To ensure enough goods for the upcoming Lunar New Year (Tet) holiday, the Ministry of Industry and Trade directed all sectors to increase production in order to balance supply and demand and focus on stabilising prices, reports Vietnam Economic News.

Boosting production

Due to increased demand for the Tet holiday, it represents an opportunity for companies to boost production and consumption. According to the Ministry of Industry and Trade’s statistics, the industrial production index in November was estimated to increase by 5.7 percent compared to the same period last year.

In the first 11 months of this year, the industrial production index was estimated to increase by 5.6 percent compared to the same period last year. In particular, the industrial production index in the manufacturing and processing industries, electricity production and distribution and water supply and wastewater treatment increased by 7.1, 8.6 and 9.2 percent respectively.

Domestic consumer sales also witnessed a strong growth in November. The sale of televisions, footwear and leather and beer increased by 88.3, 12.7 and 15 percent compared to the same period last year.

Hanoi Beer, Alcohol and Beverage Corporation (Habeco) General Director Nguyen Hong Linh said that in the remaining month of this year, especially in the run-up to the Tet holiday, the consumption rate of beer and wine would increase. Therefore, to provide enough products to the market, the company’s production line has operated at maximum capacity.

Manufacturing and processing industries’ consumption index in October also increased by 11 percent compared to the same period last year. In the first 10 months of this year, its index increased by 10.4 percent compared to the same period last year. In particular, consumption index of beer, tobacco, civil electronic products increased by 11.2, 7.8 and 13.4 percent respectively.

According to the Ministry of Industry and Trade’s assessment, the supply of goods (including essential commodities) is plentiful.

Focusing on price stabilisation programmes

In addition to boosting production, price stabilization programs have really become a tool to effectively regulate prices, contributing to controlling and limiting speculation in the last month of the year.

The Ministry of Industry and Trade’s Domestic Market Department Head Vo Van Quyen said that 32 provinces and cities throughout the country had implemented price stabilization programs with total value of about 1 trillion VND. In particular, companies have actively implemented price stabilisation programs from their financial resources or preferential loans from commercial banks.

Vo Van Quyen said that the utilisation of preferential loans from commercial banks had been seen as the newest point of price stabilization programs in recent years. To support companies, the State issued policies to link manufacturers, distributors and commercial banks, contributing to creating a continuous distribution chain to stabilize the market. These policies have received a positive response from commercial banks and have been applied in Hanoi, Ho Chi Minh City and Can Tho province.

Deputy Minister of Industry and Trade Ho Thi Kim Thoa said that previously instability had occurred during and after the Tet holiday. Therefore, in addition to price stabilization programs, the Ministry of Industry and Trade needed to promote market management. In addition, the ministry should direct companies to boost production in order to provide enough goods to the market.-VNA