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THE STATE
PRESIDENT
ORDER No.
10/2002/L/CTN OF MAY 8, 2002 PROMULGATING THE ORDINANCE ON PRICES
THE STATE
PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM
Ursuant
to Articles 103 and 106 of the 1992 Constitution of the Socialist
Republic of Vietnam, which was amended and supplemented under Resolution
No. 51/2001/QH10 of December 25, 2001 of the Xth National
Assembly, its 10th session;
Ursuant
to Article 19 of the Law on Organization of the National Assembly;
Ursuant
to Article 51 of the Law on Promulgation of Legal Documents,
HEREBY
PROMULGATES:
The
Ordinance on Prices, which was passed on April 26, 2002 by the Standing
Committee on the Xth National Assembly of the Socialist
Republic of Vietnam.
State President socialist Republic of Vietnam
TRAN DUC LUONG
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ORDINANCE ON PRICES
(No.
40/2002/PL-UBTVQH10)
In order
to contribute to developing the socialist-oriented market economy, to
stabilize the prices and to protect the legitimate rights and interests
of production and/or business organizations and individuals, of the
consumers, and the interests of the State;
Pursuant
to the 1992 Constitution of the Socialist Republic of Vietnam, which was
amended and supplemented under Resolution No. 51/2001/NQ-QH10 of
December 25, 2001 of the Xth National Assembly, its 10th
session;
Pursuant
to Resolution No. 52/2001/NQ-QH10 of December 25, 2001 of the Xth
National Assembly, its 10th session, on the 2002 Law- and
Ordinance- Making Program;
This Ordinance
prescribes prices.
Chapter I
GENERAL PROVISIONS
Article 1:
Regulation scope
and application objects
1.
This Ordinance prescribes the State management over prices and
price-related activities of production and/or business organizations and
individuals.
2.
This Ordinance shall apply to domestic and foreign organizations
and individuals engaged in production and/or business activities in
Vietnam.
3.
Where an international treaty which the Socialist Republic of
Vietnam has signed or acceded to contains provisions on prices different
from those of this Ordinance, the provisions of such international
treaty shall apply.
Article 2:
The price-managing
principles
1.
The State shall respect the right to set prices and to complete
in prices of production and/or business organizations and individuals
strictly according to law.
2.
The State shall employ necessary measures to stabilize prices and
protect the legitimate rights and interests of production and/or
business organizations and individuals, of the consumers, and the
interests of the State.
Article 3:
Supervising the
enforcement of the legislation on prices
1.
The National Assembly’s agencies and deputies, the People’s
Councils of all levels shall, within the scope of their functions, tasks
and powers, supervise the enforcement of the legislation on prices.
2.
Vietnam Fatherland Front and its member organizations shall
mobilize people to implement the provisions of the legislation on
prices, supervise the enforcement of the legislation on prices.
Article 4:
Interpretation of
terms and phrases
In this
Ordinance, the following terms and phrases are construed as follows:
1.
Prices shall include the prices decided by the State, the prices
decided by production and/or business organizations and/or individuals,
and the market prices.
2.
Appraisal of prices means the evaluation or re-evaluation of the
value of property compatible with the market at a given location, a
given time according to Vietnamese standards or international practices.
3.
Dumping means the act of selling goods and/or services at
extremely low prices as compares with the common prices on the
Vietnamese market in order to dominate the market, restrict lawful
competition, thus causing damage to the legitimate interests of other
production and/or business organizations and individuals as well as the
interests of the State.
4.
Aligned price monopoly means the agreement between production
and/or business organizations and/or individuals to set a price level to
dominate the market, causing damage to the legitimate interests of other
production and/or business organizations and/or individuals, of the
consumers, and the interests of the State.
5.
Monopoly prices mean the prices of goods or services bought, sold
on the market only by one production and/or business organization or
individual or the prices of goods or services of aligned monopoly
organizations and/or individuals that control most market shares and
have strength to manipulate the market prices.
