Cities and provinces nationwide are set to reserve a significant volumeof essential goods and foodstuff worth 2.64 trillion VND (126.5 millionUSD) to serve consumers during the upcoming Tet (Lunar New Year)Holiday under a price- stabilisation programme.
Anofficial of the Price Management Department under the Ministry ofFinance (MoF) said on Nov. 3 that the figure is much higher than that of950 billion VND (45.5 million USD) spent by cities and provinces overthe Tet holiday last year.
According to thedepartment, the programme has so far attracted 244 businesses from 47cities and provinces to participate. Of this number, 61 companies willuse their own capital to run the programme without support from theState.
Under the programme, businesses providecheaper priced-commodities via two distribution channels. The firstchannel, accounting for 30 to 40 percent of the total supplies, is aimedat 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 5to 15 percent lower than those on the market.
These companies will not be allowed to raise prices if the marketprices go up. Also, they must reduce their prices by more than 5 percentif the market prices go down.
Deputy director ofHCM City 's Department of Industry and Trade (DoIT) Nguyen Van Dongsaid that his department would provide favourable conditions forbusinesses to search for goods in other provinces to ensure low andstabilised prices. He also promised to conduct regular supermarketinspections and price stabilisation shops to prevent speculation.
The MoF said that businesses involved in the programme will be allowedto enjoy zero percent interest rates on bank loans. Compared withbanks' current high lending interest rates over 20 percent, thesecompanies are indeed given priority.
According tothe MoF, HCM City is the leading city involved in these activitiesand was the first to run the programme in 2002. Meanwhile, severalother northern cities and provinces such as Hanoi , Thai Nguyen, andBac Giang and the Central Highland province Kon Tum started implementingthe programme in 2008. /.
Anofficial of the Price Management Department under the Ministry ofFinance (MoF) said on Nov. 3 that the figure is much higher than that of950 billion VND (45.5 million USD) spent by cities and provinces overthe Tet holiday last year.
According to thedepartment, the programme has so far attracted 244 businesses from 47cities and provinces to participate. Of this number, 61 companies willuse their own capital to run the programme without support from theState.
Under the programme, businesses providecheaper priced-commodities via two distribution channels. The firstchannel, accounting for 30 to 40 percent of the total supplies, is aimedat 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 5to 15 percent lower than those on the market.
These companies will not be allowed to raise prices if the marketprices go up. Also, they must reduce their prices by more than 5 percentif the market prices go down.
Deputy director ofHCM City 's Department of Industry and Trade (DoIT) Nguyen Van Dongsaid that his department would provide favourable conditions forbusinesses to search for goods in other provinces to ensure low andstabilised prices. He also promised to conduct regular supermarketinspections and price stabilisation shops to prevent speculation.
The MoF said that businesses involved in the programme will be allowedto enjoy zero percent interest rates on bank loans. Compared withbanks' current high lending interest rates over 20 percent, thesecompanies are indeed given priority.
According tothe MoF, HCM City is the leading city involved in these activitiesand was the first to run the programme in 2002. Meanwhile, severalother northern cities and provinces such as Hanoi , Thai Nguyen, andBac Giang and the Central Highland province Kon Tum started implementingthe programme in 2008. /.
