VietNamNet Bridge – Essential goods have seen the prices
increasing just within one month, raising the worry that the current weak
buying power would become exhausted.
Exactly one month after the
Electricity of Vietnam (EVN) announced the five percent power price increase,
gas and petroleum distributors announced the sharp price increases for the two
essential goods. Petrol price soared by 900 dong per liter, while gas price
skyrocketed by 52,000 dong per tank.
The public has been stunned by
the thunder like news. Huynh Buu Son, a well- known economist, also said that
the price increases in masses would deal another blow on businesses, which are
dying of big stocks and capital shortage, and on people, whose incomes cannot
feed themselves.
Son has warned that the price
increases of the most essential goods would surely create a new price increase
wave. Since petrol and oil are the input materials for production,
manufacturers would have to bear higher production costs.
Le Trong Nhi, an economist, also
believes that the rapid fire price increases recently are like “jerking move
with frequent jolts.” The instability would put more difficulties for
businesses and make people lose their confidence on the government policies.
Nhi has predicted that despite
the price increases, the CPI would not increase, or even decrease in the time
to come, because the buying power has got depleted. Therefore, he believes that
what the government needs to do now is not to run for the growth indexes, but
to restore people’s confidence.
Nhi has reminded a report by the
Ministry of Industry and Trade which said that the urgent task for now is to
stimulate the demand and help businesses clear their inventories, saying that
he cannot understand why the rapid fired price increases are decided at this
moment.
“The increases of the prices of
most essential goods at this sensitive moment, when the whole country gathers
strength to stimulate demand, are really unacceptable,” Nhi said.
Nguyen Kieu Linh in Cau Giay
district said that she got panic stricken every time when hearing about the
price increases.
“I am a teacher and I receive
salary from the state budget. The State does not pay me higher, even though
everything is getting more and more expensive,” Linh said.
Ngo Tri Long, an expert from the
Price and Market Institute, said the petrol price increase of 900 dong per liter
alone would not cause big worries. In 2008, the petrol price once skyrocketed
by 4500 dong per liter,
However, he said that if all the
petroleum, electricity, gas and water prices all increase at the same time,
consumers and businesses would heavily suffer.
The minus CPI increases in the
last two months showed the exhausting purchasing power and the stagnant
production.
The latest report by the
Government showed that from the beginning of the year to July 20, only 40,000
new businesses registered their establishment, a decrease of 11.6 percent in
comparison with the same period of the last year.
In the first seven months of 2012
alone, 30,300 businesses got dissolved after they got exhausted and cannot
confront difficulties any longer.
“The businesses which are on the
verge of bankruptcy, would be dealt a strong blow by the massive price
increases,” Long said.
“The price increases would make
all the efforts by the ministries and branches to reduce inventories
fruitless,” Son has commented.
Bao Han
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com
No comments:
Post a Comment