Law on prices, No. 11/2012/QH13

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ATTRIBUTE Law on prices

Law No. 11/2012/QH13 dated June 20, 2012 of the National Assembly on prices

Issuing body:	National Assembly of the Socialist Republic of Vietnam	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	11/2012/QH13	Signer:	Nguyen Sinh Hung
Type:	Law	Expiry date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Issuing date:	20/06/2012	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Commerce - Advertising

SUMMARY

FROM JANUARY 01, 2013, INDIVIDUALS MUST IMPLEMENT PRICE REGISTRATION

This is one of measures to regulate price stabilization under the Law on price No. 11/2012/QH13 promulgated by The National Assembly on June 20, 2012.

Specifically, the production or business organizations, individuals implement price registration for goods or services subject to price stabilization (Finished petrol, oil; Electricity; Milk for children under 06 years old; Paddy, ordinary rice; and drugs for human disease prevention and treatment in the List of essential medicines using at establishments of medical examination and treatment…) in the time the State applies methods of price stabilization. Price stabilization is implemented in the following cases: Upon prices of goods or services have irregular changes; upon price level changes affecting socio-economic stabilization.

Besides, the Law also regulated other measures for price stabilization such as: making the supply and demand equable of goods produced in domestic and import – export goods; goods in regions, localities in the national through operation of goods circulation; buy or sale out the national reserve goods, circulating reserve goods; Measures of finance, monetary conformable to provisions of laws; establishing fund of price stabilization for items need be stabilized on price; Examining elements forming prices; controlling inventory goods; examining quantity, volume of available goods; and applying supporting measures of price conformable to provisions of laws and international commitments;

Moreover, in order to stabilize the market, protect the rights and benefits of the production or business organizations, individuals and consumers, the State will define prices for air services, Service of telecommunication connection; Prices of electric transmit; prices of Auxiliary services for electric system; Prices of electricity generation; prices of electricity trading; the level of average electricity retail price; services of domestic air transport with monopoly route…

This Law takes effect from January 01, 2013.

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Effect status: Known

THE PRESIDENT

Order No. 09/2012/L-CTN of July 2, 2012, on the promulgation of law

THE PRESIDENT OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant 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 X^th National Assembly, the 10^th session;

Pursuant to Article 91 of the Law on Organization of the National Assembly;

Pursuant to Article 57 of the Law on Promulgation of Legal Documents,

PROMULGATES:

The Law on Price,

which was passed on June 20, 2012, by the XIII^th National Assembly of the Socialist Republic of Vietnam at its 3^rd session.

President of the Socialist Republic of Vietnam
TRUONG TAN SANG

Law on Price

(No. 11/2012/QH13)

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/NQ-QH10;

The National Assembly promulgates the Law on Price.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides rights and obligations of organizations and individuals in the price domain; and the price management and regulation by the State.

Article 2. Objects of application

Production or business organizations and individuals; consumers; state agencies; other organizations and individuals involved in activities in the price domain in the Vietnamese territory.

Article 3. Application of law

1. Activities in the price domain in the Vietnamese territory must comply with this Law.

2. In case a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Law, the provisions of such treaty prevail.

Article 4. Interpretation of terms

In this Law, the terms and phrases below are construed as follows:

1. Goods means assets which can be exchanged, bought or sold on the market and meet human needs, including movables and immovables.

2. Services means intangible goods of which the production and consumption processes are inseparable, including services in Vietnam’s system of product lines provided by law.

3. Essential goods and services means goods and services which are indispensable in production, life, national defense and security, including: main raw materials, fuels, materials and services for production and circulation; and products meeting basic needs of humans and requirements of national defense and security.

4. Market price means the price of a goods or service determined by market determinants and operators at a given time and a given place.

5. Pricing means that competent state agencies or production or business organizations and individuals set prices of goods or services.

6. Price display means that production or business organizations and individuals publicly notify in appropriate, clear and non-misleading forms their customers of buying or selling prices of goods or services in Vietnam dong, by printing or writing prices or sticking price tags on boards, paper sheets or goods packages or otherwise at places of transaction or places of sale of goods or services, so that customers and competent state agencies can easily observe and notice such prices.

7. Price consultation means that a competent state agency organizes and acts as an intermediary between a buyer and a seller in a negotiation on the buying or selling price of goods or service which satisfies price consultation conditions at the request of either the buyer or seller or both or of the Prime Minister, a minister or the head of a ministerial-level or government-attached agency or the chairperson of a provincial-level People’s Committee.

8. Price registration means that a goods producer or trader or a service provider conducts and analyzes the formation of a price and sends a price quotation form to a competent state agency before pricing or adjusting the price of a goods or service on the list of goods and services subject to price valorization during a period the State applies price valorization measures.

9. Price declaration means that a goods producer or trader or a service provider sends a goods or service price quotation to a competent state agency upon pricing or adjusting the price of a goods or service subject to price declaration.

10. Price valorization means that the State applies appropriate supply-demand regulation, financial and monetary measures and other necessary economic and administrative measures to affect the formation and fluctuation of prices, thereby preventing goods and service prices from unreasonably rising or falling.

11. Price constituents include practical reasonable total cost corresponding to the quality of a goods or service; profit (if any); law-prescribed financial obligations; and intangible value of the goods or service’s brand.

12. Total cost of a goods or service means the sale cost of such goods or service, consisting of:

a/ Production cost of the goods or service; or buying price of the goods or service, for organizations and individuals engaged in commercial activities;

b/ Circulation expense for bringing such goods or service to consumers.

13. Price level means the average of goods or service prices in the economy within a given space and at a given time, which is measured with the consumer price index.

14. Abnormally changing price means a goods or service price which rises or falls to an unreasonable level while the price constituents do not substantially change or in case an economic crisis, natural disaster, enemy sabotage, fire or epidemic occurs.

15. Valuation means that an agency or institution with the valuation function determines the monetary value of an asset specified in the Civil Code according to its market price at a given place and a given time and valuation standards for a certain purpose.

16. Valuation result report means a document made by a valuation enterprise, clearly stating the valuation process, valuation results and the valuation enterprise’s opinions on the value of the valued asset, which can be used by customers and related parties for the purpose stated in the valuation contract.

17. Valuation brief report means a document made by a valuation enterprise to notify customers and related parties of the principal contents of a valuation result report.

18. Average electricity retail price means the selling price of electricity determined on the principle of calculation of total production and business cost and an average reasonable profit for 1 kWh of commercial electricity in each period, and used together with the electricity retail tariff structure for calculating specific electricity retail prices applicable to each category of electricity consumers.

19. Average electricity retail price framework means the range between the minimum and maximum levels of the average electricity retail price.

20. Electricity retail tariff structure means a table of specific prices or percentages (%) of the average electricity retail price for calculation of specific electricity retail prices applicable to each category of electricity consumers.

Article 5. Principles of price management

1. The State performs the price management under the market mechanism; respects the rights to pricing and price competition of production or business organizations and individuals as provided by law.

2. The State regulates prices in accordance with this Law in order to valorize prices; and protects the rights and legitimate interests of production or business organizations and individuals and consumers and the interests of the State.

3. The State adopts price policies to support areas with difficult socio-economic conditions and areas with exceptionally difficult socio-economic conditions.

4. The State sets out principles and methods of pricing of goods and services priced by the State in conformity with the principles of market economy.

Article 6. Disclosure of price information

1. State agencies shall disclose the State’s guidelines, policies and measures of price management, regulation and decision through press conference and publication in the mass media or in other appropriate forms.

2. Goods producers or traders or service providers shall disclose information on goods or service prices together with basic econo-technical specifications of such goods or services in the form of price display. For goods and services on the list of goods and services subject to price valorization or the list of goods and services priced by the State, producers, traders or providers may additionally choose press conference, publication in the mass media or other appropriate forms.

3. Information and communications agencies shall publish accurate, objective and truthful price information and take responsibility for published information in accordance with law.

4. The disclosure of price information provided in this Article does not apply to information which is not allowed for disclosure in accordance with law.

