Decree No. 170/2003/ND-CP detailing the implementation of certain provisions of the Price Ordinance

DECREE

Regulations on the Implementation of Certain Provisions of the Price Ordinance

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Price Ordinance No. 40/2002/PL-UBTVQH10 dated April 26, 2002;
At the proposal of the Minister of Finance,

DECREE

Article 1. Scope of application

This Decree stipulates the list of goods and services subject to price stabilization; the list of assets, goods, and services priced by the State; price negotiation; price appraisal; monopoly price control; pricing authority and price management.

Article 2. List of Goods and Services Subject to Price Stabilization

1. The list of goods subject to price stabilization under Article 6 of the Price Ordinance includes: gasoline, diesel, liquefied gas, cement, steel, fertilizers, rice, milled rice, coffee, cotton seeds and cotton fibers, sugarcane raw material, salt; certain types of medicines for human disease prevention and treatment as prescribed by law.

2. The Prime Minister adjusts the list of goods and services subject to price stabilization prescribed in Clause 1 of this Article according to different periods and when market prices fluctuate abnormally.

Article 3. Authority to Decide and Announce the Application of Price Stabilization Measures

1. The Prime Minister decides and announces the application of price stabilization measures for goods and services listed in the price stabilization list in cases where abnormal fluctuations occur nationwide or in specific regions and areas, affecting national economic and social development. These measures include:

a) Adjusting supply and demand of domestically produced goods and exported/imported goods; goods between regions and localities within the country;

b) Buying and selling state reserve goods;

c) Monitoring inventory goods when there are signs of speculation;

d) Using financial and monetary tools when necessary.

2. The Minister of Finance decides and announces the application of price stabilization measures in cases where abnormal fluctuations occur nationwide or in specific regions and areas for goods and services listed in the price stabilization list, affecting national economic and social development or regional development. These measures include:

a) Setting maximum and minimum prices, price ranges;

b) Controlling price-forming factors when there are signs of price monopoly collusion or speculative price hikes.

3. Provincial People's Committees (hereinafter referred to as provincial-level People's Committees) decide and announce the application of price stabilization measures in cases where abnormal fluctuations occur locally for goods and services listed in the price stabilization list, affecting local economic and social development. These measures include:

a) Adjusting supply and demand of goods to ensure production and consumption at the local level;

b) Applying financial and monetary measures when necessary to stabilize the prices of goods and services within the scope of local budget management and usage authority.

4. In cases where specific goods and services have been decided and announced by the Prime Minister or the Ministry of Finance to apply price stabilization measures, the provincial-level People's Committee shall implement these measures.

Article 4. Duration of Application of Price Stabilization Measures

1. The duration of application of price stabilization measures decided and announced by the Prime Minister, the Minister of Finance, and provincial-level People's Committees only takes effect during the period of abnormal market price fluctuations.

2. When market prices return to normal, the competent authority deciding and announcing the application of price stabilization measures shall announce the termination of the duration of application of such measures.

Article 5. Procedures for Submitting to Competent Authorities to Decide on the Application of Price Stabilization Measures

1. The Ministry of Finance submits to the Prime Minister for decision and announcement of the implementation of price stabilization measures in cases where abnormal market price fluctuations occur nationwide or in specific regions and areas.

2. The Price Management Department submits to the Minister of Finance for decision and announcement of the implementation of price stabilization measures within the Ministry of Finance's jurisdiction in cases where abnormal market price fluctuations occur nationwide or in specific regions and areas.

3. The Department of Finance submits to the provincial-level People's Committee for decision and announcement of the implementation of price stabilization measures in cases where abnormal market price fluctuations occur locally.

4. The content submitted to the Prime Minister, the Minister of Finance, and provincial-level People's Committees for decision on price stabilization measures includes:

a) The situation and causes of abnormal market price fluctuations of goods and services listed in the price stabilization list;

b) Measures to stabilize the prices of goods and services and the duration of applying price stabilization measures;

c) Conditions for implementing price stabilization measures;

d) Responsibilities of agencies and organizations implementing price stabilization measures.

