January 19, 2012

Vinamilk to raise product prices by 7%

Vietnam's Vinamilk's product prices will be increased by 5-7% from January 23, state media reported.

Price increase of production materials, water, electricity, and transportation costs are attributed to the price hike of the Vinamilk products, said the firm, whose revenues rose 37% on year to US$1 billion in 2011.

This is the first price increase of Vinamilk's products since 2010 while other dairy producers and importers had increased prices of their products several times during last year.

The Vietnamese output meets about 22% of the country's demand and Vietnam has to spend large sum for importing dairy products.

Due to heavy independence to import, the Vietnamese dairy products market is dictated by foreign companies, who sell their products at high prices compared to those in global market.