What is the market price? 05 things you should know about market prices in Vietnam

What is the market price? 05 things you should know about market prices in Vietnam (Internet image)

1. What is the market price?

According to Clause 1, Article 2 of Circular 116/2018/TT-BTC, the market price is the price of goods and services formed by the factors that govern and move the market to decide at a certain time and place.

2. Principles and methods of surveying and collecting information on market prices of goods and services in Vietnam

Principles and methods of surveying and collecting information on market prices of goods and services according to Article 3 of Circular 116/2018/TT-BTC are as follows:

- The survey and collection of information on market prices of goods and services must be carried out according to the following principles:

+ Objective, timely, is the actual buying and selling price common in the market at the time of information collection. In the event of collection at the registered price or the declared price, the price must be clearly marked with the corresponding production and business organizations and individuals.

+ The right place to report the price and the right time to report the market price.

+ Survey areas to collect market prices must be places with regular and stable production and business activities, representing urban and rural areas in the province or city.

+ Clearly identify survey and collection prices as wholesale prices, retail prices, declared prices, or registered prices; clearly note information about other relevant factors such as: value-added tax (if any), selling price at the store, place of manufacture, selling price to the buyer's location (place of delivery), market specificity.

- The collection of information on market prices of goods and services is carried out according to the following methods:

+ Methods of direct survey and information collection: Market officers directly visit production and processing factories; wholesale centers, wholesale markets; commercial centers, supermarkets, markets; education and training institutions (for training services); medical examination and treatment establishments (for medical examination and treatment services), to survey and collect information.

Indirect data collection methods: The market price reporting agency shall send an official dispatch requesting production and business organizations and individuals to provide information on the prices of goods and services on the list of reported market prices;

Or the organization summarizes in the mass media the results of statistical registration and declaration of prices of production and business organizations and individuals, or prices purchased by the market price reporting agency. In this case, the source of the information must be clearly indicated.

+ Market officers specified at Point a, Clause 2, Article 3 of Circular 116/2018/TT-BTC are entitled to a monthly per diem according to the provisions of Article 8 of Circular 40/2017/TT-BTC.

3. Agencies and organizations reporting market prices in Vietnam

Agencies and organizations reporting market prices according to Article 4 of Circular 116/2018/TT-BTC include:

- Departments of Finance of provinces and centrally run cities; Price Management Department - Ministry of Finance.

- Division of Finance and Planning at district level under the district-level People's Committees of provinces and centrally run cities.

- Based on the actual situation in the locality, the Department of Finance advises and submits a request to the provincial People's Committee to assign the task of reporting market prices to relevant units (if necessary).

4. Market price reporting period in Vietnam

The reporting period for market prices according to Article 5 of Circular 116/2018/TT-BTC is as follows:

- The Departments of Finance of the provinces and centrally-run cities periodically, on the last day of every month, quarter and year, synthesize data and report on market prices in the province or city; send the market price report to the Ministry of Finance (Price Management Department) before the 5th of the next month of the reporting period;

For the last months of the quarter (March, June, September, and December), report on market prices for 3 months, 6 months, 9 months, and 12 months, respectively (collectively referred to as long-term reports).

In cases of unusual price fluctuations or at the request of a competent state agency, the Department of Finance is responsible for making unscheduled reports on the price fluctuations of a number of essential goods and services in the locality and sending them to the competent authorities and concurrently to the Ministry of Finance (the Price Management Department).

- The Price Management Department is responsible for compiling reports for the Departments of Finance; At the same time, on the basis of monitoring and grasping the general situation of market prices nationwide, it:

Consolidate monthly, quarterly, and annual reports to the Minister of Finance and publicize market price information to the Departments of Finance, relevant units under the Ministry of Finance, and other relevant agencies on the National Price Database system "Data Publication" and the website of the Ministry of Finance.

5. Content of market price report in Vietnam

According to Article 6 of Circular 116/2018/TT-BTC, the content of market price reports is as follows:

- Monthly report and long term report

+ Part 1: Overview of the market situation, prices in the period

++ Changes in the local consumer price index (CPI) in the reporting period;

++ Analysis of the current situation and causes of factors affecting the CPI;

++ Statistics on the prices of goods and services according to the list specified in Article 7 of Circular 116/2018/TT-BTC.

+ Part two: Evaluation of the implementation of state management of prices in the reporting period, including the following contents:

++ The promulgation of legal documents in the field of prices;

++ Implementation of a market stabilization program and local price stabilization measures (if any);

++ Price management of goods and services under the local pricing authority, price adjustment plans (if any);

++ The situation of price declaration in the locality;

++ Inspection and inspection of the observance of the law on prices in the locality;

++ Other related content.

+ The third part: Forecasting the movements of the local market price level in the next period.

- Irregular report:

+ Changes in market prices of goods and services with unusually volatile prices or prices of goods and services required to be reported.

+ Analyzing the causes of price fluctuations for the reported item.

+ Proposing solutions to stabilize the market and prices.

+ The report must contain a statistical table on the prices of goods and services before, during, and after the date of price fluctuations.

Quoc Dat

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