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Despite threat of punishment, sellers still post prices in dollars
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VietNamNet Bridge – The information that the State Bank of Vietnam has imposed fines on three enterprises which posted sale prices in dollars did not catch much attention from the public, because people understand well that this will not help much in settling the dollarization.

Three well known legal entities have been imposed the fine of 650 million dong in total for the behavior of posting prices in dollar. These include FPT University, the Ngoc Long Trade and Gold Manipulation Company, and the My Phuong Private Enterprise.

However, the information about the “ill-fated” institutions has not frightened anyone. On November 24, or just one day after the information was released, Lao dong’s newspapers still saw the prices posted in dollars, and saw the dollars traded among individuals, “in the open air”. It seems that the heavy punishment on violators cannot help settle the dollarization.

In Hanoi, the sale of goods with payment in foreign currencies has still been carried out every day. If walking along the “tourist streets” such as Dinh Liet, Hang Bac, Cau Go and Ly Quoc Su, one would see a lot of boards where the prices are posted in dollars. Especially, the boards are hung over the entrance doors of the shops, which could be seen as a challenge to the state management agencies.

A tourism office on Cau Go Street near the Hoan Kiem Lake, for example, posted the tour fee of 68 dollars to Sa Pa. Meanwhile, Deluxe tour to Ha Long Bay had the fee of 59 dollars, and Luxury tour 99 dollars. Besides, travelers would have to pay the taxi fee of 10 dollars.

The same thing is occurring in HCM City. Especially, the payment in dollars is still applied at travel firms and spa shops.

The city’s authorities said that since the beginning of 2011, the police have discovered 54 illegal foreign currency trading cases, while they have commenced criminal proceedings for five cases for illegal foreign currency trading, while preparing to take criminal proceedings for two more.

In Hanoi, at the foreign currency black market gathered on Dinh Le and Nguyen Xi, every one, who passes the streets, would be greeted by the women – the foreign currency dealers, who asked if they had dollars to sell.

Lao dong’s reporters, who came here on November 24, were told that the dollar price on the day was 21,280-21,300 dong per dollar. As the reporters were still hesitated, the women tried to persuade them that if they had not bought dollars on the day, the price would have regretted later, because the dollar price tends to increase towards the end of the year.

Car and computer dealers have also been posting prices in dollar, even though they are doing this in a secretive way. When clients ask about the sale prices, the salesmen would show the sale prices in dong after they referred the exchange rates of the days. The businessmen said that they have to pay dollars for the imports; therefore, they need to collect dollars to ensure their profits.

More drastic measures needed

The watchdog agency has admitted that it does not have enough inspectors who can examine all trade points and impose fines all the violators. The price posting in foreign currencies has become so popular for the last many years that it is not easy to stop it overnight.

The owner of a shop in Hanoi said that he mostly serves foreign travelers, while the price posting in dong will make things more difficult for it, because foreign travelers cannot understand the goods are expensive or cheap if their prices are posted in dong.

He said that it is necessary to apply a specific mechanism for the enterprises operating in the tourism sector. Though the payment must be made in dong, the price posting should be made in dollars to make it easier for buyers to imagine about the values of the products.

Source: Lao dong