Article 7. Contents of state management of prices

1. Studying, elaborating and implementing policies and laws on prices in conformity with socio-economic development lines and policies in each period.

2. Promulgating legal documents on price.

3. Pricing goods and services on the list of goods and services priced by the State; valuating prices of the State’s assets according to functions, tasks and powers provided by law.

4. Collecting, synthesizing and analyzing information on and making forecasts about domestic and world markets for building a price database to serve the state management of prices.

5. Managing the professional training in valuation; managing the examination for, grant and revocation of valuer cards and certificates of eligibility for provision of valuation services.

6. Organizing and managing scientific research, international cooperation and personnel training in price.

7. Examining, inspecting and settling complaints and denunciations and handling violations of the law on prices.

Article 8. Powers of state management of prices

1. The Government performs the uniform state management of prices nationwide.

2. The Ministry of Finance is answerable to the Government for performing the state management of prices.

3. Ministries and ministerial-level agencies shall, within the scope of their tasks and powers, perform the state management of prices in their respective sectors as provided by law.

4. Provincial-level People’s Committees shall, within the scope of their tasks and powers, perform the state management of prices in their localities in accordance with law.

Article 9. Specialized inspection of prices

1. Agencies performing the state management of prices shall conduct specialized inspection of prices in accordance with the law on inspection.

2. Specialized inspection of prices means inspection of observance of the law and regulations on prices in accordance with this Law and other relevant laws.

3. Powers and responsibilities of specialized price inspectorates; rights and obligations of inspected organizations and individuals and related organizations and individuals comply with the law on inspection.

Article 10. Prohibited acts in the price domain

1. For agencies competent to perform the state management of prices and their cadres and civil servants:

a/ Intervening, beyond the scope of their functions, tasks and powers provided by law, in the rights and obligations of production or business organizations and individuals in the price domain;

b/ Promulgating documents ultra vires or in violation of the prescribed order and procedures;

c/ Disclosing or using information provided by production or business organizations and individuals in contravention of regulations of competent state agencies;

d/ Abusing their posts, powers and tasks for self-seeking purposes.

2. For production or business organizations and individuals:

a/ Fabricating, spreading or providing untruthful information on the market situation, goods and service prices;

b/ Committing price frauds by intentionally changing without prior notice to customers’ commitments on time, place, purchase and sale conditions or quality of goods or services at the time of their delivery or provision;

c/ Taking advantage of an economic crisis, natural disaster, enemy sabotage, fire, epidemic or other abnormal circumstances or the State’s policies to set unreasonable buying or selling prices of goods or services;

d/ Committing transfer pricing or pricing collusion in any form for illicit profits.

3. For valuation enterprises and their branches:

a/ Fighting for customers in the form of preventing, intimidating, enticing, buying off or colluding with customers and other unfair competition practices; providing inaccurate information on qualifications, experience and service capacity of valuers, valuation enterprises and their branches;

b/ Colluding with valuation clients and related parties in valuation, to falsify valuation results;

c/ Receiving or asking for any sum of money or another benefit from valuation clients other than service charges agreed upon in contracts;

d/ Forging, leasing, lending or using valuer cards in contravention of the price law;

e/ Disclosing information on valuation dossiers and clients and valued assets, unless so consented by valuation clients or permitted by law;

f/ Obstructing or intervening in administration activities of organizations and individuals that have valuation needs and properly perform their functions and tasks in accordance with law.

4. For practicing valuers, in addition to the provisions of Clause 3 of this Article, they are prohibited from committing the following acts:

a/ Practicing valuation in personal capacity;

b/ Registering for valuation practice in two or more valuation enterprises at the same time;

c/ Performing valuation for a unit when having capital contribution, share or bond purchase relationships with such unit or having a parent, spouse, child or blood sibling acting as a leader or chief accountant in such unit.

5. For organizations and individuals having their assets subject to valuation and those involved in the use of valuation results:

a/ Selecting and signing valuation contracts with institutions or individuals that are unqualified for valuation practice;

b/ Providing inaccurate, untruthful, inadequate and untimely information and documents related to assets subject to valuation.

c/ Buying off, giving bribes to or colluding with valuers and valuation enterprises in order to falsify valuation results.

