 | Businesses need to be proactive when the economy in 2023 is still “turbulent” |
 |
| Production activities at Tan Quang Minh Trading and Production Company Limited (Bidrico). Photo: provided by the company |
Ready supply for the market
In order to create an abundant supply, ensure quality, and stabilize prices, in the context that most input materials increase in price, many food and consumer goods enterprises are rushing to produce and prepare their goods early to diversify suppliers and optimize costs to be ready to meet consumer demand at the end of 2022.
As a business providing the “Fresh Meal” solution for 20 years in the Vietnamese market, Saigon Food always wants to bring the best value to consumers. This year, although the market has many fluctuations, Saigon Food always plans to prepare the best source of raw materials early, with a stable supply to be ready to serve the Tet needs of consumers.
With five factories and warehouses with an area of over 33,000m2, Saigon Food has actively increased production output in the last two months of the year to meet the needs of consumers for Tet, ensuring price stability, stabilizing the market and preventing shortages.
Nguyen Dang Hien, General Director of Tan Quang Minh Production and Trading Company Limited (Bidrico), said that beverage businesses faced many difficulties due to the increase in input materials, causing product prices to increase accordingly, while consumer’s income decreased, leading to purchasing power being not as good as expected. No matter how difficult it is, from now until Tet, the company tries to keep prices stable, and promote coordination with distribution channels to run promotions to stimulate purchasing power. At the same time, research and develop new products for the Tet season to diversify choices for customers and easily generate revenue.
Similarly, General Director of Song Huong – Song Huong Foods Technology Food Processing Co., Ltd., Nguyen Le Quoc Tuan, said that many input materials have increased sharply in price, some by up to 50%. However, the enterprise is committed to keeping the price the same as for Tet 2022. With the materials that can be stored, the unit has bought a lot from the beginning to have a stable price. At the same time, accept to cut profits to stimulate consumer demand.
Eggs are an indispensable item during Tet. Director of Vinh Thanh Dat Food Joint Stock Company Truong Chi Thien said that the business expects the number of eggs provided each day to increase by 30% compared to normal days, plus some semi-processed products from eggs, mainly sold through supermarkets.
To proactively supply for Tet, right from the middle of the year, Vinh Thanh Dat Food Joint Stock Company signed a contract to increase the number of eggs purchased from livestock farms in Long An and Ba Ria-Vung Tau provinces, as well as minimizing production costs to stabilize prices.
Stabilize prices, increase promotions
Price remains one of the prerequisites for consumers. The Covid-19 pandemic is still complicated, plus the inflation situation, the price of gasoline and oil increases causing people to tighten their spending.
Even people with high incomes save and pay when choosing to buy goods. Faced with that situation, many retail distribution systems, from November 2022, a series of discount and promotion programs have been implemented in supermarkets and stable sales points of the city’s Department of Industry and Trade to serve the needs of people’s demand for early Tet.
Deputy General Director of Saigon Trading Corporation (Satra) Pham Thi Van said: “In this period, input costs for production and distribution are both inflated, and consumers are very price-sensitive. As a distribution company participating in stabilizing the market, we have to select essential products and commit not to increasing the price of stable goods to serve the people.”
Nguyen Ngoc Thang, Operation Director of Co.opmart supermarket chain (belonging to Saigon Co.op), said that Saigon Co.op will increase its reserves by 30%-50% during this Tet 2023. Forecasting high purchasing power, from November, the unit started running the Lunar New Year promotion program, with a series of innovations, increasing the experience for consumers.
Ly Kim Chi, Chairman of the Food and Food Association of Ho Chi Minh City, said that besides difficulties, there are a number of favorable factors that help manufacturers and businesses implement production plans for Tet products.
For example, the drop in live hog prices has created opportunities for companies producing this product to access input materials that are much easier to breathe.
Moreover, prices of raw materials for animal feed production tend to decrease are factors that keep poultry egg prices stable.
According to Ly Kim Chi, manufacturers and businesses are actively responding, trying to optimize the supply of domestic raw materials as well as choosing export and import markets, thereby gradually reducing their dependence on imported raw materials as well as being dependent on some import markets.
In order to ensure the supply and selling price of goods, Le Huynh Minh Tu, Deputy Director of the Ho Chi Minh City Department of Industry and Trade, said that to stimulate consumer demand for shopping at the end of the year, the Department is continuing to lobby retailers to increase preferential discounts, share discounts and other costs to reduce pressure on selling prices and support consumers in difficult times.
In addition, the Department also coordinated with the Market Management force to strengthen the inspection of business establishments, retail businesses, and traditional markets, to prevent speculation, hoarding, and price increases to affect the market during the peak shopping season at the end of the year and during Tet 2023. It is expected that the volume of food and food products for the 2023 Lunar New Year of the Cat is nearly 40,000 tons.