What is price negotiation? Cases of organizing price negotiation in Vietnam

What is price negotiation? Cases of organizing price negotiation in Vietnam (Internet image)

1. What is price negotiation?

According to Clause 7, Article 4 of the Law on Price 2012, price negotiation means organization and intermediate action for the seller and the buyer of competent State agencies to negotiate on buy price, sale price of goods or services which satisfy conditions of Price negotiation at the request of one of parties or both of parties or as having request of the the Prime Minister, ministers, heads of ministerial - level agencies, heads of Governmental agencies, presidents of People’s Committee of central-affiliated cities and provinces (hereinafter referred as provincial- level People’s Committee).

2. Cases of organizing price negotiation in Vietnam

The cases of organizing price negotiation are specified in Article 23 of the Law on Price 2012 as follows:

- Price negotiation implements for goods or services satisfying the following conditions:

+ Goods or services not being in the List of goods or services defined prices by the State;

+ Goods or services being important, produced, business in specific conditions or having restrained competitive market; having nature of buy or sale monopoly or the buyer and seller are dependent together, cannot replace.

- Competent State agencies organize price negotiation for goods or services prescribed in clause 1 of this article in the following cases:

+ Upon having suggection of the buyer or the seller or both of the buyer and the seller;

+ Upon having request of the Prime Minister, Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, Presidents of provincial People’s Committee.

3. Competence and duty of organizing price negotiation in Vietnam

- The Ministry of Finance shall assume the prime responsibility for organizing price negotiation at the request of the Prime Minister, Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies.

- The Service of Finance shall assume the prime responsibility for organizing price negotiation at the request of Presidents of provincial People’s Committee or upon having suggestion of the buyer or the seller or both of the buyer and the seller which having offices located in their areas. If the buyer and the seller having offices located in different provinces and suggesting price negotiation, two parties reach agreement to suggest one of two Services of Finance to prime responsibility for negotiation; if they cannot reach agreement, the Services of Finance where the buyer’s office locates, shall assume the prime responsibility for negotiation.

- Agency organizing price negotiation shall be responsible for performance as prescribed by law.

(Article 24 of the Law on Price 2012)

4. Result of price negotiation in Vietnam

- Agency organizing price negotiation shall notify parties in written of price level which have been agreed after negotiation.

- Whether price negotiation has been performed, but parties still not reach agreement on price, agency organizing price negotiation shall decide temporary price for parties to execute.

Decision on temporary prices being notified by agency organizing price negotiation shall take effect at the maximum of 06 months. While executing the decision on temporary prices, parties continue to negotiate on prices. If parties reach agreement on prices, the agreed prices shall be executed and parties shall be responsible for reporting to agency organizing price negotiation to know agreed prices and period of performance

After limit time of 06 months, if parties cannot reach agreement on prices, the authorities shall organize price negotiation for the second time. If parties still can not reach agreement on prices, decision on temporary prices shall continue to take effect for implementation until reaching agreement on prices.

(Article 25 of the Law on Price 2012)

5. Order of organization of price negotiation in Vietnam

Order of organization of price negotiation is implemented as follows:

- The buyer or the seller or both seller and buyer shall submit dossier of price negotiation as prescribed by law;

- The agency organizing the price negotiation shall inform in writing to the parties involved in price negotiation of the time of negotiation; where the dossier of price negotiation is improperly, the agency organizing the price negotiation shall inform in writing to the parties involved in price negotiation for completion as prescribed;

- Where the buyer and the seller or both buyer and seller request the price negotiation, both parties have the right to withdraw their dossiers of price negotiation for reaching an agreement themselves upon the selling and buying price of goods and services before the competent agency organizes the price negotiation and must report on the price agreed upon and the time taken for that price to the agency having the authority to organize the price negotiation;

(Clause 2, Article 12 of Decree 177/2013/ND-CP)

Diem My

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