HCMC price subsidization program expands social attendance

Ho Chi Minh City will continue mobilizing social resources as many as possible for the price subsidization program 2015 and promote its effectiveness, said deputy chairwoman of the city People’s Committee Nguyen Thi Hong at a conference on March 31.

Nakydaco Company produces cooking oil for the price subsidization program in HCMC (Photo: SGGP)

Well implementing the program would contribute in attaining the city’s socioeconomic targets for 2015, she said.

According to reports at the conference hosted by the HCMC Department of Industry and Trade, 2015 is the 14th year in a row the city carries out the price subsidization program and the third consecutive year it calls on the social attendance.
 
It is one of key programs of the city’s trade industry. Last year, attendees comprise diversified economic sectors and types of businesses.The volume and types of commodities were more than 2013 and selling spots of subsidized goods increased to 8,976.

Two years after the state budget stopped financing the program in 2012, HCMC has successfully continued the program by calling the social attendance.

Total mobilized capital was VND1,960 billion (US$90.19 million) in 2013, which rocketed to VND8,300 billion (US$384.26 million) in the following year.

Average interest rates of 1-2 percent lower than normal level have encouraged businesses to further investment and develop production to create goods supply sources for the program.

Many brand names in the program have risen to lead the market share.

Deputy Minister of Industry and Trade Tran Tuan Anh said that the program has obtained successes in many aspects. The important thing is that local authorities have been able to call on the attendance of society.

HCMC has the highest consumption ratio in Vietnam but its consumer price index growth is always much lower than the country’s rate, he added.

This year, HCMC would carry on with the program to stabilize prices of four groups of commodities including food and foodstuff, school supplies, milk products and medicines, reported the Department of Industry and Trade.
 
The number of businesses attending in the program is estimated to be 85, nine higher than last year.

Goods output will increase 10-20 percent over last year and price will be 5-10 percent lower than that of the same product in the market.

In case input material costs fluctuate 5-10 percent, businesses will adjust their selling prices. If the market prices reduce less than 5 percent, they will launch promotional programs.

Banks have registered to provide businesses under the program with a total of VND11,850 billion (US$549.31 million) in loans, up VND3,550 over 2014. Interest rate will slide from 0.5-2 percent.

The program will supplement a VND900 billion (US$41.46 million) credit package to assist the businesses to boost exports with the interest rate of only 2-4 percent a year.

By staff writers – Translated by Hai Mien

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