Wednesday saw the price of some powdered milk brands increase by five to seven percent following the surge of famous brands such as Vinamilk, Abbott and Dutch Lady onto the market.
|Vietnamese consumers have to pay a premium for milk products, twice as much as other countries in the region|
For instance, Old-Lac Milk 1, 2, 3 produced by the HancoFood Company soared from VND96,000 to VND102,000 per can, whilst Dolac DHA with added calcium and vitamins rose from VND51,000 to VND55,000 per can and the price of regular milk products has been gradually on the rise for some time.
Vietnamese consumers have to pay a premium for milk products, twice as much as other countries in the region.
Representatives of the milk companies explained that the price increases are due to the rising price of imported ingredients.
However many feel this reason is unsatisfactory. The real problem is that the prices for new products will be even higher than the current products once introduced into the market.
Milk companies are launching new products all the time, advertising new nutrient additives such as DHA, an omega-3 essential fatty acid.
These added nutrients usually add VND50,000 to the price of those without; hence milk companies spend hundreds of thousands of dollars per year on advertising and this money comes from the increased price of the basic products.
Furthermore, enterprises pay tens of millions of dong for 30-second television adverts and consumers are bearing these high advertising costs in the purchasing price of the basic products.
Very few import companies import powdered milk ingredients, a contributing factor to the hike in retail prices.