NA to review draft price management law

LCD TVs on display in Ha Noi. A draft price management law will be submitted to the National Assembly next year, according to Nguyen Tien Thoa, director of the Ministry of Finance's Price Management Department. — VNS Photo Truong Vi

HA NOI —A draft price management law will be submitted to the National Assembly next year, according to Nguyen Tien Thoa, director of the Ministry of Finance's Price Management Department.

Under the law, the price of goods and services will be dictated by the market, with oversight from the State.

The State would act to stabilise prices indirectly through macroeconomic policies to control supply and demand of goods and services, Thoa said.

He added that the State would retain the power to intervene directly to control the price of some goods, public services and to curb the actions of monopolies.

The State would switch from fixing prices to allowing market forces to decide, Thoa said.

"The move is considered a drastic departure when it comes to the management of prices in particular and the management of the economy in general," he said.

Thoa added that the State would also ensure that social welfare policies were in place to help the disadvantaged.

Circular 122

In anticipation of the move, the Ministry of Finance issued Circular No 122/2010/TT-BTC to amend Circular No 104/2008/TT-BTC that was issued two years ago.

The circular will officially take effect on October 1. From this date, firms will only have to register prices with local authorities once. However, local authorities must be notified when prices change.

"Before issuing the new circular, the ministry has consulted relevant State bodies, foreign experts, businesses and consumers. Almost all of them supported the circular," said Nguyen Anh Tuan, deputy director of the department.

Under the circular, if companies raise or decrease the price of essential goods and services unreasonably, concerned bodies are authorised to take action.

Among the goods covered by the circular are milk powder for children under six, coal, schoolbooks, printing paper, cement, steel, fertiliser and salt.

Individuals and organisations that produce or trade goods stipulated in the circular must register prices with relevant State offices. If prices or fees being registered are considered unjustifiable, local authorities will ask firms to adjust them according to the cost of input materials, transportation fees, among other things.

Under earlier rules, action was only taken if firms raised the price of essential commodities by 20 per cent or more within a 15-day period.

Some foreign experts and businesses have claimed that the circular contravened Viet Nam's commitments to the World Trade Organisation.

However, Tuan said: "We reviewed all our commitments, especially under Article 96 to 103 and came to the conclusion that none of the regulations in the circular violates WTO's rules."

If the circular was widely considered to be unreasonable, the department would submit recommendations it deems worthwhile to the ministry for consideration, Tuan said.

Stricter fines

Under a newly completed draft decree, stiffer fines will be imposed on firms that break price regulations.

According to the draft regulation, firms that sell goods or charge fees higher than registered face a fine of VND2-VND5 million (US$102.6-$256.4).

If they fail to report price changes with the relevant offices, they face a fine of VND15-VND20 million. Firms that fail to register goods' prices or service fees from the outset face a fine of VND20-VND30 million.

Furthermore, if firms take advantage of goods' shortages to hike prices or speculate on regulated commodities, they face a fine of VND35 million or more.

If companies fail to properly adhere to local authority price guidelines, they face a fine of between VND30-VND40 million. — VNS

Related Articles

• IFC: Vietnam needs to increase PPP to support economy
• Vietnam News Agency launches website in Chinese
• TransViet joins global travel management firm
• Assoc insists on power price hike despite protests
• No recall of Hyundai Sonata cars in Vietnam

Plan to sell goods in rural areas succeeds

A Government programme to distribute domestically made goods in rural
areas had benefited both companies and rural consumers, delegates told a
meeting in HCM City on Sept. 23.

Initiated in
March last year by the Ministry of Industry and Trade and the HCM
City-based Business Study and Assistance Centre, it sought to help
domestic producers understand rural customers, creating links between
producers, distributors and retailers, and educating rural consumers,
said Vu Kim Hanh, the centre's director.

The first
phase of the programme, which was reviewed at the meeting, saw 50 trade
fairs held in 18 provinces and sales of more than 30.4 billion VND (1.55
million USD), she said.