Article 6. Responsibility for Organizing the Implementation of Decisions on Price Stabilization Measures by Competent Authorities

1. The Ministry of Finance is responsible for guiding the implementation of the Prime Minister's decisions on the application of price stabilization measures.

2. Ministries managing sectors and fields and provincial-level People's Committees are responsible for organizing the implementation of price stabilization measures prescribed in the Prime Minister's decisions and the Minister of Finance's decisions.

3. The Department of Finance is responsible for guiding the implementation of provincial-level People's Committee decisions on the application of price stabilization measures; sectoral Departments and district, county, town, and city-level People's Committees under provinces are responsible for organizing the implementation of price stabilization measures assigned by provincial-level People's Committees.

4. Organizations and individuals producing and trading goods and services listed in the price stabilization list are responsible for implementing relevant price stabilization measures prescribed in the Prime Minister's, Minister of Finance's, and provincial-level People's Committee's decisions.

Article 7. Assets, Goods, and Services Priced by the State

1. Assets, goods, and services priced by the State under Clause 1 of Article 7 of the Price Ordinance include:

a) Land as prescribed by the Land Law;

b) Water surfaces, important resources as prescribed by law;

c) State-owned assets sold or leased without tender or auction procedures:

State-owned houses rented or sold;

National reserve goods;

State assets are infrastructure works serving national interests and public interests;

Goods and services produced according to government orders.

d) Goods and services subject to state monopoly:

Electricity;

Passenger air transport services on domestic regular routes;

Postal and telecommunications services: ordinary mail within the country with a weight up to 20 grams, telephone subscriptions and local calls at home, domestic long-distance calls and international calls; international telecommunications channel leasing and other postal and telecommunications services prescribed by the Prime Minister under the Ordinance on Postal and Telecommunications Services.

đ) Goods and services important for national economy and people's livelihood:

Gasoline and diesel oil as prescribed by the Prime Minister;

Clean water for daily use;

Public bus passenger transport in cities, towns, industrial zones;

Certain essential medicines for disease prevention and treatment;

Subsidized goods and subsidized freight transportation charges;

People's Daily newspaper, newspapers of the Party Committees of the Communist Party of Vietnam at provincial and centrally governed city levels.

2. In cases where it is necessary to adjust the list of assets, goods, and services priced by the State as stipulated in Clause 1 of this Article, the Ministry of Finance shall submit to the Prime Minister for decision.

Article 8. Pricing Authority

1. The pricing authority for State-priced assets, goods, and services is regulated as follows:

a) The Government decides:

Land price range;

Water surface rental price range;

Price range or standard price for state-owned housing for sale or lease;

b) The Prime Minister decides:

Sale or rental prices for State assets which are infrastructure works serving national interests and public interests without tendering or auctioning;

Rental or sale prices for state-owned housing for resettlement targets or policy beneficiaries;

Standard electricity selling price;

Postage rates or postage rate ranges for domestic ordinary mail weighing up to 20 grams; subscription rates or subscription rate ranges for local calls at home;

Selling price of People's Daily newspaper.

c) The Minister of Finance decides:

Sale or rental prices for State assets which are infrastructure works serving national interests and public interests without tendering or auctioning upon delegation from the Prime Minister;

Prices for national reserve goods and goods and services produced according to government orders without tendering or auctioning;

Air passenger transport service fares on domestic regular routes;

Gasoline and diesel oil prices as prescribed by the Prime Minister;

Clean water for daily use price range;

Based on the land price range set by the Government to guide the provincial People's Councils in determining the prices of various types of land;

Based on the water surface rental price range set by the Government to guide the provincial People's Councils in determining the rental prices for water surfaces;

Retail price range for certain essential medicines for disease prevention and treatment.

d) The Minister of Industry bases on the standard electricity selling price set by the Prime Minister to determine specific electricity selling prices for consumers in the national grid;

đ) The Minister of Posts and Telecommunications decides: long-distance domestic and international telephone call rate ranges; international telecommunications channel leasing rate ranges, inter-provincial and intra-district rate ranges; rate ranges for other postal and telecommunications services prescribed by the Ministry of Posts and Telecommunications according to the Prime Minister's regulations.

