|
Stronger dollar pushes up prices of imported consumer goods
Retailers in Hanoi have raised the prices of many commodities of a seasonal character, from air-conditioners and blenders to digital cameras, blow-dryers and cosmetics, claiming that the strengthening dollar has pushed up the price of imports.
Hang, the owner of an appliance shop on Giang Vo street, said that she dares not increase her inventory these days as sales have been very slow. She added that the prices of imported products have tended to increase even though consumers, tightening their belts in the face of the global economic crisis, have reduced purchasing power.
The cost of electric blenders and rice cookers from China have increased by 5-10%. It appears that people will have to pay VND10,00--15,000 more for products previously priced at VND100,000.
At the Intimex supermarkets, Philips brand blenders and blow-dryers since the beginning of April have been priced 5% higher than before. Explaining the price increases, a spokesman said the company was advised to do so in a March 1 notice from its supplier of Philips products.
The spokesman said that the supermart has also received five notices from suppliers about pending price increases for the cosmetics products imported from Thailand and Malaysia, due to the dollar price increase.
Mitsubishi announced a price rise of 3 to 5 percent for its products effective at the beginning of summer, while Panasonic and Samsung products have also increased by several hundred thousand dong per item.
Of note, the prices of air-conditioners have increased slightly even though the luxury tax has been lowered by 5%. The problem lies in the fact that the dollar price has been increasing, thus increasing the net cost in dong.
Import company representatives said heavy fluctuations of the dollar exchange rate have forced them to be cautious with import deals. Rather than order large quantities of products, they will scale imports back after considering current purchasing power on the market.
The owner of Digi World, a shop on Hang Bai street in Hanoi said that he dares not stock digital cameras in large quantities as sales have been slow. The cameras cost him $40-50 more than before Tet. Though he declined to reveal the sales decrease, the shopowner said that his profit margin per camera previously was $30 each, but now has shrunk to a mere $5.
A director of Minh Anh Company Ltd, an importer of food products from Europe, said that importers have raised prices not only to ‘follow’ the stronger dollar, but also to strengthen their foreign currency reserves.
The dollar price fluctuations in the past few months, he explained, so far only show clearly in the case of big importers who regularly make payment in dollars. They have not yet made much impacts on small companies, which import only a few containers ogf goods a month and always make payment several months in advance.
According to the General Statistics Office, the US dollar gained 1.25% in April vis-à-vis the dong, following a 0.19% rise in March.
The interbank exchange rate announced by the State Bank of Vietnam for April 23 was VND 16,937/US$1, while the exchange rate on the black market was VND 18,180/US$1 (buying) and VND 18,230/US$1 (selling). In March, the dollar price on the black market hovered around VND17,800/US$1.
Nguyen Nga
vietnamnet
|
