Consumers in Vietnam have become increasingly concerned about product quality and origin in the wake of Chinese import scandals. This is illustrated by a recent seizure of 38,000 smuggled eggs from China containing toxic chemicals. Many consumers now prefer to shop at supermarkets like Co.opmart which implement strict quality control processes and provide clear information on products' origins and components. However, the price of eggs in Ho Chi Minh City has risen sharply in recent weeks due to supply issues and increased prices set by the largest egg producer, CP Livestock Company, which has led some supermarkets to boycott their eggs. While supply challenges have contributed to higher prices, some argue CP Livestock has raised prices too much to compensate for
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Consumer Concerns over Chinese Goods and Fake Eggs in Vietnam
1. The consumer problems have never become hot issues as today. After a series of
scandals related to the quality of Chinese goods which were uncovered by the
competent authorities and the media, consumer in the world in the general and Vietnam
in the particular decided a boycott of Chinese goods. On 28/4, the police in Tien Lang
District, Hai Phong City seized 38,000 shipments of smuggled eggs without the
quarantine with the super affordable prices, just 476 dong per egg. Those eggs were
packed in 90 cartons which were written by the whole of Chinese characters. According
to the testimony of their owner, eggs were bought in Mong Cai City - Quang Ninh for
200,000 VND / boxes and brought to Thai Binh province for consumption. Eggs were
forged not only affect the health of consumers but it is also listed as the direct toxic
substances influence in the nervous system which causes harmful to the brain. Fake egg
is made from the chemical banned for use in food; it is a major threat to the health.
Although consumers have began to notice more on the quality and origin of the goods,
but this was only the emotional choice, without any process or any certificate of
competent authorities in determining specify the sources of goods. Instead of sitting
there "guessing", many women have chosen a safer solution is to supermarkets,
convenience stores in order to have family meals really "clean". Most consumers
currently selected the Co.opmart supermarket by the goods have clear origins,
components, and contacts ... which are very convenient for buyers to check the source
and quality products. To get the "fame", the Co.opmart system always compliant and
strictly implement in checking the quality of food that are really hygiene and safety
before putting to the hands of consumers. Besides, customers also require manufacturers
must provide a full range of certificates for quality products in accordance with State
regulations, the Co.opmart always has many monitor in each department who check
product label, date line, freezers temperature, coolers ..., employees are equipped work
wear such as clothing, aprons, gloves, masks .... to ensure the best health for consumers.
2. In the past, when entering the supermarket, consumers have the calculation of the extra
which have to pay for modern services (air conditioning, winter storage, escalators ...),
but now they feel satisfactory for exchanging to their health is guaranteed, meals are
safe. However, the price of eggs in many markets in Ho Chi Minh City is increasing.
Just 2 weeks, the retail egg jumped from 2,000 VND to 3,000 VND / egg which caused
the confusion of consumers. One of the main reasons leads to this situation: the animal
husbandry companies push prices high abnormally. Although egg is produced higher
than before, but the large livestock companies has been continuously demanding higher
for the egg prices. Explaining the causes of price increase, shopkeepers said they are
mostly imported from other small manufacturing business, so when these firms to raise
prices, they are forced to increase. Recently, the market witnessed an increase in the
price of eggs of CP Livestock Company in Vietnam which caused many supermarkets
decide a boycott this item. Explaining the issue, Mr. Kieu Minh Luc, Joint Stock
Company representative of CP Livestock, said: CP increases egg prices because of the
suddenly changes in supply and demand. In 2012, the price of chicken eggs is always
remained too low leads to the farms of farmers incur losses, reduce poultry farming,
some households stop farming operations completely, while orders increased sharply in
CP. On the other hand, the demand for eggs from South to North is large, thus the
quantity of eggs becomes shortage. CP forces to adjust price increases in order to
balance supply and demand. According to an expert in agricultural markets, the
majority of the egg farm privatizations (accounting for 79% of the eggs to the market)
had to be closed due to losses over time. Also, since the end of 2012, by the prohibition
of poultry illegally imported from China, traders rushed to buying laying hens in the
South that caused decrease in supply of eggs. When supply is lower than demand so
much, the prices will inevitably increase. However, the companies take this opportunity
3. to push the price up too much to make a profit to compensate for the loss in 2012 is an
offensive act to consumers.