Circular No. 35/2005/TT-BTC guides the management of prices for certain specialized aviation services not included in the list of fees and charges.

 CIRCULAR

Guidelines on the management of prices for certain specialized aviation services not included in the list of fees and charges Not included in the list of fees and charges

Pursuant to Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of some provisions of the Price Law;

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

Implementing the guidance of the Prime Minister as stated in Circular No. 3941/VPCP-KTTH dated July 30, 2004 of the Government Office regarding the management of service prices at airports and air traffic control services;

Pursuant to the proposal of the Ministry of Transport in Circular No. 1294/GTVT-VT dated March 10, 2005 concerning the issuance of this Circular guiding the management of prices for certain specialized aviation services;

The Minister of Finance hereby issues guidelines on the management of prices for certain specialized aviation services not included in the list of fees and charges as follows:

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

2. Applicability:

This Circular guides the principles of managing prices for certain specialized aviation services with monopoly characteristics that fall outside the scope of regulation under the Fee and Charge Law; procedures for formulating, submitting, reviewing pricing plans, and deciding on prices for services priced by the state.

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

This Circular applies to organizations and individuals, both domestic and foreign (hereinafter referred to as units), who are permitted to provide and use aviation services in Vietnam.

In cases where international treaties to which the Socialist Republic of Vietnam has acceded or joined contain provisions different from those set out in this Circular, the provisions of such international treaties shall apply.

II. SPECIFIC PROVISIONS

Section 1. SERVICES PRICED BY THE STATE

1. Principles and bases for determining prices:

Implemented according to the Pricing Regulation for Assets, Goods, and Services issued together with Decision No. 06/2005/QĐ-BTC dated January 18, 2005 of the Minister of Finance.

2. Procedures for formulating, submitting pricing plans, and deciding on prices:

2.1. Passenger fare for the Hanoi - Ho Chi Minh City route and vice versa:

Implemented according to the provisions at point 3.4, section II of Circular No. 15/2004/TT-BTC dated March 9, 2004 of the Ministry of Finance guiding the implementation of Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of some provisions of the Price Law.

2.2. Prices for air traffic control services for takeoff and landing of aircraft, provision of supplementary air traffic control services for transit, security screening, and passenger services at airports:

The service provider shall formulate and submit a pricing plan for review by the Ministry of Transport (Vietnam Civil Aviation Authority) and obtain its written opinion before submitting it to the Minister of Finance for decision. The pricing plan documentation shall comply with the regulations set forth in the Appendix attached to this Circular.

From the date of receipt of the pricing plan with the Vietnam Civil Aviation Authority's review opinion, within ten working days, the Director of the State Management Agency for Prices, acting on behalf of the Minister of Finance, shall decide (or notify) the price level according to the model specified in the Appendix of this Circular. In cases where the conditions or documentation are insufficient, a response must be given within seven working days.

Section 2. SERVICES SUBJECT TO PRICE NEGOTIATION

1. Conditions for organizing price negotiation, the authority organizing price negotiation, results of price negotiation, documentation, and procedures for price negotiation shall be implemented in accordance with Decree No. 170/2003/NĐ-CP dated December 25, 2003 of the Government detailing the implementation of some provisions of the Price Law and Circular No. 15/2004/TT-BTC dated March 9, 2004 of the Ministry of Finance guiding the implementation of Decree No. 170/2003/NĐ-CP.

2. The Ministry of Transport (Vietnam Civil Aviation Authority) shall examine specific services requiring price negotiation and guide units to implement them in accordance with current regulations.

Section 3. SERVICES PRICED BY THE UNITS WITH PRESCRIBED PRICES

1. Principles and bases for determining service prices:

1.1. Service prices at international airports for international flights (regardless of whether they are operated by domestic or foreign airlines): shall be determined based on reasonable costs, ensuring recovery of investment capital and accumulation for the unit, consistent with the quality of services and average prices of similar services in the Region.

1.2 Service prices at airports for domestic flights:

Shall be determined based on reasonable costs; generating reasonable profits; consistent with the quality of services and domestic market prices; taking into account the comprehensive relationship between domestic and international prices of the same type of service; consistent with economic and social development policies during each period.

1.3. Passenger fare rates on the Hanoi - Ho Chi Minh City route and vice versa:

Based on the passenger fare rates for the Hanoi - Ho Chi Minh City route and vice versa for economy class (Class Y) as prescribed by the Ministry of Finance, air transport enterprises are permitted to set and apply specific fare rates according to target groups, seasonal periods, transportation conditions... in accordance with their pricing policy to attract customers and utilize transportation capacity but not exceeding the fare rates prescribed by the Ministry of Finance.

