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 percent 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 percent.
Anmum brand put its price up by 10 percent a few days ago. The price
of Abbot's Ensure Gold for adults has jumped by 8 percent to 470,000 VND
(24.7 USD) 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./.
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