Vietnam Business News

Advertisements

Random Post

• HCM City Hi-Tech Zones Aim For US$150 Million Turnover
• Gold and dollar prices escalating, no one benefits
• US consultant wins Da Nang contract
• Ninth mobile phone network debuts
• Vietnam Airlines protests AirAsia joint venture
• Sacombank Obtains Hefty Profits In Five Months

Vietnam Business News

Vietnam Business » Vietnam Business News » Private dairy companies required to register prices

Private dairy companies required to register prices

A draft circular to prevent excessive milk-price hikes by dairy firms is to be issued this month, according to the Ministry of Finance. The draft will replace the ministrys circular No104/2008-TT-BTC that became effective in 2008.

The draft will expand price-registration requirements to private and foreign dairies, which account for the majority of milk sold in terms of value in Viet Nam. Under the current circular, only State-owned dairies are required to register prices.

At the moment, authorised agencies have the right to stabilise milk prices if they increase by 20 per cent or more. However, they rarely do so as firms typically raise prices by no more than 5 to 10 per cent at any one time.

Nguyen Anh Tuan, deputy director of the Ministry of Finances Price Management Department said the regulations needed to be amended to rein in unreasonable price hikes by private firms.

"Milk is an essential foodstuff. It is not just Viet Nam, other countries also regulate dairy prices," Tuan said.

In addition, he said the country needed to boost local milk supplies to reduce dependence on imports.

After a number of hikes at the start of 2010, milk prices rose by between 3-10 per cent at the end of July.

Meanwhile, the US Abbott Dairy Company announced on Tuesday that it planned to increase the price of some products by 7 per cent.

According to the Price Management Department, firms could not justify raising prices because the cost of imported dairy products was less at the end of July than in May.

In the first seven months of this year, dairy imports were worth US$432 million - a 60 per cent year-on-year increase, according to the General Department of Customs.

Meanwhile, the Ministry of Industry and Trade said the retail price of some imported dairy products was actually four times higher than the import cost.

Despite price hikes, firms producing formula milk and dairy products for babies - such as Mead Johnson, Nestle, Dumex and XO - still held a significant market share in Viet Nam, the Ministry said.

Agencies authorised to monitor milk prices in the country have also been charged with monitoring quality.

After an inspection by officials from the Ministry of Healths Food Safety Agency on Monday, six of 84 foreign and domestic fresh and powdered-milk samples tested were found to contain less protein than claimed on the packaging.

The lead content on some samples was also found to be higher than stated but was not above permitted safety levels, said Nguyen Van Nhien, an inspector at the Food Safety Agency.

The samples were taken in Ha Noi, Ha Nam, Thai Nguyen, Son La, Bac Ninh, HCM City, Dong Nai and Binh Duong.

The agency added that it planned to extend the inspection area to other parts of the country. - VNS

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

More Vietnam Business News:

• Textile, garment companies brimming with foreign orders
• Opens the way for the growth of drug production in Vietnam
• Cement producers bemoan slow sales
• More than a few industrial zones stand empty
• Red invoices no longer required
• Lack of trust limits growth of parts supplier networks
• The new rules for managing the risky debt
• Experts say controlling advertisements will help ease formula prices
• The association of listed organizations, when?
• Tourism sector sees big increases this year

Popular Vietnam Business News

Tasco plans to raise chartered capital to 135 billion dong

In details, the company will issue 5.5 million shares for existing shareholders with par value of 10,000 dong per share, under the ratio of 1:1 or one old share for

Vinashin Affiliate Launches First Car-carrying Ship

. Ha Long Shipbuilding Company, an affiliate of Vietnam Shipbuilding Industry Group (Vinashin), launched a 70,000 DWT car-carrying vessel on Tuesday, July 21 in the northern province of Quang Ninh.

Tolls proposed on cars using downtown streets

The citys Tien Phong Technology Joint Stock Company has proposed starting toll collection on cars using downtown streets from January 2012 with a fee level from US$1 to US$2, or

Vietnam hub recalls milk with content deficiencies

Health inspectors in Ho Chi Minh City on Wednesday ordered the recall of five milk products that did not contain the quantity of protein announced on their labels, and suspended

Leap in exports pushes trade deficit to $5.4b in five months

The countrys trade deficit reaches US$5.4 billion in the first five months of the year, according to experts from the General Statistics Office (GSO). The trade deficit was equivalent to

World Bank Predicts US$2.6B Surplus in Vietnam Balance of Payments in 2010

An excess of US$11.7 billion in the capital account will help Vietnam cover a shortfall of US$9.1 billion in the current account this year, the Hanoi-based Chief Economist Martin Rama

HCM City holds global marketing expo

The countrys first-ever International Advertising Equipment and Technology Exhibition opened August 5 in HCM City. The three-day event, Vietad 2010, has attracted more than 150 booths and nearly 70 domestic

Businesses weary of revised automatic import license procedure

Long Quoc Trung, Director of Matsu Electronics, a distributor of refrigeration equipment from Malaysia, said he is nervous because after two weeks, he still has not got confirmation of his

Advertisement