Law on Prices No. 11/2012/QH13

LAW

Price

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Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 as amended and supplemented by Resolution number 51/2001/QH10;

The National Assembly enacts the Price Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law regulates the rights and obligations of organizations and individuals in the price sector; state management and regulation activities on prices.

Article 2. Applicability

Organizations and individuals engaged in production and business; consumers; state agencies; other organizations and individuals related to activities in the price sector within the territory of Vietnam.

Article 3. Application of the Law

1. Activities in the price sector within the territory of Vietnam must comply with the provisions of this Law.

2. In cases where international treaties to which the Socialist Republic of Vietnam is a party have different provisions from those of this Law, the provisions of such international treaties shall apply.

Article 4. Definitions

In this Law, the following terms shall be understood as follows:

1. Goods is property that can be exchanged, bought, and sold on the market, capable of satisfying human needs, including movable and immovable assets.

2. Services is intangible goods, the production and consumption processes of which are inseparable, including service types within the Vietnamese product system as prescribed by law.

3. Essential goods and services are goods and services indispensable for production, living, national defense, and security, including raw materials, fuels, materials, essential services for production and circulation; products meeting basic human needs and national defense and security requirements.

4. Market Price is the price of goods and services formed by market factors influencing and moving at a specific time and place.

5. Pricing is the act of state authorities with jurisdiction or organizations and individuals engaged in production and business setting prices for goods and services.

6. Price Display is the act of organizations and individuals engaged in production and business publicly announcing prices in appropriate, clear, and non-misleading ways to customers regarding purchase and sale prices of goods and services in Vietnamese Dong through printing, pasting, writing prices on boards, paper, or packaging of goods or by other means at transaction sites or places offering goods and services for easy observation and recognition by customers and competent state authorities.

7. Price Negotiation is the act of state authorities with jurisdiction organizing and mediating between buyers and sellers to negotiate purchase and sale prices of goods and services satisfying negotiation conditions upon request of either or both parties or when requested by the Prime Minister, Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees directly under the central government (hereinafter collectively referred to as provincial People's Committees).

8. Price Registration is the act of organizations and individuals engaged in production and business of goods and services establishing, analyzing price formation levels and submitting price notification forms to competent state authorities before pricing or adjusting prices of goods and services listed in the Catalogue of Goods and Services Implementing Price Stabilization Measures during periods when the State applies price stabilization measures.

9. Price Declaration is the act of organizations and individuals engaged in production and business of goods and services submitting price notifications to competent state authorities when pricing or adjusting prices of goods and services required to be declared.

10. Price Stabilization is the act of the State applying appropriate measures to regulate supply and demand, finance, currency, and necessary economic and administrative measures to influence price formation and movement, preventing unreasonable excessive increases or decreases in goods and service prices.

11. Price Formation Factors are reasonable total actual costs corresponding to the quality of goods and services; profit (if any); financial obligations as prescribed by law; intangible value of brand.

12. Total Cost of Goods and Services is the consumption cost of goods and services, including:

a) Production cost of goods and services; purchase price of goods and services for trading organizations and individuals;

b) Circulation costs to deliver goods and services to consumers.

13. Price Level is the average level of goods and service prices in the economy corresponding to a specific space and time, measured by the Consumer Price Index.

14. Abnormal Price Fluctuation is the unreasonable excessive increase or decrease in goods and service prices when price formation factors do not significantly change or in case of economic crisis, natural disasters, enemy attacks, fires, epidemics.

15. Price Appraisal is the act of appraisal organizations determining the monetary value of various assets according to the Civil Code, consistent with market prices at a specific location and time, serving specific purposes based on appraisal standards.

16. Appraisal Result Report is a document prepared by the appraisal enterprise detailing the appraisal process, results, and the enterprise's opinion on the value of the appraised asset for customer and relevant party reference for the purpose stated in the appraisal contract.

17. Appraisal Certificate is a document prepared by the appraisal enterprise to inform customers and relevant parties about the main contents of the appraisal result report.

18. Average Retail Electricity Price is the electricity selling price determined based on the principle of calculating total production and business costs and a reasonable average profit rate per kWh of commercial electricity in each period, used together with the retail electricity tariff structure to calculate specific retail electricity prices for different electricity consumer categories.

19. Range of Average Retail Electricity Prices is the difference between the minimum and maximum levels of average retail electricity prices.

20. Retail Electricity Tariff Structure is a list of specific price levels or percentages (%) of average retail electricity prices to calculate specific retail electricity prices for different electricity consumer categories.

Article 5. Principles of Price Management

1. The State implements price management under a market mechanism; respects the right of organizations and individuals engaged in production and business to set prices and compete according to the provisions of the law.

2. The State adjusts prices in accordance with the provisions of this Law to stabilize prices; protects the legitimate rights and interests of organizations and individuals engaged in production and business, consumers, and the interests of the State.

3. The State has policies on prices aimed at supporting areas with difficult socio-economic conditions and areas with particularly difficult socio-economic conditions.

4. The State stipulates principles and methods for determining prices for goods and services priced by the State in accordance with the principles of a market economy.

Article 6. Publicizing Information on Prices

1. State agencies publicize the policy, measures, and decisions on prices of the State through one or more forms such as press conferences, publication on mass media or other appropriate forms.

2. Organizations and individuals engaged in producing and providing goods and services must publicize information on the prices of their goods and services along with basic economic and technical parameters of those goods and services through price display boards. For goods and services listed in the Catalogue of Goods and Services for Price Stabilization and the Catalogue of Goods and Services Priced by the State, organizations and individuals engaged in production and business may choose to additionally publicize through press conferences, publication on mass media or other appropriate forms.

3. Information and communication agencies have the responsibility to report accurately, objectively, and truthfully about prices and bear responsibility for reporting in accordance with the provisions of the law.

4. The publicizing of information on prices as prescribed in this Article does not apply to cases where information is not permitted to be publicized according to the provisions of the law.

Article 7. Contents of State Administration in the Field of Prices

1. Studying, building, and organizing the implementation of policies and laws in the field of prices in line with the economic and social development policies during each period.

2. Issuing legal regulatory documents in the field of prices.

3. Pricing goods and services listed in the Catalogue of Goods and Services Priced by the State; appraising state assets according to the functions, tasks, and authority prescribed by law.

4. Collecting, compiling, analyzing, and forecasting domestic and international market prices to build a database on prices for state administration in the field of prices.

5. Managing training and professional development in price appraisal; managing examinations, issuance, and revocation of Price Appraiser Cards and Certificates of Eligibility for Providing Price Appraisal Services.

6. Organizing and managing scientific research, international cooperation, training, and professional development of cadres in the field of prices.

7. Inspecting, auditing, resolving complaints and denunciations, and handling violations of the law in the field of prices.

Article 8. State Administrative Authority in the Field of Prices

1. The Government uniformly manages state administration in the field of prices throughout the country.

2. The Ministry of Finance is responsible before the Government for performing the function of state administration in the field of prices.

3. Ministries and agencies equivalent to ministries within the scope of their tasks and powers are responsible for performing the function of state administration over prices in the fields prescribed by law.

4. Provincial People's Committees within the scope of their tasks and powers are responsible for performing the function of state administration in the field of prices at the local level in accordance with the provisions of the law.

Article 9. Specialized Inspection on Pricing

1. State management agencies in the pricing sector shall perform specialized inspection on pricing functions in accordance with the laws on inspection.

2. Specialized inspection on pricing is the inspection of compliance with laws on pricing as stipulated in this Law and other relevant laws.

3. The powers and responsibilities of specialized inspection on pricing; the rights and obligations of organizations and individuals subject to inspection and related organizations and individuals shall be implemented in accordance with the laws on inspection.

Article 10. Prohibited Conduct in the Pricing Sector

1. For state agencies authorized to manage the pricing sector; officials and civil servants belonging to state agencies authorized to manage the pricing sector:

a) Interfering improperly within their functions, duties, and authorities as prescribed by law in the rights and obligations of organizations and individuals engaged in production and business activities in the pricing sector;

b) Issuing documents beyond their authority; not following the prescribed procedures and formalities;

c) Disclosing or using information provided by organizations and individuals engaged in production and business activities in violation of the regulations of competent state agencies;

d) Taking advantage of their positions, authorities, and duties for personal gain.

2. For organizations and individuals engaged in production and business:

a) Fabricating, spreading, or disseminating false information about market conditions, prices of goods and services;

b) Engaging in price fraud by intentionally altering committed terms without prior notice to customers regarding time, location, purchase-sale conditions, and quality of goods and services at the time of delivery or service provision;

c) Exploiting economic crises, natural disasters, enemy attacks, fires, epidemics, and other abnormal conditions; taking advantage of state policies to set unreasonable purchase and sale prices for goods and services;

d) Engaging in transfer pricing, colluding on prices in any form to profit.

3. For appraisal firms and branches of appraisal firms:

a) Competing for clients through obstruction, threats, inducements, bribery, collusion with clients, and other unfair competition practices; providing inaccurate information about the qualifications, experience, and service-providing capabilities of price appraisers, appraisal firms, and branches of appraisal firms;

b) Colluding with clients or related parties during the appraisal process to distort the appraisal results;

c) Receiving or demanding any amount of money or other benefits from appraisal clients outside the agreed service fee in the contract;

d) Counterfeiting, renting, lending; using Price Appraiser Cards contrary to the provisions of the law on pricing;

đ) Disclosing information about appraisal files, appraisal clients, and appraised assets, except where consented by the appraisal client or permitted by law;

e) Obstructing or interfering with the management operations of organizations and individuals requiring appraisals when they are performing their functions and duties in accordance with the law.

4. For price appraisers practicing their profession, in addition to the provisions of Clause 3 of this Article, they shall not engage in the following behaviors:

a) Practicing price appraisal as an individual;

b) Registering to practice price appraisal simultaneously for two or more appraisal firms;

c) Performing appraisals for entities where the price appraiser has capital contribution relationships, purchases shares, bonds, or where their parents, spouse, children, siblings, or direct relatives are members of the leadership board or chief accountants of the entity being appraised.

5. For organizations and individuals with appraised assets and those related to the use of appraisal results:

a) Selecting organizations and individuals who do not meet the conditions for practicing price appraisal to sign appraisal contracts;

b) Providing inaccurate, untruthful, incomplete, or untimely information and documents related to the assets to be appraised;

c) Bribery, solicitation, or collusion with price appraisers or appraisal firms to distort the appraisal results.

Chapter II

RIGHTS AND OBLIGATIONS OF ORGANIZATIONS AND INDIVIDUALS ENGAGED IN PRODUCTION AND BUSINESS AND CONSUMERS IN THE PRICE FIELD

Article 11. Rights of organizations and individuals engaged in production and business

1. To self-determine the prices of goods and services produced and traded by themselves, except for goods and services listed in the State Pricing Catalogue.

2. To decide on purchase and sale prices of goods and services produced and traded by themselves within the price range, maximum price, and minimum price set by the State.

3. To participate in bidding, auctioning, negotiating, and other forms of price competition when purchasing and selling goods and services in accordance with the provisions of the law.

4. To apply pricing principles, bases, and methods prescribed by the State to determine the prices of goods and services.

5. To adjust the prices of goods and services produced and traded by themselves in response to changes in pricing factors.

6. To reduce the selling price of goods and services without being considered a violation of competition laws and anti-dumping laws for imported goods, provided that they publicly display the old price, new price, and duration of the price reduction for the following cases:

a) Fresh products;

b) Inventory goods;

c) Seasonal goods and services;

d) Goods and services for promotional purposes as stipulated by law;

e) Goods and services in cases of bankruptcy, dissolution; change of location or business sector;

f) Goods and services when implementing the State's price stabilization policy.

7. To propose to competent state agencies to adjust the prices of goods and services produced and traded by themselves which are included in the State Pricing Catalogue.

8. To access information about the State's pricing policies; measures for managing and regulating prices, and other public information.

9. To lodge complaints, denunciations, or initiate lawsuits against acts suspected of violating pricing laws; to request organizations and individuals to compensate for damages caused by violations of pricing laws in accordance with the law.

Article 12. Obligations of organizations and individuals engaged in production and business

1. To prepare pricing plans for goods and services produced and traded by themselves which are included in the State Pricing Catalogue and submit them to the competent authority for decision.

2. To comply with pricing decisions and price stabilization measures issued by competent state agencies.

3. To register selling or buying prices for goods and services required to be registered and bear responsibility for the accuracy of the registered prices in accordance with the law.

4. To declare selling or buying prices for goods and services required to be declared and bear responsibility for the accuracy of the declared prices in accordance with the Government's regulations.

5. To display prices:

a) For goods and services priced by the State, organizations and individuals engaged in production and business must display the prices as prescribed by the competent state agency and sell at the displayed price;

b) For goods and services not included in the State Pricing Catalogue, they must display the prices decided by the organization or individual and may not sell at a higher price than the displayed price.

6. To publicly disclose information about the prices of goods and services within their pricing authority in accordance with this Law.

7. To provide timely, accurate, and complete data and documents related to the requirements of competent state agencies in writing when the State sets prices or applies price stabilization measures for goods and services of organizations and individuals engaged in production and business.

8. To promptly resolve all complaints about the prices of goods and services produced and traded by themselves. To compensate for damages caused by violations of pricing laws in accordance with the law.

Article 13. Rights of Consumers

1. To choose, negotiate, and provide feedback on prices when purchasing goods and services.

2. To be provided with accurate and complete information about prices, quality, and origin of goods and services.

3. To request compensation for damages when purchased goods or services do not meet the agreed-upon quality standards, quantities, prices, or other contents that organizations or individuals producing or trading in goods and services have announced, posted, or committed to.

4. To recommend state agencies with authority to adjust prices of goods and services set by the State when price-forming factors change.

5. To lodge complaints, file accusations, initiate lawsuits, or request social organizations to initiate lawsuits against acts suspected of violating laws on prices according to this Law and other relevant laws.

Article 14. Obligations of Consumers

1. To pay according to the agreed-upon price, selected price, or State-set price when purchasing goods and services.

2. To inform state agencies, organizations, or individuals concerned when discovering acts suspected of violating laws on prices.

