Decree No. 94/2017/ND-CP dated August 10, 2017 of the Government on goods, services and geographical areas subject to state monopoly in commercial activities

DECREE

On goods, services and geographical areas subject
to state monopoly in commercial activities[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the December 3, 2004 Competition Law;

Pursuant to the June 14, 2005 Commercial Law;

Pursuant to the November 26, 2014 Law on Management and Use of State Capital Invested in Production and Business at Enterprises;

Pursuant to the November 26, 2014 Law on Enterprises;

At the proposal of the Minister of Industry and Trade;

The Government issues the Decree on goods, services and geographical areas subject to state monopoly in commercial activities,

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Decree prescribes the exercise of state monopoly in commercial activities, covering:

1. Principles of conducting commercial activities monopolized by the State.

2. The list of goods, services and geographical areas subject to state monopoly in commercial activities.

3. Responsibilities of subjects conducting commercial activities monopolized by the State.

4. State management agencies’ responsibilities for examination and supervision of subjects conducting commercial activities monopolized by the State.

Article 2.Subjects of application

This Decree applies to state agencies, organizations and individuals conducting commercial activities monopolized by the State, and other related organizations and individuals.

Article 3.Interpretation of terms

In this Decree, the term below is construed as follows:

State monopoly in commercial activities (commercial activities monopolized by the State) means commercial activities which are to be conducted only by state agencies or organizations or individuals assigned by the State.

Chapter II

EXERCISE OF STATE MONOPOLY IN COMMERCIAL ACTIVITIES

Article 4.Principles of exercising state monopoly in commercial activities

1. State monopoly shall only be established in commercial activities over essential goods and services related to national defense and security or national interests to which the State needs to hold exclusive rights and goods and services in which other economic sectors are not interested or cannot participate.

2. Competent state agencies shall exercise state monopoly in commercial activities by themselves or through assigning other organizations or individuals to do so. The assignment shall be decided in writing by the heads of competent state agencies.

3. Commercial activities monopolized by the State shall be conducted under the surveillance of state management agencies in accordance with law.

4. Ministries, ministerial-level agencies and local administrations at all levels may not issue regulations on goods, services and geographical areas subject to state monopoly in commercial activities. The exercise of state monopoly in commercial activities concerning goods, services, and geographical areas serving national defense and security purposes must comply with instructions of the Minister of National Defense and Minister of Public Security.

Article 5.List of goods, services and geographical areas subject to state monopoly in commercial activities

1. To promulgate together with this Decree the list of goods, services and geographical areas subject to state monopoly in commercial activities (below referred to as list).

2. The list specifies goods and services subject to state monopoly and commercial activities monopolized by the State equivalent to such monopolized goods and services.

Article 6.Mechanism for amendment, supplementation and abolishment of goods, services and geographical areas included in the list

1. Goods, services and geographical areas included in the list may be amended, supplemented or abolished on the basis of considering state management requirements of ministries, ministerial-level agencies or provincial-level People’s Committees or written requests of businesses of all economic sectors expressing their demand and capacity for participating in commercial activities concerning the state-monopolized goods and services included in the list.

2. Ministries and ministerial-level agencies shall consider requests of businesses of all economic sectors to assess  their capacity for satisfying business investment conditions, security-, national defense- and national interests-related conditions and other conditions prescribed by relevant laws.

3. The Ministry of Industry and Trade shall receive and summarize proposals, coordinate with related ministries and ministerial-level agencies in considering and evaluating proposals, and report to the Government for amending or supplementing the list.

4. The dossier, order and procedures for requesting or proposing amendments and supplementations to the list as well as its amendment and supplementation must comply with the law on formulation of legal documents regarding amendment and supplementation of government decrees.

Article 7.Responsibilities of subjects directly exercising state monopoly

Subjects directly exercising state monopoly have the following responsibilities:

1. Organizations, individuals and state agencies conducting commercial activities monopolized by the State shall be subject to surveillance of competent state agencies in accordance with the law on competition, the law on price and other relevant laws.

2. State agencies in charge of national reserves shall comply with the law on national reserves.

3. The use of state capital of state businesses for trading in goods and services on the list must comply with the law on management and use of state capital.

Article 8.Responsibilities of state agencies that manage subjects directly conducting commercial activities monopolized by the State

State agencies that manage subjects directly conducing commercial activities monopolized by the State shall examine and supervise commercial activities monopolized by the State and conducted by these subjects as follows:

1. The discharge of responsibilities of the owner of state capital assigned under the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and the Law on Enterprises.

2. The implementation of regulations on supervision and examination of, and reporting on, the implementation of strategies and plans; fulfillment of objectives; and performance of tasks by organizations and individuals in accordance with law.

3. The observance with Clauses 2, 3 and 4, Article 6, and Article 15, of the Competition Law.

4. Ministries, ministerial-level agencies and provincial-level People’s Committees shall review the list and send proposals on amendment and supplementation of the list to the Ministry of Industry and Trade for summarization and reporting to the Government.

Chapter III

ORGANIZATION OF IMPLEMENTATION

Article 9.Effect

This Decree takes effect on October 1, 2017.

Article 10.Implementation responsibility

1. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries, ministerial-level agencies and provincial-level People’s Committees in, examining the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees and related organizations and individuals shall implement this Decree.

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

LIST OF GOODS, SERVICES AND GEOGRAPHICAL AREAS SUBJECT TO STATE MONOPOLY IN COMMERCIAL ACTIVITIES

(Promulgated together with the Government’s Decree No. 94/2017/ND-CP of August 10, 2017)