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

Scope

The Law on Prices 2023 provides for the rights and obligations of agencies, organizations, individuals, and consumers concerning prices and valuation; price management and regulation of the State; price summary, analysis, and forecast; databases on prices; valuation; specialized price inspectorate, inspection of compliance with laws on prices and valuation.

The Law on Prices 2023 takes effect as of July 1, 2024 in Vietnam (Internet image)

Regulated entities in Vietnam

The Law on Prices 2023 applies to organizations and individuals engaging in the business of goods and services (hereinafter referred to as “suppliers of goods and services”); consumers; state agencies; other organizations and individuals relevant to prices and valuation in Vietnam’s territory.

Application of the Law on Prices and relevant laws in Vietnam

- In case of different regulations between the Law on Prices 2023 and other laws promulgated before July 1, 2024, the Law on Prices 2023 shall prevail, except for cases prescribed in Clause 4 of this Article 3 of the Law on Prices 2023.

- In case of other laws promulgated after July 1, 2024 that require particular regulations on the management and regulation of prices different from the ones prescribed in the Law on Prices 2023, it is obligatory to determine the specific content that is implemented under or not under the Law on Prices and the content that is implemented under that such laws. 

- In case other laws promulgated after the effective date of the Law on Prices 2023 stipulate additional regulations on goods and services priced by the State, it is obligatory to conduct a policy impact assessment; such goods and services must meet at least one of the criteria prescribed in Clause 1 Article 21 of the Law on Prices 2023.

At the same time, it is obligatory to elaborate on the competence and responsibility for pricing, pricing forms for the mentioned goods and services, and determine the grounds and methods of pricing and the promulgation of pricing documents that are implemented under or not under the Law on Prices 2023 and contents that are implemented under such other laws.

- Certain goods shall be priced by the State in compliance with relevant laws as follows:

+ The determination of land prices shall comply with land laws;  

+ The determination of housing prices shall comply with housing laws;

+ The determination of electricity prices and electric services shall comply with electricity laws;

+ The determination of medical service prices shall comply with medical examination and treatment laws;  

+ The determination of tuition fees and prices for services in education, training, and vocational education shall comply with education, higher education, and vocational education laws;

+ The determination of royalty for the utilization and use of published works, audios, or videos in case of limitation of copyrights or relevant rights, compensation for rights to use transferred inventions under compulsory decisions in case of disagreement between the persons granted the right to use such inventions and the right holders, and compensation for the right to use transferred plant varieties under compulsory decisions shall be implemented under laws on intellectual property.

Notable points on enforcement and transitional regulations in Vietnam

(1) Entry into force

- Clause 2 Article 60 of the Law on Prices 2023 comes into force as of January 1, 2026. From July 1, 2024 to the end of December 31, 2025, each valuation council shall have at least 1 member having one of the following professional certificates:

+ College diplomas or higher concerning prices and/or valuation;

+ Valuer cards;

+ Certificates of professional training in valuation;

+ Certificates of advanced training in state valuation.

- The Law on Prices 2012 which has been amended by Law No. 61/2014/QH13, Law No. 64/2020/QH14 and Law No. 07/2022/QH15 (hereinafter referred to as Law on Prices 2012) expires as of July 1, 2024, except for Article 75 of the Law on Prices 2023.

(2) Transitional provisions

- Within 12 months after this Law comes into force, valuation enterprises with certificates of eligibility for valuation services issued under the Law on Prices 2012 shall ensure the requirements for eligibility for valuation services under the Law on Prices 2023.  After the mentioned period, if valuation enterprises fail to ensure the requirements for eligibility for valuation services according to the Law on Prices 2023, the Ministry of Finance of Vietnam shall revoke their certificates of eligibility for valuation services.

- Persons with valuer cards issued according to the Law on Prices 2012 may continue to register for their practice in asset valuation and valuation at enterprises under the Law on Prices 2023.

Mai Thanh Loi

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