Vietnam requests prior registration of milk prices

Traders and producers of milk power products for children under six in Vietnam must have their prices registered with authorities before putting these products on sales, state media reported, citing a new circular issued by the Ministry of Finance.

This is the first time such regulation has been applied for such types of milk products.

The circular, to be effective on Oct 1, aims to help local authorities enhance control over milk prices in Vietnam which have increased steadily in recent years to an unreasonable level.

Nguyen Anh Tuan, deputy head of the ministry’s Price Management Department, was cited as saying that firms do not follow the circular will be fined, or have their business license revoked.

As most of the dairy firms in Vietnam are private and foreign-invested companies, they could not be forced to list their prices until now.

Experts and consumers alike have complained that milk prices in Vietnam are too high despite low tax rates.

They said dairy firms spent too much on advertising and sales commissions to compete with each other, and then passed on the burden to end users.

Current regulations require only companies with 50% state capital to register their prices with the authorities. (Liberated Saigon)

Tags: Vietnam milk, Vietnam milk prices