Methods of selling commodities in national reserve in Vietnam

Methods of selling commodities in national reserve in Vietnam (Internet image)

Regarding this matter, LawNet would like to answer as follows:

1. Methods of selling commodities in national reserve in Vietnam

According to Article 44 of the Law on National Reserve 2012, commodities in national reserve may be sold by the following methods:

- Auction;

- Appointed sale;

- Public direct sale to all subjects.

2. Principles of preservation of commodities in national reserve in Vietnam

Principles of preservation of commodities in national reserve in Vietnam according to Article 51 of the Law on National Reserve 2012 are as follows:

- Commodities in national reserve must be kept separately, at prescribed locations and preserved under the national technical standards and economic-technical norms of commodities in national reserve and the contracts to provide preservation services for commodities in national reserve, ensuring their quantity, quality and safety.

- If loss is caused during the preservation of commodities in national reserve beyond the law-prescribed level for subjective reasons, the preserving units and persons shall compensate for such lost quantity; if the loss is below the prescribed level, organizations and persons will be rewarded according to the Government's regulations.

- Commodities in national reserve which are damaged or degenerated in quality during preservation must be restored or released for timely sale to limit the damage. If commodities in national reserve are damaged or degenerated in quality for objective reasons, the preserving units or persons are not required to compensate; if it is due to subjective causes, they shall compensate and be handled in accordance with law.

3. Responsibility for preservation of commodities in national reserve in Vietnam

Responsibility for preservation of commodities in national reserve in Vietnam according to Article 52 of the Law on National Reserve 2012 is as follows:

- The agencies in charge of commodities in national reserve shall observe the national technical standards and economic-technical norms of commodities in national reserve and the law on protection of state secrets.

- Heads of the agencies in charge of commodities in national reserve shall direct and inspect the preservation of commodities in national reserve; promptly stop and handle acts of violation of the law on preservation of commodities in national reserve.

- Heads of units directly managing commodities in national reserve and persons directly managing and preserving commodities in national reserve are responsible for the quantity and quality of the assigned commodities in national reserve.

- For commodities in national reserve with special technical, storage and preservation requirements, the agencies in charge of commodities in national reserve shall select organizations or enterprises satisfying the conditions specified in Article 53 of the Law on National Reserve 2012 to sign contracts to provide preservation services.

- The specialized national reserves agency shall inspect and check the preservation of commodities in national reserve by the agencies in charge of commodities in national reserve as well as the organizations in charge of the preservation of commodities in national reserve .

4. Regulations on purchase prices and sale prices of commodities in national reserve in Vietnam

Regulations on purchase prices and sale prices of commodities in national reserve in Vietnam according to Article 49 of the Law on National Reserve 2012 are as follows:

- The purchase prices of commodities in national reserve through bidding and the sale prices of commodities in national reserve though auction comply with the law on bidding or auction and the law on pricing.

- The purchase and sale prices of commodities in national reserve through public direct purchase or sale to all subjects are prescribed as follows:

= The Minister of Finance shall decide the maximum purchase prices and the minimum sale prices for commodities in national reserve at the proposal of the heads of the Ministries and agencies in charge of the management of commodities in national reserve ;

= Heads of the Ministries and agencies in charge of the management of commodities in national reserve, excluding the Minister of National Defense and the Minister of Public Security, shall decide specific prices, based on the market prices at the time and places of purchasing or selling the commodities in national reserve under their management, which, however, must not be higher than the maximum purchase prices and lower than the minimum sale prices decided by the Minister of Finance;

= When purchasing or selling commodities in national reserve, if the fluctuating market prices are higher than the maximum purchase prices or lower than the minimum sale prices, the Minister of Finance shall examine and adjust the maximum purchase prices and the minimum sale prices at the proposal of the heads of the Ministries and agencies in charge of the management of commodities in national reserve .

- The Minister of National Defense and the Minister of Public Security shall decide the purchase prices and sale prices of defense- or security-related commodities in national reserve after reaching an agreement with the Minister of Finance on the pricing principles.

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