|
Low purchasing power changing Tet plans
Businesses are still not making production plans for Tet as the current low purchasing power is making them worry that they will be unable to sell products.
Usually, October is when businesses begin drawing up Tet production and business plans. However, it is quite different this year. Businesses are afraid that the purchasing power during the 2009 Tet will not be as high as in previous years.
Demand low
Nhung, the owner of a confection trade company in Tuy Hoa city in the southern province of Phu Yen, said that this is the first time in the past 10 years she has witnessed such a gloomy trade scenario.
“In previous years, sales agents in districts and communes began ‘placing orders’ for Tet in mid September. But no one has called to place an order to date,” Nhung complained.
Nhung said that she cannot predict the purchasing power for Tet so she dares not place orders with confection producers in HCM City.
The An Dong Trade Centre in district 5 is quiet these days. Du Muoi, the owner of the Vinh Mai sundries stall, said that the sales volume in the past few months was just 1/3 of earlier this year and the same period of last year.
Nguyen Thi Nhu Phuong, Deputy Head of the Management Board of An Dong Centre, said that she has never seen the market as quiet as this year. In September, promotional programmes could only help the turnover of petty merchants at the centre increase by a slight 5-10%.
Nguyen Ngoc Hoa, Chairman of Saigon Co-op, a big distributor in HCM City, said that consumers now only purchase essential goods for daily use, while the demand for luxury cosmetics and clothes has decreased dramatically.
No plan for Tet yet
Nguyen Van Ben, General Director of Vifon, a food producer, said that the company is only signing short-term (1-2 month) contracts to purchase materials now, instead of 6-month contracts. Ben said that any long-term contract would be risky as Tet sales prove to be unpredictable.
Ben also said that material suppliers have asked for payment sooner, 20 days after delivery at the latest instead of 30-40 days, which has made it more difficult for the company to arrange capital.
Producers say that the production costs of products for Tet sale may increase by 10-15% over last year.
As the tastes of consumers have changed, both supermarts and producers have to restructure lists of products for production and sale.
Hoa from Co-op said that the supermart chain is negotiating with partners on a list of commodities. Co-op will only sell products which can bring high turnover. Hoa said that only 2 or 3 of 10 product items of one supplier can bring in high turnover. Other products will be stricken from the list of offered products.
|
Nine enterprises can borrow VND409bil to stabilise market on Tet
HCM City authorities have decided to provide preferential loans of VND409bil to allow enterprises to purchase products to store up for sale on Tet. In return for the loans, the enterprises have to commit to keep sale prices 10% lower than the market’s price levels. |
VNN
|