Chapter III

STATE PRICE REGULATION ACTIVITIES

Section 1

PRICE STABILIZATION

Article 15. Goods and Services Subject to Price Stabilization

1. Goods and services subject to price stabilization are essential goods and services for production and daily life, as defined by the following criteria:

a) Raw materials, fuels, materials, and key services for production and circulation;

b) Goods and services meeting basic human needs.

2. The list of goods and services subject to price stabilization includes:

a) Finished oil products;

b) Electricity;

c) Liquefied petroleum gas;

d) Ammonium nitrate fertilizer; NPK fertilizer;

đ) Pesticides as prescribed by law;

e) Vaccines for animal disease prevention;

g) Table salt;

h) Milk for children under six years old;

i) Sugar for consumption, including white sugar and refined sugar;

k) Rough rice; common polished rice;

l) Medicines for disease prevention and treatment for humans included in the essential medicine list used at healthcare facilities as prescribed by law.

3. In cases where it is necessary to adjust the list of goods and services subject to price stabilization as stipulated in Clause 2 of this Article, the Government shall submit to the Standing Committee of the National Assembly for consideration and decision.

4. Based on the list of goods and services subject to price stabilization as stipulated in Clause 2 of this Article, state agencies with authority as prescribed in Article 18 of this Law shall decide specific types of goods and services to apply appropriate price stabilization measures during each period.

Article 16. Situations for Implementing Price Stabilization

1. Price stabilization shall be implemented in the following situations:

a) When prices of goods and services listed in Clause 2 of Article 15 of this Law fluctuate abnormally;

b) When general price levels fluctuate affecting economic and social stability.

2. The Government shall provide detailed regulations for this Article.

Article 17. Measures for Price Stabilization

Apply one or more of the following measures for a limited time to implement appropriate price stabilization as specified in Article 16 of this Law:

1. Balancing supply and demand for domestically produced goods and goods for export and import; goods between regions and localities within the country through organizing circulation; buying or selling national reserves or circulating reserves;

2. Financial and monetary measures in accordance with the provisions of the law;

3. In case of necessity, establish a price stabilization fund for goods requiring stabilization from the list of goods and services subject to price stabilization with the aim of supporting price stabilization; use the price stabilization fund when prices of these goods and services fluctuate abnormally or adversely affect the economy and living standards.

The price stabilization fund shall be established from the following sources:

a) Deducted from the prices of goods and services;

b) Voluntary contributions from organizations and individuals;

c) Foreign aid;

d) Other lawful financial sources.

The Government shall specify detailed regulations on goods eligible for establishing a price stabilization fund, procedures for establishment, management, and use of the price stabilization fund;

4. Register prices for goods and services subject to price stabilization. Organizations and individuals engaged in production and trade shall only register prices for goods and services subject to price stabilization during the period when the State applies price stabilization measures;

5. Inspect price-forming factors; monitor inventory of goods; inspect quantity and volume of existing goods;

6. Apply price support measures in accordance with the provisions of the law and international commitments;

7. Set specific prices, maximum prices, minimum prices, or price ranges suitable for the nature of each type of goods and services based on principles, grounds, and methods prescribed in this Law.

Article 18. Authority and responsibility for deciding to apply price stabilization measures

1. The Government decides the policy and measures for stabilizing prices in cases prescribed in Articles 16 and 17 of this Law.

2. The Ministry of Finance, ministries, ministerial-level agencies, in accordance with their functions, tasks, powers assigned and delegated by the Government, shall guide and organize the implementation of price stabilization measures decided by the Government.

3. Provincial People's Committees, in accordance with their functions, tasks, powers, shall organize the implementation of price stabilization measures decided by the Government and guided by the Ministry of Finance, ministries, ministerial-level agencies; in case of natural disasters, fires, epidemics, unexpected accidents, based on the actual situation at the locality, decide specific price stabilization measures at the locality.

4. The agency issuing the decision to apply price stabilization measures shall be responsible for determining the duration of applying such measures.

5. Agencies and individuals deciding to apply price stabilization measures shall be responsible for their decisions in accordance with the provisions of the law.

6. The Government shall provide detailed regulations for this Article.

Section 2

PRICING

Article 19. Goods and services priced by the State

1. The State shall price:

a) Goods and services in fields subject to state monopoly production and business;

b) Important resources;

c) National reserve goods; public utility products and services and public service products and services funded from the state budget.

2. Forms of pricing:

a) Specific price levels;

b) Price range;

c) Maximum price level, minimum price level.

