The prices of 50 types of milk products for children below 2 years ofage will drop by between 0.4 and 4 percent beginning on April 20.
Accordingto the Ministry of Finance, the new prices were set after the ministryrequired five milk producers and traders to review and removeadvertising costs from the selling prices of products for children below24 months of age, in accordance with regulations on trading and usingnutritional products for infants, under decree 100/2014/ND-CP.
The new rates will be slashed by between 0.4 and 4 percent, depending on the kind of
milkproducts and the structure of selling prices they are suited for, asdeclared by the ministry, Head of the Price Management Department of theMinistry of Finance Nguyen Anh Tuan said.
The five companies areenterprises that were asked to set the selling prices of milk productsmeant for children below 6 years of age, according to existingregulations of the ministry.
These include Mead Johnson NutritionVietnam Ltd Company, Friesland Campina Vietnam Ltd Company, NestleVietnam Ltd Company, 3A Nutrition Ltd Company, and Tien Tien LtdCompany, which supplies to Mead Johnson Vietnam.
Moreover, other milk firms must announce the selling prices for their products in provinces or cities.
Theministry received declarations on reducing the selling prices of 50types of milk products for children below 2 years of age from the fivecompanies, Tuan affirmed.
According to the existing regulations,the ceiling cost of advertising, promotional activities and marketing is15 percent of an enterprise's total expenses.
Since June 2014,milk producers and traders reviewed and deducted advertising expensesfrom the selling prices of 686 lines of milk products for children below6 years of age, as required by the ministry to stabilise the cost ofmilk products in the domestic market.
As a result, the selling prices of these products dropped by between 0.1 and 34 percent, he noted.
Thisis the second time that the selling prices of milk products in thelocal market has been reduced, with the new rates coming into effect onApril 20, he added.-VNA
Accordingto the Ministry of Finance, the new prices were set after the ministryrequired five milk producers and traders to review and removeadvertising costs from the selling prices of products for children below24 months of age, in accordance with regulations on trading and usingnutritional products for infants, under decree 100/2014/ND-CP.
The new rates will be slashed by between 0.4 and 4 percent, depending on the kind of
milkproducts and the structure of selling prices they are suited for, asdeclared by the ministry, Head of the Price Management Department of theMinistry of Finance Nguyen Anh Tuan said.
The five companies areenterprises that were asked to set the selling prices of milk productsmeant for children below 6 years of age, according to existingregulations of the ministry.
These include Mead Johnson NutritionVietnam Ltd Company, Friesland Campina Vietnam Ltd Company, NestleVietnam Ltd Company, 3A Nutrition Ltd Company, and Tien Tien LtdCompany, which supplies to Mead Johnson Vietnam.
Moreover, other milk firms must announce the selling prices for their products in provinces or cities.
Theministry received declarations on reducing the selling prices of 50types of milk products for children below 2 years of age from the fivecompanies, Tuan affirmed.
According to the existing regulations,the ceiling cost of advertising, promotional activities and marketing is15 percent of an enterprise's total expenses.
Since June 2014,milk producers and traders reviewed and deducted advertising expensesfrom the selling prices of 686 lines of milk products for children below6 years of age, as required by the ministry to stabilise the cost ofmilk products in the domestic market.
As a result, the selling prices of these products dropped by between 0.1 and 34 percent, he noted.
Thisis the second time that the selling prices of milk products in thelocal market has been reduced, with the new rates coming into effect onApril 20, he added.-VNA
