Circular No. 15/2004/TT-BTC guiding the implementation of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance

CIRCULAR

GUIDING THE IMPLEMENTATION OF DECREE NO. 170/2003/ND-CP

OF THE GOVERNMENT PROVIDING FOR DETAIL IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PRICING ORDINANCE

implement certain provisions of the Ordinance on Prices

Pursuant to the Price Ordinance No. 40/2002/PL-UBTVQH10 dated April 26, 2002;

BASED ON DECREE NO. 170/2003/ND-CP OF THE GOVERNMENT PROVIDING FOR DETAIL IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PRICING ORDINANCE, dated December 25, 2003,

THE MINISTRY OF FINANCE GUIDES THE IMPLEMENTATION OF DECREE NO. 170/2003/ND-CP OF THE GOVERNMENT PROVIDING FOR DETAIL IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PRICING ORDINANCE AS FOLLOWS:

A. SCOPE OF APPLICATION

THIS CIRCULAR GUIDES THE STABILIZATION OF PRICES FOR GOODS AND SERVICES; THE AUTHORITY AND RESPONSIBILITY OF ORGANIZATIONS AND UNITS IN THE ESTABLISHMENT, SUBMISSION, REVIEW OF PRICE PLANS, AND DECISION ON PRICES; THE DOCUMENTATION FOR PRICE PLANS AND CONTENT OF PRICE PLANS; THE DOCUMENTATION AND PROCEDURES FOR NEGOTIATED PRICES; STATE ASSETS THAT MUST BE APPRAISED AND ACTIVITIES RELATED TO APPRAISAL.

B. SPECIFIC PROVISIONS

I. GOODS AND SERVICES IMPLEMENTING PRICE STABILIZATION

1. THE PRICE  OF GOODS AND SERVICES LISTED FOR PRICE STABILIZATION IS CONSIDERED ABNORMAL FLUCTUATION ACCORDING TO THE PROVISIONS OF ARTICLES 2, 3, 4, 5, AND 6  OF DECREE NO. 170/2003/ND-CP OF THE GOVERNMENT PROVIDING FOR DETAIL IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PRICING ORDINANCE, DATED DECEMBER 25, 2003,  WITH SPECIFIC CONDITIONS: 

1.1. PETROL AND DIESEL: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE AVERAGE COST OF PETROL (A90, A92), DIESEL, MAZUT, AND GASOIL IS MORE THAN 5% HIGHER THAN THE MAXIMUM SELLING PRICE SET BY ENTERPRISES UNDER THE MANAGEMENT MECHANISM FOR PETROL AND DIESEL ISSUED BY THE PRIME MINISTER.

1.2. LIQUEFIED GAS: OVER A MINIMUM PERIOD OF 60 CONSECUTIVE DAYS, THE RETAIL PRICE INCREASES BY AT LEAST 30% COMPARED TO THE MARKET PRICE BEFORE THE FLUCTUATION.

1.3. CEMENT AND REBAR: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE RETAIL PRICE INCREASES BY AT LEAST 15% COMPARED TO THE MARKET PRICE BEFORE THE FLUCTUATION.

1.4. URINE FERTILIZER: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE RETAIL PRICE OF 1 KG URINE FERTILIZER EXCEEDS THE RETAIL PRICE OF 2 KG RICE AT THE SAME TIME AND IN THE SAME AREA BEFORE THE FLUCTUATION.

1.5. RICE: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE PURCHASE PRICE DECREASES BY AT LEAST 15% COMPARED TO THE MARKET PRICE BEFORE THE FLUCTUATION.

1.6. REGULAR RICE: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE RETAIL PRICE INCREASES BY AT LEAST 25% COMPARED TO THE MARKET PRICE BEFORE THE FLUCTUATION.

1.7. COFFEE BEANS, COTTON SEEDS, RAW SUGARCANE, AND SALT: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE PURCHASE PRICE DECREASES BY AT LEAST 20% COMPARED TO THE MARKET PRICE BEFORE THE FLUCTUATION.  compared to market prices before any fluctuations.     

