DECISION

ON THE MANAGEMENT OF POST AND TELECOMMUNICATIONS SERVICE CHARGES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the May 25, 2002 Ordinance on Post and Telecommunications;

Pursuant to the April 26, 2002 Pricing Ordinance;

At the proposal of the Minister of Post and Telematics,

DECIDES:

Article 1.- Scope and subjects of application

1. This Decision provides for the management of post and telecommunications service charges and pricing activities of organizations and individuals engaged in the provision and use of post and telecommunications services.

2. This Decision applies to organizations and individuals that provide or use post and telecommunications services in Vietnam.

3. Where a treaty to which the Socialist Republic of Vietnam has signed or acceded contains provisions different from those of this Decision, that treaty prevails.

Article 2.- Principles on management of post and telecommunications services

1. To apply the market mechanism, boost fair competition and promote enterprises' right to autonomy.

2. To ensure equality and non-discrimination among service users; to encourage new enterprises to participate in the market; and to ensure public post and telecommunications services.

3. To ensure legitimate rights and interests of service users and post and telecommunications enterprises; to secure the State's interests and national sovereignty.

Article 3.- Contents of state management of post and telecommunications service charges

1. Promulgating mechanisms and policies on post and telecommunications service charges to meet socio-economic development requirements in each period and directing and organizing the uniform implementation of these mechanisms and policies nationwide.

2. Promulgating legal documents on post and telecommunications service charges.

3. Setting charge rates of important and monopolized post and telecommunications services;

4. Conducting supervision, examination, inspection and handling of violations under the provisions of law on management of post and telecommunications service charges and pricing activities related to post and telecommunications service charges.

5. Organizing and managing the supply of information and forecasts on post and telecommunications service charges in the domestic and world markets.

Article 4.- Grounds for determination of post and telecommunications charges

1. National socio-economic development objectives and tasks, and development objectives and tasks of the post and telecommunications industry in each period.

2. International commitments to which Vietnam has signed or acceded.

3. Production costs and supply-demand relations on the market.

4. Charge rates of similar services in the regional and world markets.

Article 5.- Competence of state management of post and telecommunications service charges

1. The Prime Minister

a/ To promulgate mechanisms and policies on the management of post and telecommunications service charges;

b/ To approve charge rates for domestic non-registered mails of up to 20 grams and local telephone services.

2. The Minister of Post and Telematics

a/ To propose the Prime Minister to promulgate mechanisms and policies on the management of post and telecommunications service charges and approve charge rates for services defined at Item b, Clause 1, of this Article.

b/ To provide and publicize criteria and contents of charge management and make a list of post and telecommunications services provided by enterprises holding dominant market shares in accordance with the Competition Law.

c/ The Minister of Post and Telematics shall, basing himself/herself on the charging principles and the charge rates approved by the Prime Minister, set:

- Charge rates for services defined at Item b, Clause 1, of this Article; charge rates for interconnection among telecommunications enterprises;

- Charge rates for international payment between domestic post and telecommunications service-providing enterprises and foreign enterprises;

- Charge rates for such services as channel leasing, common use of infrastructure or re-sale of services among telecommunications enterprises;

- Charge rates for public post services, exclusive post services and public telecommunications services, after reaching agreement with the Minister of Finance;

d/ To determine post and telecommunications services for the management and administration of post and telecommunications networks.

e/ To propose and reach agreement with the Ministry of Finance for the latter to decide on the exemption from and reduction of post and telecommunications service charges in accordance with Article 9 of this Decision;

f/ To guide the implementation of state regulations and decisions on pricing activities in the post and telecommunications domain;

g/ To direct and guide the implementation of regulations on reporting, accounting and audit to meet the state management requirements on pricing activities in the post and telecommunications domain; to direct the examination, inspection and handling of violations in the management of post and telecommunications service charges in strict accordance with regulations.

3. The Ministry of Finance:

a/ To perform the state management of pricing activities in the post and telecommunications domain in accordance with the Pricing Ordinance;

b/ To coordinate with the Ministry of Post and Telematics in guiding the implementation of regulations on post and telecommunications service charges and the provisions of the Pricing Ordinance to ensure that every organization or individual observes these regulations;

c/ To reach agreement with the Minister of Post and Telematics for the latter to set charge rates for public post services; charge rates for exclusive post services and charge rates for public telecommunications services according to his/her competence and in strict accordance with Item c, Clause 2, Article 5 of this Decision;

d/ To decide on the exemption from and reduction of post and telecommunications service charges in accordance with Article 9 of this Decision;

e/ To carry out specialized inspection of pricing activities in the post and telecommunications domain.

4. The Ministry of Trade:

a/ To reach agreement with the Ministry of Post and Telematics on measures of managing competition regarding charges and sales promotion in the post and telecommunications domain;

b/ To carry out specialized inspection of competition and sales promotion in the post and telecommunications domain.

Article 6.- Rights and responsibilities of post and telecommunication enterprises

1. Rights of post and telecommunication enterprises

a/ To decide on charge rates of post and telecommunications services they provide in strict accordance with the charge bracket or limit decided by competent state agencies, except services on the list of services of which charge rates are set by the State;

b/ To exercise according to law their right to complain about pricing regulations of competent state agencies which cause damage to their legitimate interests;

c/ To lodge complaints and denunciations about violations of the law on pricing.

2. Responsibilities of post and telecommunications enterprises

a/ To elaborate and submit to competent authorities charge rates for services of which charge rates are set by the State;

b/ To abide by and comply with all regulations on price stabilization in a strict and timely manner;

c/ To post up and announce service charge rates in accordance with the Pricing Ordinance;

d/ To account costs and determine prices of post and telecommunications services according to regulations;

e/ To comply with regulations on reporting, accounting, audit and information supply in service of the state management of pricing activities in the post and telecommunications domain;

f/ To collect charges from service users and pay charges to other enterprises at the charge rates stated in the signed contracts;

g/ To be subject to the examination and inspection of charges by competent state agencies according to law;

h/ To pay compensation for damage caused by violations of the law on pricing.

Article 7.- Prohibited acts of post and telecommunications enterprises

1. Abusing positions or syndicating with one another to determine or fix service charge rates, causing damage to legitimate interests of service users and other enterprises and the State's interests.

2. Abusing special events (festivals, natural disasters, epidemics, etc.) to increase charges.

3. Using dishonest or unhealthy forms of advertisement or sales promotion, selling services below costs.

4. Artificially increasing or reducing charges in contravention of regulations on sales promotion of services.

5. Committing violations of the competition law as prescribed by law.

Article 8.- Rights and responsibilities of post and telecommunications service users

1. To be supplied with information and request post and telecommunications enterprises to supply information, guidance and explanation about charges of their services.

2. To complain according to regulations about errors and mistakes related to post and telecommunications service charges and the provision of post and telecommunications services.

3. To pay charges according to signed contracts on the provision and use of post and telecommunications services.

4. To perform other obligations according to law.

Article 9.- Exemption from and reduction of post and telecommunications service charges

Post and telecommunication service charges may be exempted or reduced with regard to urgent information in service of defense and security tasks and special political tasks; prevention and combat of floods, storms and natural disasters, rescue and salvage activities; in emergency cases, for epidemic prevention and control, and other urgent information under the provisions of law on the state of emergency. The Minister of Finance shall reach agreement with the Minister of Post and Telematics to make specific decisions.

Article 10.- Implementation provisions

1. This Decision takes effect 15 days after its publication in "CONG BAO" and replaces the Prime Minister's Decision No. 217/2003/QD-TTg of October 27, 2003, on the management of post and telecommunications service charges.

2. The Minister of Post and Telematics shall assume the prime responsibility for, and coordinate with the Minister of Finance and the Minister of Trade in, guiding the implementation of this Decision.

3. Ministers, heads of ministerial-level agencies and government-attached agencies, presidents of provincial/municipal People's Committees, and post and telecommunications enterprises shall implement this Decision.