Criteria for goods and services subject to price negotiations in Vietnam

Criteria for goods and services subject to price negotiations in Vietnam (Image from Internet)

1. Criteria for goods and services subject to price negotiations in Vietnam

The Criteria for goods and services subject to price negotiations in Vietnam as per Article 25 of the Law on Prices 2023 are as follows:

- Not falling under the List of Goods and Services Priced by the State; not subject to bidding or auction as per the legal provisions on bidding and auction.

- Possessing a monopoly in buying or selling where the buyer and seller are interdependent, making it difficult to replace each other.

2. Price negotiation principles, competence, and responsibilities in Vietnam

The price negotiation principles, competence, and responsibilities in Vietnam as per Article 26 of the Law on Prices 2023 are as follows:

- The principles for price negotiation are regulated as follows:

+ Entities proposing price negotiation must be business organizations engaged in the purchase and sale of goods and services that meet the criteria defined in Article 25 of the Law on Prices 2023;

+ The reception and organization of price negotiation must be conducted on a voluntary basis and equality of rights and obligations; both the buyer and seller must submit written requests for price negotiation;

+ The process of price negotiation must ensure objectivity, transparency, and respect the pricing autonomy of the negotiating parties.

- The authority and responsibilities for price negotiation are regulated as follows:

+ Ministries and ministerial agencies manage price negotiation for goods and services within their scope where the buyer, seller, or both are enterprises with 100% state-owned charter capital as per the legal provisions on management and use of state capital invested in production and business at enterprises;

+ Departments managing the sector or field conduct price negotiation for goods and services within their management scope where the buyer and seller do not fall under point a, clause 2 of Article 26 of the Law on Prices 2023.

In cases where the buyer and the seller are headquartered in different provinces or centrally controlled cities, the buyer and seller must agree on which of the two localities will organize the price negotiation.

In cases where the buyer and the seller cannot agree on the locality for price negotiation, the Department managing the sector or field where the seller is registered will organize the price negotiation; if the seller is a branch of an enterprise, the Department managing the sector or field where the branch is registered will organize the price negotiation.

3. Regulations on Price negotiation organization in Vietnam

The regulations on Price negotiation organization in Vietnam as per Article 27 of the Law on Prices 2023 are as follows:

- Upon receiving a written request for price negotiation from the buyer and seller of goods and services, the price negotiation agency reviews and evaluates the compliance with the criteria of the goods and services as prescribed in Article 25 of the Law on Prices 2023. If necessary, the negotiation agency may request additional information about the goods and services from the parties.

- The price negotiation agency organizes a price negotiation conference for the buyer and seller to negotiate the price based on cooperation and mutual benefit. The buyer and seller must provide written authorization for their representatives to participate in the price negotiation conference.

- At the price negotiation conference, the price negotiation agency acts as an intermediary for the buyer and seller to negotiate the price and does not intervene in the price that the parties have negotiated.

- At the price negotiation conference, if the buyer and the seller reach an agreement on the price, the negotiation conference ends; the negotiation agency creates a record for the parties to sign, documenting the negotiation results. The negotiated price applies only to the specific purchase and sales volume described in the written price negotiation request; the negotiated price does not apply to other situations. The buyer and seller are responsible for the negotiated price agreed upon by both parties.

- If the buyer and seller cannot agree on a price and continue to request the price negotiation agency to determine the price, the negotiation agency creates a record of the request. The negotiation agency continues to determine a price for the two parties to implement.

The price determination document from the price negotiation agency applies only once to the specific negotiation request, the specific purchase transaction, and the agreed quantity of goods and services, and does not apply to other cases. The buyer and seller are responsible for complying with the price determined by the negotiation agency.

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