Chapter II

RIGHTS AND OBLIGATIONS OF PRODUCTION OR BUSINESS ORGANIZATIONS AND INDIVIDUALS AND CONSUMERS IN THE PRICE DOMAIN

Article 11. Rights of production or business organizations and individuals

1. To price goods or services they produce or provide, except those on the list of goods and services priced by the State.

2. To decide on buying and selling prices of goods or services they produce or provide for which the State sets price frameworks, maximum or minimum prices.

3. To participate in auctions and biddings, reach price agreements, conduct price consultation and otherwise compete in prices in accordance with law when buying or selling goods or services.

4. To apply the pricing principles, bases and methods provided by the State to price their goods or services.

5. To adjust prices of goods or services they produce or provide according to changes in price constituents.

6. To reduce prices of goods or services without being regarded as violating the law on competition and law on anti-dumping of imports, while having to publicly display at transaction places both old and new prices and the sale-off duration for the following:

a/ Fresh and live goods;

b/ Goods in stock;

c/ Seasonal goods or services;

d/ Goods or services for sales promotion in accordance with law;

e/ Goods or services in case of enterprise bankruptcy, dissolution or relocation, or change of production or business lines;

f/ Goods or services involved in the implementation of the State’s price valorization policies.

7. To propose competent state agencies to adjust prices of goods or services they produce or provide on the list of goods and services priced by the State.

8. To get access to information on the State’s price policies and price management and regulation measures and other public information.

9. To complain about, denounce or institute lawsuits against acts showing signs of violation of the price law; to request organizations and individuals to pay compensations for damage caused by their violations of the price law in accordance with law.

Article 12. Obligations of production or business organizations and individuals

1. To work out plans on prices of goods or services they produce or provide on the list of goods and services priced by the State, and submit them to competent agencies for decision.

2. To abide by decisions of competent state agencies on prices and price valorization measures.

3. To register selling prices or buying prices of goods or services subject to price registration and take responsibility for the accuracy of registered prices in accordance with law.

4. To declare selling prices or buying prices and take responsibility for the accuracy of declared prices for goods or services subject to price declaration in accordance with the Government’s regulations.

5. Regarding price display:

a/ For goods or services priced by the State, to display prices set by competent state agencies and buy and sell goods or services at displayed prices;

b/ For goods or services not on the list of goods and services priced by the State, to display prices decided by themselves and neither to buy nor sell such goods or services at prices higher than displayed ones.

6. To publicize information on prices of goods or services falling under their pricing competence in accordance with this Law.

7. To promptly provide accurate and adequate relevant data and documents at the written request of competent state agencies in case the State sets prices or applies measures to stabilize prices of their goods or services.

8. To promptly settle all complaints about prices of goods or services they produce or trade. To pay compensations in accordance with law for damage caused by their violations of the price law.

Article 13. Rights of consumers

1. To choose, negotiate and give opinions on prices when buying goods or services.

2. To be provided with accurate and adequate information on prices, quality and origin of goods or services.

3. To claim for damages when goods or services they have bought fail to meet quality standards, or their quantities or prices are not true to those notified, displayed or committed by goods producers or traders or service providers.

4. To propose competent state agencies to adjust prices of goods or services which are priced by the State when price constituents change.

5. To complain about, denounce or institute lawsuits or request social organizations to institute lawsuits against acts showing signs of violation of the price law in accordance with this Law and relevant laws.

Article 14. Obligations of consumers

1. To pay for goods or services at agreed or chosen prices or prices set by the State when buying such goods or services.

2. To inform state agencies and related organizations and persons of acts showing signs of violation of the price law upon detecting them.

Chapter III

PRICE REGULATION BY THE STATE

Section 1

PRICE VALORIZATION

Article 15. Goods and services subject to price valorization

1. Goods and services subject to price valorization are those essential for production and life and specified as follows:

a/ Main materials, fuels, materials and services for production and circulation;

b/ Goods and services satisfying basic needs of humans.