6.
Abnormally changing prices mean the prices rising or falling in
case of economic crises, natural calamities, enemy sabotage or in other
cases of abnormality.
Chapter II
THE STATE
ADMINISTRATION OF PRICES
Section 1:
STABILIZATION OF MARKET PRICES
Article 5:
The aims of price
stabilization
The
State shall adopt necessary policies and measures to affect the
supply-demand relationship in order to stabilize the market prices for
important and essential commodities and services, to control inflation,
stabilize the socio-economic situation, protect the legitimate interests
of production and/or business organizations and individuals, of the
consumers, and the interests of the State, contributing to the promotion
of investment and development.
Article 6:
Price-stabilizing
measures
1.
Where the market prices of important and essential commodities
and services abnormally fluctuate, the State shall employ the following
measures to stabilize the prices:
a)
Adjusting the demand and supply of home-made goods and export, import
goods; commodities between regions, localities in the country;
b)
Purchasing or selling out reserve commodities;
c)
Controlling goods in stock;
d)
Setting the maximum prices, the minimum prices, price brackets;
e)
Controlling price components;
f)
Subsidizing farm produce prices when the market prices drop too low,
thus causing damage to the producers; subsidizing prices of other
important and essential commodities and services.
2.
Competence, procedures and time limits for, types of goods and
services entitled to, the application of the measures prescribed in
Clause 1 of this Article shall be stipulated by the Government.
3.
Organizations and individuals that produce and/or trade in
important and essential commodities and/or services shall have the
responsibility to apply relevant measures prescribed in Clause 1 of this
Article to contribute to price stabilization.
Section 2: PRICE
DETERMINATION, PRICE CONSULTATION
Article 7:
Properties,
commodities and services with prices set by the State
1.
Properties, commodities and services with prices set by the State
shall include:
a)
Land, water surface, important natural resources;
b)
The
State properties sold or leased;
c)
Monopoly commodities and services;
d)
Commodities and services important for the national policies and
people’s welfare.
2.
The State shall fix prices of the properties, commodities and
services prescribed in Clause 1 of this Article in the following forms:
a)
The
specific price levels;
b)
The
standard price level;
c)
The
price brackets;
d)
The
maximum and minimum prices.
3.
The Government shall specify the lists of properties, commodities
and services with prices set by the State as provided for in Clause 1 of
this Article and the application of price-fixing forms prescribed in
Clause 2 of this Article in each period.
Article 8:
Bases for price
determination
The
State shall determine the prices of properties, commodities and services
prescribed in Article 7 of this Ordinance on the basis of production and
circulation costs; supply-demand-relationship; the purchasing power of
the Vietnamese power of the Vietnamese currency; the domestic and
international market prices and the socio-economic development policies
in each period.
Article 9:
Competence to
determine prices
1.
The competence to determine prices is stipulated as follows:
a)
The
Government shall decide on the prices of the especially important
properties, commodities and services, which affect the socio-economic
development of the whole country;
b)
The
Prime Minister shall decide on the prices of important properties,
commodities and services, which affect the socio-economic development of
many branches;
c)
The
ministers and the heads of the ministerial-level agencies shall decide
on the prices of the properties, commodities and services, which greatly
affect the economic development of their respective branches;
d)
The
People’s Committees of the provinces or centrally-run cities shall
decide on the prices of the properties, commodities and services, which
greatly affect the socio-economic development in their respective
localities.
2.
The Government shall specify the price-determining competence
prescribed in Clause 1 of this Article.
Article 10:
Adjusting the
State-set prices
1.
The State agencies competent to determine prices must adjust in
time the prices of properties, commodities and services on the lists of
those with prices set by the State when the domestic and international
price components fluctuate, affecting production and people’s life.
2.
Organizations and individuals shall have the right to propose the
State agencies competent to determine prices to adjust prices according
to law provisions.
