Price subsidies help increase dairy profits

Two Vietnamese dairy companies, Vinamilk and Nutifood have reported an increase in their turnover by 30 percent during the last two months, under the Government price subsidized program.

Nguyen Dang Thao, director of Co-op Mart supermarket on Cong Quynh Street in District 1 stated that the two companies showed marginally high profits whilst foreign brands showed no increase.

Thao stated this at a meeting with Nguyen Thi Hong, Deputy Chairwoman of HCMC People’s Committee, who paid an unscheduled visit to check on Vinamilk and Nutifood stores in the city yesterday.

Hong believed that the price subsidies on dairy products have helped in strengthening the brands and also lowering prices of foreign milk products.

Nonetheless, Hong wants domestic companies to display and advertise their products more attractively so as to lure more customers. She also wants more products to be subsidized under the government program so as to provide a wider choice to customers.

Tran Huu Duc, a sales director at Nutifood, said his company proposes to add two additional milk products, weight-gain milk and Mum-Nuti IQ for pregnant women under the governments price subsidized program. The company plans to also expand with more stores in addition to the existing 244 outlets in the city. – SGGP

Tags: Vietnam Dairy sector, Vietnam milk prices