Methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services in Vietnam

Methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services in Vietnam (Image from the Internet)

The methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services are specified in Article 8 of Decree 32/2019/ND-CP (effective from June 1, 2019) on commissioning, ordering and tendering for public-sector goods and services funded by the state budget's regular expenditures, specifically as follows:

- For state-funded public services

+ In case of carrying out the process of commissioning state-funded public services, based on commissioned amounts and quantities; spending regimes, levels and limits subject to competent state agencies’ regulations; Ministries, central authorities, provincial People’s Committees, district People’s Committees or their directly-controlled managing bodies may delegate authority to approve the budget proposals for commissioning public services to state-owned public service units.

+ In case of carrying out the process of ordering state-funded public services, the pricing method, agencies having jurisdiction over appraisal or valuation, pricing procedures and unit prices thereof shall be subject to regulatory provisions of price and other relevant law.

- For public utilities

Pricing methods, agencies having jurisdiction over appraisal or valuation, pricing procedures, unit prices and subsidies on public goods and services shall be subject to price and other relevant law.

- Selling prices, costs or values and unit prices of public goods and services shall be determined according to economic – technical norms or cost norms adopted by competent agencies. As part of the aforesaid, personnel wages or salaries included in selling prices, costs or values and unit prices of public goods and services calculated according to statutory base pay rates; pay coefficients arranged by specific professional ranks, grades, titles, and salary-based benefits and contributions shall be subject to state policies and regulations to be applied to state-owned public service units and labor or cost norms (where available) issued by Ministries, central authorities or provincial People's Committees according to jurisdiction. In particular, personnel wages or salaries included in costs or values and unit prices of public goods and services shown in Appendix II to this Decree; personnel wages or salaries included in unit prices of state-funded public goods and services shown in Chart 02 of Appendix I to this Decree that businesses are awarded contracts through the process of ordering or tendering for (or commissioning, once provided in specialized law) public goods and services shall follow the instructions of the Ministry of Labor, War Invalids and Social Affairs.

- For goods and services on the classification list of products and services of public interest given in the Government's Decree No. 130/2013/ND-CP dated October 16, 2013 on production and supply of products and services of public interest, if they are shifted to the classification list of state-funded public services prescribed herein, authority to decide prices of respective services shall be the same as authority to decides prices of goods and services on the classification list of public utilities stipulated in the Law on Prices and its instructional documents.

Above is the consulting content.