Article 11:
Price consultation
The
agencies competent to exercise the State management over prices shall
organize price consultation between the purchasing parties and the
selling parties for important commodities and services characterized
with the purchase monopoly, sale monopoly, which do not fall within the
scope of price determination by the State as provided for in Article 7
of this Ordinance, at the proposals of the purchasing parties, the
selling parties or at the request of the Prime Minister, ministers,
heads of the ministerial-level agencies, presidents of the
provincial/municipal People’s Committees.
Article 12:
Price consultation
results
1.
The price consultation results agreed upon by the parties shall
be promulgated for implementation by the agencies competent to exercise
the State management over prices.
2.
Where the parties fail to reach agreement on price levels though
price consultation has been organized, the agencies competent to
exercise the State management over prices shall decide on the temporary
prices for implementation by the parties till they reach agreement on
the price levels so as to service in time production and business.
Section 3: PRICE
APPRAISAL
Article 13:
State properties
whose prices must be appraised
1.
The State properties whose prices must be appraised shall
include:
a)
Properties purchased fully or partly with State budget sources;
b)
State properties which are leased, assigned, sold, contributed as
capital or subject to other form of right transfer;
c)
Properties of State enterprises, which are leased, assigned, sold,
contributed as capital, equitized, dissolved or subject to other forms
of conversion;
d)
Other State properties whose prices must be appraised as provided for by
law.
e)
The
Government shall prescribe the value of the State properties stated in
this Clause, whose prices must be appraised.
2.
The State properties whose prices must be appraised as provided
for in Clause 1 of this Article, which have gone through bidding or
price determination by the Price-Determining Council shall not
necessarily have their prices appraised.
Article 14:
Price-appraising
enterprises
1.
The price-appraising enterprises shall include State enterprises
and enterprises of other economic sectors. The Government shall
stipulated the organizational forms and conditions for setting up
price-appraising enterprises.
2.
Organizations and individuals that meet all conditions prescribed
by the Government may set up price-appraising enterprises.
Article 15:
Operation of
price-appraising enterprises
1.
The price-appraising enterprises shall appraise the prices of
properties in the cases prescribed in Article 1 of this Ordinance and
other properties at the requests of State agencies, organizations or
individuals.
2.
The price-appraising activities of enterprises shall be effected
under contracts with State agencies, organizations and/or individuals
demanding the price appraisal.
Article 16:
Criteria or price
appraisers
1.
Persons recognized as price appraisers must fully satisfy the
following criteria:
a)
Being Vietnamese citizen;
b)
Having university degree in specialty related to price-appraising
operations;
c)
Having the certificate of professional training in price-appraising
operations, granted by competent agencies;
d)
Having worked with the trained specialty for three consecutive years or
more.
2.
Persons who fully meet the conditions prescribed in Clause 1 of
this Article shall be considered by the central agencies in charge of
State management over prices for the granting of the price appraiser’s
card.
Article 17:
Price-appraising
results
The
results of price appraisal by price-appraising enterprises shall be
recorded in writing and used only for the purposes already inscribed in
the contracts. The price-appraising results may be used as one of the
bases for considering and approving State budget expenditures, for tax
calculation, determination of property value as security for bank loans,
for insurance purchase, lease, assignment, sale, capital contribution,
enterprise equitization and dissolution, and used for other purposes
already inscribed in the price-appraising contracts.
Article 18:
Rights and
obligations of price-appraising enterprises
The
price-appraising enterprises shall have the following rights and
obligations:
1.
To request the price appraisal-demanding agencies, organizations
or individuals to supply documents and data related to the price
appraisal;
2.
To collect appraisal service charges as agreed upon in the
contracts;
3.
To take responsibility before law for the results of their price
appraisal. Where the price-appraising results are incorrect, causing
damage to the State, organizations and/or individuals, they shall have
to compensate therefore according to the provisions of law;
4.
Other rights and obligations prescribed by law.
Section 4:
CONTROLLING THE MONOPOLY PRICES
Article 19:
The State shall
control the monopoly prices
In case
of necessity, the agencies competent to exercise the State management
over prices shall control the production and circulation costs, prices
of commodities and services of organizations and individuals when
detecting signs of alignment for price monopoly or when deeming it
necessary to consider the formation of monopoly prices.
Article 20:
Responsibilities
of production and/or business organizations and individuals when
receiving the requests for control of monopoly prices
Production and/business organizations and individuals, when receiving
the requests for control of monopoly prices shall have the
responsibility to report fully, accurately and promptly on the data and
materials related to production and circulation costs, prices of
monopoly commodities and services at the requests of the agencies
competent to exercise the State management over prices.
Article 21:
Rights and
responsibilities of the agencies competent to exercise the State
management over prices
In
controlling the monopoly prices, the agencies competent to exercise the
State management over prices shall have the following rights and
responsibilities:
1.
To suspend the application of commodity and/or service prices
decided by organizations and/or individuals aligned together for price
monopoly;
2.
To request the aligned monopoly organizations and/or individuals
to make purchases and/or sales strictly at the purchasing and/or selling
prices set before the price monopoly alignment. In cases where the
selling prices and/or purchasing prices need to be adjusted, the
organizations and individuals shall have to elaborate plans and submit
them to the agencies competent them to the agencies competent to
exercise the State management over prices for consideration and
decision;
3.
To decide on prices within the prescribed time limits on the
basis of the price plans submitted or proposed by the production and/or
business organizations and individuals to the State bodies competent to
adjust prices;
4.
To handle violations of the legislation on prices according to
law provisions.
Section 5:
ANTI-DUMPING
Article 22:
Prohibiting
dumping
Production and/or business organizations and individuals are strictly
forbidden to commit acts of dumping.
Article 23:
Acts not regarded
as acts of dumping
1.
The following acts shall not be regarded as dumping acts:
a)
Lowering the sale prices of fresh and raw goods items;
b)
Reducing the sale prices of goods in stock due to their inferior
quality, outmode, unsuitability to consumers’ tastes;
c)
Reducing the sale prices of goods according to seasons;
d)
Reducing the sale prices for sale promotion under the provisions of law;
e)
Reducing the sale prices of goods in case of bankruptcy, dissolution,
termination of production and/or business activities, relocation,
re-orientation of production and business.
2.
For cases of sale price reduction prescribed in Clause 1 of this
Article, the old prices, the new prices and price reduction duration
must be publicly and clearly posted up at stores and transaction places.
Article 24:
Complaints and
denunciations against acts of dumping
Organizations and individuals shall have the right to make complaints
and/or denunciations according to law provisions against acts of
dumping.
Article 25:
Investigating and
handling acts of dumping
1.
Upon receiving written complaints or denunciations about acts of
dumping or detecting acts of dumping, the agencies competent to exercise
the State management over prices must organize the investigation of the
dumping acts.
2.
The contents of investigation of dumping acts:
a)
Verifying acts of dumping;
b)
Determining damage caused by the dumping acts to the legitimate
interests of other production and/or business organizations and/or
individuals and the interests of the State.
3.
Based on the investigation results, the agencies competent to
exercise the State management over prices may handle or propose the
competent State bodies to handle according to law provisions acts of
dumping.
Article 26:
Measures of
handling acts of dumping
1.
Deciding on the minimum sale prices without restricting lawful
competition and without causing damage to the legitimate interests of
consumers and the interests of the State.
2.
Handling administrative violations.
3.
Forcing production and/or business organizations and/or
individuals that make the dumping to compensate for damage caused to the
damage-suffering production and/or business organizations and/or
individuals by the acts of dumping.
4.
Persons who commit acts of dumping which show signs of criminal
offenses shall be examined for penal liability according to law
provisions.
Chapter III
PRICE-RELATED
ACTIVITIES OF PRODUCTION AND/OR BUSINESS ORGANIZATIONS, INDIVIDUALS
Article 27:
Price
determination by production and/or business organizations and
individuals
The production and/or business organizations and individuals shall
determine prices of their goods and/or services according to the
provisions of this Ordinance and other relevant legal documents.
Article 28:
Prohibited ACTS
Production and/or business organizations and individuals are forbidden
to commit the following acts:
1.
Colluding with other production and/or business organizations
and/or individuals for price monopoly alignment, causing damage to the
legitimate interests of other production and/or business organizations,
individuals, of the consumers, and the interests of the State;
2.
Dumping goods, services;
3.
Fabricating and/or spreading groundless news on price increase or
decrease, causing damage to the legitimate interests of other production
and/or business organizations and/or individuals, of consumers, and the
interests of the State;
4.
Fixing wrong prices in order to deceive consumers or their
production and/or business partners being organizations and/or
individuals;
5.
Increasing or reducing prices falsely by changing the quantity,
quality, locations for delivery and reception of goods and/or services;
6.
Taking advantage of natural disasters, enemy sabotage and/or
other abnormal circumstances for speculation to increase prices and/or
impose unreasonable prices;
7.
Other acts prescribed by law.
Article 29:
Posting up prices
1.
Production and/or business organizations and individuals must
port up prices of goods and/or services at their stores and/or places of
goods trading or services provisions transaction; the price post-up must
be clear, not causing confusion to consumers.
2.
For goods and services with prices set by the State, the
production and/or business organizations and individuals must post up
the correct prices decided by competent State bodies and such goods and
services shall be traded strictly at the listed prices.
For
goods and services not on the list of those with prices set by the
State, the prices decided by production and/or business organizations
and/or individuals shall be posted up.
Article 30:
Rights and
obligations of production and/or business organizations and individuals
in the field of prices
1.
The production and/or business organizations and individuals
shall have the following rights:
a)
To
decide on the purchasing and selling prices of goods and services,
except for goods and services on the lists of those with prices set by
the State;
b)
To
decide on the goods and service prices within the price brackets, the
price limits decided by competent State bodies;
c)
To
complain about decisions on prices of competent State bodies, which
cause damage to their legitimate interests;
d)
To
complain about or denounce acts of violating the legislation on prices;
e)
To
request organizations or individuals to compensate for damage as
provided for by law;
f)
Other rights prescribed by law.
2.
The production and/or business organizations and individuals
shall have the following obligations:
a)
To
draw up plans on prices of goods and services on the lists of those with
prices set by the State and submit them to the competent State bodies
for decision and to correctly apply those prices;
b)
To
provide information on prices, decisions on goods and service prices set
by themselves at the request of the agencies competent to exercise the
State management over prices;
c)
To
execute the State’s measures for stabilizing the market prices, which
are prescribed in this Ordinance;
d)
To
compensate for damage caused by acts of violating the legislation on
prices as provided for by law;
e)
Other obligations prescribed by law.
Chapter IV
STATE MANAGEMENT
OVER PRICES
Section 1:
CONTENTS AND COMPETENCE OF STATE MANAGEMENT OVER PRICES
Article 31:
Contents of State
management over prices
1.
To study, work out, and organize the implementation of,
price-related policies and measures suitable to the socio-economic
development requirements in each period.
2.
To promulgate legal documents on prices.
3.
To decide on the prices of important and monopoly goods,
services.
4.
To prescribe the criteria of price appraisers; organize the
training of the contingent of price appraisal managers and appraisers;
grant and with draw price appraiser’s cards.
5.
To control monopoly prices and combat dumping.
6.
To gather, process and notify information and forecasts on
domestic and world market prices.
7.
To organize and manage the work of scientific research,
international cooperation, personnel training and fostering in the field
of prices.
8.
To examine, inspect and settle complaints and denunciations and
handle violations of the legislation on price.
