Vietnam – Finance ministry looks into Vinamilk’s price hike

Vietnam’s Finance Ministry is verifying whether leading dairy firm Vinamilk was justified in hiking prices last week, news website VnExpress reported Monday.

Vinamilk, which holds a one-third share of Vietnam’s dairy market, increased prices of various products by at least 6 percent.

According to a statement from Vinamilk, the hikes were necessary as material costs continued to surge and the company needed to offer higher prices to dairy farmers.

Vinamilk has submitted its reasons to the Ho Chi Minh City Department of Finance, where the company is required to register its product prices.

But VnExpress cited a Finance Ministry official as saying that based on customs data, prices of most imported materials have been stable.

“If other companies also imported the same materials and could keep their prices stable, it’s not reasonable for Vinamilk to hike its prices,” the unnamed official said.

Vietnam aims to control consumer prices this year, after inflation hit 11.75 percent in 2010. Many companies, including major dairy firms, have been ordered to register their prices to the authorities.

Information from ThanhnienNews

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