e) The provincial People's Council decides:

Public bus passenger transport service fares in cities, towns, and industrial zones;

Selling prices of newspapers of the Party Committees of the Communist Party of Vietnam at provincial and centrally governed city levels;

Based on the price range or standard price set by the Government, the Prime Minister, Ministries, and guidance from the Ministry of Finance, other Ministries to decide on the prices of the following assets, goods, and services applicable in their locality:

+ Prices of various types of land;

+ Water surface rental prices;

+ Rental or sale prices for state-owned housing for resettlement targets or policy beneficiaries; sale or rental prices for state-owned housing for work or other purposes;

+ Electricity selling prices for locally managed power sources not part of the national power grid;

+ Subsidy levels or freight transportation subsidy levels for goods in the subsidized freight transportation list funded from local and central budgets; retail price levels or price ranges for subsidized goods and freight transportation subsidies;

+ Clean water for daily use prices;

+ Prices for goods and services produced according to government orders from the local budget without tendering or auctioning;

2. In cases where there is a change in the pricing authority as stipulated in Clause 1 of this Article, the Ministry of Finance shall submit to the Prime Minister for consideration and decision.

Article 9. Adjusting state-set prices

1. When factors affecting domestic and world prices fluctuate and impact production and daily life, the competent state agency for pricing as stipulated in Article 8 of this Decree must promptly adjust prices. In cases where prices are not adjusted, financial, monetary measures and other necessary measures shall be applied to ensure that organizations and individuals engaged in production and business operations can operate normally and protect the legitimate interests of consumers.

2. Organizations and individuals have the right to request the competent state agency for pricing as stipulated in Article 8 of this Decree to adjust prices according to the provisions of the law. Organizations and individuals producing goods and services with state-set prices when requesting the competent state agency to adjust prices must clearly state the reasons and basis for determining the proposed price adjustment.

3. Within the latest 15 working days from the date of receipt of the request of organizations and individuals, the competent state agency for pricing must examine and adjust prices within the time limit prescribed in Article 10 of this Decree; if the request for price adjustment is not accepted, it must respond in writing to the organization or individual.

Article 10. Procedure and time limit for deciding prices

1. Submitting, reviewing and soliciting opinions on the content of pricing plans

a) Pricing plans for assets, goods, and services under the authority of the Government and the Prime Minister to decide on prices are submitted by the relevant ministries after obtaining the opinions of related ministries and written reviews from the Ministry of Finance.

b) Pricing plans for assets, goods, and services under the authority of the Minister of Finance to decide on prices are decided upon by the Minister based on the opinions of related ministries and sectors.

c) Pricing plans for assets, goods, and services under the authority of ministers to decide on prices are regulated by the minister regarding procedures for submission, review, and decision-making on prices.

d) Pricing plans for assets, goods, and services under the authority of provincial People's Committees to decide on prices are submitted by the relevant provincial departments after obtaining the opinions of related agencies and written reviews from the provincial Department of Finance.

2. Time limits for reviewing pricing plans and deciding on prices

a) The competent agency for reviewing pricing plans as stipulated in Clause 1 of this Article must provide written comments on the content of the pricing plan within the latest 7 working days from the date of receiving complete pricing plan files as prescribed by the Ministry of Finance.

b) From the date of receipt of the pricing plan with the opinions of related agencies and the written review of the competent reviewing agency, the time limit for deciding on prices (calculated in working days) for each level is as follows:

- For the Prime Minister, not exceeding 15 working days at most;

- For ministries, agencies equivalent to ministries, and provincial People's Committees, not exceeding 10 working days at most.

c) If it is necessary to extend the time for reviewing pricing plans and deciding on prices, the competent agency for reviewing pricing plans and the competent agency for deciding on prices must notify in writing and specify the reasons for the extension to the agency submitting the pricing plan; the extended period shall not exceed 15 working days.

3. The Ministry of Finance shall prescribe the Pricing Regulation; the file of the pricing plan and the content of the pricing plan.

