Forbidden acts concerning prices and valuation in Vietnam under the Law on Prices 2023

Forbidden acts concerning prices and valuation in Vietnam

Forbidden acts concerning prices and valuation are specified in Article 7 of the Law on Prices 2023 (effective as of July 1, 2024), specifically as follows:

(1) Regarding price and valuation authorities; persons with positions and entitlements prescribed by laws on prevention and combat against corruption of price and valuation authorities:

- Interfering in the implementation of rights and obligations of suppliers of goods and services or consumers concerning prices and organizations or individuals engaging in valuation operations contrary to their functions, tasks, and entitlements as prescribed by laws.

- Deliberately disclosing or using information on prices provided by suppliers of goods and services contrary to regulations of competent state agencies;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or vales of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(2) Regarding organizations and individuals:

- Spreading or disseminating false and inaccurate information on socio-economic situations causing disturbances in the market information and prices of goods and services;

- Conducting fraudulent pricing by deliberately changing contents committed in transactions without informing customers in advance regarding the time, location, and conditions for purchase and sale, methods of transport and payment, quality, quantity, features, functions, goods, and services at the time of delivering goods or providing services;

- Taking advantage of emergencies, incidents, tragedies, natural disasters, or epidemics to increase the sale prices of goods or services contrary to the fluctuation of aggregate cost compared to normal conditions for self-seeking purposes;

- Obstructing the price management, regulation, or valuation operations of competent state agencies;

- Forging or providing forged certificates of valuation or using forged certificates of valuation for purposes prescribed in Clause 4 Article 55 of the Law on Prices 2023;

- Preparing or providing certificates of valuation when they are ineligible for providing valuation services or using such certificates for purposes prescribed in Clause 4 Article 55 of the Law on Prices 2023; signing certificates of valuation or reports on valuation when they are not valuers;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or values of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(3) Regarding valuation enterprises:

- Conducting acts of unhealthy competition as prescribed by laws on competition; providing inaccurate information on the qualifications, experience, and capacity of service provision of valuers or valuation enterprises;

- Providing valuation services for persons related to valuation enterprises according to laws on enterprises;

- Providing inaccurate or false declarations, forging applications for issuance or re-issuance of certificates of eligibility for valuation services, applications for valuer practicing certificates;

- Issuing false certificates of valuation;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or values of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(4)  Regarding valuers:

- Providing inaccurate information on the qualifications, experience, and capacity of service provision of valuers or valuation enterprises;

- Forging, leasing, lending, or using valuer cards contrary to the Law on Prices 2023 and relevant laws;

- Independently preparing certificates of valuation or reports on valuation;

- Signing certificates of valuation or reports on valuation contrary to specialty or notifications of state agencies on permitted practicing fields; signing certificates of valuation or reports on valuation when not meeting conditions for valuation practice according to Clause 1 Article 45 of the Law on Prices 2023;

- Performing valuation for persons related to valuation enterprises according to laws on enterprises;

- Preparing false reports on valuation or documents related to valuation operations according to Valuation Standards of Vietnam;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or values of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(5)  Regarding valuation councils:

- Directing or interfering in valuation operations affecting the professional independence of council members for self-seeking purposes;

- Issuing false notifications of results of the valuation or reports on valuation;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or values of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(6) Regarding members of valuation councils:

- Preparing false documents related to valuation operations according to Valuation Standards of Vietnam;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or values of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(7)  Regarding customers and third parties in valuation contracts:

- Deliberately providing false information on assets subject to valuation;

- Using expired certificates of valuation; using certificates of valuation contrary to valuation purposes in association with assets subject to valuation and the number of such assets prescribed in valuation contracts;

- Conducting bribery, collusion, or agreements to falsify the prices of goods and services or values of assets subject to valuation for self-seeking purposes; colluding in prices and valuation.

(8)  Regarding agencies, organizations, and individuals: issuing documents with forms and methods limiting the operations of valuation enterprises and valuers contrary to the Law on Prices 2023.

Forbidden acts concerning prices and valuation in Vietnam under the Law on Prices 2023 (Internet image)

Application of the Law on Prices 2013 and relevant laws in Vietnam

- In case of different regulations between the Law on Prices 2023 and other laws promulgated before July 1, 2024, the Law on Prices 2023 shall prevail, except for cases prescribed in Clause 4 of Article 3 of the Law on Prices 2023.

- In case of other laws promulgated after July 1, 2024 that require particular regulations on the management and regulation of prices different from the ones prescribed in the Law on Prices 2023, it is obligatory to determine the specific content that is implemented under or not under the Law on Prices 2023 and the content that is implemented under that such laws. 

- In case other laws promulgated after July 1, 2024 stipulate additional regulations on goods and services priced by the State, it is obligatory to conduct a policy impact assessment; such goods and services must meet at least one of the criteria prescribed in Clause 1 Article 21 of the Law on Prices 2023.

At the same time, it is obligatory to elaborate on the competence and responsibility for pricing, pricing forms for the mentioned goods and services, and determine the grounds and methods of pricing and the promulgation of pricing documents that are implemented under or not under the Law on Prices 2023 and contents that are implemented under such other laws.

- Certain goods shall be priced by the State in compliance with relevant laws as follows:

+ The determination of land prices shall comply with land laws;  

+ The determination of housing prices shall comply with housing laws;

+ The determination of electricity prices and electric services shall comply with electricity laws;

+ The determination of medical service prices shall comply with medical examination and treatment laws;  

+ The determination of tuition fees and prices for services in education, training, and vocational education shall comply with education, higher education, and vocational education laws;

+ The determination of royalty for the utilization and use of published works, audios, or videos in case of limitation of copyrights or relevant rights, compensation for rights to use transferred inventions under compulsory decisions in case of disagreement between the persons granted the right to use such inventions and the right holders, and compensation for the right to use transferred plant varieties under compulsory decisions shall be implemented under laws on intellectual property.

Mai Thanh Loi

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