Market prices on the Lunar New Year remain stable

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Purchasing power on the Tet’s holiday rose by 12% - 15% compared to normal days. Photo: Nguyen Hien

Purchasing power rose by 12% -15% compared to normal days

According to the Ministry of Finance, the market supply and demand took place dynamically according to the annual rule of the Lunar New Year. The abundance of goods, diversified types, beautiful forms and smooth circulation of goods in the whole country met the consumption demand in the occasion of Lunar New Year. Supermarkets and large trade centers continued to be the places that attracted consumers by creating trust for buyers on origin, brand as well as food hygiene, safety standards and price stability. Many supermarkets opened early and closed late in the peak shopping week, so that goods supply would not be interrupted. The purchasing power in the Lunar New Year 2018 rose by 12% -15% compared to normal days and 10% compared to Lunar New Year 2017. This increase was mainly due to factors such as good economic growth in 2017, industrial production, and good performance of enterprises, low inflation and the market stabilization policies.

During the Tet holiday, consumer’s demand began to rise slightly after 15th December of the Lunar New Year 2017, higher increase on 23rd December of 25-30% compared to normal days and the purchasing power continued to sharply increase in the approaching days of the Tet from 28th and 29th. In this period, people were mainly interested in items for visiting, gifting and worship during the Tet, such as beer, wine, soft drinks, five fruits, fresh food and offering items.

On New Year's days, most markets and supermarkets closed on the first and second day of the Lunar New Year; but some supermarkets opened from the first day of the Lunar New Year (such as AEON Mall, Fivimart Long Bien, Lotte Mart Ho Chi Minh) to meet the people's shopping needs. From the third day of the Lunar New Year, some supermarkets and traditional markets opened to welcome customers and so did small shops. On the fourth and fifth of the Lunar New Year, trading activities gradually returned to normal. The demand mainly focused on some essential products such as fresh seafood, catering service, travel service, entertainment and car care service. People tended to not store many goods during the Tet and to use more entertainment and tourism services.

Market prices have not fluctuated abnormally

According to the Ministry of Finance, January 2018 is the peak month for goods preparation for the Lunar New Year, CPI in January 2018 increased 0.51% against December 2017. Although this is a high rate compared to recent months ( December 2017, up by 0.21%, November 2017 up by 0.13%), it is the average rate and the annual rule for approaching months of Lunar New Year in recent years.

In addition, the core inflation in January 2018 only increased by 0.18% over the previous month, the average CPI in January 2018 only increased 2.65% compared to January 2017, much lower than the target of average inflation control in 2018 of about 4% set by the National Assembly. According to the Ministry of Finance, this showed that the increasing rate of 0.51% of price index in January 2018 was according to the rule, still under the control and development of the price management scenario before the Tet’s holiday set by state management agencies on prices under the direction of the Steering Committee on Price Management.

February 2018 is the month of Lunar New Year 2018, the market prices basically have not fluctuated abnormally and increased lower than that of last year, partly due to the abundance of goods with many sales and discount programs, contributing to the market price stability during this Tet.

In traditional markets, the price of essential goods for worship ceremony only rose on the approaching days of the Tet and has gradually returned to normal on the 4th and 5th of the Tet. At the supermarkets and trade centers, the prices have remained stable. For shops under enterprises joining the Market Stabilization Program, the sales volume was higher than usual in the same period last year. Some car care services and catering services have increased slightly on the first days of the Lunar New Year.

Regarding food, almost all localities in the country made plans to stockpile goods to prepare for the Lunar New Year 2018, in which rice was always paid attention to and prepared by business households to ensure the reserve and meet the market’s demand.

Price of fresh food also kept stable before Tet due to abundant supply, but increased slightly in the approaching days of the Tet due to increased purchasing power. Fresh flowers and ornamental plants only slightly increased on the 22nd and 23rd of the Lunar New Year and sharply increased by 15 - 25% on 28th and 29th of the Tet due to high demand for fresh flowers for Tet festival as well as February 14 (Valentine's Day). However, on the 30th of the Lunar New Year, prices of fresh flowers fell sharply and will slightly increase again at the beginning of the Lunar New Year which is the festival season.

Ensuring the supply and demand balance to stabilize the market

According to the Ministry of Finance, after the Tet is the time of the festival season across the country, the demand for travel, for food and outside catering as well and goods for festivals possibly tends to increase. In order to stabilize the market and prices in March and the second quarter of 2018, the Ministry of Finance proposed ministries, sectors and localities to continue to closely monitor the supply and demand, the market prices, and to implement measures to ensure the balance of supply and demand for market stability, especially the price of essential goods to meet the consumer’s demand after the Lunar New Year, thereby introducing timely guidance and solutions to avoid unreasonable price increases and false information, causing market instability.

In addition, the Ministry of Finance will also strengthen the management, inspection and supervision of compliance with legal provisions on prices associated with the inspection of the compliance with law on tax and fees (especially traveling service and car, motorbike and bicycle care services). At the same time, strictly controlling the price listing and selling prices of goods subject to high demand after the Tet.

Enhance the management and stability of market prices for the end of 2016 and Lunar New Year 2017 VCN- The Ministry of Finance has issued a Dispatch requesting the People’s committees of provinces and cities ...

The Ministry of Finance will strengthen to inspect traffic safety regulations, direct the transport enterprises to organize transportation well to meet the needs of people on the occasion of festivals and request the transport business units to announce and publicize the charge rates in accordance with the current regulations.

At the same time, the management and operation of prices of goods subject to state assessment on price and goods of price stability (petroleum, public services, milk for children under 6 years of age) under the market mechanism with State regulations to ensure the inflation control target in 2018 will be focused.