Ngo Van Hai, deputy director of Citimart Supermarkets, said the company was told last weekend that suppliers were going to increase some prices, including fabric softeners, Ovanltine milk and shampoo, which will rise by ten percent.

Bui Hanh Thu, deputy general director of Saigon Co-op Supermarkets, also said that the supermarket chain had received information that most goods will see increase prices of seven to ten percent, with cosmetics seeing the greatest increase. Explaining why prices will move up, manufactures said that the price of materials has increased due to the increase in gold and US dollar prices. Supermarkets said that the price of many commodities will continue to rise, especially with items produced from imported materials and imported goods.

Trying to keep the price stable

Despite pressure of price rises, most essential goods in Co-op Mart Supermarkets will remain stable, as the company has a large number of stocked items. “The economy is in a difficult period, if we increase the price of goods, purchasing power may reduce. Thus, we will negotiate with suppliers to keep the price stable. Co-op Mart Supermarket will try their best not to increase the price,” Ms Thu said.

Although the price of pork has increased due to high feed costs, Van Duc Muoi, deputy director of Vissan, confirmed that the company will not pass on cost prices to customers. If feed prices rocket up, but the price of pork does not increase, pig breeders will lose out. Processors should find ways to save costs to reduce the price for consumers, Mr Muoi added.

Suppliers should give careful consideration before increasing prices in order to balance the benefit of manufacturers, distributors and consumers, Mr Hai said.