Young children to drink their milk cheaper

May 11, 2015 | 13:00
Prime Minister Nguyen Tan Dung has requested the Ministry of Finance (MoF) and relevant bodies to strengthen strict management on the price of milk products for children under the age of six. 

illustration photo source: nld

The directive was submitted at the government’s regular meeting in April last week with the aim to stabilise prices on milk products for children.

The MoF’s new regulations have appeared within the context of several milk producers evading the ministry’s previous decision last year to apply a price ceiling on milk products for children under six.

Two weeks ago, the MoF proposed that the government apply a price ceiling on different milk products for this age group of children by the end of 2016.

The new proposal is to extend the previous deadline of late May this year. The MoF’s decision to apply a price ceiling on milk products for children under six took effect from June 1, 2014 and applied to famous milk brands including Dielac, Alpha, Abbott, Nestle, Enfagrow, Similac, and Nan Pro.

According to the Price Management Department under the MoF, after applying a price ceiling on about 686 milk products for nearly a year the price of milk products has generally stabilised. The retail price of milk products for children fell 0.1-34 per cent.

At present, the price of milk products for children under six was higher in Vietnam than other countries in the ASEAN, stated the Department of Economic Affairs under the Ministry of Foreign Affairs.

Specifically, one kilogramme of milk in Vietnam costs $16 while the same products are priced at $14 in Thailand, $12 in the Philippines, $10 in Malaysia and only $9.5 in Indonesia.

Two weeks ago, the MoF has announced the results of a new re-pricing plan which was issued to regulate five enterprises that sell milk products aimed at children under six. The five enterprises in question are Mead Johnson Nutrition Vietnam, Friesland Campina Vietnam, Nestle Vietnam, Nutrition 3A, and Tien Tien – distributors for Mead Johnson Nutrition Vietnam.

The re-pricing plan has listed 50 milk products that must be discounted, with price cuts ranging from 0.4-4 per cent. The new pricing plan on milk products will take effect on April 20.

By By Nguyen Chung

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