Are consumer goods, apparel, and common purchases on the list of goods priced in Vietnam by the State? (Expected)
What are the principles, bases and methods of valuation?
Pursuant to the provisions of Article 22, Article 23, Article 24 of the Draft Law on Price (Amendment) project, which prescribes principles, grounds and methods of pricing, accordingly:
- Principle of pricing:
+ Ensure the correct calculation and complete calculation of factors forming the actual price which is reasonable, valid and profitable in accordance with the market price level; taking into account the market price roadmap in line with the socio-economic development objectives in each period.
+ Timely consider price adjustment when the price-forming factors change.
+ Ensure the harmony of legitimate interests and interests of production and business organizations and individuals, consumers and the State.
- Basis of valuation:
+ Total cost and quality of goods and services at the time of valuation; expected profit.
+ The relationship between supply and demand of goods and services and the purchasing power of money; consumers' ability to pay.
+ Domestic and international market prices and competitiveness of goods and services at the time of valuation.
- Valuation method:
+ Valuation methods are technical methods and processes to determine the prices of goods and services according to approaches from comparing market prices, price-forming factors and income. The Ministry of Finance promulgates the general pricing method for goods and services valued by the State; in the case of goods and services with specialized price-forming factors, the Ministry of Finance shall assume the prime responsibility for, and coordinate with line ministries in, promulgating documents guiding the method of determination and implementation.
+ In case goods or services have particular characteristics, the general valuation method specified in Clause 1 of this Article cannot be applied. Ministries managing sectors and fields shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, promulgating a separate valuation method.
Issuing price decisions under the authority of which agency?
Pursuant to the provisions of Article 25 of the Draft Law on Price (Amendment) project, which provides for the issuance of a price decision, according to which:
“Article 25. Issuance of price decisions
1. Competent state agencies shall consider and promulgate decisions on prices of goods and services on the basis of price plans made according to the provisions of this Law. The form of decision on prices of goods and services is an administrative document. Unless the price decision contains contents on price mechanism and policy, the decision must be made in accordance with the provisions of the Law on Promulgation of Legal Documents.
2. For goods and services falling under the pricing competence of the Prime Minister, line ministries shall organize the elaboration of price plans and submit them to the Prime Minister for consideration and decision after having their opinions. appraisal opinion of the Ministry of Finance.
3. For goods and services falling under the Minister of Finance's pricing competence, the formulation and appraisal of price plans and submission for promulgation of a price decision shall be carried out as follows:
a) For goods and services under the management of the Ministries: The line ministry shall organize the formulation of price plans and send a written request to the Ministry of Finance for valuation; the unit assigned the task of price management under the Ministry of Finance shall have to appraise the price plan and make a dossier to submit it to the Minister of Finance for consideration and decision;
b) For goods and services under the management of the Ministry of Finance, specialized units or units managing national reserve goods are responsible for making price plans; the unit assigned the task of price management under the Ministry of Finance shall have to appraise the price plan and make a dossier to submit it to the Minister of Finance for consideration and decision;
c) In the case of goods and services ordered by the State, the goods and service manufacturing and trading enterprises are responsible for making a price plan and submitting it to the line ministry for appraisal and sending a written request to the Ministry of Industry and Trade. Finance proposed valuation; the unit assigned the task of price management under the Ministry of Finance shall have to review the dossier of the price plan and submit it to the Minister of Finance for consideration and decision.
4. For goods and services falling under the pricing competence of ministries, ministerial-level agencies, and specialized units under the Ministry to prepare price plans; the unit assigned the task of price management under the Ministry shall be responsible for appraising the price plan and making a dossier to submit it to the Minister for decision after receiving written opinions from the Ministry of Finance.
5. For goods and services falling under the pricing competence of the Ministry of National Defense and the Ministry of Public Security, the Ministers of these ministries shall prescribe the formulation and appraisal of price plans and submit them to a price decision.
6. With regard to goods and services falling under the competence of the provincial-level People's Committees to decide on prices, the provincial-level People's Committees shall organize the formulation of price plans and submit them to the provincial-level People's Committees for consideration and decision. after obtaining the appraisal opinion of the Department of Finance. In case of making and appraising the land price list, the land price plan shall comply with the provisions of the land law.
7. The unit assigned the responsibility of formulating the price plan organizes an actual survey of production and business activities in a number of units; supply and demand movements; the market price level to develop a price plan and assess the impact of the price level on the socio-economic, production and business activities of enterprises and people's lives. Organizations and individuals that produce and trade in goods and services on the basis of fluctuations in price-forming factors shall actively review and evaluate them or at the request of a competent pricing authority to compile an assessment report. details of factors forming prices shall be sent to competent agencies for consideration and decision on prices of goods and services.
8. The Ministry of Finance shall stipulate the pricing plan and the dossiers submitted for issuance of the Price Decision.”
Accordingly, the competent State agency considers promulgating the Decision on the price of goods and services, the form of the Decision on the price of goods and services is an administrative document, unless the price decision contains the following contents: Regarding pricing mechanisms and policies, a decision on a legal document must be issued.
Are consumer goods, apparel, and common purchases on the list of goods priced in Vietnam by the State? (Expected)
What goods and services will be goods priced in Vietnam by the State?
Pursuant to the provisions of Article 21 of the Draft Law on Price (Amendment) project, the regulations on goods and services determined by the State are as follows:
“Article 21. Goods and services determined by the State”
1. The State sets prices for important and essential goods and services, which comprehensively affect the socio-economic, people's lives and production and business, including:
a) Goods and services in the field of state monopoly of production and business according to the provisions of the Commercial Law and other laws;
b) Important and essential goods and services, which are exclusive in trading and cannot be replaced;
c) Important resources;
d) National reserve goods; products, public services and public non-business services funded by the state budget.
2. The list of goods and services to be priced by the State, the form of valuation, and the authority and responsibility to determine the price are promulgated uniformly in the Appendix to this Law. In case there is a need to adjust the List of goods and services valued by the State, ministries, ministerial-level agencies, and provincial-level People's Committees shall make a report on impact assessment of the adjustment and send it to the Ministry of Finance for general approval. and submit it to the Government for submission to the National Assembly Standing Committee for consideration and decision.
3. The Government shall detail the order and procedures for requesting adjustment of the list of goods and services valued by the State.”
Different from the provisions of Article 19 of the 2012 Price Law, the draft Law on Prices (Amendment) has added important and essential goods and services, which are exclusive in trading and cannot be replaced in the future. the list of goods and services determined by the State.
As such, common consumer goods sold at small grocery stores are not on the list of goods set by the state.
View the entire Draft: Here
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