Article 11. Conditions for price negotiation

The Ministry of Finance and Provincial Finance Departments shall organize price negotiations when the following two conditions are met:

1. At the request of one of the two parties to the purchase or sale transaction when these parties cannot agree on the purchase or sale price to sign a contract, or at the request of the Prime Minister, Minister, Head of a ministry-level agency, Head of a government-affiliated agency, or Chairman of the People's Committee of a province.

2. It must be important goods or services with a monopoly nature in purchasing or selling that are not within the scope of pricing under Article 7 of this Decree. Important goods or services with a monopoly nature in purchasing or selling are those produced under special production and business conditions where the parties are interdependent and cannot be replaced, without competition in the market.

Article 12. Organizing bodies for price negotiations

1. The Ministry of Finance shall organize price negotiations at the request of the Prime Minister, Minister, Head of a ministry-level agency, Head of a government-affiliated agency, or at the request of the buyer or seller or one of the two parties involved in important goods or services affecting the economic and social development of many industries or the entire country.

2. Provincial Finance Departments shall organize price negotiations at the request of the Chairman of the People's Committee of a province or at the request of the buyer or seller or one of the two parties involved whose headquarters are located in the locality and who operate important goods or services affecting the economic and social development of the locality.

3. The Ministry of Finance shall stipulate the documentation and procedures for price negotiations.

Article 13. Results of price negotiations

1. The results of price negotiations shall be implemented according to the provisions of Article 12 of the Price Law.

2. A temporary price decision during price negotiations, as provided for in Clause 2 of Article 12 of the Price Law, shall have maximum validity of six months. During the implementation period of the temporary price decision, the parties continue to exchange to negotiate the purchase and sale prices. After this period, if the buyer and seller cannot agree on the purchase and sale prices and make a request, the Ministry of Finance or Provincial Finance Department will organize price negotiations according to Article 11 of this Decree.

Article 14. Vietnamese Valuation Standards

1. Valuation activities of enterprises on the territory of Vietnam must comply with Vietnamese valuation standards and internationally recognized valuation guidance standards acknowledged by the Vietnamese State.

2. The Ministry of Finance shall promulgate Vietnamese valuation standards.

Article 15. State Assets Subject to Valuation

1. State assets subject to valuation include:

a) Assets purchased entirely or partially from state budget sources;

b) State assets leased, transferred, sold, contributed capital, and other forms of transferring rights;

c) Assets of state-owned enterprises leased, transferred, sold, contributed capital, privatized, dissolved, and other forms of conversion;

d) Other state assets as prescribed by law that must be valued.

2. State assets specified in Clause 1 of this Article with values below shall be subject to valuation:

a) Individual value of 100 million VND or more, or purchased once in large quantities of the same type of asset with a total value of 100 million VND or more for assets purchased entirely or partially from state budget sources;

b) Value of 500 million VND or more for state assets leased, transferred, sold, contributed capital, and other forms of transferring rights;

c) Value of 500 million VND or more for assets of state-owned enterprises leased, transferred, sold, contributed capital, privatized, dissolved, and other forms of conversion;

d) Value of 500 million VND or more for other state assets.

3. Agencies, organizations, enterprises, and units using state budget funds to purchase assets specified in Clause 1 of this Article (state budget funds for purchasing state assets that must be valued include: construction investment capital, public service capital, state development credit capital, state-guaranteed loan capital, and other state budget funds) if they do not go through bidding or a Price Determination Council, must conduct a valuation.

4. State assets subject to valuation as prescribed in Article 13 of the Price Law, which have gone through bidding or a Price Determination Council established in accordance with the law, do not necessarily need to be valued; valuations of assets formed from other sources shall be carried out according to the requirements of state agencies, organizations, or individuals needing valuation.

Article 16. Establishing Valuation Enterprises

1. Valuation enterprises may be organized in the form of state-owned enterprises, limited liability companies, or foreign-invested enterprises.

2. Valuation enterprises may be established when there are three valuation experts or more for a limited liability company, all partners must be valuation experts, and have technical facilities ensuring the operation of valuation activities.

