Rising food prices squeeze household budgets in Ho Chi Minh City

To cut expenses, residents have been looking for ways to save, such as hunting for discounts, prioritizing practical purchases, or cooking at home instead of dining out.

However, many homemakers say the higher cost of groceries is becoming increasingly noticeable in their daily meals.

Thinking twice before buying

While carefully picking vegetables at Thi Nghe Market, Vu Thi Huong, a resident of Nhieu Loc Ward, said prices of many vegetables, meat and fish at the market had edged up recently, forcing her to think more carefully about what to buy each time she went shopping.

According to Huong, bananas that previously cost around VND13,000 (US$0.50) per kilogram now sell for VND15,000 ($0.58).

Some vegetables have also increased by about VND5,000 ($0.19) per kilogram, with varieties of mustard greens rising by five to ten percent.

"Each item has only gone up by a few thousand dong, so it doesn't seem like much at first. But when you go shopping regularly, it adds up," Huong said.

The increase becomes more noticeable when spread across individual meals.

Huong said she previously spent about VND70,000-80,000 ($2.69-3.08) to prepare a meal for two people.

Now, she needs around VND100,000 ($3.85) to buy enough ingredients for one meal.

Higher prices of vegetables, meat and fish at markets have also pushed up the cost of meals outside the home.

Nguyen Thi Trinh, a resident of Nhieu Loc Ward, said a bowl of 'pho' at a small eatery in an alley off Le Van Sy Street that she used to frequent cost around VND35,000 ($1.35), but has now risen to VND50,000 ($1.92).

A plate of steamed rice rolls that previously cost around VND25,000 ($0.96) now sells for VND30,000 ($1.15).

"I'm thinking about cooking at home to save money. Eating out, even a simple breakfast of a cup of coffee and a bowl of rice noodles can cost VND60,000-70,000 ($2.31-2.69), and that's at the most affordable places," Trinh said.

N.T.H., a vegetable vendor at Nguyen Van Troi Market in Ho Chi Minh City, said prices of most vegetables had risen in recent days.

At times, coriander and other herbs have jumped by VND6,000-10,000 ($0.23-0.38) per kilogram in just one or two days.

The rapid price changes have made it difficult even for vendors to predict what prices will be next, she said.

A representative of Ba Chieu Market told Tuoi Tre that vegetables from Da Lat, a major vegetable-growing area in Lam Dong Province, had recorded the sharpest increases.

Da Lat carrots, for example, rose from VND35,000 ($1.35) to VND50,000 ($1.92) per kilogram; bitter melon from VND25,000 ($0.96) to VND30,000; tomatoes from VND20,000 ($0.77) to VND30,000 ($1.15); and potatoes from VND35,000 to VND50,000.

Da Lat lettuce that had already been cleaned and trimmed also increased from VND40,000 ($1.54) to VND50,000 ($1.92) per kilogram.

Weather, freight costs put pressure on input prices

Facing higher input costs, Tran Dinh Hien, a representative of a vegetable supplier in Ho Chi Minh City, said vegetable prices had risen sharply mainly due to rainy weather.

Vegetable-growing areas in Lam Dong Province are currently producing 30 to 35 percent less than normal, he said.

"Many leafy vegetables such as scallions, coriander, lettuce and mustard greens cannot withstand excessive water. They are more likely to be affected by heavy rain or flooding, so their prices tend to rise more noticeably," Hien said.

"Areas outside greenhouses are also more vulnerable to weather conditions, resulting in lower output and higher prices," he explained.

Retailers have likewise recorded price fluctuations in recent months.

Nguyen Thanh Lam, category manager at Farmers Market, told Tuoi Tre that imported products had seen two or three rounds of price increases since the beginning of the year, with another five to seven percent increase possible in September and October.

Meanwhile, many domestically produced consumer goods have been more stable in price.

However, there was one round of increases of around five to seven percent when gasoline prices surged previously.

Dried products have seen particularly sharp increases, with dried beef prices up 30-40 percent from last year.

"Freight costs, particularly shipping rates, have risen recently, pushing up the cost of many imported goods and raw materials and affecting manufacturers,” Lam said.

“But with consumer spending remaining weak, we have proactively proposed various measures to keep prices in check,” he added.

A representative of a supermarket in Ho Chi Minh City said that through continued negotiations with suppliers, it had managed to keep prices relatively stable for many processed food categories in recent months.

However, the supermarket expects another price increase of around five to seven percent toward the end of the fourth quarter, with confectionery among the products likely to be affected.

"We ask suppliers to limit price increases. If prices have to go up, the increases should be kept small and spaced at least four to six months apart. If prices fall, we adjust them within 30 days," the representative said.

"We know that raising prices when consumer spending is already weak would have a major impact on sales, but it is not easy to keep retail prices stable indefinitely."