3. The list of goods and services priced by the State shall be specified as follows:

a) Specific pricing levels for:

- Air services, including: takeoff and landing services; air traffic control services for departure and arrival; support services for flight operations; security screening services;

- Telecommunication connection services;

- Electricity: transmission price; ancillary system service price;

b) Pricing ranges for: electricity generation prices; wholesale electricity prices; average retail electricity prices; domestic air transport service prices for exclusive routes;

c) Pricing ranges and specific pricing levels for:

- Land, surface water, underground water, forests under the ownership of the entire people managed by the State as the representative owner and clean water for daily use;

- Rental and purchase-on-installment prices for social housing and civil servant housing built from state budget funds; sale or rental prices for state-owned housing;

- Medical examination and treatment services and educational and training services provided at state-run medical facilities and educational and training institutions;

d) Maximum or minimum pricing for:

- National reserve goods as prescribed by laws on national reserves; goods and services ordered by the State and assigned production and business plans; public utility products and services and public service products and services funded from the state budget, except for services prescribed in point c, Clause 3 of this Article;

- Domestic cigarette products;

- Rental prices for state assets that are infrastructure works.

4. In cases where it is necessary to adjust the list of goods and services priced by the State, the Government shall submit to the Standing Committee of the National Assembly for consideration and decision.

Article 20. Principles of State Pricing

1. Ensuring compensation for reasonable actual production and business costs, with appropriate profit in line with market price levels and the State's economic and social development policies in each period.

Article 5. Bases for pricing

Article 21. Basis and Method for Valuation

1. Basis for Valuation:

a) The total cost, quality of goods and services at the time of valuation; expected profit level;

b) Supply and demand relationship of goods and services and purchasing power of currency; consumers' payment ability;

c) Domestic and international market prices and competitiveness of goods and services at the time of valuation;

2. Method for Valuation:

a) The Ministry of Finance shall stipulate the general method for valuing goods and services;

b) Ministries and agencies equivalent to ministries shall take the lead and coordinate with the Ministry of Finance to guide the method for valuing goods and services within their valuation authority.

Article 22. Authority and Responsibility for Valuation

1. The Government shall stipulate:

a) Land price range;

b) Water surface rental price range;

c) Rental and purchase price range for social housing and public service housing.

2. The Prime Minister shall stipulate the price range for average retail electricity prices, pricing adjustment mechanism, and retail electricity tariff structure.

3. The Minister of Finance, other Ministers, heads of agencies equivalent to ministries, and provincial People's Committees shall value goods and services as prescribed in Article 19 of this Law according to the division of labor and delegation by the Government.

4. Agencies and individuals deciding on the valuation of goods and services listed in the State Pricing Directory shall be responsible for their decisions before the law.

Section 3

PRICE NEGOTIATION

Article 23. Cases of Price Negotiation

1. Price negotiation shall be carried out for goods and services meeting the following conditions:

a) Goods and services not included in the State Pricing Directory;

b) Important goods and services produced and traded under special conditions or with limited competition markets; having monopoly buying or selling characteristics or buyers and sellers dependent on each other and unable to replace one another.

2. Competent state agencies shall organize price negotiations for goods and services as prescribed in Clause 1 of this Article in the following cases:

a) When requested by the buyer or seller or both parties;

b) When requested by the Prime Minister, Minister, head of an agency equivalent to a ministry, head of a government agency, or Chairman of the Provincial People's Committee.

Article 24. Authority and Responsibility for Organizing Price Negotiations

1. The Ministry of Finance shall organize price negotiations upon request of the Prime Minister, Minister, head of an agency equivalent to a ministry, or head of a government agency.

2. The Department of Finance shall organize price negotiations upon request of the Chairman of the Provincial People's Committee or when requested by the buyer or seller or both parties with offices located in the same province. In case the buyer and seller have offices in different provinces and both request negotiations, the two parties shall agree on one of the Departments of Finance to organize the negotiations; if no agreement can be reached, the Department of Finance where the seller has its office shall organize the negotiations.

3. The agency organizing price negotiations shall be responsible for organizing the negotiations in accordance with the law.

Article 25. Results of Price Negotiations

1. The agency organizing price negotiations shall notify in writing the agreed price level to the parties after the negotiations.

2. In case price negotiations have been organized but the parties cannot reach an agreement on the price, the agency organizing price negotiations shall decide on a temporary price for the parties to implement.

The temporary price decision announced by the agency organizing the negotiations shall be effective for a maximum of six months. During the implementation period of the temporary price decision, the parties continue to negotiate on the price. If the parties reach an agreement on the price, they shall implement it according to the agreed price and have the responsibility to report the agreed price and implementation period to the agency organizing the negotiations.

At the end of the six-month period, if the parties cannot reach an agreement on the price, the competent agency organizing the second round of price negotiations shall be organized. If the parties still fail to reach an agreement on the price, the temporary price decision shall continue to be effective until an agreement on the price is reached.

