Hanoi: Positive effects of market stabilization program

16:09 | 11/05/2017 Economy- Society

(VEN) - Despite strong purchasing power increases, a price stabilization program has helped Hanoi prevent a scarcity of goods and price fevers, the Hanoi Industry and Trade Department said, reporting on the situation since the beginning of 2017, including the period of the Lunar New Year in late January and early February.  

Hanoi maintained price stability and social security during the Lunar New Year period

Without the state budget

As the political and cultural center of the country, Hanoi contributes 15-16 percent to Vietnam’s total retail sales of goods and revenue from services. The capital plays an important role in the country’s socioeconomic development and trade sector, in particular. Hanoi is a distribution center and a large market supplying goods for not only more than 10 million consumers in the capital, but also residents in nearby localities.

According to the Hanoi Industry and Trade Department, thanks to successful diversification of investment in implementing the market stabilization program, Hanoi has used its own capital resources and loans from credit institutions, but not the state budget, to invest in animal husbandry, production, technology, distribution network development, and to reserve goods for market stabilization.

In 2016, with the participation of 15 businesses, the program was implemented throughout the capital with more than 12,200 points of sale, 711 of which were based in traditional markets, 379 in supermarkets, 160 in convenience stores, 612 in groceries, and 452 in canteens.

According to Hanoi Industry and Trade Department Deputy Director Tran Thi Phuong Lan, the program has drawn the attention of credit institutions. In 2016, 11 credit institutions provided loans totaling VND10.3 trillion for businesses participating in the program.

In previous years, most participants in the program were trading companies, but in 2016, manufacturing businesses accounted for 40 percent of the total number of participants, double that of 2015. The participation of manufacturing businesses helps ensure sustainable supplies of goods for successful implementation of the program.

Businesses participating in the program have tightened linkages with each other. For example, the An Viet Production and Trading Joint Stock Company has associated with the Ba Huan Company Limited to build a 2.3ha high-tech poultry egg processing plant in Phuc Tho District. With total investment of more than VND110 billion, the plant is capable of treating 120,000 eggs per hour, using fully automatic equipment imported from the Netherlands, and meeting international standards in terms of food hygiene and safety. The Hanoi Agricultural Development and Investment Company Limited has also cooperated with the Ba Huan Company Limited to build a farm to breed more than 100,000 poultry heads, which can produce 50,000 eggs per day.

Promoting linkages with provinces

Tran Thi Phuong Lan said that in 2016, five fairs, 22 market days, five Vietnamese goods week events, and 550 route sale campaigns were organized under the program. Hanoi has tightened its industry and trade linkages with other cities and provinces to ensure stable supplies of goods. Through these linkages, Hanoi has found reputable suppliers to bring quality products into its distribution network.

In 2016, the capital promoted linkages with other cities and provinces through the exchange of information and experiences in state management, distribution of goods and market stabilization. Linkages with Ha Giang, Thai Binh, Hung Yen, Son La, An Giang and Ca Mau provinces allowed businesses to promote the sale of agricultural products.

A conference was held in December 2016 to connect businesses from Hanoi with those from more than 50 provinces and cities nationwide. Businesses from the capital signed more than 600 memoranda of understanding to promote cooperation with suppliers and producers from other localities.

Tran Thi Phuong Lan said that the program has helped prevent speculation of goods and unreasonable price rises in the Hanoi market, especially prior to, during and after the Lunar New Year holiday.

Hanoi Industry and Trade Department Deputy Director Tran Thi Phuong Lan:

This year, Hanoi continues to implement the market stabilization program and the Buy Vietnamese Goods campaign, while at

the same time promoting the connection between banks and businesses. Inspections and controls will be tightened to ensure

good quality of distribution services, as well as reasonable prices of goods, to meet consumer demand.

Thanh Ha