Provinces to set aside stock for Tet

An official of the Price Management Department under the Ministry of Finance (MoF) said on November 3 that the figure is much higher than that of VND950 billion ($45.5 million) spent by cities and provinces over the Tet holiday last year.

According to the department, the programme has so far attracted 244 businesses from 47 cities and provinces to participate. Of this number, 61 companies will use their own capital to run the programme without support from the state.

Under the programme, businesses provide cheaper priced-commodities via two distribution channels. The first channel, accounting for 30 to 40 per cent of the total supplies, is aimed at low to mid-income families, while the other focuses on wholesalers, trade centres and supermarkets.

In terms of pricing, businesses involved in the programme will supply commodities at prices 5 to 15 per cent lower than those on the market.

These companies will not be allowed to raise prices if the market prices go up. Also, they must reduce their prices by more than 5 per cent if the market prices go down.

Deputy director of Ho Chi Minh City's Department of Industry and Trade (DoIT) Nguyen Van Dong said that his department would provide favourable conditions for businesses to search for goods in other provinces to ensure low and stabilised prices. He also promised to conduct regular supermarket inspections and price stabilisation shops to prevent speculation.

The MoF said that businesses involved in the programme will be allowed to enjoy zero per cent interest rates on bank loans. Compared with banks' current high lending interest rates over 20 per cent, these companies are indeed given priority.

According to the MoF, Ho Chi Minh City is the leading city involved in these activities and was the first to run the programme in 2002. Meanwhile, several other northern cities and provinces such as Hanoi, Thai Nguyen, and Bac Giang and the Central Highland province Kon Tum started implementing the programme in 2008.