Urgent measures ramped up to stabilise market amid rising costs

Urgent measures ramped up to stabilise market amid rising costs

Authorities are urgently rolling out measures to stabilise the market as surging input costs place unprecedented pressure on the retail market, with suppliers pushing for price hikes and supermarket systems striving to keep prices in check.

A consumer chooses fruits at a GO! supermarket in HCM City. Retailers are engaged in tough negotiations to limit price increases. — VNA/VNS Photo

Authorities are urgently rolling out measures to stabilise the market as surging input costs place unprecedented pressure on the retail market, with suppliers pushing for price hikes and supermarket systems striving to keep prices in check.

At a recent meeting held by the Ministry of Industry and Trade (MoIT), big retailers warned that price pressures are intensifying. A representative of a retail chain with thousands of outlets nationwide said that 70–80 per cent of suppliers have proposed price increases, the highest level seen in recent years.

The primary driver is the sharp rise in input costs, particularly fuel, raw materials and logistics. Disruptions in global supply chains, compounded by geopolitical tensions, have simultaneously driven up transportation, production and material costs.

In response, retailers are engaged in tough negotiations to limit price increases. However, their ability to keep prices stable is narrowing, with some suppliers even suspending deliveries pending price adjustments. If this trend persists, retail prices of many goods could rise by 5–20 per cent in the time to come.

The ripple effects are also being felt beyond modern retail systems, spreading rapidly to traditional markets, which are often the most sensitive to cost fluctuations. Surveys in Hà Nội and HCM City show that prices of food, dining services, vegetables and other essentials are edging up in line with higher transport costs.

In Hà Nội, prices at markets such as Cống Vị, Nghĩa Tân and Ngọc Thụy have begun to inch up, particularly for fresh food. Pork prices, for instance, have risen by around VNĐ30,000 (US$1.14) per kilo compared to previous levels, mainly due to higher transport and input costs linked to fuel price increases.

In addition, prices of budget dining services in Hà Nội have begun to climb, with many eateries and coffee shops raising prices by VNĐ3,000–10,000 per serving or drink to offset higher ingredient and transportation costs.

Amid mounting pressure, the MoIT and local authorities are accelerating measures to stabilise the market. Management agencies stressed that the biggest risk is not only rising prices but also potential supply disruptions amid global uncertainties.

Key solutions include closely monitoring supply-demand developments, supporting businesses in connecting with logistics and e-commerce platforms to optimise costs, and maintaining market stabilisation programmes to prolong price stability.

At the local level, Nguyễn Nguyên Phương, Deputy Director of the HCM City Department of Industry and Trade, said the city will continue market stabilisation programmes, support trade promotion activities and help businesses share costs to sustain stable price levels.

Vĩnh Thành Đạt Food JSC, one of the leading producers and suppliers of clean poultry eggs in the southern region, has pledged to keep egg prices stable despite rising input costs, while rolling out promotional programmes.

Retailers are also taking proactive steps. Many large distribution systems have introduced price-lock programmes, large-scale promotions and expanded sourcing of domestic goods to ease cost pressures.

Saigon Co.op, for instance, has worked with suppliers to maintain reasonable prices for essential goods. From now until March 25, its supermarket network is offering discounts of up to 50 per cent on around 1,000 products for daily consumption.

Similarly, MM Mega Market is implementing a price-lock programme for about 300 essential items through late March to minimise the impact of rising input costs on consumers.

Meanwhile, GO! hypermarkets are running a promotion campaign from March 12 to 25, offering discounts of up to 30 per cent on fresh produce and meat, up to 27 per cent on dairy and nutritional products, and up to 23 per cent on ready-to-eat meals, alongside various buy-one-get-one and bulk discount offers. 

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