2. The list of goods and services subject to price valorization includes:

a/ Finished petrol and oil products;

b/ Electricity;

c/ Liquefied petroleum gas;

d/ Nitrogenous fertilizer; NPK (nitrogenous-phosphorous-potassium) fertilizer;

e/ Plant protection drugs specified by law;

f/ Vaccines for cattle and poultry diseases;

g/ Kitchen salt;

h/ Milk for under-6 infants;

i/ Edible sugar, including white sugar and refined sugar;

j/ Husked or unhusked ordinary rice;

k/ Preventive and curative medicines for human use on the list of essential medicines for use at medical examination and treatment establishments in accordance with law.

3. When necessary to modify the list of goods and services subject to price valorization specified in Clause 2 of this Article, the Government shall propose modification to the National Assembly Standing Committee for consideration and decision.

4. Based on the list of goods and service subject to price valorization specified in Clause 2 of this Article, competent state agencies defined in Article 18 of this Law shall decide on specific types of goods and service and apply appropriate price valorization measures in each period.

Article 16. Cases of price valorization

1. Price valorization shall be applied in the following cases:

a/ When prices of goods or services on the list specified in Clause 2 of Article 15 of this Law abnormally change;

b/ When price levels change, affecting socio-economic stability.

2. The Government shall detail this Article.

Article 17. Price valorization measures

One or several of the following measures shall be applied for a definite time to valorize prices in the cases specified in Article 16 of this Law:

1. Harmonizing supply and demand of domestically produced goods, exports and imports; harmonizing supply and demand of goods among domestic regions and localities by organizing the circulation of goods; buying or selling national reserve goods or circulation reserve goods;

2. Applying financial and monetary measures in compliance with law;

3. In case of necessity, setting up a price valorization fund for a goods item or service of which the price needs to be valorized and which is on the list of goods and services subject to price valorization for the purpose of supporting price valorization; using such fund when the price of such goods item or service abnormally changes or adversely affects the economy and life. A price valorization fund shall be raised from the following sources:

a/ Deductions from the goods or service price;

b/ Voluntary contributions of organizations and individuals;

c/ Foreign aid;

d/ Other financial sources.

The Government shall specify goods items and services for which price valorization funds may be set up, and the setting up, management and use of these funds.

4. Making price registration for goods and services subject to price valorization. Producers and traders are only required to make price registration for goods and services subject to price valorization during the period the State applies price valorization measures.

5. Examining price constituents; controlling goods in stock; checking quantities and volumes of available goods;

6. Introducing price subsidies in accordance with law and international commitments;

7. Setting specific prices, maximum and minimum prices or price frameworks suitable to characteristics of each type of goods or service on the principles and bases and by methods provided by this Law.

Article 18. Competence and responsibility for deciding to apply price valorization measures

1. The Government shall decide on price valorization policies and measures for the cases specified in Articles 16 and 17 of this Law.

2. The Ministry of Finance, ministries and ministerial-level agencies shall, within the scope of their functions, tasks and powers assigned by the Government, guide and organize the application of price valorization measures decided by the Government.

3. Provincial-level People’s Committees shall, within the scope of their functions, tasks and powers, organize the application of price valorization measures decided by the Government and guided by the Ministry of Finance, other ministries or ministerial-level agencies. In case of a natural disaster, fire, epidemic or unexpected accident, they shall base on their local conditions to decide on specific price valorization measures in their localities.

4. Agencies that issue decisions on application of price valorization measures shall decide on the time limit for applying such measures.

5. Agencies or persons that decide on application of price valorization measures shall take responsibility for their decisions in accordance with law.

6. The Government shall detail this Article.

Section 2

PRICING

Article 19. Goods and services priced by the State

1. The State shall price:

a/ Goods and services subject to state monopoly in their production, trading or provision;

b/ Important natural resources;

c/ National reserve goods; public-utility products and services and public non-business services funded by the state budget.

2. Pricing forms:

a/ Specific prices;

b/ Price frameworks;

c/ Maximum and minimum prices.