Around 649,300 people
visited the fairs while 132 firms were involved in the programme. More
than 2,000 small traders benefited from training courses held to improve
their sales skills.

The programme has enabled many
rural people to buy quality products at reasonable prices. For a long
time they have been accustomed to buying shoddy goods without clear
origins.

Tang Quang Trong of My Hao Cosmetic Company
said: "Through the trade fairs, rural customers know more about many of
our products. We also learnt to tailor our product models, prices,
quality and distribution system to suit consumers."

Do Hoang Nam of Namilux Company said the rural market was very promising
for gas stove makers since many people there still used coal or
firewood for cooking.

"By introducing Namilux gas
stoves in rural areas, our company has achieved strong growth in terms
of market share, especially for mini gas stoves," he said.

Hanh said the early results proved that rural areas were markets of
great potential that have never received the attention they deserve.

"Sales have been so high that even some companies have been surprised," she said.

The second phase of the programme, which opened this month, would see
the distribution of goods in more provinces and districts and
organisation of more training courses for traders, Hanh said.

She urged the ministry to encourage enterprises taking part in the programme for the first time./.

Related Articles

• Workshop calls for longer-term plans to audit State entities
• Poor rural children blaze education trail
• Engage ethnic minorities in nation’s growth: UN
• Thousands await relocation
• New decree hopes to protect holders of convertible bonds

Shippers council says will charge at ship-owners over fees

HCMC - Vietnam Shipper’s Council said it would step in to settle complaints by Vietnam goods owners who are being imposed “unreasonable charges” on their products in many ports across the country.

Tran Duc Minh, head of the council, told the Daily on the phone on Monday that he was gathering opinions of shippers and would organize a meeting in September with ship-owners as well as port operators in big cities to solve the matter. Details of the meeting have not been revealed yet.

From September, garment and textile exporters shipping goods through Hai Phong Port have had to pay congestion charges amounting up to US$100 per container imposed by ship owners. Local exporters disagree with the charge as their shipments have got stuck on the site due to bad infrastructure rather than their faults.

The Vietnam Textile and Apparel Association have then required the Vietnam Chamber of Commerce and Industry to help remove the congestion charge as well as to find long-term solutions for the matter.

Many importers and exporter have long questioned the “unreasonable charges” when shipping goods to foreigner buyers. Among the charges is the Terminal Handling Charge (THC) imposed by international ship-owners associations since mid July 2008 on exported goods, which has stoke tension among exporters.

According to local exporters, it is their foreigner trade partners who must be responsible for the payment as they hire the ships.

Under prevailing trade practices in Vietnam, local enterprises often import goods under the mode of CIF (cost, insurance and freight price) and export goods on FOB (free on board), which means foreigner buyers have to bear all costs and risks of loss of or damage to the goods onboard the ship.

However, many international ship owners have required local enterprises to pay for the THC charge, which is up to US$140 per container.

According to shippers, they have to bear too many unreasonable charges imposed not only by ship-owners but also by port operators. Those overheads will add to their transport cost and consequently reduce their profits.

Related Articles

• Shippers council says will charge at ship-owners over fees
• Banks devise fees to shift ATM costs
• Vietnam says to head off U.S. tra anti-dumping tariffs
• Japanese culture enthralls HCMC youths
• Victims of food poisoning leave hospital

Saigon Co.op promotes Vietnam-made goods sales

Shoppers flood a Co-opMart store in HCMC - Photo: Quoc Hung

HCMC - Vietnam’s leading supermarket chain operator Saigon Co.op late last week announced to spend more than VND45 billion on a sales promotion program for Vietnam-made goods at its stores to offer more benefits to customers.

The program will be kicked off late this month until September 26 at 46 Co.opMart supermarkets and 12 Co.op Food stores. Besides, the supermarket will also launch mobile stores stocked with essential commodities, with prices slashed by up to 50% for sale to workers and poor people.

Nguyen Thi Hanh, general director of Saigon Co.op, said the chain would offer a discount program at 46 Co.opMart and 12 Co.op Food stores and, which will slash prices from 10% – 50% for around 1,500 items.