Section 4

INSPECTION OF PRICE FORMING FACTORS

Article 26. Cases for inspecting price formation factors

1. The competent state agency shall inspect price formation factors for goods and services specified in Clause 2 of this Article in the following cases:

a) When the competent state agency decides to stabilize prices or set prices;

b) When prices fluctuate abnormally and at the request of the Prime Minister; Ministers, Heads of ministerial-level agencies, Chairpersons of provincial People's Committees.

2. Goods and services subject to inspection of price formation factors include:

a) Goods and services priced by the State;

b) Goods and services implementing price stabilization;

c) Other goods and services when prices fluctuate abnormally at the request of the Prime Minister, Ministers, Heads of ministerial-level agencies, Chairpersons of provincial People's Committees.

Article 27. Inspection authority and responsibility for price formation factors

1. The Ministry of Finance shall take the lead and coordinate with ministries, ministerial-level agencies, and provincial People's Committees to inspect price formation factors for:

a) Goods and services within the pricing authority of the Government, the Prime Minister, and the Minister of Finance;

b) Goods and services listed in the Catalogue of Goods and Services Implementing Price Stabilization as stipulated in Article 15 of this Law.

2. Ministries and ministerial-level agencies shall take the lead and coordinate with the Ministry of Finance and provincial People's Committees to inspect price formation factors for goods and services within the pricing authority of Ministers and Heads of ministerial-level agencies.

3. Provincial People's Committees shall inspect price formation factors for:

a) Goods and services within the pricing authority of provincial People's Committees;

b) Goods and services listed in the Catalogue of Goods and Services Implementing Price Stabilization of organizations and individuals producing and trading on their territory.

Chapter IV

DETERMINATION OF PRICE

Section 1

GENERAL PROVISIONS ON PRICE AUDIT

Article 28. Activities of price audit

1. Organizations meeting the conditions prescribed by this Law may engage in price audit activities.

2. Individuals may not independently conduct price audit activities.

3. Price audit activities must comply with the provisions on price audit under this Law.

Article 29. Principles of price audit activities

1. Compliance with laws and Vietnamese standards for price audit.

2. Responsibility for price audit activities according to the provisions of the law.

3. Ensuring professional independence, honesty, and objectivity in price audit activities and results.

4. Maintaining confidentiality of information in accordance with the law.

Article 30. Price audit procedures for assets

1. Determine general information about the asset to be audited and establish market or non-market value as the basis for price audit.

2. Develop a price audit plan.

3. Conduct on-site surveys and collect information.

4. Analyze information.

5. Determine the value of the asset to be audited.

6. Prepare a report on the audit results, issue an audit certificate, and submit them to customers and relevant parties.

Article 31. Assets for price audit

1. Assets of organizations and individuals requiring price audit.

2. Assets that the State must audit according to the law on management and use of State assets and other related laws.

Article 32. Results of price audit

1. The results of price audit serve as one of the bases for authorities, organizations, and individuals who are owners or have the right to use assets under the law and relevant parties to consider, decide, or approve prices for assets.

2. The use of price audit results must be consistent with the purpose stated in the price audit contract or the request for price audit from the competent state agency.

3. The results of price audit can only be used within the validity period recorded in the audit result report and the audit certificate.

Article 33. Professional Organizations for Appraisal

1. Professional organizations for appraisal shall be established and operate in accordance with the laws on associations and the laws on appraisal.

2. Professional organizations for appraisal shall organize training, issue certificates for professional knowledge enhancement in appraisal, and perform tasks related to appraisal activities as prescribed by law.

Section 2

APPRAISER ON PRICE

Article 34. Appraiser Standards

1. Having civil capacity.

2. Possess moral integrity, honesty, impartiality, and objectivity.

3. Hold a bachelor's degree in a relevant field related to appraisal business.

4. Have at least 36 months of practical work experience in the field of education specified in Clause 3 of this Article after obtaining a bachelor's degree.

5. Hold a certificate of specialized vocational training in appraisal issued by the competent authority.

6. Hold an Appraiser Card in accordance with the regulations of the Ministry of Finance.

Article 35. Appraisers Practicing

1. An appraiser practicing is a person who meets the standards stipulated in Article 34 of this Law and registers to practice appraisal at an appraisal company.

2. The rights and obligations of appraisers practicing at appraisal companies are regulated in Article 37 of this Law.

Article 36. Persons Prohibited from Practicing at Appraisal Companies

1. A person who does not meet the standards stipulated in Article 34 of this Law.

2. Civil servants as defined by the laws on civil servants; professional military officers, defense workers in agencies and units under the People's Army; professional non-commissioned officers, technical non-commissioned officers in agencies and units under the People's Public Security.