3. Pricing of goods and services on the list of goods and services priced by the State is as follows:

a/ Setting specific prices or fare/charge rates for:

- Aviation services, including takeoff and landing services; inbound/outbound flight management; assistance for flight assurance; security screening;

- Telecommunications connection services;

- Electricity: electricity transmission; electricity system support services;

b/ Setting brackets for electricity generation prices; electricity wholesale prices; average electricity retail prices; domestic air transport service charges for exclusive routes;

c/ Setting price frameworks and specific prices or charge/rent rates for:

- Land, water surface, ground water and forests under the entire people’s ownership represented by the State, and daily-life clean water;

- Rent, rent-purchase of social houses and public-duty houses built with state budget funds; selling prices or rent rates of state-owned houses;

- Medical examination and treatment and education and training services provided at state-run medical examination and treatment establishments and education and training institutions;

d/ Setting maximum or minimum prices for:

- National reserve goods in accordance with the law on national reserves; goods and services under orders placed or production or business plans assigned by the State; public-utility products and services and public non-business services funded by the state budget, except the services specified at Point c, Clause 3 of this Article;

- Domestically produced cigarettes;

- Maximum or minimum rent rates for state assets being infrastructure facilities.

4. When necessary to modify the list of goods and services priced by the State, the Government shall submit modifications to the National Assembly Standing Committee for consideration and decision.

Article 20. Principles of pricing by the State

1. Covering reasonable actual production or business costs and ensuring profits conformable to market price levels and the State’s socio-economic development guidelines and policies in each period.

2. Promptly adjusting prices when price constituents change.

Article 21. Pricing bases and methods

1. Pricing bases:

a/ Total cost and quality of the goods or service at the time of pricing; expected profit;

b/ Supply-demand relationship of the goods or service and purchasing power of the currency; payment ability of consumers;

c/ Domestic and world market prices and competitiveness of the goods or service at the time of pricing.

2. Pricing methods:

a/ The Ministry of Finance shall provide a common pricing method applicable to all goods and services;

b/ Ministries and ministerial-level agencies shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, guiding pricing methods for goods and services under their respective pricing competence.

Article 22. Pricing competence and responsibility

1. The Government shall set:

a/ The land price framework;

b/ The water surface rent rate bracket;

c/ The social house and public-duty house rent and rent-purchase rate bracket.

2. The Prime Minister shall set the bracket of average electricity retail prices, mechanism for price adjustment and electricity retail tariff structure.

3. The Minister of Finance, ministers, heads of ministerial-level agencies and provincial-level People’s Committees shall set prices of goods and services specified in Article 19 of this Law as assigned or decentralized by the Government.

4. Agencies and persons that decide on prices of goods and services on the list of goods and services priced by the State shall take responsibility for their decisions before law.

Section 3

PRICE CONSULTATION

Article 23. Cases in which price consultation is organized

1. Price consultation is organized for goods and services meeting the following conditions:

a/ Goods and services outside the list of goods and services priced by the State;

b/ Important goods and services which are produced, traded or provided in special conditions or have limited competitive markets; or are subject to purchase or sale monopoly or have irreplaceable interdependent buyers and sellers.

2. Competent state agencies shall organize a price consultation for goods and services specified in Clause 1 of this Article in the following cases:

a/ It is requested by the buyer or the seller or both;

b/ It is requested by the Prime Minister, a minister, the head of a ministerial-level agency or government-attached agency or the chairperson of a provincial-level People’s Committee.

Article 24. Competence and responsibility for organizing price consultations

1. The Ministry of Finance shall assume the prime responsibility for organizing price consultations at the request of the Prime Minister, ministers or heads of ministerial-level agencies or government-attached agencies.

2. Provincial-level Finance Departments shall assume the prime responsibility for organizing price consultations at the request of chairpersons of provincial-level People’s Committees or of buyers or sellers or both buyers and sellers that are based in their localities. In case the buyer and seller that are based in different provinces jointly request a price consultation, they may agree to request either of the provincial-level Finance Departments of the two localities to organize such consultation. In case they cannot reach agreement, the provincial-level Finance Department of the locality in which the seller is based shall assume the prime responsibility for organizing the consultation.

