Modifying the list of goods and services subject to price stabilization from July 1, 2024 in Vietnam

Modifying the list of goods and services subject to price stabilization from July 1, 2024 in Vietnam

As prescribed in the Appendix 01 of the Law on Price in 2023, there is a list of goods and services that stabilize prices from July 1, 2024, including:

(1) Gasoline, finished oil.

(2) Liquefied Petroleum Gas (LPG).

(3) Milk for children under 06 years old.

(4) Plain rice, plain rice.

(5) Nitrogen fertilizers; DAP fertilizer; NPK fertilizer.

(6) Animal feed, aquatic feed.

(7) Vaccines - prevent diseases for cattle and poultry.

(8) Plant protection drugs.

(9) Drugs on the list of essential drugs used at medical examination and treatment establishments.

Thus, compared with Clause 2, Article 15 of the Law on Price in 2012 , the Law on Price in 2023 no longer stipulates that electricity, salt, table sugar and supplemented animal feed and aqua feed are the list of goods and services. price stabilization.

What are price stabilization measures in Vietnam?

Pursuant to Clause 1 Article 19 of the Law on Price in 2023 stipulating price stabilization measures in Vietnam as follows

- Demand and supply regulation: regulation of the production of domestic goods, imports, and exports; regulation of goods among regions and provinces in Vietnam via goods circulation organization; purchase or sale of state reserves or goods reserves;

- Financial and monetary measures in conformity with laws;

- Determination of specific prices, maximum prices, or price brackets in conformity with the nature of each kind of goods and service, such a procedure shall be implemented under principles, grounds, and methods prescribed in Section 2 of this Chapter;

- Application of price support measures in conformity with laws and international treaties to which the Socialist Republic of Vietnam is a signatory;

- Use of price stabilization funds (if any).

A price stabilization fund is a financial fund outside the state budget balance, extracted from prices of goods and services and other legal-financial sources that shall only be used for price stabilization. The Government of Vietnam shall decide on the establishment of price stabilization funds for goods and services included in the list of goods and services subject to price stabilization; regulations on the management, deduction, and expenditures on the use of price stabilization funds and be responsible for ensuring the publicity and transparency during the management and use of funds.

Note: The application period of price stabilization measures shall be determined by competent agencies on the basis of determining the reasons for price fluctuations. The actual development of prices of goods and services may end the price stabilization period early or extend the application period depending on the performance of applied price stabilization measures.  

What are principles of price stabilization in Vietnam?

Pursuant to Clause 1 Article 18 of the Law on Price in 2023 stipulating principles of price stabilization in Vietnam as follows

Principles and cases of price stabilization

1. Price stabilization principles are as follows:

a) Assurance of publicity, transparency, and beneficial balance between suppliers of goods and services and consumers;

b) Assurance of conformity with international treaties to which the Socialist Republic of Vietnam is a signatory;

c) Assurance of conformity with socio-economic situations and objectives of controlling inflation;

d) Clear determination of the local and national implementation time and scale.

2. Competent state agencies shall consider performing the price stabilization in the following cases:

a) Market prices of goods and services included in the list of goods and services subject to price stabilization have abnormal fluctuations, greatly impacting socio-economic situations, production, business, and life of the people;

b) Competent agencies declare emergencies, incidents, tragedies, natural disasters, and epidemics; market prices of goods and services have abnormal fluctuations.

As regulations above, principles of price stabilization in Vietnam are:

- Assurance of publicity, transparency, and beneficial balance between suppliers of goods and services and consumers;

- Assurance of conformity with international treaties to which the Socialist Republic of Vietnam is a signatory;

- Assurance of conformity with socio-economic situations and objectives of controlling inflation;

- Clear determination of the local and national implementation time and scale.

Note: The Law on Bidding 2023 takes effect from July 1, 2024.

Best regards!