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Businesses are cautious about making Tet goods

Commenting that the market at the end of the year and the upcoming Tet holiday will have many unpredictable fluctuations, businesses making Tet goods are cautious when increasing supply and keeping prices unchanged when bringing goods to consumers.

Due to the impact of the economic situation and many difficulties in employment throughout 2023, the Vietnam Animal Industry Joint Stock Company (Vissan) must carefully calculate its plan to make Tet goods. Enterprises set aside a budget of more than 540 billion VND to reserve goods for Tet 2024, equivalent to the output made during Tet 2023.

Specifically, Vissan will bring nearly 1,100 tons of fresh food to market, an increase of 5% over the same period, and 3,800 tons of processed food. At the same time, reserve an additional 10 - 20% of goods output to prevent shortages.

According to Mr. Nguyen Ngoc An, General Director of Vissan Company, since June 2023, the company has begun to reserve raw materials and prepare good sources of goods to serve the market at the end of the year and Tet 2024. "To share facing difficulties for consumers, this year the company committed not to increase prices, but also launched many promotions, regularly reducing prices from 10 - 20% on weekends and increasing discounts up to 30% in the days leading up to Tet" - Mr. An said.

Currently, most food businesses have started to place Tet orders but are very cautious when increasing the quantity. A representative of Vinh Thanh Dat Food Company (District 12) said that in the first 10 months of this year, consumption decreased by 50%, so the company only prepared about 2 million poultry eggs/per day from December 23 onwards. For retailers, there is a plan to prepare supplies at a moderate level.

Specializing in supplying jams and dried fruits to markets in Ho Chi Minh City and many provinces, Ms. Vo Thi Ha, owner of the Thinh Phat facility (Long An), acknowledged that at this time in the years before the COVID-19 epidemic for Please call in bulk to order to get the best price. However, by this time, the number of people ordering had decreased by more than 50%. We avoid contacting the gardener to reserve raw materials for fear of losing money.

“The current difficulty is that although the number of customers is decreasing, the price of input materials is still increasing. From there, the price of products reaching consumers will certainly be forced to increase, so purchasing power will decrease even further," - Ms. Ha said.

Also read: Vietnam's fruit exports to China and Laos increased sharply » Vietnam News - Latest Updates and World Insights | Vietreader.com

Ready to increase production in emergencies

Ms. Ly Kim Chi, Chairwoman of the Ho Chi Minh City Food Association, acknowledged that this year's market is difficult. Currently, purchasing power is weak. Businesses reserve about 15 - 20% more Tet goods than normal to meet market demand if purchasing power suddenly increases.

According to Ms. Chi, the increase in exchange rates causes the cost of importing raw materials for food production to increase for food businesses, but in the current context, businesses accept low profits, even breaking capital to sell goods, participating in stabilizing the market.

On the afternoon of November 9, Mr. Nguyen Phuong Duy, Deputy Head of the Energy Management Department of the Department of Industry and Trade of Ho Chi Minh City, said that due to the complicated fluctuations in gasoline prices, exchange rates, and raw material prices, it creates great pressure for with domestic production activities.

Businesses stabilizing the market are preparing production plans and raw materials based on strict compliance with the regulations of the stabilization program. Enterprises will strive to supply enough or exceed output and sell at the announced price, contributing to market regulation. There have been no price spikes in essential food items in Ho Chi Minh City recently.

To prepare Tet goods, right from the beginning of the year, the city developed a plan and assigned the Department of Industry and Trade to implement it actively. Accordingly, during the Tet months, the amount of goods to stabilize the market accounts for 25 - 43% of market demand. On average, each month is expected to supply 5,000 tons of rice, 70 million poultry eggs, 2,000 tons of sugar, 1,000 tons of processed products, 2,000 tons of cooking oil, 10,000 tons of vegetables and fruits, 6,000 tons of cattle meat, 8,000 tons of poultry meat, 200 tons of seafood...

Also read: Focusing on quality or market demand? » Vietnam News - Latest Updates and World Insights | Vietreader.com

“In addition, businesses will be ready to increase production in emergencies, ready to sell mobile goods to places where there is a local shortage of goods, and determined not to let shortages of goods or imbalance of supply and demand occur in any situation. " - Mr. Duy said.

As for rice, the Department of Industry and Trade recently organized an inspection of rice sources in the Mekong Delta provinces. According to comments from rice export hubs, world rice prices are on an upward trend and difficult to predict because they depend on the needs of large markets and the strategic calculations of exporting countries.

The Department of Industry and Trade closely monitors developments because global market fluctuations will directly affect domestic rice prices, affecting food production activities in the last months of the year and the Lunar New Year.

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