Eateries in Ho Chi Minh City edge up prices as costs rise, demand remains cautious

Price increases of between VND3,000 ($0.11) and VND20,000 ($0.76) per dish have been reported across a range of eateries, driven mainly by higher costs for ingredients, fuel, and logistics, according to vendors and industry representatives.

Some small vendors said they had delayed price hikes for as long as possible to retain customers, but were now under pressure to adjust.

A noodle vendor at Ba Chieu Market said costs for key ingredients such as seafood and vegetables had risen sharply, with cooking gas prices up by about VND100,000 ($3.8) per 12-kg cylinder since the recent Lunar New Year holiday in mid-February.

“Lime prices have also climbed to more than VND40,000 [$1.52] per kilogram from just over VND10,000 [$0.38] previously,” she said.

She added that while many nearby stalls had already increased prices before the holiday, she had held off to keep regular customers but could no longer absorb the higher costs.

Retail gas prices have risen by around VND30,000 ($1.14) per 12-kg cylinder since early March, with market prices now ranging from about VND450,000 ($17) to VND540,000 ($20.5), according to industry notices.

Businesses said the increases were linked to global energy prices and currency movements, which have pushed up import and distribution costs.

Operators of small eateries said raising prices remains difficult as their core customers include workers and students, making them sensitive to even small increases.

“Input costs for items such as coffee beans and soft drinks have increased slightly, but I have not yet adjusted menu prices and choose instead to absorb the higher expenses for now,” a coffee shop owner said.

Industry executives said the food and beverage sector has faced repeated cost pressures since before the Lunar New Year holiday, including higher compliance costs linked to tax and food safety requirements, as well as rising fuel and transport expenses.

Restaurants relying on imported ingredients such as beef, salmon, and cheese are likely to face stronger pressure to raise prices, they said, while even domestically sourced inputs could become more expensive because of rising costs for fertilizers and animal feed.

Despite the upward pressure on costs, some businesses said they were holding off on significant price increases out of subdued consumer spending, though further adjustments may be unavoidable if input prices continue to rise.