3. A person currently prohibited from practicing appraisal according to court judgments or decisions that have taken legal effect; a person currently being pursued for criminal responsibility; a person previously convicted of economic crimes or official misconduct related to finance, price, and appraisal but has not yet had their criminal record expunged; a person currently subject to administrative educational measures in a commune, ward, town; a person currently undergoing compulsory drug rehabilitation or compulsory educational measures.

4. A person previously convicted of serious or more severe economic crimes.

5. A person who has committed financial law violations and been administratively punished within one year from the date of the punishment decision.

6. A person currently suspended from practicing appraisal.

Article 37. Rights and Obligations of Practicing Appraisers

1. Rights of practicing appraisers:

a) Practice appraisal in accordance with this Law and other relevant laws;

b) Independence in professional matters;

c) Request clients to provide documents and materials related to the assets to be appraised and create favorable conditions for conducting the appraisal;

d) Refuse to conduct an appraisal if they determine it cannot be carried out properly;

đ) Participate in domestic and international professional organizations for appraisal in accordance with the law;

e) Other rights as prescribed by law.

2. Obligations of practicing appraisers:

a) Adhere to the regulations on appraisal activities as stipulated by this Law and other relevant laws;

b) Fulfill appraisal contracts accurately and completely;

c) Sign reports on appraisal results, appraisal certificates, and bear legal responsibility before the law, the legal representative, the General Director or Director of the appraisal company regarding the appraisal results;

d) Explain or defend the appraisal results they conducted to the appraisal client or third parties using the appraisal results, which are not the appraisal client but are mentioned in the appraisal contract upon request;

đ) Participate in professional knowledge enhancement programs organized by authorized agencies or organizations;

e) Archive appraisal-related documents and materials;

g) Other obligations as prescribed by law.

Section 3

APPRAISAL COMPANIES

Article 38. Conditions for establishment and operation of appraisal enterprises

1. Appraisal enterprises shall be established in accordance with the provisions of the Enterprise Law.

2. Appraisal enterprises may operate when the Ministry of Finance issues a Business Registration Certificate confirming that they meet the conditions to engage in appraisal services as prescribed by law.

Article 39. Conditions for issuing a Business Registration Certificate confirming the conditions to engage in appraisal services

1. A limited liability company with one member must satisfy the following conditions when requesting issuance of a Business Registration Certificate confirming the conditions to engage in appraisal services:

a) Possess a Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate as prescribed by law;

b) Have at least three registered appraisers practicing at the enterprise, including at least one owner;

c) The legal representative, General Director, or Managing Director of the limited liability company with one member must be a registered appraiser practicing at the enterprise.

2. A limited liability company with two or more members must satisfy the following conditions when requesting issuance of a Business Registration Certificate confirming the conditions to engage in appraisal services:

a) Possess a Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate as prescribed by law;

b) Have at least three registered appraisers practicing at the enterprise, including at least two contributing members;

c) The legal representative, General Director, or Managing Director of the limited liability company with two or more members must be a registered appraiser practicing at the enterprise;

d) The capital contribution of an organizational member shall not exceed the level specified by the Government. The representative of an organizational member must be a registered appraiser practicing at the enterprise.

3. A partnership must satisfy the following conditions when requesting issuance of a Business Registration Certificate confirming the conditions to engage in appraisal services:

a) Possess a Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate as prescribed by law;

b) Have at least three registered appraisers practicing at the enterprise, including at least two general partners;

c) The legal representative, General Director, or Managing Director of the partnership must be a registered appraiser practicing at the enterprise.

4. A private enterprise must satisfy the following conditions when requesting issuance of a Business Registration Certificate confirming the conditions to engage in appraisal services:

a) Possess a Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate as prescribed by law;

b) Have at least three registered appraisers practicing at the enterprise, including one private enterprise owner;

c) The General Director of the private enterprise must be a registered appraiser practicing at the enterprise.

5. A joint-stock company must satisfy the following conditions when requesting issuance of a Business Registration Certificate confirming the conditions to engage in appraisal services:

a) Possess a Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate as prescribed by law;

b) Have at least three registered appraisers practicing at the enterprise, including at least two founding shareholders;

c) The legal representative, General Director, or Managing Director of the joint-stock company must be a registered appraiser practicing at the enterprise;

d) The capital contribution of an organizational member shall not exceed the level specified by the Government. The representative of an organizational member must be a registered appraiser practicing at the enterprise.

6. The Government shall prescribe the procedures and formalities for issuing a Business Registration Certificate confirming the conditions to engage in appraisal services.

Article 40. Suspension of appraisal service business and revocation of Business Registration Certificate confirming the conditions to engage in appraisal services

1. An appraisal enterprise shall be suspended from engaging in appraisal service business if it falls under any of the following circumstances:

a) Failing to meet any of the conditions stipulated in Clauses 1, 2, 3, 4, and 5 of Article 39 of this Law for three consecutive months;

b) Committing serious professional misconduct or violating appraisal standards.

