VGP – Circular 122/2010/TT-BTC, dated on August 12 by the Ministry of Finance, does not break any Việt Nam’s commitments to the World Trade Organization’s (WTO) price policy, said a relevant official.
Mr. Nguyễn Tiến Thỏa, Director of the MoF Price Management Department, made the explanation after receiving comments from several foreign-invested milk firms and the Ambassadors of Australia, Canada, New Zealand, the US and the EU that the new circular can discourage new investors and foreign companies here.
According to them, the new price control mechanism would undermine Việt Nam’s attempt to pursue a market economy and its commitment to WTO regulations.
However, Mr. Thỏa asserted that Circular 122/2010/TT-BTC requires importers and traders to register and report prices of powder milk for under six-year-old children to the price management agency.
The Circular strictly abides by the Government’s Decree 75/2008/NĐ-CP, dated on June 6, 2008, which defines milk as a commodity whose price should be stabilized.
Circular 122 only amends and supplements earlier Circular 104/2008/TT-BTC in order to prevent unreasonable price hike of imported powder milk.
The Director stressed that the MoF did not promulgate any new policy nor violate Việt Nam’s commitments to the WTO./.