|
The mighty dollar rules with retailers
My dollars! It’s all I can think about. How many have I got? How many do I need? Can I survive with so few when my pay is in dong?
No, I’m not talking about the Australian dollar; the Canadian dollar or the Singapore dollar. I’m talking about the hottest currency in Viet Nam, the United States dollar. From luxury shopping, luxury plazas – Parkson, Vincom, Trang Tien, Diamond, Zen or Ruby – jewellery shops, shoes stalls, mobile or IT distributors to auto centres in Ha Noi, HCM City and Hai Phong, your eyes will get bigger and your pockets shrink as you sample the "USD-listed prices."
I’ve just retired from shopping for hours in Ha Noi without a single new item despite the welcoming and charming shopkeepers at every corner.
But I still have my dong.
If you are not carrying the hot currency, vendors will obligingly exchange your dong for the dollar at street rates that are invariably higher than those the banks offer.
It’s awful. About VND18,230-18,260 to the dollar.
The State Bank of Viet Nam’s listed-rate for the dollar was just VND16,939 yesterday, while Vietcombank traded it at VND17,786.
You are young, modern and dynamic and you want to own an Ipod Touch 8Gb with a Belkin cover; it’s rather easy at an IT shop on Nguyen Du, Ly Nam De, Kim Ma or Thai Ha streets, Ha Noi.
And the prices are listed for you in dollars, about $268 or VND4.9 million.
What about famous brand-name sandals for summer. Several shoes stalls on the capital’s Duong Thanh or Hang Bong streets will cool you down immediately with beautiful pairs from the US, France or Italy.
But the listed dollar prices could well prompt a relapse.
A simple slipper at Soe Bird costs about $24 or VND437,520.
Jewelery stalls such as Unique or Seven at Parkson in Ha Noi and Hai Phong also list their prices in dollars and the shopkeepers will help you with the conversion.
"Why you don’t use official exchange rate?" I ask the retailers. "We have to buy the dollar on the black market for our imports." they reply.
"We will make a loss if we sell to you in dong."
All are adamant they cannot buy the dollar from the banks.
A Ly Nam De Street computer shop director explains: "I also list the prices in dollar to avoid exchange risks. If I list in dong, I could have to re-write the price list every day."
But what about domestic jewellery makers list price in the dollar like Phu Nhuan Jewelery (PNJ) ? CAO Fine Jewerlery is PNJ’s luxury brand name and CAO products are all listed in the dollar.
A small necklace made of gold, natural stone and diamond dust can cost you over $500 or about VND9 million.
Feeling hungry, go to Nikko or the Sofitel Metropole hotels in Ha Noi for a luncheon buffet but you may have to pay $20++ to $21++ per person - VAT and service charge not included.
"Whee, it’s so hot in here," I tell myself.
Think bigger. Think automobiles and motorbikes.
At Toyota’s My Dinh centre, the Fortuner G 2.5 MT is listed at $38,300 or VND680 million and the Camry 3.5Q at $68,700 or VND1.22 billion.
The chosen exchange rate is a bank’s VND17.788 to the dollar.
But at motorbike shops on Hue and Ba Trieu streets the prices for a Spacy, PS, SH, Piaggio or Flame are in dollars - they charged one dollar from VND18,150 to 18,260.
Little money
But most people in Viet Nam are pre-occupied with the dong not dollars and millions of them buzz about on motorbikes, buses, trucks and cyclos in an unending pursuit of a little money.
Few visit dollar-listed price shops.
"How many products do you sell each day?" I ask at the CAO Jewelery stall. "Just a few," the lady replies. "We target high-income customers who do not care much about dollar or dong prices."
A Vincom shop assistant tells me unhappily: "Listing our prices in dollars is now normal and many customers are familiar with it. Rarely are they like you and ask why we list the price in dollars."
"Oh, you mean I look like a farmer?" I reply, my face reddening.
Governor speaks
"Every business on Viet Nam’s territory must follow Viet Nam’s law," State Bank of Viet Nam Governor Nguyen Van Giau told me when I interviewed him by phone yesterday.
"Article 22 of the Foreign Exchange Management Law prohibits the listing of prices in foreign currencies whatever the exchange rate – bank or black market – vendors choose," he said.
"But what about what is happening in the market right now?" I asked.
"Sorry, I’m in a meeting," he replied... bip…bip…bip. Call ended.
The State Bank of Viet Nam announced when foreign exchange market was extremely volatile and overheated that it would work with the Public Security Ministry; the Market Management Agency and municipal people’s committees to review the situation and then identify and punish transgressors.
The results have yet to be made public.
PM whistles to put FX trading in order
Prime Minister Nguyen Tan Dung has ordered the ministries of Public Security, Industry and Trade, Information and Communications and the Ha Noi and HCM City People’s Committees to tighten their supervision of foreign exchange trading.
Their brief is to correct and punish violations of the foreign-exchange rules, including illegal trading and the advertising and listing of prices for goods and services in foreign currencies.
But many jewellery shops, motor vehicle dealers, real estate agents and tourism retailers have ignored State Bank of Viet Nam warnings to stop the practise to the detriment of their customers.
Article 22 of the Foreign Exchange Management Law bans trading, paying, listing prices or advertising in foreign currencies, except among credit institutions.
Vendors must have prime ministerial approval to do otherwise.
Those found breaking the rule are liable to be punished according to the law.
Ha Phuong
vietnamnews
|
