Changes in goods and services subject to price stabilization from July 1, 2024 in Vietnam

Changes in goods and services subject to price stabilization from July 1, 2024 in Vietnam (Internet image)

1. Changes in goods and services subject to price stabilization from July 1, 2024 in Vietnam

According to Article 17 of the Law on Prices of 2023, goods and services subject to price stabilization are as follows:

- Goods and services included in the list of goods and services subject to price stabilization must:

+ Be essential goods and services;

+ Have a great influence on socio-economic development, production, business, and life of the people.

- The list of goods and services subject to price stabilization is prescribed in Appendix No. 01 enclosed of the Law on Prices of 2023. Ministries and ministerial agencies in charge of specific fields and sectors on goods and services shall stipulate the economic-technical characteristics of goods and services included in the list of goods and services subject to price stabilization.

- In cases where it is necessary to adjust the list of goods and services subject to price stabilization, Ministries, ministerial agencies in charge of specific fields and sectors, and People's Committees of provinces shall prepare documents requesting adjustments and submit them to the Ministry of Finance of Vietnam for summary and reports to the Government of Vietnam for presentation to the Standing Committee of Vietnam for consideration and decisions.

The Law on Prices of 2023 has removed electricity, salt, and sugar and added animal feed and aqua feed to the list of price stabilization goods and services. Specifically, the list of goods and services subject to price stabilization include:

- Processed petroleum.

- Liquefied petroleum gas (LPG).

- Milk for children under 6 years old.

- Plain rice.

- Nitrogen fertilizers; DAP fertilizer; NPK fertilizer.

- Animal feed and aquatic feed.

- Husbandry and poultry vaccines.

- Plant protection drugs.

- Drugs included in the list of essential drugs used at medical service facilities.

2. Principles and cases of price stabilization from July 1, 2024 in Vietnam

- Price stabilization principles are as follows:

+ 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.

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

+ 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;

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

(Article 18 of the Law on Prices of 2023)

3. Price stabilization measures from July 1, 2024 in Vietnam

Price stabilization measures are specified in Article 19 of the Law on Prices of 2023 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.

The Law on Prices of 2023 takes effect as of July 1, 2024.

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE