The Ministry of Finance on Feb. 21 sent official letters to dairy firms registering price increases and relevant state offices in efforts to stabilise prices.

According to letter 2078/BTC-QLG, since the start of the year, many milk firms have announced price hikes due to high production costs.

While milk product price adjustments are not required to be registered, dairy products still play a vital part in maintaining price stability, according to the Price Management Department.

To develop the socio-economy and control inflation, the Ministry of Finance asked dairy firms not to register price increases related to powder milk products for children under six years old when milk prices remain unchanged.

Regarding ready-to-drink milk products that have experienced price increases since early this year, the ministry required firms to provide reasons for such hikes by March 15.

The ministry additionally sent letter 2080/BTC-QLG to finance departments nation wide asking each to promote the inspection of price regulation implementation and help collect reports.

Ministerial letter 2079/BTC-QLG was sent out based on halting the increase of Nestle Vietnam Ltd product prices due to import prices having remained the same, the department said.

In January, Vinamilk upped its prices by 5-7 percent because of increases in input costs and exchange rates between the Vietnamese dong and US dollar.

Other dairy firms also announced increasing retail prices for some of their milk products.

FrieslandCampina Vietnam increased its retail prices by 5 percent based on Dutch Lady ready-to-drink milk and condensed milk from February 13 to compensate for high input costs and to ensure product quality.

Mead Johnson Vietnam announced an 18-19 percent price increase for three of its dairy products while the price for Abbott milk products surged by 9 percent. Nestle Vietnam also experienced price rises of 8-10 percent.

The Fontera Brands Vietnam increased the prices of its Anlene and Anmun milk products by 10 percent.-VNA