A worker operates a cow milking system at the TH True Milk Company in the central province of Nghe An. Domestic milk prices have been placed under tighter control to lower costs to consumers. — VNA/VNS Photo Dinh Hue

HA NOI (Biz Hub) — The Ministry of Finance has asked dairy producers and traders in Viet Nam to reduce production and trading costs to lower the retail price of milk products.

That is one of the ministry's instructions in official letter 16665/BTC-QLG issued on Monday to promote management of retail milk prices in the local market.

The ministry has asked finance departments in provinces and cities nationwide, along with taxation and customs offices, to inspect and control milk prices according to regulations on prices for milk products and nutritional products containing milk for children under six years old, under the Circular 30/2013/TT- BYT.

The ministry also requested producers and distributors of milk products, and products containing milk, to not increase prices for those products if factors creating retail prices remain unchanged.

Meanwhile, the ministry would work with the Ministry of Health to regularly review the local milk market and add new products to the list of milk products and products containing milk for children under six years old that are price-stabilised goods.

The Customs Office would also investigate prices of imported milk products after clearing customs if, at the moment of performing customs clearance procedures, prices of those products at customs declarations are 15 per cent higher or 5 per cent lower than the price at the Customs Office, the ministry said.

Next year, the ministry will run a data centre and services related to price, as well as provide information about costs for customers, including milk prices.

Powdered milk prices have been increasing since 2009, when the practice of changing the name began to emerge. There has been an average of two or three price hikes annually. In this year alone, consumers have seen three price increases. Each one was an increase of five to 10 per cent.

Therefore, the Prime Minister asked the Ministry of Finance and other ministries and offices to report the price hike of milk products and closely control the market. — VNS