1.8. COTTON FIBERS: OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS, THE PURCHASE PRICE INCREASES BY AT LEAST 30% COMPARED TO THE MARKET PRICE BEFORE THE FLUCTUATION.   

1.9. Certain types of medicines for disease prevention and treatment shall be implemented in accordance with the Government’s Decree on "Management of Prices for Medicines for Disease Prevention and Treatment" and related guiding documents.

1.9. CERTAIN TYPES OF MEDICATIONS FOR PREVENTION AND TREATMENT OF HUMAN DISEASES ARE IMPLEMENTED ACCORDING TO THE GOVERNMENT DECREE ON THE MANAGEMENT OF PRICES FOR MEDICATIONS FOR PREVENTION AND TREATMENT OF HUMAN DISEASES AND RELATED GUIDING DOCUMENTS.

1.10. SERVICES: THE FARE FOR PASSENGER TRANSPORTATION SERVICES VIA RAILWAY INCREASES BY AT LEAST 20% OVER A MINIMUM PERIOD OF 30 CONSECUTIVE DAYS COMPARED TO THE PREVIOUSLY SET FARE.

2. WHEN THE PRICES OF GOODS AND SERVICES FLUCTUATE ABNORMALLY AS PROVIDED IN CLAUSE 1, SECTION I OF THIS CIRCULAR, THE MINISTRY OF FINANCE, THE PRICE MANAGEMENT DEPARTMENT, AND THE PROVINCE FINANCE DEPARTMENTS SHALL SUBMIT TO THE AUTHORIZED AUTHORITIES TO DECIDE AND ANNOUNCE THE APPLICATION OF PRICE STABILIZATION MEASURES ACCORDING TO ARTICLE 5 OF DECREE NO. 170/2003/ND-CP OF THE GOVERNMENT PROVIDING FOR DETAIL IMPLEMENTATION OF CERTAIN PROVISIONS OF THE PRICING ORDINANCE, DATED DECEMBER 25, 2003.

II. AUTHORITY AND RESPONSIBILITY OF ORGANIZATIONS AND UNITS IN THE ESTABLISHMENT, SUBMISSION, REVIEW OF PRICE PLANS, AND DECISION ON PRICES   The Government:

1. ASSETS, GOODS, AND SERVICES WITH THE AUTHORITY TO DECIDE PRICES BELONGING TO THE GOVERNMENT:  1.1. FRAMEWORK PRICES FOR DIFFERENT TYPES OF LAND ARE ESTABLISHED BY THE MINISTRY OF FINANCE AND SUBMITTED TO THE GOVERNMENT FOR DECISION AFTER CONSULTATION WITH THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT, RELEVANT MINISTRIES, AND THE PEOPLE'S COMMITTEES OF PROVINCES AND CENTRALLY-GOVERNED CITIES (HEREINAFTER REFERRED TO AS THE PROVINCE PEOPLE'S COMMITTEE).

1.2. FRAMEWORK PRICES FOR LEASE OF WATER SURFACE AND PRICES FOR USE OF WATER SURFACE ARE ESTABLISHED BY THE MINISTRY OF FINANCE AND SUBMITTED TO THE GOVERNMENT FOR DECISION AFTER CONSULTATION WITH THE MINISTRY OF NATURAL RESOURCES AND ENVIRONMENT, RELEVANT MINISTRIES, AND THE PROVINCE PEOPLE'S COMMITTEE.

1.3. FRAMEWORK PRICES OR STANDARD PRICES FOR STATE-OWNED HOUSING FOR SALE OR RENT ARE ESTABLISHED BY THE MINISTRY OF CONSTRUCTION AND SUBMITTED TO THE GOVERNMENT FOR DECISION AFTER CONSULTATION WITH RELEVANT MINISTRIES, THE PROVINCE PEOPLE'S COMMITTEE, AND WRITTEN REVIEW BY THE MINISTRY OF FINANCE.

2. Assets, goods, and services within the authority to determine prices of  2. ASSETS, GOODS, AND SERVICES WITH THE AUTHORITY TO DECIDE PRICES BELONGING TO THE PRIME MINISTER:

2.1.  SELLING PRICES OR LEASE PRICES FOR STATE ASSETS WHICH ARE NATIONAL INFRASTRUCTURE PROJECTS SERVING NATIONAL INTERESTS AND PUBLIC INTEREST WITHOUT AUCTION OR BIDDING ARE ESTABLISHED BY THE UNITS WITH SUCH ASSETS AND SUBMITTED TO THE MINISTRY MANAGING SUCH ASSETS FOR REVIEW AND THEN SUBMITTED TO THE PRIME MINISTER FOR DECISION AFTER CONSULTATION WITH RELEVANT MINISTRIES AND WRITTEN REVIEW BY THE MINISTRY OF FINANCE.  SELLING PRICES OR LEASE PRICES FOR STATE-OWNED HOUSING FOR RENT OR SALE TO RELOCATION OBJECTIVES AND POLICY OBJECTIVES ARE ESTABLISHED BY THE MINISTRY OF CONSTRUCTION AND SUBMITTED TO THE PRIME MINISTER FOR DECISION AFTER CONSULTATION WITH RELEVANT MINISTRIES, THE PROVINCE PEOPLE'S COMMITTEE, AND WRITTEN REVIEW BY THE MINISTRY OF FINANCE.

2.2.  STANDARD PRICES FOR ELECTRICITY SALES TO HOUSEHOLD, PRODUCTION, BUSINESS, SERVICE USERS, AND RURAL AREAS AT VARIOUS VOLTAGES ARE ESTABLISHED BY THE VIETNAM ELECTRICITY CORPORATION AND SUBMITTED TO THE MINISTRY OF INDUSTRY FOR REVIEW AND THEN SUBMITTED TO THE PRIME MINISTER FOR DECISION AFTER CONSULTATION WITH RELEVANT MINISTRIES AND WRITTEN REVIEW BY THE MINISTRY OF FINANCE.

2.3.  2.4. POSTAGE FEES OR FRAMEWORK POSTAGE FEES FOR DOMESTIC LETTERS UP TO 20 GRAMS; TELEPHONE CHARGES OR FRAMEWORK TELEPHONE CHARGES FOR LOCAL CALLS AT SUBSCRIBER LOCATIONS ARE ESTABLISHED BY THE SERVICE PROVIDERS AND SUBMITTED TO THE MINISTRY OF POST AND TELECOMMUNICATIONS FOR REVIEW AND THEN SUBMITTED TO THE PRIME MINISTER FOR DECISION AFTER WRITTEN REVIEW BY THE MINISTRY OF FINANCE.

2.5. SELLING PRICES FOR THE PEOPLE'S NEWSPAPER ARE ESTABLISHED BY THE EDITORIAL BOARD OF THE PEOPLE'S NEWSPAPER AND SUBMITTED TO THE PRIME MINISTER FOR DECISION AFTER CONSULTATION WITH RELEVANT MINISTRIES AND WRITTEN REVIEW BY THE MINISTRY OF FINANCE.

3. ASSETS, GOODS, AND SERVICES WITH THE AUTHORITY TO DECIDE PRICES BELONGING TO THE MINISTER OF FINANCE:

3. Assets, goods, and services within the authority of the Minister of Finance to determine prices:

3.1. The selling price or rental price of state assets that are infrastructure works serving national interests and public benefits, not through bidding or auctioning pursuant to the authorization of the Prime Minister, shall be established by the units owning such assets, submit pricing plans for examination by the Ministry managing the assets, and propose the Minister of Finance to decide after obtaining opinions from relevant Ministries.

3.2. The purchase and sale prices of national reserve goods shall be established by the National Reserve Corporation, appraised by the Price Management Department, and  submitted to the Minister of Finance for decision.

For national reserve goods managed by Ministries overseeing specific sectors, the designated unit managing the national reserves shall establish and submit pricing plans, which will be appraised by the Price Management Department and  submitted to the Minister of Finance for decision after obtaining opinions from the relevant Ministries and the National Reserve  Corporation.  3.3. Goods and services produced according to orders from the State without going through bidding or auctioning shall be implemented in accordance with Circular No. 05/2004/TT-BTC dated January 30, 2004, issued by the Ministry of Finance, on guiding the management of prices for goods and services ordered by the State and paid for with state budget funds.

3.4. The airfare for passenger flights between Hanoi and Ho Chi Minh City shall be established by the Civil Aviation Administration of Vietnam, submitted for examination by the Ministry of Transport, and proposed to the Minister of Finance for decision after obtaining opinions from relevant Ministries. 3.5. The prices of gasoline and diesel oil shall be established by the Vietnam Oil and Gas Corporation, submitted for examination by the Ministry of Trade, and proposed by the Minister of Finance for decision on guidance prices after obtaining opinions from the Ministry of Planning and Investment.

Enterprises engaged in the business of gasoline and diesel oil shall determine their selling prices based on guidance prices and in accordance with the mechanism for managing and operating gasoline and diesel oil as stipulated by the Prime Minister.

3.6. The framework price for selling clean water for domestic use shall be established by the Price Management Department, submitted to the Minister of Finance for decision after obtaining opinions from the Ministry of Construction and provincial People's Committees.  3.7. Based on the land price framework set by the Government, the Ministry of Finance shall guide provincial People's Committees to decide on specific land prices in their respective localities.

3.8. Based on the lease price framework for water surfaces and the fee collection price framework for water surfaces set by the Government, the Ministry of Finance shall guide provincial People's Committees to make decisions.

3.9. The retail price framework for certain essential medicines for prevention and treatment of diseases for people shall be guided by the Ministry of Health, with the Vietnam Pharmaceutical Corporation and some production and trading units (with significant market share) establishing and submitting pricing plans for examination by the Ministry of Health and proposed to the Minister of Finance for decision after obtaining opinions from relevant Ministries.

The Price Management Department shall be responsible for appraising pricing plans for goods and services as stipulated at Point 3.4, 3.5, and 3.9 Clause 3 Section II Part B of this Circular to submit to the Minister of Finance for decision.  4. Assets, goods, and services within the authority of the Minister of Industry to decide on prices:

Based on the standard electricity selling price set by the Prime Minister, the Vietnam Electricity Corporation shall submit specific electricity selling prices for each consumer group in the national power grid to the Minister of Industry for decision after obtaining written opinions from the Ministry of Finance.

5. Assets, goods, and services within the authority of the Minister of Posts and Telecommunications to decide on prices:

5.1. Based on postal service rates, rate frameworks for domestic letter mail up to 20 grams; telephone subscription rates or intra-household call rates decided by the Prime Minister, related service providers shall submit specific rates to the Minister of Posts and Telecommunications for decision after obtaining written opinions from the Ministry of Finance.  5.2. Postal service rates for public postal services and exclusive postal services; telecommunication service rates for public telecommunication services shall be submitted by service providers to the Minister of Transport for decision after obtaining written opinions from the Ministry of Finance.

5.3. Rate frameworks for long-distance telephone calls within the country and internationally; international telecommunications channel leasing rate frameworks, inter-provincial, intra-provincial, and intra-household rate frameworks; other postal and telecommunication service rate frameworks shall be submitted by service providers to the Minister of Posts and Telecommunications for decision in accordance with the Prime Minister's regulations. 5.4. Other postal and telecommunication services shall be carried out in accordance with Decision No. 217/2003/QĐ-TTCP dated October 27, 2003, issued by the Prime Minister, on the management of postal and telecommunication service rates.

6. Assets, goods, and services within the authority of provincial People's Committees to decide on prices:  

6.1. Bus passenger transport rates within cities, towns, and industrial zones shall be guided by the Provincial Department of Transportation for transportation units to establish pricing plans, which will be examined by the Provincial Department of Transportation and submitted to the provincial People's Committee for decision after obtaining opinions from relevant agencies and written appraisals from the Provincial Department of Finance.

6.2. Selling prices of newspapers of the Party Committees of provinces and centrally-administered municipalities shall be established by newspaper editorial boards, submitted to the provincial People's Committee for decision after obtaining opinions from relevant agencies and written appraisals from the Provincial Department of Finance.

6.3. Specific land prices in localities shall be established by the Provincial Department of Finance based on principles and methods for determining land prices and land price frameworks decided by the Government and guided by the Ministry of Finance, to be submitted to the provincial People's Committee for approval by the provincial People's Council before making a decision. 

Land prices shall serve as the basis for:

Calculating land use tax, income tax from land transfer rights,

Calculating land use fees and land lease fees when allocating land or leasing land without land use rights auctions or project bidding involving land use; 

Determining the value of land use rights when allocating land without collecting land use fees, stamp duty;

Compensation when the State expropriates land;

Calculating compensation for individuals who violate laws on land use causing damage to the State.  specific land at the local level, the Department of Finance shall base its pricing plan on the principles and methods for determining land prices and the framework of land prices decided by the Government and guidance from the Ministry of Finance, to submit the pricing plan to the Provincial People's Committee for approval before making a decision.

Land prices shall serve as the basis for:

Calculating land use tax, income tax from land transfer,

Calculating land use fees and  rental fees when allocating land or leasing land without public auction of land use rights or bidding for projects using land;

Calculating the value of land use rights when allocating land without collecting land use fees, stamp duty;

Compensation when the State expropriates land;

Calculating compensation for individuals who violate laws on land management causing damage to the State;

6.4. The rental price for water surface land and the fee for using water surface land at the local level shall be established by the Department of Finance based on the price range decided by the Government and the guidance of the Ministry of Finance, and submitted to the Provincial People's Committee for decision after obtaining opinions from the Department of Natural Resources and Environment and other relevant agencies.

6.5. The selling price or rental price for state-owned housing for resettlement targets and policy beneficiaries; the selling price or rental price for state-owned housing for work purposes or other uses shall be established by the Department of Construction based on the price range or standard prices set by the Government or the Prime Minister, and submitted to the Provincial People's Committee for decision after obtaining opinions from relevant agencies and a written review opinion from the Department of Finance.

6.6. The selling price for electricity from locally managed power sources not part of the national power grid shall be established by the entity managing the power source, and submitted to the Provincial People's Committee for decision after obtaining opinions from relevant departments and a written review opinion from the Department of Finance.

6.7. The subsidy amount for freight rates for goods listed in the subsidized freight rate directory, funded from both local and central budgets, and the retail price or price range for subsidized goods and services shall be established by the business sector; reviewed by the Department of Finance and submitted to the Provincial People's Committee for decision after obtaining opinions from the industry management department and other relevant agencies.

6.8. The selling price for clean water for daily use shall be established by the clean water production and business unit based on the price range and guidance of the Ministry of Finance, reviewed by the Department of Finance, and submitted to the Provincial People's Committee for decision after obtaining opinions from the specialized management department and other relevant agencies.

6.9. The pricing of goods and services produced according to orders from the provincial budget without going through bidding or auction procedures shall be carried out in accordance with Circular No. 05/2004/TT-BTC dated January 30, 2004, issued by the Ministry of Finance, "Guidelines for Price Management of Goods and Services Ordered by the State and Paid for with State Budget Funds."  6.9. The pricing of goods and services produced according to orders from the provincial budget without going through bidding or auction procedures shall be carried out in accordance with Circular No. 05/2004/TT-BTC dated January 30, 2004, issued by the Ministry of Finance, "Guidelines for Price Management of Goods and Services Ordered by the State and Paid for with State Budget Funds."

