Latest regulations on price stabilization measures in Vietnam

Latest regulations on price stabilization measures in Vietnam (Image from Internet)

1. Latest regulations on price stabilization measures in Vietnam 

According to Clause 1, Article 19 of the Law on Prices 2023, price stabilization measures include:

- Balancing supply and demand, including: balancing domestic production, imports, and exports; balancing goods between regions and localities within the country through organizing goods circulation; purchasing or selling national reserves, circulating reserves;

- Financial and monetary measures in accordance with the law;

- Setting specific prices, maximum prices, minimum prices, or price ranges suitable to the nature of each type of goods and services; the pricing of goods and services is carried out according to the principles, bases, methods stipulated in Section 2, Chapter IV of the Law on Prices 2023;

- Applying price support measures in accordance with the law and international treaties to which the Socialist Republic of Vietnam is a member;

- Using the price stabilization fund in cases where goods or services have established such a fund.

The price stabilization fund is a financial fund not included in the state budget balance, extracted from the price of goods and services, and other lawful financial sources, and is only used for the purpose of price stabilization. The Government of Vietnam decides the establishment of the price stabilization fund for goods and services in the Price Stabilization List; regulates the management, establishment, and use of the price stabilization fund and is responsible for ensuring transparency in the management and use of the fund.

2. Principles and cases of price stabilization in Vietnam

Principles and cases of price stabilization in Vietnam according to Article 18 of the Law on Prices 2023 include:

- Principles of price stabilization are defined as follows:

+ Transparency and openness; harmonizing benefits between organizations and individuals trading goods and services, and consumers;

+ Compliance with the treaties to which the Socialist Republic of Vietnam is a member;

+ Suitability with the socio-economic context, inflation control objectives;

+ Clearly determining the duration and scope of implementation nationwide or at the local level.

- State authorities consider and stabilize prices in the following cases:

+ Market price levels of goods and services in the Price Stabilization List show abnormal fluctuations causing significant socio-economic impacts, affecting production, business, and people's lives;

+ When competent authorities declare an emergency, incidents, disasters, natural calamities, epidemics, and the market price levels of goods and services show abnormal fluctuations.

3. Regulations on price stabilization implementation in Vietnam

Regulations on the price stabilization implementation in Vietnam according to Article 20 of the Law on Prices 2023 are as follows:

- Implementation of price stabilization in the cases stipulated in Point a, Clause 2, Article 18 of the Law on Prices 2023 proceeds as follows:

+ Ministries, ministerial-level agencies managing sectors and fields assess the degree of price level fluctuations of goods and services, the extent of impact on socio-economic, production, business, and people's lives; send documents to the Ministry of Finance for compilation to present to the Government of Vietnam for consideration and decision on the price stabilization policy;

+ Based on the price stabilization policy of the Government of Vietnam, ministries, ministerial-level agencies managing sectors and fields are responsible for leading the implementation, guiding provincial People's Committees to carry out one or several methods: checking elements forming the price or requiring enterprises to report several elements forming the price; controlling inventory goods; assessing the supply and demand of goods and services to determine the cause, as a basis for choosing suitable measures, duration, and scope of price stabilization. Provincial People's Committees are responsible for organizing implementation and reporting results to the leading ministries, ministerial-level agencies;

+ Ministries, ministerial-level agencies managing sectors and fields issue decisions to apply one or several price stabilization measures along with the duration and scope of application; organize implementation, guide the measures' implementation, and report the results to the Government of Vietnam, while sending the Ministry of Finance the report for inclusion in the comprehensive report, analysis, and forecast of market prices. Provincial People's Committees are responsible for organizing the implementation of price stabilization measures and reporting results to the leading ministries, ministerial-level agencies;

+ Organizations and individuals trading goods and services are responsible for complying with announced price stabilization measures and implementing first-time price declaration, re-declaration of prices as regulated in Article 28 of the Law on Prices 2023 with competent state authorities.

- Implementation of price stabilization in the cases stipulated in Point b, Clause 2, Article 18 of the Law on Prices 2023 proceeds as follows:

+ Regarding the nationwide price stabilization, Ministries and ministerial agencies in charge of specific fields and sectors shall assess the actual development and level of market prices of goods and services; submit documents to the Ministry of Finance of Vietnam for summary and presentation to the Government of Vietnam for decisions on appropriate price stabilization guidelines, measures, and periods.

In case of goods and services requiring immediate price stabilization that are not included in the list of goods and services subject to price stabilization, the Ministry of Finance of Vietnam shall, based on requests from Ministries and ministerial agencies in charge of specific fields and sectors, submit reports to the Government of Vietnam for presentation to the Standing Committee of the National Assembly of Vietnam for consideration and decisions on price stabilization guidelines, measures, and periods for such goods and services.  Ministries, ministerial agencies in charge of specific fields and sectors, and People’s Committees of provinces shall organize the implementation as assigned by the Government of Vietnam;

+ Regarding local price stabilization, departments in charge of specific fields and sectors shall assess the actual development and level of market prices of goods and services in their areas; submit documents to Departments of Finance for summary and presentation to People’s Committees of provinces for consideration and decisions on appropriate price stabilization guidelines, measures, and periods. 

Departments, divisions, and People’s Committees of districts shall organize the implementation as assigned by the People’s Committee of provinces. People’s Committees of provinces shall report on the results of the price stabilization to the government of Vietnam while submitting reports to the Ministry of Finance of Vietnam for inclusion in the summarized market price report, analysis, and forecast;

+ Suppliers of goods and services shall comply with the disclosed price stabilization measures and perform the first-time declaration or re-declaration of prices following Article 28 of the Law on Prices 2023 with competent state agencies;

+ In case competent agencies declare emergencies or stipulate other regulations on price stabilization implementation, comply with laws on emergencies.

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