Ho Chi Minh City stimulates consumption

Consumers go shopping at the program "Mobile Sales - Market Stabilization" on August 6, 2024.

Trend of tightening spending

According to the Ho Chi Minh City Statistics Office, the consumer price index (CPI) in July 2024 increased by 0.23% compared to the previous month. Of which, 7/11 groups increased with the highest level. For example, the food and catering services group increased by 0.11%, the overall CPI impact increased by 0.03 percentage points. Of which, food increased by 0.35%, food increased by 0.10% and eating out increased by 0.08%.

Mr. Tran Phuoc Tuong, Deputy Director of the Ho Chi Minh City Statistics Office, said that the CPI in July increased by 3.45% over the same period. On average, in the first 7 months of 2024, the CPI increased by 3.29%, of which 10/11 groups had increasing price index and the highest increase was the group of medicines and medical services with an increase of 7.78%, followed by the education group with an increase of 7.48%.

Ms. Nguyen Cao Ngoc Dung, Senior Manager in charge of market development for retail measurement services at Nielsen IQ Vietnam, said that the current consumer market changed in consumer shopping behaviour. Explaining this, Ms. Dung said that in the first 6 months of 2024, 82 product groups increased in price, including food. Because commodity prices increased, consumers tended to tighten spending, save more and increase savings.

The survey shows that 68% of consumers check the prices of most products before buying, even comparing 2-3 types of products at the same time before deciding to buy. Because they care about the price of goods, consumers immediately notice an increase of the price and will compare carefully. In addition, up to 69% of consumers go shopping under a plan by making a clear list, instead of shopping spontaneously.

According to representatives of distribution units and large supermarket chains in Ho Chi Minh City, consumer purchasing power has decreased sharply in recent times. Currently, purchasing power has gradually recovered, but consumer habits have changed a lot, focusing on essential and healthy goods. Therefore, enterprises have been trying to adapt to meet new consumer demand.

Enterprises seek adaptive solutions

Ms. Nguyen Thi Thu Hien, Director of External Relations for Central and Southern regions of Central Retail Vietnam, said that people's consumption habits had changed after the Covid-19 pandemic. Therefore, Central Retail's supermarket systems organized many attractive promotional programs in line with new consumption trends. In addition, Central Retail also promoted local products to expand the output for goods in provinces and cities and looked for units with suitable products.

Also stimulating demand by bringing consumers the best products at the best prices, Mr. Nguyen Ngoc Thang, Deputy General Director of the Ho Chi Minh City Union of Trading Cooperatives (Saigon Co.op) said that Saigon Co.op strived to keep prices stable by proactively reducing profits to increase promotional programs at 800 points of sale; diversifying stimulus programs at points of sale; organizing same price market-days, participating in market stabilization programs for essential food items... Currently, prices of essential consumer goods remained stable at the supermarket system without significant fluctuations.

According to Mr. Nguyen Phuc Khoa, Chairman of the Board of Directors of Vietnam Livestock Industry Corporation (Vissan), purchasing power was currently showing signs of recovery, but there were still difficulties, especially the great pressure on enterprises when the basic salary increased from July 2024. Therefore, in addition to reducing input costs, management costs... enterprises were also working with suppliers to maintain input material prices from now until the end of the year. At the same time, prepared a longer-term source of input materials to ensure the supply of goods to people at stable prices.

In order to stimulate consumption, the Department of Industry and Trade of Ho Chi Minh City has implemented a concentrated promotion program (Shopping Season) which has currently lasted for 3 months. Mr. Nguyen Minh Hung, Deputy Head of the Trade Management Division, Department of Industry and Trade of Ho Chi Minh City, said that the program would have peak periods to stimulate demand and consumers would be able to buy goods at the best prices. Recently, the Department of Industry and Trade of Ho Chi Minh City also launched the program "Mobile Sales - Market Stabilization" to serve low-income people and workers with more than 40 groups of essential goods, with nearly 500 products for each family. With a practical promotion policy, the mobile sales - market stabilization program gives people the opportunity to buy discounted goods, up to 80%... The duration has lasted for 30 days.

In addition, it is expected that there will be more branded product promotion programs at the end of August 2024. “The Ho Chi Minh City Department of Industry and Trade and businesses focus on maximum discounts for consumers but are determined not to compromise quality for good prices”, affirmed Mr. Nguyen Minh Hung.