Consumers tighten belts ahead of Tet

VietNamNet Bridge – Financial troubles will cause consumers to tighten their budgets and alter traditional spending habits for the upcoming Tet holiday.

The Ha Noi Industrial and Trade Department said it expects total retail sales of goods and services to reach VND9.5 trillion for the Tet festival in 2009 in Ha Noi.

The purchasing power of consumers is expected to be lower during the month of the holiday, as compared with the month of the holiday last year. This will particularly affect consumer choices at supermarkets and wholesale markets.

Vu Vinh Phu, chairman of the Ha Noi Supermarket Association, said consumer purchasing power at supermarkets in Ha Noi is forecast to increase only 20 per cent this coming January, much lower than the 30 per cent growth rate in the same festival period in 2008.

Enterprises in the capital city have not had good business results this year, and they will not be handing out customary high bonuses for their workers. This will be one big driver behind the public having a lack of funds for Tet preparations, Phu said.

In the past, each citizen in ha Noi spent an average of US$17.85 for supermarket purchases in every year's Tet festival month. However, this coming Tet, the amount for shopping is expected to be only $11.9 per person, he said.

The Ha Noi Industrial and Trade Department said it expects total retail sales of goods and services to reach VND9.5 trillion ($565.5 million) for the Tet festival in 2009 in Ha Noi.

In the month of Tet, residents in Ha Noi are expected to consume 70,000 tonnes of foodstuff, 13,000 tonnes of pork, 3,000 tonnes of beef, 4,000 tonnes of poultry, 80,000 tonnes of fruit and vegetables, 1,200 tonnes of confectionery and 7-8 million litres of beer, alcohol and other beverages.

The People's Committee of Ha Noi made a decision already to provide five-month loans worth a total of VND160 billion ($9.7 million) from the city's budget, for key enterprises that produce and supply foodstuffs in the capital to stock goods for the upcoming Tet.

Meanwhile, food traders at Dong Xuan Market, specialising in wholesale and retail of all kinds of goods, and the temporary market in Phung Hung Street, receiving traders who moved from Hang Da and December 19 markets due to construction at these sites have not had stocks of goods for the Tet festival due to low purchasing power.

The owner of Kim Dinh Shop, specialising in the trade of confectionery, alcohol and beer at Dong Xuan Market, said the melamine scandal has caused consumers to shy away from sweets and candies, which means businesses are not stocking as much for the Tet festival.

Nguyen Thi Nghia, the owner of Loi Nghia Shop said that fluctuations of the price of goods and slow sales make shop owners nervous about stocking up.

The owner of Lien Hoa Shop specialising in the trade of fresh and dry food, fruits and vegetables at the temporary market said there are simply not enough customers to warrant keeping a lot of products in stock.

(Source: Viet Nam News)