Vietnam’s regulations related to price stabilization

According to Article 15 of the Law on Prices 2012 of Vietnam and Article 3 of Decree No. 177/2013/ND-CP of Vietnam’s Government, goods or services implementing price stabilization are essential goods or services for production, life being stipulated under the following criterions:

- Raw materials, fuel, materials and main service for production and circulation;

- Goods or services satisfying basic human demands.

List of goods and services subject to price stabilization includes:

- Gas and oil products for domestic consumption in the actual temperature include engine gasoline (excluding jet fuel), kerosene, diesel oil and mazut oil;

- Electricity retailing;

- Liquefied petroleum gas (LPG);

- Nitrogenous fertilizer, urea, NPK fertilizer;

- Plant protection chemical, including insecticides, fungicides, herbicides;

- Prophylactic vaccines for livestock and poultry;

- Edible salt;

- Milk for children under 06 years of age;

- Edible sugar including white sugar and refined sugar;

- Paddy and ordinary rice;

- Prophylactic medicine and curative medicine for persons under the list of essential medicines used at medical examination and treatment facilities.

According to Article 16 of the Law on Prices 2012 and Article 4 of Decree No. 177/2013/ND-CP, price stabilization is implemented in the following cases:

- When the market price of the goods or services has unexpected changes occurring in the following cases:

+ The purchase or selling price in the market increases too high or decreases too low unreasonably compared with the increase or decrease due to the impact of price formation elements calculated according to the policy regulations, technical and economic norms or pricing methods issued by the state competent authority;

+ The purchase or selling price in the market increases or decreased unreasonably in case of natural disasters, fires, epidemics, sabotage, financial - economic crises, temporary imbalance of supply and demand;

- When the price level fluctuates and affects the economic and social stability, negatively impacts the production and people's lives.

Moreover, measures of price stabilization are also specified in Article 15 of the Law on Prices 2012 of Vietnam.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE