The “difficult position” of the business stabilized under pressure to keep prices

Many businesses under the Program Stabilization Ho Chi Minh City’s market is facing the risk of loss if the price is not adjusted.

After more than a year of not adjusting the stable selling price, Vietnam Livestock Industry Joint Stock Company has just been forced to increase the price of processed foods by 5 – 15% due to high costs. Businesses share with consumers by keeping the price of fresh meat unchanged, 12% lower than the market price. Although profits were directly affected and the fresh meat business faced difficulties, the business was still holding out and monitoring market developments.

Increasing input costs put great pressure on commodity prices. (Illustration image – Photo: Investment Newspaper)

“From a business perspective, if we don’t raise prices, it will affect profits and at the same time affect the income of employees. Thus, we will not be able to retain employees,” said Mr. Phan Van Dung. , Deputy General Director of Vietnam Animal Industry Joint Stock Company, said.

Meanwhile, egg prices stabilized Vinh Thanh Dat Food Company registered with the Department of Industry and Trade of Ho Chi Minh City is 29,500 VND/dozen chicken eggs, 35,000 VND/dozen duck eggs, lower than the enterprise’s cost and the difference. 12 – 15% difference from the market price.

“When there is such a price difference, the quantity sold in the stabilization channel increases quite a lot. The extra quantity we have to buy from outside and bear the big difference in price, is forced to bear a loss,” said Mr. Truong. Chi Thien, General Director of Vinh Thanh Dat Food Company, shared.

The Food and Food Association of Ho Chi Minh City said that businesses implementing the city’s stabilization program are in a “difficult position”. If at the beginning of April, when it comes to raising selling prices, many businesses still hesitated, now, with increasing cost pressure, many businesses frankly mentioned price adjustment. However, with the task of regulating the market, businesses will have to calculate very carefully.

“If the situation remains as it is now, businesses will certainly ask for permission to increase prices to adjust prices, not to set a new price level. The increase will be at 5-10%,” said Ms. Ly Kim Chi. , Chairman of Ho Chi Minh City Food Association, commented.

The Ho Chi Minh City Department of Industry and Trade said that through monitoring, the difference in prices of some foods inside and outside the stabilization program was higher than the prescribed level. Although it has not received direct feedback from businesses, the Department has calculated and will actively work with the Department of Finance to consider adjusting the price stabilization for businesses. The functional sector will closely monitor developments to ensure market stability and support consumers.

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