Under the program, customers of Co.opMart supermarkets and Co.op Food stores will have chances to receive gifts and join lucky draws for valuable prizes including 46 Attila scooters and 4,000 gifts. Around 400 local enterprises are expected to join this year’s promotion month of Saigon Co.op.

This is part of the promotion program called ‘Pride of Vietnamese Products’ under the city’s sales promotion month aimed to accelerate the consumption of local products, contribute to economic growth and attract more foreign visitors to the city for shopping.

Supermarkets in the country are now lending a helping hand to local producers of quality goods by prioritizing local commodities on their shelves. The proportion of Vietnam-made goods on the shelves has reached 90-95%.

At Co.opMart stores, 95% of food products and 90% of non-food products displayed along the aisles are made in Vietnam, according to a report just sent by Co.opMart to the HCMC Industry and Trade Department.

According to Bui Hanh Thu, deputy director of Saigon Co.op, foreign products dominated in the past, but domestic products have been gradually making strides.

“Vietnam made goods are now dominating many categories of products,” Thu stated. “For example, 95% of ready-made clothes at Saigon Co-op now are domestically-made products. Meanwhile, previously, 40% of the products were imports.”

Vietnamese goods have regained local consumers’ confidence thanks to their good materials, diversified designs and competitive prices.

According to a survey conducted by TV Plus Company, 58% of Vietnamese consumers have shown keen interest in locally-made products since a campaign entitled “Vietnamese people use Vietnamese goods” was launched by the Ministry of Industry and Trade more than one year ago, compared to 23% previously.

Nguyen Thi Hong, vice chairwoman of the HCMC government, noted a shift to local goods among consumers during a conference here last month.

“Consumers had made active changes in their purchasing habits. The number of people choosing Vietnamese goods increased as they had made comparison in prices and quality between Vietnamese and foreign goods,” Hong said.

Vietnamese commodities now hold larger spaces in trade centers, supermarkets and wholesales centers including Co.opMart, Big C, Metro Cash and Carry Vietnam, Hapro, and Maximark to name but a few.

In the first half of the year, sales revenues of many supermarket chains in the country sharply increased, with an average growth rate of 30-40% in HCMC. Remarkably, the Saigon Co.op Mart system experienced a revenue growth of 70% compared to the same period last year.

Related Articles

• Saigon Co.op promotes Vietnam-made goods sales
• PM foresees bright future for co-operation with Africa
• Major retailer resumes sales of Vedan products
• Deputy PM, Russian minister discuss potential co-operation
• Naval forces boost global co-operation

Saigon Co.op promotes Vietnam-made goods sales

Shoppers flood a Co-opMart store in HCMC - Photo: Quoc Hung

HCMC - Vietnam’s leading supermarket chain operator Saigon Co.op late last week announced to spend more than VND45 billion on a sales promotion program for Vietnam-made goods at its stores to offer more benefits to customers.

The program will be kicked off late this month until September 26 at 46 Co.opMart supermarkets and 12 Co.op Food stores. Besides, the supermarket will also launch mobile stores stocked with essential commodities, with prices slashed by up to 50% for sale to workers and poor people.

Nguyen Thi Hanh, general director of Saigon Co.op, said the chain would offer a discount program at 46 Co.opMart and 12 Co.op Food stores and, which will slash prices from 10% – 50% for around 1,500 items.

Under the program, customers of Co.opMart supermarkets and Co.op Food stores will have chances to receive gifts and join lucky draws for valuable prizes including 46 Attila scooters and 4,000 gifts. Around 400 local enterprises are expected to join this year’s promotion month of Saigon Co.op.

This is part of the promotion program called ‘Pride of Vietnamese Products’ under the city’s sales promotion month aimed to accelerate the consumption of local products, contribute to economic growth and attract more foreign visitors to the city for shopping.

Supermarkets in the country are now lending a helping hand to local producers of quality goods by prioritizing local commodities on their shelves. The proportion of Vietnam-made goods on the shelves has reached 90-95%.

