Methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services in Vietnam

Methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services in Vietnam (Image from Internet)

1. Methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services in Vietnam

The methods and authorization for issuance of decisions on costs or values, unit prices of or subsidies on public goods and services in Vietnam are stipulated in Article 8 of Decree 32/2019/ND-CP as follows:

* For public services using state budget funds

- Public non-business services using state budget funds implemented through task assignment: Based on the quantity and volume of tasks; policies, standards, and cost norms stipulated by competent state agencies; ministries, central agencies, Provincial People's Committees, District People's Committees or authorized direct management agencies are authorized to approve the estimated cost for the task assignment of providing public non-business services.

- Public non-business services using state budget funds implemented through ordering: The pricing method, the competent authority to set prices, and the pricing and unit pricing procedures are in accordance with the provisions of the price law and other relevant laws.

* For public utility products and services

The pricing method, the competent authority to set prices, and the pricing and unit pricing, subsidy rates for public utility products and services are in accordance with the provisions of the price law and other relevant laws.

* Prices and unit prices of public goods and services are determined based on technical-economic norms, cost norms issued by competent authorities. In which, labor costs in prices and unit prices of public goods and services are calculated according to the statutory pay rate, salary coefficient, position-based salaries, allowances, and contributions according to state policies for public service providers and labor norms, cost norms (if any) issued by ministries, central agencies, and Provincial People's Committees according to their authority.

The wages and labor costs in the prices and unit prices of public utility products and services as specified in Appendix II issued with Decree 32/2019/ND-CP and the wages and labor costs in the unit prices of public non-business services using state budget funds as specified in Table 02 Appendix I issued with this Decree for businesses contracted for ordering or bidding (or assigned tasks as per sector-specific legal provisions) are guided by the Ministry of Labor, Invalids, and Social Affairs.

* For products and services in the list of public utility products and services stipulated in Decree 32/2019/ND-CP on the production and provision of public utility products and services, when transferring to the list of public non-business services using state budget funds as stipulated in this Decree, the authority to decide pricing for each service will continue to follow the list of public utility products and services as stipulated by the Price Law 2023 and guiding documents.

2. Methods for commissioning, ordering and tendering for public goods and services in Vietnam

The methods for commissioning, ordering and tendering for public goods and services in Vietnam are stipulates in Article 6 of Decree 32/2019/ND-CP as follows:

- Public non-business services using state budget funds are implemented through the methods of task assignment, ordering, or bidding.

- Public utility products and services are implemented through the methods of ordering, bidding (or task assignment where sector-specific laws stipulate).

- Ministries, central agencies, Provincial People's Committees, District People's Committees or authorized direct management agencies are authorized to choose methods for providing public goods and services appropriately, meeting all conditions stipulated in Chapter II, Chapter III of Decree 32/2019/ND-CP and sector-specific legal provisions (if any).

3. Authority to decide on the method of commissioning, ordering and tendering for public goods and services in Vietnam

The authority to decide on the method of commissioning, ordering and tendering for public goods and services is governed by Article 7 of Decree 32/2019/ND-CP as follows:

- Ministries, central agencies, or authorized direct management agencies are authorized to decide task assignment, ordering for providing public goods and services to affiliated public service providers; ordering (or task assignment where sector-specific laws stipulate) to other public non-business service providers; producers, providers of public utility products and services or organize bidding according to central budget regulations.

- Provincial People's Committees, District People's Committees or authorized direct management agencies are authorized to decide task assignment, ordering for providing public goods and services to affiliated public service providers; ordering (or task assignment where sector-specific laws stipulate) to other public non-business service providers; producers, providers of public utility products and services or organize bidding according to local budget regulations.

- In case of task assignment, ordering for public goods and services with special characteristics from central budget (if any), it is implemented according to the Decision of the Prime Minister the Government of Vietnam.

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