The sudden appreciation of the US dollar has been driving up prices of imported goods such as cars, motorbikes, and electronic products, leading to a slow-down in sales.
The price for a US dollar on the black market last month remained at 19,500 VND, equal to the interbank rate, but it suddenly rose to 19,800 VND on Oct.15 and up to 20,220 VND on Oct. 21.
Customers who buy luxury imported goods at the current time will likely have to pay millions of dong more, based on such a hike in the exchange rate.
On Oct. 19, a Spacy motorbike was priced at 13,000 USD at Hang Dat showroom on Ba Trieu street; a Honda SH 125i was priced from 6,100-6,300 USD; and Honda SH 150i from 7,700-7,800 USD.
However, the showroom's owner Dang Anh Thang said prices had risen, and customers would have saved 50 USD per vehicle if they had bought these motorbikes two days earlier.
"The average price of these motorbikes has risen 200-300 USD per unit over last week's figures, or 500-600 USD per unit compared to last month's prices," Thang said.
He explained many imported motorbikes from European producers were paid for in euros, and sold in US dollar in the Vietnamese market, therefore, customers were negatively influenced from increases in both euro and dollar exchange rates.
However, car purchasers will suffer the biggest losses when they have to make payments in cash in Vietnamese dong.
Customers buying a Toyota 's Lexus GX460 priced at 150,000 USD will have to pay 79.5 million VND (3,975 USD) more than last month's price when the price for a dollar reached 20,000 VND. Compared to Oct.15's forex rate, they had to pay an additional 34.5 million VND (1,725 USD).
A representative from Hoang Gia Automobile Joint Stock Company said prices of imported cars had recently increased. A Huyndai I30 rose in price by 500 USD to about 33,000-34,000 USD; and the Santafe model climbed to 34,000-35,000 USD. One car showroom owner said the increasing value of the US dollar had not converted into improved profits, as it had slowed sales.
Increasing exchange rates has also lifted prices of electronic products and imported foodstuffs, and slowed consumption of these goods.
The owner of the DigiWorld electronics shop on Hang Bai street said the number of customers had halved when the dollar exceeded 20,000 VND.
An imported foodstuff and distribution company used by the Fivimart supermarket chain, said they would have to increase prices of imported products in the coming time.
"Price rises are unavoidable in the current context, though we know this can affect our sales," he said.
However, prices of electronic products sold at big electronics shopping centres in Hanoiremain largely unchanged as their stockpiles are still plentiful, and domestically assembled products usually have more stable prices./.
The price for a US dollar on the black market last month remained at 19,500 VND, equal to the interbank rate, but it suddenly rose to 19,800 VND on Oct.15 and up to 20,220 VND on Oct. 21.
Customers who buy luxury imported goods at the current time will likely have to pay millions of dong more, based on such a hike in the exchange rate.
On Oct. 19, a Spacy motorbike was priced at 13,000 USD at Hang Dat showroom on Ba Trieu street; a Honda SH 125i was priced from 6,100-6,300 USD; and Honda SH 150i from 7,700-7,800 USD.
However, the showroom's owner Dang Anh Thang said prices had risen, and customers would have saved 50 USD per vehicle if they had bought these motorbikes two days earlier.
"The average price of these motorbikes has risen 200-300 USD per unit over last week's figures, or 500-600 USD per unit compared to last month's prices," Thang said.
He explained many imported motorbikes from European producers were paid for in euros, and sold in US dollar in the Vietnamese market, therefore, customers were negatively influenced from increases in both euro and dollar exchange rates.
However, car purchasers will suffer the biggest losses when they have to make payments in cash in Vietnamese dong.
Customers buying a Toyota 's Lexus GX460 priced at 150,000 USD will have to pay 79.5 million VND (3,975 USD) more than last month's price when the price for a dollar reached 20,000 VND. Compared to Oct.15's forex rate, they had to pay an additional 34.5 million VND (1,725 USD).
A representative from Hoang Gia Automobile Joint Stock Company said prices of imported cars had recently increased. A Huyndai I30 rose in price by 500 USD to about 33,000-34,000 USD; and the Santafe model climbed to 34,000-35,000 USD. One car showroom owner said the increasing value of the US dollar had not converted into improved profits, as it had slowed sales.
Increasing exchange rates has also lifted prices of electronic products and imported foodstuffs, and slowed consumption of these goods.
The owner of the DigiWorld electronics shop on Hang Bai street said the number of customers had halved when the dollar exceeded 20,000 VND.
An imported foodstuff and distribution company used by the Fivimart supermarket chain, said they would have to increase prices of imported products in the coming time.
"Price rises are unavoidable in the current context, though we know this can affect our sales," he said.
However, prices of electronic products sold at big electronics shopping centres in Hanoiremain largely unchanged as their stockpiles are still plentiful, and domestically assembled products usually have more stable prices./.
