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Dollar price decrease making imports cheaper
The prices of many import products have been decreasing as a result of the dollar price decrease, making imports a good choice for many consumers.
The current VND/US$ exchange rate is VND16,500/US$1, much lower than the highest peak of VND19,000/US$1 on the black market. Therefore, sellers have to slash the sale prices of import products and products assembled with imported accessories.
The sharpest price decreases have been applied to computers. Van Dai, a 4th year student of the Hanoi University of Technology, said that every computer which technology students purchase has become VND500-700,000/unit cheaper than two months ago. Dai said that producers regularly launch promotion programmes in early September, which allow students to save VND1mil when buying a computer.
Motorbike shops on Ba Trieu street these days are quoting the same prices in dollars as the prices of two months ago. An SH is selling at $7-8,000/unit, Spacy and Piagio LX at over $5,000/unit. However, the prices in VND prove to be much lower than that of two months ago, allowing buyers to save several million VND when buying a motorbike.
The deputy director of a big home appliance centre in Hanoi said that his company is planning big price decreases for import products, including air-conditioners, cameras and audio appliances, due to the dollar price decreases. He said that a lot of other supermarts are also considering slashing sale prices by the end of the month.
Analysts say that sharp price decreases may occur in September, when the dollar price is more stable. Importers who imported products when the dollar price was high will also have to slash sale prices despite losses. They want to boost sales to get capital for new import deals at the end of the year.
A credit officer of a joint-stock bank said that on average, an import order has the value of several million dollars. With the decreases in the dollar’s value, importers can save several billion VND on every import deal.
The dollar price decreases have been benefiting customers, but not traders. The owner of Thanh An Motorbike Shop on Tay Son street in Hanoi said that he always has to place purchase orders one month in advance. The dollar price was much higher one month ago, therefore, he can only make modest profit now with the dollar price falls.
Despite the price decreases, the purchasing power remains low. Sales of unessential products like cameras or scooters have been going very slowly, including those of favourite models like SCR or Piagio LX. The high inflation has been making customers tighten their belts. Previously, a big motorbike sales agent on Ba Trieu street could sell 100 units a month, and now it is happy with sales at 2/3 of the previous level.
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