The capital will spend VND500 billion (US$ 24 million) on price stabilization this year, a year-on-year increase of 25 per cent, said Nguyen Van Dong, deputy director of the city’s Department of Industry and Trade.
A detailed plan is being compiled and will be soon submitted to the city’s People’s Committee, Dong said adding that this year’s program would be widened to many rural areas.
Dong said the VND400 billion ($ 19 million) spent last year was not enough as the prices of more products were escalating.
Recently, the price of many products including meat and milk rose due to a hike in petrol and power prices.
And the cost of some processed-food and fresh meat is expected to increase by another 15 per cent later this week, said the general director of Vissan Limited Company, Van Duc Muoi.
Higher prices for petrol and power, plus the new exchange rate for US dollar, had forced his company to make the increases, Muoi said.