At Co.opMart stores, 95% of food products and 90% of non-food products displayed along the aisles are made in Vietnam, according to a report just sent by Co.opMart to the HCMC Industry and Trade Department.

According to Bui Hanh Thu, deputy director of Saigon Co.op, foreign products dominated in the past, but domestic products have been gradually making strides.

“Vietnam made goods are now dominating many categories of products,” Thu stated. “For example, 95% of ready-made clothes at Saigon Co-op now are domestically-made products. Meanwhile, previously, 40% of the products were imports.”

Vietnamese goods have regained local consumers’ confidence thanks to their good materials, diversified designs and competitive prices.

According to a survey conducted by TV Plus Company, 58% of Vietnamese consumers have shown keen interest in locally-made products since a campaign entitled “Vietnamese people use Vietnamese goods” was launched by the Ministry of Industry and Trade more than one year ago, compared to 23% previously.

Nguyen Thi Hong, vice chairwoman of the HCMC government, noted a shift to local goods among consumers during a conference here last month.

“Consumers had made active changes in their purchasing habits. The number of people choosing Vietnamese goods increased as they had made comparison in prices and quality between Vietnamese and foreign goods,” Hong said.

Vietnamese commodities now hold larger spaces in trade centers, supermarkets and wholesales centers including Co.opMart, Big C, Metro Cash and Carry Vietnam, Hapro, and Maximark to name but a few.

In the first half of the year, sales revenues of many supermarket chains in the country sharply increased, with an average growth rate of 30-40% in HCMC. Remarkably, the Saigon Co.op Mart system experienced a revenue growth of 70% compared to the same period last year.

Related Articles

• Saigon Co.op promotes Vietnam-made goods sales
• PM foresees bright future for co-operation with Africa
• Major retailer resumes sales of Vedan products
• Deputy PM, Russian minister discuss potential co-operation
• Naval forces boost global co-operation

Expo eyes quality of Mekong producers

TIEN GIANG — Forty-five companies are participating in a four-day fair in the Mekong Delta province of Tien Giang as part of a national programme to promote high-quality goods in the rural market.

The event is part of the Ministry of Industry and Trade's programme of bringing Vietnamese-made goods to rural areas.

The fair, held in Cai Lay and Go Cong Dong districts, is organised by the Viet Nam Business Studies and Assistance Centre (BSA) and the Tien Giang Province People's Committee.

The 45 companies, which produce high-quality products, are showcasing processed food, garment and textile products, household utensils and cosmetics.

Since the programme's first fair in the Cuu Long Cuu Long (Mekong) Delta province of An Giang last year, the BSA has organised 46 such fairs in 18 cities and provinces, with total participation of 132 companies.

The fairs have earned VND30 billion (US$1.5 million) in revenue and helped raise consumer awareness of Vietnamese-made products.

Under the programme, more than 60 companies have committed to regularly sell goods in rural areas at the fairs.

This year, Vissan, one of the companies in the programme, has participated in 15 fairs in several provinces, including Dong Thap, Ben Tre, Lam Dong, Vinh Long and Bac Lieu. It also reduced the prices of its processed foods by 10 per cent.

In addition, the Sai Gon Co-op supermarket chain is organising at least 20 trips to sell Vietnamese products in rural areas every month, according to its marketing department.

Sai Gon Co-op uses vans as mobile shops to sell essential goods, including fish sauce, cooking oil and monosodium glutamate.

Vu Kim Hanh, BSA director, said: "We plan to continue the programme of taking goods to rural areas, industrial parks and export processing zones."

Ever since the campaign was launched by the Government more than one year ago, 58 per cent of consumers have shown an interest in locally-made goods, compared to 23 per cent previously, according to a survey conducted by the TV Plus Company. — VNS

Related Articles

• High rice price cuts exports
• Timber-product exporters sign $3b deals
• Forewarned is forearmed
• Labour exports may miss target
• Regulations require toys to display safety stamps