VDMS targets Bach Hoa Xanh for selling goods at higher prices

July 19, 2021 | 20:53
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The Vietnam Directorate of Market Surveillance inspects the unusual increase in prices of goods at Bach Hoa Xanh – Mobile World’s grocery store chain amidst the skyrocketing need for food due to the prolonged pandemic.
VDMS targets Bach Hoa Xanh for selling goods at higher prices
Bach Hoa Xanh was discovered selling goods at prices that are 7-38 per cent higher than the publicised prices

Soc Trang Directorate of Market Surveillance has just fined a few of Bach Hoa Xanh stores for selling goods at prices that are about 7-38 per cent higher than the local publicised prices and for not having price tags on others.

Pointedly, the stores had drawn up reports and paid penalties following Article 13 of Decree No.109/2013/ND-CP, stipulating the fines for illegally increasing prices of goods.

The sanctions have been also taken place at the Central Highland province of Dak Lak and in Ho Chi Minh City.

On the afternoon of July 16, Ho Chi Minh City Directorate of Market Surveillance investigated 75 Bach Hoa Xanh stores across the city as soon as social media users had called for boycotting the brand for inflating prices to profiteer from the pandemic.

Regarding the issue, a representative of Mobile World – its parent company – said that Bach Hoa Xanh has not advocated growing prices to benefit themselves. “However, it cannot maintain the prices on the same level as before the pandemic because of the growing costs for transportation, employees, and its suppliers," he said.

The information has partially caused Mobile World’s (HSX: MWG) stock price to nose-dive. As of the afternoon of July 19, the ticker recorded a price of VND156,500 ($6.8) per share, down 11.38 per cent on-week.

Last year, as the nation submerged into social distancing, Mobile World shocked the retail market by opening an extra 700 Bach Hoa Xanh stores, raising the total number to more than 1,900 outlets across the country. Its revenues in 2020 doubled to VND21.26 trillion ($924.3 million) on-year.

By Van Anh

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