Vietnam: Authority and responsibility for implementing price stabilization measures

Authority and responsibility for implementing price stabilization measures

Specifically, according to Article 7 of Decree 85/2024/ND-CP of Vietnam's Government, the authority and responsibilities for price stabilization are stipulated as follows:

- The ministries and ministerial-level agencies managing sectors and fields related to goods and services shall define the economic and technical characteristics of goods and services included in the list of price-stabilized goods and services. They shall propose, advise, guide, and organize the implementation of price stabilization measures as assigned by the Government of Vietnam and decide to apply one or several price stabilization measures specified in Clause 1, Article 19 of the Price Law 2023 of Vietnam for specific goods as follows:

+ The Ministry of Agriculture and Rural Development is responsible for overseeing the stabilizing of prices for rice, fertilizers (such as DAP and NPK), animal feed, aquaculture feed, vaccines for livestock and poultry, and plant protection drugs.

+ The Ministry of Industry and Trade is responsible for overseeing the stabilization of prices for petroleum products, liquefied petroleum gas (LPG), and other related items.

+ The Ministry of Health is responsible for overseeing the stabilization of prices for infant formula, essential medicines used in healthcare facilities, and treatment.

+ Each ministry or sector is responsible for overseeing the stabilization of prices for goods and services that are added to or not included in the Price Stabilization List, as regulated in Article 20, Clause 2 of the Price Law 2023. If a particular item falls under the management of multiple ministries or equivalent agencies, the government will assign one of them to take the lead.

- The Ministry of Finance is responsible for leading and coordinating with other ministries and sectors in providing advice to the government regarding price stabilization policies, measures, and timelines, as stipulated in Article 20 of the Price Law 2023.
- The State Bank of Vietnam is responsible for leading and coordinating with other ministries and sectors in providing advice to the government and implementing appropriate monetary measures in accordance with the law to stabilize prices.

- Provincial People's Committees, based on their functions, tasks, and authority, are responsible for organizing and implementing price stabilization measures as decided by the National Assembly Standing Committee, the Government, and relevant ministries or equivalent agencies. They have the authority to decide on price stabilization measures as stipulated in point b, clause 2 of Article 20 of the Price Law 2023. These measures include:

+ Regulating the supply and demand of certain goods and services.

+ Implementing appropriate financial measures in accordance with the law.

+ Setting specific prices, maximum prices, minimum prices, or price ranges that are appropriate for each type of goods or services. The pricing of goods and services is conducted based on the principles, grounds, and methods specified in Section 2, Chapter IV of the Price Law 2023.

+ Applying price support measures in accordance with the law and international agreements of which the Socialist Republic of Vietnam is a member.

More details can be found in Decree 85/2024/ND-CP of Vietnam's Government, effective from July 10, 2024.

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