The Ministry of Finance of Vietnam has decided to impose a price ceiling on milk products for children because of the increasing prices of these products in the country. The Prime Minister of Vietnam has approved the proposal of the ministry to move forward with the price ceiling.
The ministry said that this is one of the ways of keeping the prices of milk products in the country under control in the future. After a directive has been issued by the Prime Minister, the Ministries of Finance and of Industry and Trade decided to investigate the price regulations, as well as taxes on five different milk producers and traders starting from March 10, 2014 until April 10, 2014.
Following the investigation, the results were released on April 29, 2014. The report revealed that the five companies have increased their prices of children’s milk products from January 2014 until March 2014. It has been reported that five companies increased their prices by 2.4 percent to 30.66 percent and two companies raised their prices by 5 percent to 14 percent.
In addition to that, high spending on advertising, discounts and marketing led to the increased product prices. The ministry said that the companies in question must review prices of the said products in order to ensure that they balance with spending and profit made on the products.
Photo Credits: Touitre
