The move aims to exert some control over milk prices in Vietnam, which have increased steadily in recent years to an unreasonable level.
Under the new regulation, which takes effect on 1 October 2010, dairy firms have to register their prices before launching new products or adjusting prices. Current regulations require only companies with 50% state capital to register their prices with the authorities. As most of the dairy firms in Vietnam are private and foreign-invested companies, they couldn’t be forced to list their prices until now.
Experts and consumers have complained that milk prices in Vietnam are too high despite low tax rates. They said dairy firms spent too much on advertising and sales commissions to compete with each other, and then passed on the burden to end users.
Source: Asia Dairy News, thanhniennews.com
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