Determination of price of the common-used technical infrastructure works lease in Vietnam

Determination of price of the common-used technical infrastructure works lease in Vietnam (Internet image)

Article 18 of Decree 72/2012/ND-CP stipulates the principles for determining price of the common-used technical infrastructure works lease in Vietnam as follows:

• Price of the common-used technical infrastructure works lease must be calculated exactly and fully for expenditures of investment in construction; expenditures of operation management, maintain; other expenditures as prescribed by law; in association of service quality; compatible with policy mechanism, economic- technical norms, expenditure norm promulgated by competent agencies;

• If organizations, individuals invest in construction of common-used technical infrastructure works for business under form of leasing, the price of lease shall be determined on works, expenditures as prescribed and rational profit.

Basis to determine price of lease

• Expenditures of production, supply of services;

• Supply-demand relation, market price;

• Changes on price and policy mechanism of state;

• Condition of local socio-economic development.

Control of price of lease:

• The Ministry of Finance assume the prime responsibility for, and coordinate with the Ministry of Construction to guide mechanism, principle to control price and method to determine price of lease; prescribe exemption, price reduction to serve for National defense and security public interest activities as prescribed by law;

• The provincial People’s Committees shall base on provisions in clause 1, clause 2 of this article and method to determine price of lease under guides of inter ministries of Construction, Finance to decide price of lease of common-used technical infrastructure works which being invested from the State budget source and apply uniformly in localities;

• Organizations, individuals shall base on provisions in clause 1, clause 2 of this article and method to determine price of lease under guides of inter ministries of Construction, Finance to prescribe price of lease of common-used technical infrastructure works which being invested by themselves (outside of the State budget source) and agree with organizations, individuals having demand of use; and perform price registration according to provisions of law on price management; If parties fail to agree price of lease, state competent agencies shall organize price negotiation according to provisions of law on price management.

More details can be found in Decree 72/2012/ND-CP, which comes into force from November 10, 2012.

Le Vy

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