Dinh Tien Dung, Minister of Finance, has proposed that the government strictly control the price of milk formula in the domestic markets, where five large companies control prices and earn huge profits.
During a regular government meeting held on April 29, Dung announced a report containing the conclusions of an investigation of the five largest milk companies which produce 90% of the dairy products sold for children below six in Vietnam. These companies are 3A Nutrition, Vinamilk, Nestle Vietnam, Friesland Campina Vietnam and Mead Johnson Nutrition Vietnam.
“The investigation showed that Mead Johnson Nutrition Vietnam, Vinamilk, and Nestle Vietnam listed new prices for their products in the final months of last year and the first three months of 2014. Prices were increased by 11-30.66%, 7%-14%, and 5%-9%, respectively,” Dung said. However, we found that Nestle Vietnam violated their price listings and pocketed over VND 5 billion from raising the prices of 11 products without listing it between February 1 and March 31, 2014.
Minister of Finance, Dinh Tien Dung, proposed that the government strictly control the price of milk formula in the domestic markets
Dung also revealed violations and wrongdoings in the production and marketing of these products. The most common was over-spending on marketing and advertising campaigns. The minister said that they would soon issue proper regulations to curb these problems.
“Milk companies are earning profits that are too large. They made 23% profit in 2013 while consumers were paying too much,” Dung admitted. “To ensure the rights of consumers, we propose that the government applies a price ceiling for dairy products.”
A woman is buying formula milk at a shop in Hanoi
Addressing those who attended the meeting, PM Nguyen Tan Dung said that basically he agreed with the proposal, and asked them to work closely with the Ministry of Justice to come up with proper regulations.
Also speaking at the meeting, minister and Chairman of the Government Office, Nguyen Van Nen, expressed hope that the application of a price ceiling for milk products made for children under six will precipitate a fall in prices of VND50.000-70.000 per tin of formula.
Price ceiling for milk formula considered Related image(s)
0 comments:
Post a Comment