The Use of Cost Information to Determine Prices at Feed Mills in Northern Vietnam

Abstract

Vietnam's animal feed market is a potential market, but competition pressure between domestic companies and competition with foreign companies is increasing. Product price is the factor that creates the competitiveness of each animal feed producer in the market. Applying cost information to product pricing in feed companies is a key issue in helping managers make the right decisions. The author collects information at 28 feed mills in Northern Vietnam to understand the use of cost information in pricing by Northern Vietnam feed producers. Through descriptive statistical analysis, the study shows that feed producers in the North of Vietnam are using cost information to determine the selling price of their products, but to varying degrees. And business managers are also aware of the importance of cost information in pricing decisions.