1.4. Passenger fare rates on domestic routes (excluding the Hanoi - Ho Chi Minh City route and vice versa for economy class - Class Y); cargo transportation fare rates on domestic routes:

Shall be determined based on reasonable costs, generating reasonable profits; consistent with the quality of services and economic and social development policies during each period; for passenger transportation fares, it must also ensure the correlation with the Hanoi - Ho Chi Minh City route fare rates.

2.The units shall base themselves on the above principles to determine service prices at airports and air transport services (except for the services specified in Sections 1 and 2 above), and report to the Ministry of Transport (Vietnam Civil Aviation Administration) and the Ministry of Finance (Price Management Department) before the document takes effect.

III. IMPLEMENTATION ORGANIZATION

1. Service supply units have the obligation:

1.1. To prepare and submit reports on the implementation of service prices at their units to the Ministry of Finance (Price Management Department). For service prices of units that are member enterprises of Vietnam Airlines Corporation, the reporting on the implementation of prices according to the provisions of this Circular will be centralized through Vietnam Airlines Corporation.

2. Inspection and supervision of price implementation:

The Price Management Department (Ministry of Finance) and the Vietnam Civil Aviation Administration (Ministry of Transport) shall organize independent inspections and supervisions or coordinate inspections and supervisions of compliance with price levels and state regulations on price management at units; promptly handle violations according to current regulations.

IV. IMPLEMENTATION PROVISIONS

This Circular shall take effect 15 days from the date of publication in the Official Gazette. Previous regulations contrary to this Circular are hereby abolished.

In the course of implementation, if there are difficulties, units shall promptly report to the Ministry of Transport and the Ministry of Finance for consideration and resolution.

ANNEX

SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness

PRICE PLAN DOCUMENT

Service Name :............................................................................................

..................................................................................................................

Service Supply Unit:.......................................................................

..................................................................................................................

..................................................................................................................

Year 200...

Respectfully submitted to: Vietnam Civil Aviation Administration

Implementing the provisions of Circular No. 35/2005/TT-BTC dated May 12, 2005 of the Ministry of Finance guiding the management of prices for some specialized aviation services; based on state policies and current price levels, ...(name of the service supply unit requesting pricing or adjustment of prices) has developed a service pricing plan...(name of the service).

We respectfully request the Vietnam Civil Aviation Administration to review and provide comments on the aforementioned pricing plan to be submitted to competent authorities for decision to ensure the production and business operations of... (requesting unit) (please attach the service pricing plan...).

Head of the requesting unit (or adjusting prices)
(Signature, stamp)

Place of Receipt:
- As above
- Price Management Department
- To be filed:

 

PRICING PLAN

Service Name: ...........................................................................

Service Supplier:......................................................................................

I. Summary Table of Service Prices:

II. Explanation of Cost Items (basis for calculation, allocation methods to determine each cost item):

1. Raw material costs... (excluding VAT)

2. Labor costs, social insurance

3. Depreciation cost of fixed assets

4. Common expenses

5. Other costs

6. Cost

7. Profit

8. Service price excluding VAT

9. Service price including VAT

III. Comparison of Proposed Prices with Average Prices of Similar Services in Some Countries in the Region.

IV. Impact Assessment of Proposed Prices.

With the proposed price level, the total revenue of the unit will increase (decrease)... billion VND/year (equivalent to...%) compared to the current price.

 

 

Respectfully submitted to: Ministry of Finance

After studying and reviewing the pricing plan (adjustment of prices) attached to the request for pricing (adjustment of prices) number.../..., day...month...year 200... of ...(name of the service supply unit), the Vietnam Civil Aviation Administration has the following opinion:

1. On the pricing plan document (or adjustment of prices):

2. Feasibility of the prescribed price level (or adjustment of prices):

3. Recommendations: Agree or disagree with the pricing (or adjustment of prices)...

The above is the opinion of the Vietnam Civil Aviation Administration on the pricing plan (or adjustment of prices) of...(name of the service supply unit), request the Ministry of Finance please consider and decide.

MINISTER OF TRANSPORT
Director of Vietnam Civil Aviation Administration
(Signature, stamp)

Place of Receipt:
- As above
-.........
- To be filed: