Electronics importers mull price hikes
Importers of electronics products are weighing spiking prices weeks after the devaluation of the Vietnam dong against the US dollar, which is claimed to have pushed up the prices of imports denominated in the dollar.
Pham Ngoc Phi, marketing head of the electronics department at Sharp Vietnam Co. Ltd., said businesses have had to spend more on the same products they imported before but it not easy to increase selling prices on the domestic market. The company is finding ways to deal with the situation.
Tran Tan Hoang Hau, marketing director of Thien Hoa Electronics & Furniture Shopping Center, said suppliers of imported products have not informed the firm of price increases as they can afford the depreciation of the dong.
In August, the State Bank of Vietnam widened the dong/US dollar trading band from 1% to 3% and increased the reference exchange rate by 1% to prop up exports following the strong depreciation of the yuan.
Hau said demand for electronics products has just picked up, so now is not the right time to adjust up prices as retailers may lose customers.
Dang Thanh Phong, who is in charge of communications at The Gioi Di Dong, confirmed the phone retailer has not received any notice on price increases from importers.
Tran Dinh Luu Phong, marketing manager of De Nhat Phan Khang Shopping Center, said suppliers have plans to adjust up prices of new imports by 3-5%, mostly household appliances and technology products. However, importers have not decided when they hike prices.
Phong said retailers have to prepare for price adjustments despite low demand and that the company will ask for suppliers’ financial support to cover costs of marketing and promotional programs.