Circular No. 05/2004/TT-BTC guides the management of prices for goods and services ordered by the State and paid from the State budget.

CIRCULAR

Guidelines for managing prices of goods and services procured and paid for with state budget funds

ordering payment from state budget funds

Based on the Price Law No. 40/2002/PL-UBTVQH10 adopted by the Standing Committee of the 10th National Assembly on April 26, 2002; April 2002;

Based on Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Law;  December 25, 2003 Government Decree detailing the implementation of certain provisions of the Price Ordinance;

Based on Decree No. 77/2003/NĐ-CP dated July 1, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

The Ministry of Finance hereby provides guidelines for the management mechanism of prices for certain goods and services procured and paid for with state budget funds as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

Article 1. Scope of Application:

These guidelines apply to goods and services procured and assigned production tasks to units (including those subsidized by the state) paid for with state budget funds without going through bidding or auction processes. (including goods and services subsidized by the state) paid from state budget funds without going through bidding or auction procedures.

The level of the budget responsible for the expenditure shall direct, manage, review the payment price and subsidy levels.  CHIEF  directing, managing, and reviewing prices for payment purposes, subsidy levels.

第二条 组织和实施奖励工作的支出水平，如政府第152/2025/NĐ-CP号决定关于分级授权和奖励领域的分权规定

These guidelines apply to organizations and individuals (hereinafter referred to as units) assigned production and supply tasks for goods and services by the procurement agency upon acceptance of the quantity ordered.

II. AUTHORITY TO DETERMINE PRICES AND SUBSIDIES

1. Ministry of Finance:

a) Lead and coordinate with relevant ministries and sectors to organize the assessment of pricing plans proposed by ministries, ministerial-level agencies, government agencies, and central-level agencies.

b) Determine the prices and subsidies for goods and services procured and assigned production tasks to units without going through bidding or auction processes, paid from the central budget. the entity placing orders assigns tasks to production units which are paid from the central budget without going through bidding or auction procedures.

2. Ministries, ministerial-level agencies, government agencies, and other central-level agencies:

a) Direct the implementation of regulations on price management and pricing decisions of the State within their respective areas of management.

b) Direct subordinate units to develop pricing plans for goods and services specified in point 1 of Section II, submit written proposals to the Ministry of Finance (Price Management Department) for review and decision.  c) Coordinate with

the Ministry of Finance (Price Management Department) to review pricing plans for goods and services developed by subordinate units.  a) Direct the implementation of regulations on price management and pricing decisions made by competent state agencies.

3. People's Committees of provinces and centrally-administered cities:

b) Decide or delegate to the provincial finance departments to decide the prices and subsidies for goods and services procured and assigned production tasks to units

without going through bidding or auction processes, paid from local budgets. production unit which are paid from local budget funds without going through bidding or auction procedures.

4.  Production units providing goods and services:

a) Develop pricing plans for goods and services to be submitted to competent state agencies for decision.

b) Adhere to the price management mechanisms and pricing levels set by competent state agencies, while also having the responsibility to provide domestic and international price information related to the requirements of the competent state management agencies.  The State has the authority to stipulate and is responsible for providing information on domestic and international prices relevant to the requirements of the competent state management agency regarding prices.

III. PROVISIONS ON PAYMENT PRICES AND SUBSIDY LEVELS

1. Principles for determining payment prices and subsidy levels for goods and services procured and assigned production tasks to units paid for with state budget funds without going through bidding or auction processes: paid from state budget funds without going through bidding or auction procedures:

a) For goods and services already circulating in the market: The payment price is the wholesale selling price at the time of delivery to distribution units.

b)  For goods and services  not yet circulating in the market (single-piece production, first-time production or importation without existing market presence): The payment price is determined by competent state agencies according to the principle of ensuring reasonable cost recovery and statutory payments to the state budget.  covering reasonable costs and payments to the state budget as prescribed by law. 

c) For important social policy goods and services where production costs increase due to external factors and the State must maintain stable retail prices for the people, competent authorities will consider subsidizing the quantity of such goods and services during the period of price stabilization after obtaining the Prime Minister's approval.

 The subsidy amount is the difference between the approved payment price (after excluding subjective factors) and the actual selling price as prescribed by competent state agencies.

d)  For goods and services partially subsidized, the subsidy level is determined by competent state agencies.  right to stipulate.

2. Approval deadlines for payment prices and subsidy levels:

a) For goods and services procured and subsidized annually according to plans, the approval of prices and subsidies is conducted concurrently with the preparation of the annual budget estimates of the main managing sector and the production volume ordered by the State.  ordered by the State.

b) For goods and services procured and subsidized included in the state budget estimates, the approval of prices and subsidies is carried out after the investment project has been approved by the competent authority.

3. Submitting pricing plans:

a) For goods and services under the pricing and subsidy decision-making authority of the Ministry of Finance: Pricing plans are proposed by ministries, ministerial-level agencies, government agencies, and other central-level agencies tasked with procurement and subsidy.

b) For goods and services under the pricing decision-making authority of the People's Committee Chairmen of provinces and centrally-administered cities: Pricing plans are proposed by sector management departments after receiving the review comments from the Finance Department.

For goods and services where the People's Committee Chairman delegates the pricing decision to the Finance Department, the pricing plan is proposed by the sector management department.

IV. INSPECTION AND AUDIT OF THE IMPLEMENTATION OF PAYMENT PRICES AND SUBSIDY LEVELS

1. The Ministry of Finance, ministries, ministerial-level agencies, government agencies, and other central-level agencies, and provincial finance departments, specialized sector management departments of centrally-administered cities within their jurisdiction shall organize inspections and audits or cooperate to inspect and audit compliance with the price management regulations stipulated in this Circular; handle violations according to the decisions of the law.  right to organize inspections and audits or coordinate with others to inspect and audit compliance with price management regulations set forth in this Circular; handle violations according to legal decisions.

2. Units responsible shall provide all relevant documents to the competent authority organizing inspection and examination. At the same time, they must submit annual periodic reports on the situation of using budget funds for ordering and subsidizing as provided  to the competent managing unit  for consolidation and reporting to the Ministry of Finance.

In case of necessity, upon request of the competent authority, units must prepare and submit ad hoc reports on the implementation and use of state budget funds as stipulated in this Circular.

V. IMPLEMENTATION

This circular This Circular takes effect 15 days from the date of publication in the newspaper and replaces Circular Joint of Ministries No. 06/TTLB dated July 10, 1993 of the Government Price Management Board - Ministry of Finance  "Guidelines for price management mechanisms for goods and services subject to subsidy and ordering policies from the state budget in the fields of culture, information, health, education, training, physical culture, and sports".  During implementation, if there are difficulties, units are requested to report to the Ministry of Finance for study and resolution.

During the implementation process, if there are any difficulties, units are requested to report to the Ministry of Finance for research and resolution.