In addition to the assets, goods, and services specified in Clause 6, Section II, Part B of this Circular, if necessary, the Provincial People's Committee may consider requesting the Ministry of Finance to submit to the Prime Minister for approval to allow the Provincial People's Committee to decide on the prices of certain important goods and services that have significant impacts on local economic and social development, aimed at stabilizing prices, protecting the legitimate rights and interests of organizations and individuals engaged in production and business activities, consumers, and the interests of the State.

III. DOCUMENTATION FOR PRICING SCHEMES AND CONTENT OF THE EXPLANATION OF PRICING SCHEMES

1. Documentation for pricing schemes or price adjustment schemes (hereinafter referred to collectively as documentation for pricing schemes) includes:

1.1. A letter requesting the competent authority to establish or adjust prices.

1.2. An explanation of the pricing scheme.

1.3. A consolidated document of opinions from participating agencies (including copies of agency opinions).

1.4. A review document of the pricing scheme by the competent reviewing agencies. 

1.5.  Other related documents.

2. Content of the explanation of the pricing scheme includes:

2.1. The necessity to establish or adjust prices; the production and business situation of the goods or services requiring pricing or price adjustment.

2.2. The calculation of cost prices and selling prices of goods or services priced by the State must comply with the Pricing Regulation prescribed by the Ministry of Finance.

2.3. The impact of the new price level on the operations of other production and business organizations, the state budget, and the living standards and income of consumers.

2.4. Measures to organize and implement the new price level.

The documentation for pricing schemes shall be implemented according to the unified form attached as Appendix 1 to this Circular.

3. Documentation for pricing schemes submitted to the reviewing agency includes the documents specified in Points 1.1, 1.2, 1.3, 1.5, 2.1, 2.2, 2.3, and 2.4. Documentation for pricing schemes submitted to the competent authority to decide on prices also includes the review document of the pricing scheme as stipulated in Point 1.4, Section III, Part B of this Circular.

IV. DOCUMENTATION AND PROCEDURES FOR PRICE NEGOTIATIONS

1. Documentation for price negotiations includes:

1.1. A request document from the buyer or seller sent to the competent authority organizing the price negotiation.

1.2. The negotiation pricing plan including:

a) The necessity (reason) for price negotiation;

b) The pricing calculation of the goods or services requiring negotiation:

Production and consumption situation, supply and demand of the goods or services;

Analysis of the proposed negotiation price:

If the seller requests the organization of price negotiation, they must analyze the production costs and factors affecting production costs of the goods or services (for domestically produced goods); world market prices, import prices, import-related costs, taxes, necessary circulation costs, and other factors influencing the price of imported goods.

If the buyer requests the organization of price negotiation, they must analyze the impact of the seller's proposed price adjustment on the buyer's production and business activities and those of related partners, and analyze  the impact on the production cost and selling price of the output product.

Issues not yet agreed upon by both buyer and seller, and arguments from each side regarding these disagreements.

Evaluation of the impact of the new price level on the acceptance capability of other production and business organizations.

Other recommendations (if any).

Documentation for price negotiations shall be implemented according to the unified form attached as Appendix 2 to this Circular.

The documentation for price negotiations must be sent to the competent authority organizing the price negotiation at least three copies and simultaneously sent to the purchasing (or selling) partner.

2. Procedures for price negotiations.

2.1. The composition of participants in organizing price negotiations for goods and services shall be determined by the competent authority organizing the price negotiation (the Ministry of Finance or the Department of Finance).

2.2. Procedure for price negotiation:  Negotiation procedure:

Organizations and individuals proposing price negotiation must establish and submit the price negotiation dossier (as stipulated in Clause 1, Section I, Part B of this Circular) to the agency organizing the price negotiation (the Ministry of Finance or the Department of Finance). In cases where the price negotiation is carried out at the request of the Prime Minister, Ministers of Ministries, Heads of ministerial-level agencies, or Chairpersons of Provincial People's Committees, enterprises producing and trading goods and services subject to price negotiation shall be responsible for establishing the price negotiation dossier.

Organizations and individuals proposing price negotiation have the right to withdraw their price negotiation dossiers, and may negotiate with each other on the purchase and sale prices of the proposed goods and services before the competent authority organizes the price negotiation.

2.3. Responsibilities of the agency organizing price negotiation:

Within fifteen working days from the date of receiving the complete price negotiation dossier as prescribed in Clause 1, Section IV, Part B of this Circular, the competent authority must organize the price negotiation.

During the process of organizing price negotiation, the agency organizing the price negotiation must collect and analyze necessary information related to the goods and services subject to price negotiation; analyze factors affecting both sellers and buyers that form the price, creating conditions for both parties to agree on the price.

During the price negotiation process, members have the right to express their opinions for discussion and agreement; in cases where there are still differing opinions, the competent authority organizing the price negotiation will decide on a temporary price for both parties to implement as stipulated in Clause 2, Article 13 of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance.  detailing the implementation of certain provisions of the Price Ordinance.

V. STATE ASSETS THAT MUST BE VALUATED AND VALUATION ACTIVITIES

1. State assets that must be valuated:

1.1. State assets specified in Clause 1, Article 15 which have a value as prescribed in Clause 2, Article 15 of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance, if not through bidding or the Price Determination Council, must be valuated.  1.2. Assets purchased entirely or partially from local government budgets outside the provisions of Point 1.1, Clause 1, Section V, Part B of this Circular

shall manage prices according to the regulations of the provincial People's Committee.  2. Valuation enterprises and valuation activities.

2.1. Valuation enterprises established must meet the conditions prescribed in Clause 2, Article 16 of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance and must have a system of market price information domestically and internationally to serve valuation.

2.2. In places where there are no valuation enterprises, the provincial People's Committee shall assign the Department of Finance to carry out valuation work or may contract with state valuation units in the area to conduct valuation for state assets that must be valuated, while if truly necessary and effective, promote the establishment of valuation enterprises in accordance with Article 16 of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of certain provisions of the Price Ordinance and Clause 2, Section V, Part B of this Circular. Organizations and individuals requiring valuation shall sign contracts with units permitted to operate valuation to carry out such activities.  stipulated in Clause 2, Article 16 of the Government’s Decree No. 170/2003/NĐ-CP dated December 25, 2003 detailing the implementation of certain provisions of the Ordinance on Prices, and must have a system of information on domestic and international market prices to serve price appraisal.

2.2. In places where there are no price appraisal enterprises, the Provincial People's Committee shall assign the Department of Finance to carry out price appraisal work or may contract with state price appraisal units in the locality to conduct appraisals for state assets that require price appraisal, while if truly necessary and effective, they should promote the establishment of price appraisal enterprises in accordance with Article 16 of the Government’s Decree No. 170/2003/NĐ-CP dated December 25, 2003 detailing the implementation of certain provisions of the Ordinance on Prices and Clause 2 Section V Part B of the Circular  this. Organizations and individuals requiring price appraisal shall sign contracts with units permitted to operate price appraisal services to carry out such work.

C. IMPLEMENTATION

1. This Circular takes effect fifteen days from the date of publication in the Official Gazette. The Circular No. 03/ VGNN-KHCS dated July 1, 1992 of the State Price Commission guiding the content of state management of prices by provincial and municipal people's committees; Circular No. 04/ VGNN-KHCS dated July 6, 1992 of the State Price Commission guiding the implementation of price registration, price negotiation, and price display; Circular No. 05/VGNN-KHCS dated July 15, 1992 of the State Price Commission guiding the determination and management of standard prices and limit prices; Joint Circular No. 01/LB-QP-NV-VGCP of the Ministry of National Defense, the Ministry of Home Affairs, and the State Price Commission, and other guiding documents implementing Decision No. 137/HĐBT dated April 27, 1992 of the Council of Ministers (now the Government) on price management, and previous documents inconsistent with the content of this Circular are hereby abolished.

2. In the course of implementation, if difficulties or obstacles arise, agencies, organizations, and individuals are requested to report to the Ministry of Finance for research and resolution.