Article 32:
Competence for
State management over prices
1.
The Government shall exercise the unified State management over
prices throughout the country.
2.
The State management agencies in charge of prices shall be
answerable to the Government for the performance of the State management
over prices.
3.
The ministries and the ministerial-level agencies shall, within
the scope of their respective tasks and powers, have to coordinate with
the State management agencies in charge of prices in performing the
function of State management over prices in their respective branches
according to the price management decentralization by the Government.
4.
The provincial/municipal People’s Committees shall, within the
scope of their tasks and powers, have to perform the function of State
management over prices in their localities according to the price
management decentralization by the Government.
Article 33:
Organization of
the State management agencies in charge of prices
The
organizational structure, functions, tasks and powers of the State
management agencies in charge of prices shall be defined by the
Government.
Section 2: PRICE
EXAMINATION AND INSPECTION
Article 34:
Specialized price
inspectorate
1.
The State management agencies in charge of prices shall perform
the function of specialized price inspectorate.
2.
The specialized price inspectorate shall conduct examination and
inspection of organizations and individuals in observance of the
provisions of the legislation on prices and other relevant law
provisions.
Article 35:
Rights and
responsibilities of specialized price inspectorate
1.
The specialized price inspectorate shall have the rights:
a)
To
request production and/or business organizations and individuals to
timely, accurately and honestly report on data and materials related to
the content s of price examination and inspection in accordance with
law;
b)
To
request the concerned agencies to appoint officials to participate in,
and supply data and materials directly related to, price examination and
inspection;
c)
To
handle acts of violating the legislation on prices according to law
provisions.
2.
The specialized price inspectorate shall have the
responsibilities:
a)
Not
to use the gathered data, materials and information for purposes other
than the purpose of State management over prices;
b)
Not
to disclose secrets related to production and/or business activities of
production and/or business activities of production and/or business
organizations and individuals;
c)
To
take responsibility before law for their price examination and
inspection.
Article 36:
Rights and
obligations of organizations and individuals when they are under price
examination and inspection
1.
Organizations and individuals, upon receiving the request of
agencies competent for price examination and inspection, shall have to
report in time, accurately and honestly on data and materials related to
the contents of price examination and inspection.
2.
Organizations and individuals must strictly abide by the handling
decisions of State management agencies in charge of prices; in case of
disagreeing with such decisions, they may lodge their complaints
according to the provisions of law; pending the settlement thereof, they
shall still have to abide by such decisions.
3.
Organizations and individuals may refuse unlawful price
examination and inspection requests.
Section 3:
COMMENDATION, REWARDS AND HANDLING OF VIOLATIONS
Article 37:
Commendation and
rewards
Organizations and individuals recording achievements in the
implementation of the legislation on prices shall be commended and/or
rewarded according to the State’s regulations.
Article 38:
Handling of
violations of the legislation on prices
1.
Organizations and individuals committing acts of violating the
legislation on prices shall, depending on the nature and seriousness of
their violations, be administratively sanctioned or examined for penal
liability; if causing damage, they must compensate therefore as provided
for by law.
2.
Those who abuse their positions and powers and violate
regulations on prices, take bribes, cover up violators of the
legislation on prices, lack responsibility, deliberately act against the
State’s regulations in the State management over prices, or commit other
acts of violating the legislation on prices shall, depending on the
nature and seriousness of their violations, be disciplined or examined
for penal liability; if causing damage, they must compensate therefore
as provided by law.
Chapter V
IMPLEMENTATION
PROVISIONS
Article 39:
Implementation
effect
This
Ordinance takes implementation effect as from July 1, 2002.
The
previous regulations contrary to this Ordinance shall all be annulled.
Article 40:
Implementation
guidance
The
Government shall detail and guide the implementation of this Ordinance.
On behalf of the
National Assembly Standing Committee
Chairman
NGUYEN VAN AN |