3. Procedures and formalities for establishing valuation enterprises shall be carried out in accordance with the Law on State-Owned Enterprises, Enterprise Law, and Law on Foreign Investment in Vietnam.

Article 17. Qualifications of Valuation Experts

1. Individuals recognized as Valuation Experts must meet the following criteria:

a) Be a Vietnamese citizen;

b) Hold a bachelor's degree from a domestic or foreign university related to the valuation profession;

c) Hold a certificate of specialized training in the valuation profession issued by a university, college, or institution authorized to provide such training. Individuals holding a bachelor's degree from a domestic or foreign university in the valuation profession do not need to hold a certificate of specialized training in the valuation profession;

d) Have at least three years of continuous work experience in the field of study at a state agency, political organization, socio-political organization, enterprise, or other organization.

2. Individuals meeting the conditions stipulated in Article 16 of the Price Law and specific provisions in this Article, and having no criminal record, shall be considered by the Minister of Finance for issuance of a Valuation Expert card.

3. The Ministry of Finance shall issue regulations on the issuance, use, and management of Valuation Expert cards.

Article 18. Rights and obligations of appraisal enterprises

1. The rights and obligations of appraisal enterprises shall be implemented in accordance with Article 18 of the Price Ordinance.

2. Compensation for damages caused by incorrect appraisals shall be carried out according to the agreement in the contract between the appraisal enterprise and the agency, organization, or individual requiring the appraisal, or in accordance with the provisions of the law.

Article 19. Responsibilities of agencies and organizations when using appraisal results

Agencies and organizations that use the appraisal results of assets as stipulated in Article 13 of the Price Ordinance shall bear legal responsibility for their decisions when buying, selling, transferring, leasing, privatizing, contributing capital, and other forms of transferring state asset rights.

Article 20. Exclusive price agreements

1. An exclusive price agreement is an agreement among production and business organizations and individuals to set a price level to dominate the market beyond the legal market share, causing damage to the legitimate interests of other production and business organizations and individuals, consumers, and national interests.

2. Organizations and individuals engaging in one or more of the following acts shall be considered to have entered into an exclusive price agreement:

a) Agreeing to fix prices, control prices, change sales prices of goods and services to restrict competition, infringing upon the legitimate interests of other production and business organizations and individuals or consumers;

b) At a certain point in time, several organizations and individuals simultaneously sell the same type of goods or services at the same price;

c) Agreeing to create a shortage of goods by limiting production, distribution, transportation, sale of goods, service supply; destroying or damaging goods; taking advantage of speculation to increase prices;

d) Agreeing to implement sales and purchase conditions, post-sales service conditions affecting the price of goods and services;

đ) Agreeing to change purchase and sales prices of goods and services to eliminate or force other businesses to link with them or become their branches.

Article 21. Investigation, supervision, and handling of monopoly prices and exclusive price agreements

1. Investigation of monopoly prices and exclusive price agreements:

a) When the prices of goods and services fluctuate abnormally due to monopoly or exclusive agreements, if necessary, the competent state management authority on prices may investigate the production costs, circulation costs, prices of goods and services of organizations and individuals engaged in monopolistic and exclusive price agreements;

b) The Ministry of Finance and Provincial Financial Departments shall investigate and supervise monopoly prices and exclusive price agreements when:

There is a complaint from an organization representing the industry or consumers;

There are signs of monopoly benefits and exclusive price agreements discovered by state agencies.

2. Content of investigation.

Investigate production costs, circulation costs, prices of goods and services of organizations and individuals engaged in monopolistic and exclusive price agreements.

3. The investigation procedure shall be conducted as follows:

a) Issue an investigation decision and send it to organizations and individuals engaging in monopoly and exclusive price agreements;

b) Request organizations and individuals to provide the following documents in writing:

Pricing plans for goods and services and pricing levels of goods and services;

Goods flow situation (year-end, quarter-end, month-end inventory; annual, quarterly, monthly imports and exports; year-end, quarter-end, month-end inventory) and service supply;

Annual financial reports;

Other relevant documents related to the investigation content.

