Enterprises will set their own retail prices for milk

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Enterprises and cooperative societies are responsible for self-determination of retail prices of milk and functional foods for final consumers.

In November 2016, the Ministry of Finance issued Circular 233/2016/TT-BTC amending and supplementing a number of articles of Circular 56/2014/TT-BTC to guide the implementation of Decree 177/2013/ND-CP detailing and guiding the implementation of some articles of the Price Law.

Based on Circular 233, on 8th March 2017, the Ministry of Industry and Trade said it would issue specific guidance on the management of milk prices for children under 6 year olds in the form of Circular.

The regulations on milk prices in this Circular are to guide the management for milk prices in the Ministry of Industry and Trade. Accordingly, these regulations are entirely based on the current regulations on price management and regulations on business activities in the market in general. These regulations shall apply to all traders and enterprises in the territory of Vietnam (without discrimination).

Specifically, the circular is expected to regulate enterprises and cooperative societies involved in the production and trading of milk, dairy products and functional foods (including domestic enterprises and cooperative society producing milk; import enterprises, distributors and retailers of milk) and relevant State management agencies.

Accordingly, the key enterprises and co-operative societies (milk producers and importers) shall have the responsibility to self-determine the retail prices of milk and functional foods for final consumers and register with the competent authorities as well as being responsible for the quality of milk, dairy products and functional foods throughout the entire distribution chain in the country; and notify their distribution system to State management agencies to supervise the implementation of selling prices in the market.

On the basis of enterprises’ declaration, State management agencies shall have to determine the rationality and legality of milk prices which are declared and supervised by enterprises or cooperative societies in the market.

Thus, the key enterprises and cooperative societies shall self-determine the retail prices of milk, dairy products, functional foods and make declarations (in the case where the authorities do conduct price stabilization measures) or register retail prices of milk and dairy products (in the case where the authorities conduct price stabilization) with the Ministry of Industry and Trade and announce their distribution system to the Ministry of Industry and Trade.

After considering the rationality and legality of the registered or declared price level, the Ministry of Industry and Trade shall announce the above price level and inform the distribution system of each enterprise or cooperative society to monitor retail prices of milk for final customers. This price level will be the price ceiling of milk and dairy products sold throughout the enterprise system and distribution chain under the supervision and control of the functional forces (the Department of Industry and Trade, the Market Management Department and the Tax Inspectorate Agency).

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According to the Department of Domestic Market (under the Ministry of Industry and Trade), this management method will help check the origin of goods and control the quality and price of products. Also, the authorities can determine the responsibility of enterprises and cooperative societies in the case where they have quality problems.