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Dairy firms push up prices while they can
Dairy consumers have been angered as some producers jump to increase their prices before a new pricing law takes effect next month.
Under Circular No.122 that applies from October 1, dairy firms must register the price of milk for infants under six with the Ministry of Finance's Price Management Department or the provincial departments of finance. The agreed price would be calculated from the cost of materials and production.
Since the end of last month, some milk brands have increased prices by as much as 10 per cent to get in before the new law that aims to stabilise the price of dehydrated children's milk and prevent unreasonable price hikes, Lao Dong (Labour) reports.
For instance, Abbot has adjusted prices on three of its products by 7 per cent.
Anmum brand put its price up by 10 per cent a few days ago. The price of Abbot's Ensure Gold for adults has jumped by 8 per cent to VND470,000 ($US24.7) each 900g tin.
Milk shops on Nguyen Thong Street, District 3, said within a week Abbot's Pediasure brand would also have a price adjustment.
Nguyen Thi Hanh, General Director of Sai Gon Co.op, said among the dozens of imported powered milk brands, only Mead Johnson had made a commitment not to boost prices.
For domestic dairy firms, only Hancofood has confirmed not to alter its price tag.
The dairy firms blamed the price increases on high production costs brought on by higher material costs and the changed USD/VND exchange rate.
Experts said, however, that dairy firms spent too much on advertising and sales commissions and passed the added cost to the consumers.
A woman shopping for milk, Thuy Oanh, on Nguyen Du Street, Go Vap District was concerned that the circular only applied to powdered milk for six-year-olds so she expected price increases for milk for pregnant women and the elderly.
Apart from the regulations, the Consumer Right Protection Association needs to coordinate with retailers and boycott milk brands that always increase their prices.
vietnamnews
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