Measures to stabilize prices to be applied in Vietnam as of July 1, 2024

Measures to stabilize prices to be applied in Vietnam as of July 1, 2024

According to the Law, measures to stabilize prices are as follows:

- Demand and supply regulation: regulation on the production of domestic goods, imports, and exports; regulation of goods between regions and provinces in Vietnam via goods regulation organization; purchase or sale of state reserves or goods reserves;

- Financial and monetary measures in conformity with laws;

- Determination of specific prices, maximum prices, or price brackets in conformity with the nature of each kind of goods and service, such a procedure shall be implemented under principles, grounds, and methods prescribed in Section 2 Chapter IV of the Law on Prices 2023;

- Application of price support measures in conformity with laws and international treaties that the Socialist Republic of Vietnam is a signatory;

- Use of price stabilization funds (if any).

A price stabilization fund is a financial fund outside the state budget balance, extracted from prices of goods and services and other legal-financial sources that shall only be used for price stabilization.

The Government of Vietnam shall decide on the establishment of price stabilization funds for goods and services included in the list of goods and services subject to price stabilization; regulations on the management, deduction, and expenditures on the use of price stabilization funds and be responsible for ensuring the publicity and transparency during the management and use of funds.

(Compared to the Law on Prices 2012, the Law on Prices 2023 no longer has the following price stabilization measures:

- Price registration for goods or services subject to price stabilization. Production or business organizations and individuals shall implement price registration only for goods or services subject to price stabilization at the time the State applies methods of price stabilization;
 
- Inspection of pricing determinants; inventory control; inspection of existing quantity and volume of goods.)

See more details in the Law on Prices 2023 of Vietnam, which comes into force as of July 1, 2024 and replaces the Law on Prices 2012, except for Clause 2 Article 60 of the Law on Prices 2023, which comes into force as of January 1, 2026.

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