4. Investigation period:

a) The maximum duration of a single investigation is 30 days, starting from the date of issuance of the investigation decision. If it is necessary to extend the investigation period, the Ministry of Finance or Provincial Financial Department must notify in writing and specify the reasons for extension to the relevant organizations and individuals; the extended investigation period shall not exceed 15 days, starting from the end of the first investigation;

b) Within a maximum period of 10 working days, starting from the end of the investigation, the Ministry of Finance or Provincial Financial Department shall issue and send the investigation conclusion report to the relevant organizations and individuals and related agencies.

5. Based on the investigation results, the Ministry of Finance or Provincial Financial Department shall handle according to their authority and depending on the degree of violation, they may handle in one of the following ways:

a) Suspend the implementation of prices of goods and services decided by organizations and individuals engaging in monopoly and exclusive price agreements;

b) Require organizations and individuals engaging in monopoly and exclusive price agreements to buy and sell according to the pre-agreement prices;

c) Administer administrative penalties and compensate those who have suffered losses in accordance with the law;

d) In cases where the violation has criminal indications, the Ministry of Finance or Provincial Financial Department will transfer the case file to the competent authority for handling in accordance with the law.

Article 22. Responsibilities of production and business organizations and individuals when receiving requests for monopoly price control

1. Production and business organizations and individuals, upon receiving requests for monopoly price control and exclusive price agreements, shall have the responsibility to provide complete, accurate, and timely data and documents related to the investigation as stipulated in Article 21 of this Decree to the Ministry of Finance or Provincial Financial Department upon receipt of the investigation request.

2. The deadline for submitting the report is seven working days from the date of receipt of the investigation request from the Ministry of Finance or Provincial Financial Department.

Article 23. Authority of the Ministry of Finance in State Management of Prices

1. Submitting policies and measures on prices to the Government.

2. Issuing or submitting to competent state authorities for issuance of legal normative documents on prices.

3. Directing and guiding the implementation of policies and measures on prices and asset, goods, and service pricing decisions of the Government and Prime Minister.

4. Deciding on the prices of assets, goods, and services listed in the State's pricing directory as prescribed in Article 8 of this Decree.

5. Performing specialized inspection functions on prices: inspecting and auditing organizations and individuals' compliance with legal regulations on prices and other laws related to state management of prices within their authority.

6. Implement the state management contents on pricing prescribed in Clauses 4, 5, 6, 7, and 8 of Article 31 of the Pricing Ordinance and other pricing-related contents within their assigned tasks and authorities.

Article 24. State management authority on pricing of Ministries and ministerial-level agencies

1. Submit to the Government pricing policies and measures for goods and services under the management of the Ministry or ministerial-level agency.

2. Issue legal regulatory documents on pricing within their authority.

3. Direct the implementation of pricing policies, measures, and asset, goods, and service pricing decisions of the Government, Prime Minister, and Ministry of Finance within their management scope.

4. Deciding on the prices of assets, goods, and services listed in the State's pricing directory as prescribed in Article 8 of this Decree.

5. Inspect and audit organizations and individuals' compliance with legal regulations on pricing and other relevant legal provisions related to state management on pricing in their sector.

Article 25. State management authority on pricing of provincial People's Committees

1. Issue legal regulatory documents on pricing within their authority.

2. Direct the implementation of pricing policies, measures, and asset, goods, and service pricing decisions of the Government, Prime Minister, Ministry of Finance, and other Ministries and ministerial-level agencies.

3. Decide on the pricing of assets, goods, and services priced by the State according to the authority stipulated in Article 8 of this Decree.

4. Inspect and audit organizations and individuals operating within the province's territory regarding their compliance with legal regulations on pricing and other relevant legal provisions related to state management on pricing at the local level; handle violations of pricing laws within their authority.

Article 26. Effectiveness

1. This Decree shall take effect fifteen days after its publication in the Official Gazette.

2. Repeal Decision No. 137/HĐBT dated April 27, 1992 of the Council of Ministers on price management. Previous provisions contrary to this Decree are hereby repealed.

Article 27. Responsibility for Implementing the Decree

1. The Ministry of Finance shall be responsible for guiding and organizing the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of governmental agencies, and Chairpersons of Provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.