Bach Hoa Xanh stores fined for price gouging

One of the retail giant’s shops in the southern town of Soc Trang was found selling porridge at 7-38 percent higher than shown in their price tags, according to local market authorities.

Store staff claimed they forgot to change the price tags.

The other store, in the central highlands town of Buon Ma Thuot, was also selling at higher prices than on their labels and had some goods without price tags.

The wrongdoing was discovered after authorities carried out raids of several Bach Hoa Xanh stores as social media users, especially in HCMC, have been calling for boycotting the chain saying that it has been inflating prices to profiteer from the Covid-19 pandemic.

Parent company Mobile World told shareholders in a recent statement that the rising costs of transportation since have to test for Covid-19 and wages due to shortage of human resources, and price hikes by suppliers have forced it to increase the prices of certain products.

Bach Hoa Xanh has over 1,900 outlets, mostly in the south. Its revenues last year doubled from 2019 to VND21.26 trillion ($924 million).