August 25, 2011


Vietnam postpones new fee to reduce meat prices



The Ministry of Finance (MoF) has consented to put off a new veterinary fee collection from livestock firms, hoping to reduce strains from companies involved in the livestock sector.


The delay is expected to facilitate livestock firms to lower prices of meat products, which have partly driven the country's consumer price index to have risen over the months, the ministry said.

Enterprises said the fee will cause production costs of meat products to rise at a time when market meat prices are running high and are under competitive pressure from imported meat.

The ministry issued Circular 136/2010/TT-BTC on September 13, 2010 guiding how to collect, submit, and control the use of veterinary charges and fees in the livestock industry.


According to the HCM City-based meat processor Vissan, the Circular 136 replaced Decision 08/2005/QD-BTC which also included some regulations on the veterinary fee.


In comparison with the decision, the Circular 136 made a number of modifications to the list of charges and fees in the production and business activities of enterprises such as VND1,000 (US$0.048) for a stamp of veterinary and animal product hygiene inspection, and VND2,000 (US$0.096) for a card for sealing transportation means, dissecting, packing, and shipping. Other fees are also up.


The circular also has four new fees compared to the Decision 08/2005. The total monthly difference in costs of Vissan alone is estimated to be over VND350 million (US$16,792).


Vissan director general Van Duc Muoi said the monthly difference would drive up production prices and cut into the competitiveness of enterprises when consumers intended to reduce spending, while the prices of essential products such as meat and meat products increased.


Though the Circular 136 took effect from October 28, 2010, its implementation faced a lot of difficulties and it has been postponed so many times, the last instance coming on July 1, the day the Food Safety Law became effective.

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