(VOVWORLD) - Businesses in Ho Chi Minh City have sped up production of goods for Tet, Vietnam’s lunar New Year festival. This year, partly because production has just resumed after a social distancing period for epidemic prevention and because of weak purchasing power and high production costs, businesses have been cautious in making production plans for Tet.
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VISSAN Joint Stock Company, which specializes in pork and food made from meat byproducts, holds a large market share in Ho Chi Minh City. VISSAN has stepped up production for Tet and to replenish its stockpile, which was depleted during a prolonged period of epidemic. VISSAN has invested more than 33 million USD stockpiling 2,800 tons of pork and 4,200 tons of processed meat.
Phan Van Dung, VISSAN’s Deputy Director, said prices of input materials and production costs have increased 20 to 30%. Preparations to meet the safety criteria for epidemic prevention and control have raised production costs. But businesses have promised to supply goods at stable prices so consumers don’t have to absorb all the extra costs.
“Despite lower purchasing power, VISSAN has increased its stockpile to prepare for the Tet demand. If purchasing power declines further, VISSAN will use its reserve for food processing in the first quarter of next year,” Dung said.
Song Huong Foods Company, which specializes in fermented fruit and pickles, has pledged to keep prices stable.
General Director Nguyen Le Quoc Tuan said that during the pandemic the company's revenue increased considerably, so it can absorb higher production costs.
Pham Thi Huan, General Director of Ba Huan Joint Stock Company, which produces poultry meat and eggs, said a market survey shows purchasing power down 30%.
“Production costs and prices of other input materials have increased, but we will keep our prices stable and promise no food shortage during Tet,” said Huan.