>> Price of powdered milk expected to increase in March
>> Milk prices go up 16 times in 3 years
The import tax of powered milk products will be kept unchanged, according to a newly-issued dispatch from the Ministry of Finance.
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| Vietnam\'s milk prices remain high |
This will help to counter rumours of coming price increases of milk products, after the Ministry of Industry issued a list of products not encouraged for import in late March. The list included milk products, which worried many customers who took it to mean that milk import tariff may be raised.
So far this year, prices of many imported milk products have been increased by 12%, and some by as much as 20%. Prices of locally-made milk products have also been on the rise, with hikes of 5%-10% for products of Hanco Food, and 12% for Vinamilk.
Vietnam currently meets 20% of the total domestic milk demand, depending on imports for the rest.
In the first quarter of this year, the Ministry of Finance increased the milk import tariff to 10%, up from 5%, making it the highest in Southeast Asia. The import tax for powdered milk is now 0% in Singapore and 5% in Indonesia and Thailand.
According to a survey by the Vietnam Chamber of Commerce and Industry (VCCI) released in late October 2010, powdered milk prices in Vietnam saw 16 increases in the period from 2008 to 2010.
The Price Management Department under the Ministry of Finance will inspect 24 firms that deal in essential goods, including powdered milk importers, with an aim to prevent price gouging and stabilise the market.
