend to decrease sharply.
Transportation costs have cooled down by 5-7% thanks to the 30% decrease in gasoline and oil prices in the first 6 months of the year compared to the same period last year, which also helped reduce commodity prices. If the price of RON 95 III gasoline in the adjustment period on June 21, 2022 peaked at VND 32,870 per liter, it is now VND 22,010 per liter. Similarly, the price of diesel oil has decreased from VND 30,000 to VND 18,000 per liter.
In Ho Chi Minh City, freight companies said they have adjusted their freight rates down by 10-25%. Accordingly, instead of 2,000 VND per kg of goods for long-distance transport of over 500 km, it is now 1,500 VND per kg. For goods transported in bulk, the price has been reduced by 50,000-150,000 VND per trip.
Speaking to VnExpress , the director of a cooking oil and spice manufacturing company in Ho Chi Minh City said that in the first five months of this year, his company has had less pressure to increase prices when transportation costs and raw materials have decreased.
People shop at Go supermarket on the afternoon of June 18. Photo: Thanh Tung
In addition, the decline in raw materials for processing in the world has also helped make many products cheaper. The International Monetary Fund (IMF) said that global basic food prices in the first 5 months of this year have decreased by 21% compared to the same period last year.
The Food and Agriculture Organization of the United Nations (FAO) food price index also showed that the world's most traded staples such as cereals, dairy and edible oils have fallen 22% over the past year. Vegetable oil prices fell the most, with a 48% adjustment, reflecting a general decline in palm oil, soybean oil, grapeseed oil and sunflower oil.
Ayhan Kose, deputy chief economist of the World Bank (WB), said that global commodity prices are on a downward trend. The reason is that the world economy is slowing down, the impact of wars and epidemics has reduced purchasing power. However, according to him, the economy will be better in 2024 if central banks have a way to regulate monetary policy in accordance with the market context.
Domestically, manufacturing enterprises said the market is showing signs of a slight recovery. Modern retailers in Ho Chi Minh City saw a 1-2% increase in purchasing power in May and June compared to the first months of the year. Therefore, they expect that from the third quarter, the goods market will be vibrant again when the festival season takes place more frequently.
Thi Ha
Source link
Comment (0)