Many companies that participated in HCM City 's Tetprice-stabilisation programme are struggling to liquidate the stocksthey had built up following unusually sluggish demand during the year'sbiggest festival.
The Ministry of Industry and Tradeblamed the poor sales on the economic crisis and a change in people'sconsumption habits.
Unofficial figures from the VietnamPlastic Association (VPA) showed that members only managed to selltwo-thirds of their stockpiles, the association's vice president, Ho DucLam, said.
"With such large amounts of goods in stock,the enterprises will be facing difficulties in doing business becausetheir money is stuck," he told Tuoi Tre newspaper.
Demand has been unusually low even for essential goods such as cookies and candies.
Tuoi Tre quoted a deputy director of a HCM City-based confectionerycompany as saying its stocks had increased by 5 percent compared to lastyear.
Garment companies were facing similar troubleafter Tet demand fell by 30 percent, Nguyen Huu Toan, deputy generaldirector of the Sai Gon 2 Garment Company, said.
Though the company reduced production compared to other years, it still had a hard time because of the low demand.
Many firms blamed the early arrival of Tet – too close to the New Year,which made it one extended shopping season – for the low demand.
Normally the Lunar New Year comes later, making it a distinct shopping season.
Lam said companies will be more cautious this year following the changes in consumption habits.
The director of An Phuoc Garment Company Ltd, Nguyen Thi Dien, agreed,saying that people tend to be cautious in their buying habits amid theeconomic difficulties, and so firms should review demand carefully.
They should distribute their products efficiently around the country to ensure sales, she added.
Phan Van Thien, deputy general director of Bibica Corporation, aconfectionery industry leader, said firms should better research themarket to understand consumers' needs./.
The Ministry of Industry and Tradeblamed the poor sales on the economic crisis and a change in people'sconsumption habits.
Unofficial figures from the VietnamPlastic Association (VPA) showed that members only managed to selltwo-thirds of their stockpiles, the association's vice president, Ho DucLam, said.
"With such large amounts of goods in stock,the enterprises will be facing difficulties in doing business becausetheir money is stuck," he told Tuoi Tre newspaper.
Demand has been unusually low even for essential goods such as cookies and candies.
Tuoi Tre quoted a deputy director of a HCM City-based confectionerycompany as saying its stocks had increased by 5 percent compared to lastyear.
Garment companies were facing similar troubleafter Tet demand fell by 30 percent, Nguyen Huu Toan, deputy generaldirector of the Sai Gon 2 Garment Company, said.
Though the company reduced production compared to other years, it still had a hard time because of the low demand.
Many firms blamed the early arrival of Tet – too close to the New Year,which made it one extended shopping season – for the low demand.
Normally the Lunar New Year comes later, making it a distinct shopping season.
Lam said companies will be more cautious this year following the changes in consumption habits.
The director of An Phuoc Garment Company Ltd, Nguyen Thi Dien, agreed,saying that people tend to be cautious in their buying habits amid theeconomic difficulties, and so firms should review demand carefully.
They should distribute their products efficiently around the country to ensure sales, she added.
Phan Van Thien, deputy general director of Bibica Corporation, aconfectionery industry leader, said firms should better research themarket to understand consumers' needs./.
