Consumption shows signs of recovery after Tết

Tuesday, Feb 27, 2024 09:08

Enterprises speed up production after Tết to meet market demand. — Photo

Although consumption during the recent Tết (Lunar New Year) holiday did not grow as expected, some positive signs are creating excitement for businesses.

Business activities have returned to normal across traditional markets, supermarkets, and stores in HCM City.

According to the city's Department of Industry and Trade, businesses in the area are still supplying goods according to the general plan prepared two months before, during and after Tết.

In particular, businesses that stabilise the market keep prices of essential food items such as rice, sugar, cooking oil, cattle meat, poultry, poultry eggs and some vegetables stable for a month after Tết.

Distribution businesses, in addition to ensuring a diverse supply of products, are focusing on inventory clearance and acquiring new goods. Specifically, supermarket chains Co.opmart, Co.opXtra, and Co.op Food increased the amount of vegetarian products by 30 per cent compared to normal business months.

These supermarkets are also offering discounts on various types of products such as food, household items, nutritional products and children's toys, as well as sending vouchers to regular customers to stimulate demand.

Expect the market to recover quickly

Thanks to the flexibility to adjust production plans, regulate supplies and increase promotions to bring products to market, many businesses are less pressured to recall goods and clear inventory after Tết.

Nguyễn Phúc Khoa, Vissan's chairman, said that during the Tết month, Vissan continuously follows the market and adjust production according to demand. Therefore, after Tết, the inventory of typical Tết items such as smoked sausage and giò lụa (lean pork paste) is very low.

Similarly, other businesses were also able to sell all of their products before Tết. Distribution stores are also out of products, so they need to acquire goods right after Tết.

During the first working day after the holiday, G.C Food Joint Stock Company delivered nearly 60 tonnes of all kinds of goods, mainly aloe vera and coconut jelly, to domestic customers.

Nguyễn Văn Thứ, chairman of the Board of Directors of G.C Food, said that compared to the same period last year, sales volume doubled because customers had to buy goods immediately to sell them after Tết.

Experts said that the peak shopping season during Tết is always a push for production and business activities, promoting the growth of the domestic market.

In the context that the Government is focusing on the GDP growing 6.5 per cent with inflation at 4-4.5 per cent in 2024, the supply-demand linkage and stimulation of domestic product consumption is key to the stable and sustainable development of the national economy in the years to come, they asserted.

Economist Ngô Trí Long said that along with speeding up public investment and removing difficulties that are hindering businesses, it is necessary to boost the growth of the domestic market by reducing value added tax and adjust personal and corporate income taxes to suit the new situation.

Long advised businesses to adjust their production and business methods to provide high quality products to consumers in a fast manner at reasonable prices, while applying promotion policies and building reputations for their brands.

Meanwhile, businesses underlined the need for long-term and stable consumption stimulating policies as well as direct support to enterprises, such as cutting down land rents. — VNS

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