Companies invest ahead of Tet

This figure includes VND3.4 trillion ($164 million) of essential goods under the price-stabilisation programme, up by VND605.7 billion compared to the amount spent during the previous holiday period, according to the city's Department of Industry and Trade.

The department released the figures at a meeting last week to review preparations for the upcoming Tet holiday, the most important festival for Vietnamese which will fall in early February next year.

The department forecasts an abundant supply of goods during Tet, with stable prices on most goods. Price fluctuations will continue on fruit and vegetables, which have been affected by inclement weather.

Le Ngoc Dao, deputy director of the Industry and Trade Department, said Saigon Co-op had goods valued at VND3.35 trillion ($159.5 million) in reserve, with essential goods under the price-stabilisation programme representing VND912.3 billion ($43.4 million).

Vissan has goods in reserve worth VND1 trillion; Pham Ton Co, VND814.5 billion; Sai Gon Food JSC, VND231 billion; and Ba Huan Co, VND165.2 billion.

Dao said despite the difficulties caused by the global economic crisis, these businesses had pledged to supply goods at stable prices and prevent price hikes during Tet.

The volume of goods to be supplied by these businesses, especially essential goods such as cooking oil, sugar, poultry meat, eggs and processing food, are expected to meet over 50 per cent of customer demand.

In addition, the department has met with representatives of beverage, confectionary, cooking-oil manufacturers and poultry husbandry farms from neighbouring provinces to assess future supply.

Nguyen Thi Hong, Deputy Chairwoman of the city's People's Committee, said a distribution network has been set up in the city, including supermarkets, shops, traditional markets, mobile shops, and fairs in rural areas.

The quality of the distribution network's service must be improved to better connect customers with suppliers, Hong said.

She said the prices of goods would increase greatly if there were too many intermediaries in the distribution network.