Last year was financially difficult for everyone, but especially for low-income households which struggled with rising prices. Families adapted to the crisis in different ways, often cutting non-essential items and being more careful with their funds. A number of local people offer their advice on how to tighten your household budget.

* Do Thi Yen, an official from Duc Viet Joint Stock Company in Ha Noi: think carefully before spending money

Families adapted to the crisis in different ways. (Photo: VNN)
My family has faced a lot of difficulties since the world economic recession hit Viet Nam. I work for a joint stock company and my husband works for a State-owned company. Our salary is around VND6 million (US$350) per month. This salary was rather good a few years ago, but now it is really low as the price of everything has skyrocketed.

Now, I have to save money. I’ve cut down on a lot of things I used to buy. I have not bought any new clothes for myself for a long time. Before I buy something, I think about it carefully. I only buy necessities.

I don’t like doing it, but I even have to cut down on extras and treats for my sons like milk or cake and candy. My elder son had to stop drinking milk to save it for his younger brother. I hope that the situation will be improved in 2009.

* Do Thi Hoa from Binh Trung Dong Commune, District 2, HCM City: try to buy things on sale

This Tet, I will buy less. In 2008, our business didn’t do very well, so I have to save money.

In past years, I’ve spent nearly VND10 million (US$600) at Tet. This year, I can only afford to spend VND5-6 million ($350) for Tet. I will save as much as I can. I have a lot of time to go shopping so I will try to find goods on sale for Tet this year.

Recently, only the prices of cloth, footwear and bags have been cut. Food prices have been reduced, but not by much, and the price of vegetables hasn’t fallen at all. This year, I will limit my luxury and non- essential expenditures to decorative items and electronic goods.

* Le Thu Huong, a young woman in Ha Noi: try to bargain and find discount goods

This is the first recession in my lifetime. Now, that I am a wife and a mother, I really feel the impact of the world recession. I feel it when I go to the market, when I buy milk for my child and every time I pay money to buy something.

In the past, I often went to the supermarket to buy groceries because I have very little free time. However, from now on, I will go to the small market in our neighbourhood where I can bargain. At this market, it is also easy for me to find goods on sale.

Every year, when Tet approaches, my family and relatives often go out to a restaurant to say farewell to the old year and welcome the new year. This year is different. We will gather at one of our houses and cook the meal ourselves. I will also cook some traditional food instead of buying it at the market. That’s a good way to save money.

* Tran Thi Thu Nga, from District 8, HCM City: buy domestic goods

I am sure I will have to tighten my budget this Tet. I will only buy things that are strictly necessary and at a low cost. Instead of buying imported goods, this year I will buy domestic goods.

Domestic cakes, sweets and butter are much cheaper than imported goods.

I will limit purchases to home decorations like flowers and ornamental trees.

We will also cut back on presents for partners and friends. We will spend less than VND500,000 ($29) for each present.

Currently, I have already bought some goods such as cooking oil, sugar, and fish sauce. I will try to find discount goods to buy. However, I will always buy goods at shops which ensure safe products. (VNS)