At an electronic store on HCM City's District 1, for instance, prices of certain imported products such as headphones, mobile phones and other electronic components have dropped by 8 to 10 percent as the greenback has slumped to 20,600 dong per dollar from 22,600 dong per dollar since January.

An employee of the store said most electronic stores and supermarkets in HCM City are adjusting their prices on a daily basis based on the constantly changing exchange rate in order to stay competitive.

Many food importers have also announced their price reduction.

Doan Ngoc Tho, director of HCM City-based THO Company, said wholesale prices have fallen by 15 percent since late June as the exchange rate has declined by 7 percent to 8 percent since the beginning of the year.

In the children's toys sector in which 90 percent of the products available on the market are imported, prices have also gone down by 6 percent to 7 percent.

Other products such as cosmetic, beverage and agricultural products have also been priced down.

Nguyen Vu, a trader of cosmetic products imported from Malaysia, said since he used to buy dollars at the black market to import products, he would certainly have to reduce prices when the greenback depreciates.

But he said with certain products such as shower gel and shampoo, traders would only reduce prices slightly because of rising transportation costs.

Tuoi Tre - August 9, 2011