ON INTRODUCING MEASURES TO STABILIZE PRICE OF DAIRY PRODUCTS FOR INFANTS UNDER THE AGE OF 6

Article 1. Implementing the stability of price of dairy products for infants under the age of 6 (hereinafter collectively referred to as dairy product) by taking following measures: 

1. Managing the maximum price as regulated at Point 7, Article 17 of the Law on Price for dairy product within the period of 12 months as of this Decision’s effective date.

2. Implementing measures to apply for the price registration as mentioned at Point 4, Article 17 of the Law on Price for dairy product within the period of 6 months as of this Decision’s effective date.

Article 2. The maximum price of dairy product regulated as follows:

1. Maximum wholesaling price:

a) Issuance of maximum wholesaling price for 25 dairy products as listed in Appendix attached in this Decision.

b) Based on the maximum price of 25 dairy products regulated at Point a of this Clause, those organizations and individuals manufacturing and trading dairy product (hereinafter referred to as organization and individual) shall assume their liability to determine the maximum price in accordance with following instructions:

- With respect to other dairy products being currently sold on market, organization and individual shall have to refer to the regulation on general pricing method applied for commodity and services issued by the Ministry of Finance, and compare the price of such dairy products with that of those dairy products that have been already publicly fixed with the maximum price in order to define their own maximum price, for submission to the competent price management authorities.  

- With respect to new dairy products that have not been marketed yet, organization and individual shall refer to the regulation on general pricing method applied for commodity and services issued by the Ministry of Finance, and compare their price with that of those dairy products that have been currently marketed and have been already publicly fixed with the maximum price in order to define the maximum price of new dairy products, submitted to competent price management authorities.

2. Maximum retailing price:

a) Maximum retailing price shall be defined by the maximum wholesaling price plus other relevant costs, as instructed by competent price management authorities, which do not exceed 15% of maximum wholesaling price.   

b) Retailing organization and individual are subject to price registration as regulated in Decree No. 177/2013/ND-CP dated 14 November 2013 ruled by the Government on detailing and guiding the implementation of several articles of the Law on Price, based on the provisions at Point a of this Clause and guidelines of competent price management authorities, in order to define their maximum retailing price for submission to these competent price management authorities. 

3. In the process of implementing the regulation on maximum price of dairy product (including the maximum price specified at Point a, Clause 1 of this Article), should there be any factors resulting in any changes, the price management authorities shall consider any possible adjustments based on market situation, price forming mechanism and actual costs of production and business declared by organization and individual.

In the event that any opinions pertaining to the matter are raised by organization and individual, the price management authorities shall consider and deal with them within 5 working days on receipt of adequate information..  

Article 3. Implementation

1. Responsibilities held by those organization and individual manufacturing and trading dairy products:

a) Based on the guidance at Point b, Clause 1 and 2, Article 2 of this Decision, determining their maximum wholesaling and retailing price for submission to the competent price management authorities as a basis for implementing the regulation on price registration; 

b) Based on the maximum price, submitting the price that has been legally calculated to seek for approval from the competent price management authorities, registering their selling price as regulated in Decree No. 177/2013/ND-CP dated 14 November 2013 promulgated by the Government on detailing and instructing the implementation of several provisions of the Law on Price and guiding document from the Ministry of Finance;

c) Publicizing price at their head office, selling stores and distribution channels (applicable to maximum wholesaling price) in accordance with legal regulations.

2. Responsibilities held by price management authorities:

a) The price management authorities of the Ministry of Finance shall assume their responsibilities for: 

- Instructing the implementation of this Decision;

- Receiving the suggestion for maximum price and price registration files to check the maximum cost of price formation to control the price registration as stipulated by law, which is applied for organizations and individuals subject to their price registration at the Ministry of Finance;

- Publicizing the maximum price of dairy products from those organization and individual subject to their price registration at the Ministry of Finance; 

- Arranging and implementing cooperation with competent authorities of Ministries, sectors and localities to examine the implementation of maximum price and price registration for dairy products;

- Within the settlement authority or requesting the competent authorities to deal with the issues arising or promptly proposing proper adjustments to keep up with current market developments during the time of applying price stability methods.    

b) People’s Committee in provinces and centrally-affiliated cities shall assume responsibilities for:

- Accelerating the implementation of price stability methods in accordance with guidance from the Ministry of Finance; Giving guidance on other relevant costs within the scope of maximum price as stipulated at Point a, Clause 2, Article 2 of this Decision;

- Based on the guidance from the Ministry of Finance to receive the suggestion for maximum price and price registration, taking approach to controlling cumulative costs for maximum price formation and price registration as stipulated by law applied for those organization and individual subject to price registration in the areas under the authority;    

- Publicizing the maximum price of dairy products from those organization and individual subject to their price registration in the areas under the authority;

- Monthly reporting the outcome of price stability methods and otherwise being requested to the Ministry of Finance; 

- Directing market management authorities and other competent teams of inspectors, controllers and investigators under their management to assume the inspecting, controlling and investigating responsibilities for implementing the price stability as stipulated in this Decision; Dealing with any violations within their legal authority or requesting the settlement from the competent authorities.  

3. Requesting the relevant Ministries and sectors to direct and instruct the relevant authorities to associate with the price management authorities at all levels to carry out this Decision.

4. Requesting the Central Committee of Vietnam Fatherland Front and its other subsidiary organizations and Vietnam Consumer Protection Association within their legal authority and responsibilities to coordinate the implementation of this Decision, and make a timely report to the Ministry of Finance for settlement.

Article 4. Effect and implementation responsibility:

1. This Decision is coming into force from 01 June 2014; the wholesaling and retailing price shall be governed no later than 10 days and 20 days respectively from the effective date of this Decision.   

2. Head of General Department of Taxation, Head of General Department of Customs, Head of Department of Corporate Finance and other heads of relevant units under the management of the Ministry of Finance, and relevant enterprises, organization and individual shall determine their specific duties and responsibilities for implementing this Decision.

During this implementation, should there be any difficulties and embarrassments, the Ministry of Finance must be informed to deal with them in a timely manner./.