What is price stabilization? Measures to stabilize prices in Vietnam

What is price stabilization? Measures to stabilize prices in Vietnam (Internet image)

1. What is price stabilization?

According to Clause 10, Article 4 of the Law on Prices 2012, price stabilization is the State's application of appropriate measures to regulate supply and demand, finance, currency and other necessary economic and administrative measures to influence the formation of the economy. formation and movement of prices, do not let the prices of goods and services rise too high or decrease unreasonably low.

2. Goods or services implement price stabilization in Vietnam

- Goods or services implementing price stabilization are essential goods or services for production, life being stipulated under the following criterions:

+ Raw materials, fuel, materials and main service for production and circulation;

+ Goods or services satisfying basic demands of human.

- The List of goods or services implementing price stabilization includes:

+ Finished petrol, oil;

+ Electricity;

+ Liquefied petroleum gas;

+ Nitrogenous fertilizer, NPK fertilizer;

+ Pesticide as prescribed by law;

+ Prevention vaccine for cattle, poultry;

+ Edible salt;

+ Milk for children under 06 years old;

+ Edible sugar, including white sugar and affinated sugar;

+ Paddy, ordinary rice;

+ Drugs for human disease prevention and treatment in the List of essential medicines using at establishments of medical examination and treatment as prescribed by law.

- If neccessary, the List of goods or services implementing price stabilization stipulated in clause 2 of Article 15 of the Law on Prices 2012 may be adjusted, the Government shall submit to the Standing Committee of National Assembly for consideration and decision.

 Basing on the List of goods or services implementing price stabilization stipulated in clause 2 of Article 15 of the Law on Prices 2012, competent State agencies as prescribed in Article 18 of the Law on Prices 2012 shall decide particular types of goods or services to apply suitable measure of price stabilization in each period.

(Article 15 of the Law on Prices 2012)

3. Measures to stabilize prices in Vietnam

Applying in limit time a or a number of the following measures to implement price stabilization in Vietnam conformable to cases prescribed in article 16 of the Law on Prices 2012:

- Making the supply and demand equable of goods produced in domestic and import – export goods; goods in regions, localities in the national through operation of goods circulation; buy or sale out the national reserve goods, circulating reserve goods;

- Measures of finance, monetary conformable to provisions of laws;

- In neccessary cases, establishing fund of price stabilization for items need be stabilized on price in the List of goods or services implementing price stabilization aiming to support for price stabilization; using fund of price stabilization upon prices of such goods or services changes abnormally or badly affecting to economy and life.

Fund of price stabilization is established from the following sources:

+ Deducting from price of goods or services;

+ Voluntary contribution by organizations, individuals;

+ Aid of foreign countries;

+ Other legitimate financial sources.

The Government shall stipulate in details in regarding to items being established fund of price stabilization, establishment, management and use of fund of price stabilization;

- Price registration for goods or services subject to price stabilization. The production or business organizations, individuals implement price registration only for goods or services subject to price stabilization in the time the State applies methods of price stabilization.

- Examining elements forming prices; controlling inventory goods; examining quantity, volume of available goods;

- Applying supporting measures of price conformable to provisions of laws and international commitments;

- Determining the particular prices, maximum prices, minimum prices or price frame conformable to nature of goods or services under principles, grounds, methods prescribed in this Law.

(Article 17 of the Law on Prices 2012)

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