Department of Price Management of Ministry of Finance (MoF) has released official dispatch rejecting some enterprises’ proposal to increase milk and steel’s selling price.
On December 24th and 29th, Department of Price Management received official dispatches to register prices from manufacturing and trading steel enterprises as Vietnam Steel Corporation and Vinakyoei Steel Company.
In the dispatch of steel’s selling price registration and price options of these companies, it was said that due to raise in costs for raw material, fuel, direct materials and labor costs, prices should be increased. However, observing the situation, Department of Price Management pointed out that in November the companies increased prices twice to compensate increased inputs’ cost.
On the other hand, at the moment, prices of inputs for steel production are basically stable (price of bloom yard in the world market in December 2010 didn’t increase against November, price of petrol has been stable since August 2010, price of electricity has stayed till the end of 2010, salary didn’t increase).
Meanwhile, in Dispatch No. 174/VNS-TTR, Vietnam Steel Corporation proposed to increase selling price with the reason of too high and unreasonably increasing costs such as a 4.03 percent rise in costs for raw materials, fuels and direct materials and a 291.6 percent rise in selling costs over last period. As for price option of Vinakyoei Steel Company, the reason for increasing price was rises in selling costs and business management costs (rise by VND 84,000 per tonne against last period).
To help control and dominate inflation, Department of Price Management requested Vietnam Steel Corporation and Vinakyoei Steel Company to attempt to save costs, stabilize steel’s price and not increase the price as registered.
As for milk, recently there has been some information in the media channels that some milk enterprises will increase milk price from January 1st 2011.
Meanwhile, according to information from Authorities, in this period of time, costs for basic inputs of milk productions do not increase. Even, imported milk materials’ price tended to decrease. Imported powdered milk’s price also saw no increase. State Bank no longer adjusts exchange rate between VND and USD dollar; therefore, there’s no reason for milk enterprise to increase price.
In such context, Department of Price Management requests enterprises proposing to increase price to keep the current price. As for Financial Offices in localities, the Department demands these offices to coordinate with related parties to review factors forming price when listed milk enterprises register price in the localities, and strongly demand them to remain price in the event that there’s no change in factors forming price.
Besides, to foster review and oversight of price quoting and selling at quoted price in agents and retail stores of powdered milk for under-six-year-old kids. (VNE)
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