VIETNAM – Vinamilk, Nutifood hold line on prices – May, 12 2011

HA NOI — Vinamilk and Nutifood, two leading manufacturers of dairy products and baby food, signed an agreement not to increase the prices of milk powder for children under 12 months and the elderly until the end of the year.

The deal took place during a meeting on Tuesday with the HCM City Department of Industry and Trade regarding the City’s price stabilisation programme.

Le Ngoc Dao, deputy director of the HCM City Department of Industry and Trade, said that the two companies were set to complete price registration at the City Department of Finance for appraisal. Retail prices on the two lines of products would be announced early next week.

In addition, to support business, the City department, in coordination with relevant departments, will disclose nutritional indicators on milk products in the market to enable consumers to choose the best products.

The current number of goods includes 6,000-6,300 tonnes of products which accounts for around 30-35 per cent of market demand in terms of children and the elderly in HCM City.

HCM City is currently implementing a price stabilisation programme aimed at four commodity groups including food, medicine, milk and other items in preparation for the coming school season. Total programme spending is set to reach VND412 billion (US$19.8 million).

The two companies committed to keep dairy prices unchanged until the end of 2011, despite possible increases in input cost, and both companies are not subject to capital support by the City authority.

Tran Huu Duc, head of the external affairs department at Nutifood, said that his company selected the two lines of products in commitment to better support child and elderly consumers. — VNS

In response to potential market price fluctuations, Duc said that his company planned to balance income and expenditure in terms of other products in order to help keep prices stable. — VNS

Information VNS

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