2. An appraisal enterprise shall have its Business Registration Certificate confirming the conditions to engage in appraisal services revoked if it falls under any of the following circumstances:

a) Falsely declaring or fraudulently submitting application documents for issuance of a Business Registration Certificate confirming the conditions to engage in appraisal services;

b) Not engaging in appraisal service business for twelve consecutive months;

c) Failing to rectify violations stipulated in Clause 1 of this Article within sixty days from the date of suspension;

d) Being dissolved, declared bankrupt, or voluntarily ceasing operations in the appraisal service business;

đ) Having its Business Registration Certificate, Enterprise Registration Certificate, or Investment Certificate revoked.

3. An appraisal enterprise whose Business Registration Certificate confirming the conditions to engage in appraisal services has been revoked must cease engaging in appraisal service business from the date the revocation decision takes effect.

4. The Government shall provide detailed regulations on suspending appraisal service business and revoking Business Registration Certificates confirming the conditions to engage in appraisal services.

Article 41. Branches of appraisal enterprises

1. A branch of an appraisal enterprise is a subsidiary unit of the appraisal enterprise, responsible for performing part or all of the appraisal work according to the written authorization of the appraisal enterprise.

2. An appraisal enterprise branch must be established and operate in accordance with the provisions of the law and must have at least two appraisers, among whom the branch director must be an appraiser registered to practice at the appraisal enterprise that has established the branch.

3. The appraisal enterprise shall be liable for the activities of the appraisal branches established by the enterprise.

Article 42. Rights and obligations of appraisal enterprises

1. Rights of appraisal enterprises:

a) Providing appraisal services;

b) Receiving remuneration for appraisal services according to the agreed price recorded in the appraisal service contract;

c) Establishing appraisal enterprise branches;

d) Setting up business bases for appraisal services abroad;

đ) Participating in domestic and foreign professional organizations on appraisal in accordance with the provisions of the law;

e) Requesting appraisal clients to provide relevant files, documents, and data related to the assets being appraised;

g) Refusing to perform appraisal services upon client requests;

h) Other rights as prescribed by law.

2. Obligations of appraisal enterprises:

a) Adhering to the regulations on appraisal activities as stipulated in this Law and the Enterprise Law;

b) Providing the Appraisal Result Report and Appraisal Certificate to clients and third parties using the appraisal results according to the signed appraisal contract;

c) Being responsible for the accuracy, honesty, and objectivity of the appraisal results;

d) Purchasing professional liability insurance for appraisal activities or setting aside a risk reserve fund;

đ) Compensating clients for losses in accordance with the law due to breaches of agreements in the appraisal contract and in cases where the appraisal results cause damage to the client's interests due to non-compliance with appraisal regulations;

e) Managing the professional activities of appraisers under their management;

g) Implementing reporting systems;

h) Storing appraisal-related files and documents.

i) Other obligations as prescribed by law.

Article 43. Activities of foreign appraisal organizations in Vietnam

1. Foreign appraisal organizations meeting the conditions as prescribed by this Law and other relevant laws may conduct appraisal activities in Vietnam.

2. The establishment and operation of foreign appraisal organizations in Vietnam shall be carried out in accordance with this Law and other relevant laws.

3. The Government shall specify the forms and scope of provision of appraisal services by foreign appraisal organizations in Vietnam.

Section 4

STATE APPRAISAL

Article 44. Scope of state appraisal activities

State appraisal activities shall be conducted by competent state agencies in the following cases:

1. Buying, selling, liquidating, leasing state assets or renting assets to serve the operations of state agencies in accordance with the law on the management and use of state assets;

2. Unable to hire an appraisal enterprise;

3. Buying, selling assets involving state secrets;

4. Buying, selling state assets of significant value, where after hiring an appraisal enterprise, the agency or authorized person finds it necessary to obtain the opinion of a competent state agency.

Article 45. Method of State Price Appraisal Activities

1. The competent state agency shall establish a Price Appraisal Board when necessary to appraise prices for cases prescribed in Article 44 of this Law. The Price Appraisal Board shall be dissolved upon completion of its tasks.

2. The Price Appraisal Board shall be responsible for appraising prices in accordance with this Law, other relevant laws, and shall be accountable for the accuracy and honesty of the appraisal results.

Article 46. Procedures for State Price Appraisal

The Government shall provide detailed regulations on the procedures for State price appraisal.

Chapter V

IMPLEMENTING PROVISIONS

Article 47. Effective Date

This Law takes effect from January 1, 2013.

Decree No. 40/2002/PL-UBTVQH10 on Prices ceases to be effective from the date this Law comes into force.

Article 48. Detailed Provisions and Guidance for Implementation

The Government shall provide detailed regulations and guidance for the implementation of the provisions assigned in this Law.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the third session of the XIIIth term, on June 20, 2012./.