Vietnam tightens control of milk prices

Under a prior decision, the Ministry of Finance (MoF) has placed a cap on the wholesale prices of 25 milk products for children under the age of six for the country’s five largest dairy producers and wholesalers.

The price charged to consumers by retailers for these products has in turn been limited to15 percent of the wholesale ceilings based on a set formula factoring in related costs.

The five producers account for roughly 90% of the dairy market for children under six and the MoF has now requested responsibility for making sure they comply with its decision be reassigned from the Ministry of Health to the MoIT.

In its request, the MoF explained this responsibility falls within the MoIT’s mandate to control the food industry and processed milk products and the agency has the authority to issue appropriate licenses and initiate compliance investigations. The MoF noted that it would continue to actively co-ordinate with the MoIT on compliance related matters.