Thursday, 19/11/2009 17:54

Dairy producers may be forced to register sale prices

As debate rages surrounding the cost of milk, National Assembly deputies have been demanding answers.

“The dairy product price in Vietnam is at the highest level in the world. What has the Ministry of Industry and Trade done to control dairy product price?” questioned Chu Son Ha, a National Assembly’s deputy from Hanoi.

Meanwhile, Minister of Industry and Trade Vu Huy Hoang denied that dairy product price in Vietnam are the highest in the region.

“The price is Vietnam is high, but not the highest,” he said, adding that he ordered Vietnamese embassies in foreign countries to collect information about the dairy product prices.

However, Hoang said that some businesses have taken unfair advantage of the current regulations to raise sale prices of dairy products

Hoang said that his ministry made inspection tours in September and released decisions disciplining some enterprises which were found to be violating current regulations.

The National Assembly’s deputy seemed unsatisied with the answer. “You say that Vietnam’s price is not the highest in the region, then what place is it in terms of expensiveness?” he questioned.

Hoang, after some thought, said that he can only confirm that prices in Vietnam are not the highest.

According to the Ministry of Industry and Trade, powdered milk, the material for making dairy products, has been decreasing significantly, while prices in Vietnam have not increased at all. Instead they have stayed higher by 20-25 percent than prices in other regional countries.

Lao dong newspaper has reported that consumers are now complaining about 5,000-20,000 dong per can increases in the price of powder milk.

Meanwhile, Minister of Finance Vu Van Ninh, said before the National Assembly’s deputies that his ministry joined two inter ministerial inspection tours regarding dairy product prices.

In general, Ninh said, dairy suppliers have reasonable methods of calculating sale prices, which is calculated by cost price plus expenses. However, some dairy producers were found to be setting unreasonable prices.

Ninh said the Ministry of Finance is proposing to add dairy products to the list of goods put under the state management. If so, dairy product suppliers and traders have to register the sale prices of dairy products and register their operation.

He added that government agencies will also impose strict controls over expenses dairy product suppliers spend on advertisement. High ad fee has been considered as one of the most important factors in making dairy product prices so high.

VietNamNet, TP

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