VietNamNet Bridge - After two years and nine months of applying the ceiling price, the price of formula milk products for children aged below six remained stable. However, the policy was removed on April 1.

As per the government's request, the Ministry of Industry and Trade (MOIT) has taken over the Ministry of Finance’s (MOF) job to check price registration forms applied to functional food for children aged below six, including formula.

Right after undertaking the new job, MOIT has tried new measures to control formula prices and terminated the imposition of ceiling prices on formula products.

Within five days, from April 14-19, MOIT collected opinions from enterprises, associations and agencies in the north and south about the draft circular on controlling functional food and formula milk.

Eurocham and Vinamilk, the nation’s leading dairy producer, have applauded the removal of the ceiling price policy, saying that it would be better to let the prices be determined by market supply and demand, which would encourage enterprises to renovate technologies and develop new products.

However, while businesses are delighted with the decision, consumers are not. They fear that the formula prices would escalate and become uncontrollable as it once occurred in the past. 

As per the government's request, the Ministry of Industry and Trade (MOIT) has taken over the Ministry of Finance’s (MOF) job to check price registration forms applied to functional food for children aged below six, including formula.

Vo Van Quyen, director of the MOIT’s Domestic Market Department, said that the State will continue to control the prices of the products, but with new measures. 

After the price stabilization measures expire, the price of milk for children under six will be controlled in accordance with the general provisions of the Pricing Law and its guiding documents.

Under legal documents, the institutions and individuals producing and trading dairy products for children under six must follow regulations on price registrations.

Enterprises have the right to raise or lower the selling prices when the state’s policies change, or the input costs fluctuate.

In case they raise the selling price by no more than 5 percent, they must send written notices about the new prices to watchdog agencies before making the adjustment. 

If they raise the price by more than 5 percent, they have to follow steps to declare prices as required. In case appropriate agencies don’t agree with the price increases, enterprises won’t be able to apply the new prices.

The representative from Eurocham commented that MOIT tends to equate price declaration and price registration. He said in principle, price declaration is just about the new price. However, MOIT stipulates that if it doesn’t accept the price increases, enterprises won’t be able to apply the new prices.

In reply, Nguyen Loc An from MOIT, citing Decrees 177 and 149, said that the regulations respect the provisions of the Price Law.

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