State's pricing principles and grounds in Vietnam

State's pricing principles and grounds in Vietnam (Image from Internet)

1. State's pricing principles and grounds in Vietnam

The State's pricing principles and grounds in Vietnam according to Article 22 of the Price Law 2023 are as follows:

- The principles of State pricing are specified as follows:

+ Ensuring the coverage of reasonable and lawful production and business costs; profits (if any) or accumulation according to legal regulations (if any) in line with market levels; ensuring suitability with the supply and demand of goods and services, market conditions at the time of pricing, and the State's economic and social development policies in each period;

+ Ensuring the legitimate rights and interests of the State, organizations, individuals engaged in the business of goods and services, and consumers;

+ Reviewing and adjusting prices when the factors forming the price change. In the case of adjusting public product and service prices in investment projects under the public-private partnership method, it shall be carried out periodically as specified in the project contract.

- The bases of State pricing are specified as follows:

+ Factors forming the price of goods and services at the time of pricing or determining the period of price formation in the price plan in line with the characteristics and nature of goods and services;

+ The supply and demand relationship of goods and services, market needs, and the purchasing power of the currency; the payment capability of consumers;

+ Domestic and global market prices and the competitiveness of goods and services.

2. Goods and services priced by the State in Vietnam

The Goods and services priced by the State in Vietnam according to Article 21 of the Price Law 2023 are as follows:

- Goods and services priced by the State must meet one of the following criteria:

+ Goods and services in the field of State monopoly production and business according to legal provisions on commerce and other related legal regulations;

+ Important resources as stipulated by law on resources;

+ National reserve goods; public utility products and services and public service utilities funded by the state budget;

+ Essential goods and services with a monopolistic nature in purchase and sale or limited competition markets affecting socio-economic conditions, people's livelihoods, and production and business activities.

- The competent State agencies perform pricing in the following forms:

+ Specific price is the price at which agencies, organizations, and individuals must buy and sell according to the exact price level;

+ Minimum price is the price below which agencies, organizations, and individuals cannot price, buy, and sell;

+ Maximum price is the price above which agencies, organizations, and individuals cannot price, buy, and sell;

+ Price frame is the price range within which agencies, organizations, and individuals cannot price, buy, and sell below the minimum or above the maximum of the price frame.

- The authority and responsibility for pricing are specified as follows:

+ The Prime Minister of the Government of Vietnam prices for especially important goods and services that have a significant impact on the macro-economy and people's livelihoods;

+ The Ministry of Finance prices for goods and services under its management; goods and services under multiple sectors management affecting the state budget;

+ Ministries and ministerial-level agencies price for goods and services under their specialized management according to legal regulations;

+ Provincial People’s Committees price for goods and services within their management scope and territory.

- The list of Goods and services priced by the State, pricing forms, and pricing authority and responsibility are specified in Appendix No. 02 attached to the Price Law 2023. The economic-technical characteristics of goods and services within the list of Goods and services priced by the State shall be implemented according to the relevant legal regulations; if there are no regulations, the Ministries, ministerial-level agencies, and provincial People's Committees are responsible for issuing rules within their authority.

- In cases where it is necessary to adjust the list of Goods and services priced by the State, the Ministries, ministerial-level agencies, and provincial People's Committees shall prepare a written proposal for adjustment and send it to the Ministry of Finance for synthesis and submission to the Government of Vietnam to present to the Standing Committee of the National Assembly for consideration and decision.

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