3. Agencies responsible for price consultation shall organize price consultation in accordance with law.

Article 25. Price consultation results

1. Agencies organizing a price consultation shall notify in writing the agreed price to involved parties after the consultation.

2. In case the parties fail to reach agreement on a price at a price consultation, the price consultation-organizing agency shall decide on a temporary price for compliance by the two parties.

The decision on a temporary price announced by the price consultation-organizing agency is valid for 6 months at most. While implementing such decision, the parties may continue negotiating on prices. If the parties can reach agreement on a price, they shall implement the agreed price and report to the price consultation-organizing agency on such price and its implementation time.

Upon the expiration of the 6-month duration, if the parties cannot reach agreement on a price, the competent agency shall organize the second-time price consultation. If the parties still cannot reach any agreement, the decision on a temporary price remains valid until a price agreement is reached.

Section 4

EXAMINATION OF PRICE CONSTITUENTS

Article 26. Cases of examination of price constituents

1. Competent state agencies shall examine price constituents for goods and services specified in Clause 2 of this Article in the following cases:

a/ When they decide on price valorization or pricing;

b/ When prices abnormally change and the Prime Minister, a minister, the head of a ministerial-level agency or the chairperson of a provincial-level People’s Committees so requests.

2. Goods and services subject to examination of price constituents include:

a/ Goods and services priced by the State;

b/ Goods and services subject to price valorization;

c/ Other goods and services of which prices abnormally change, and at the request of the Prime Minister, ministers, heads of ministerial-level agencies or chairpersons of provincial-level People’s Committees.

Article 27. Competence and responsibility for examining price constituents

1. The Ministry of Finance shall assume the prime responsibility for, and coordinate with ministries, ministerial-level agencies and provincial-level People’s Committees in, examining price constituents for:

a/ Goods and services to be priced by the Government, the Prime Minister or the Minister of Finance;

b/ Goods and services on the list of goods and services subject to price valorization specified in Article 15 of this Law.

2. Ministries and ministerial-level agencies shall assume the prime responsibility for, and coordinate with the Ministry of Finance and provincial-level People’s Committees in, examining price constituents for goods and services to be priced by their ministers or heads.

3. Provincial-level People’s Committees shall examine price constituents for:

a/ Goods and services to be priced by themselves competence;

b/ Goods and services on the list of goods and services subject to price valorization of production or business organizations and individuals in their localities.

Chapter IV

VALUATION

Section 1

GENERAL PROVISIONS ON VALUATION

Article 28. Valuation activities

1. Organizations that fully satisfy the conditions specified in this Law may conduct valuation activities.

2. Individuals may not conduct independent valuation activities.

3. Valuation activities must comply with this Law’s provisions on valuation.

Article 29. Principles of valuation

1. Observing Vietnamese valuation law and standards.

2. Taking responsibility for valuation activities in accordance with law.

3. Assuring professional independence, truthfulness and objectiveness of valuation activities and results.

4. Keeping confidential information in accordance with law.

Article 30. Process of asset valuation

1. General identification of the asset to be valued and determination of its market or non-market value to serve as a basis for valuation.

2. Elaboration of a valuation plan.

3. Field survey and collection of information.

4. Analysis of information.

5. Valuation of the concerned asset.

6. Making of a valuation result report and valuation certificate and send them to customers and parties concerned.

Article 31. Assets for valuation

1. Assets of organizations and individuals that request valuation.

2. Assets the prices of which must be valued by the State in accordance with the law on management and use of state assets and other relevant laws.

Article 32. Valuation results

1. Valuation results may be used as a basis for agencies, organizations or persons that own or have the right to use assets as provided by law and related parties to consider and decide on or approve the prices of such assets.

2. Valuation results may be used for purposes stated in valuation contracts or written valuation requests of competent state agencies.

3. Valuation results may only be used in the validity duration stated in valuation result reports and valuation brief report.

Article 33. Professional valuation associations

1. A professional valuation associations shall be established and operate in accordance with the law on associations and the law on valuation.

2. A professional valuation associations may provide valuation training, grant certificates of valuation training, and perform valuation-related tasks in accordance with law.

Section 2

VALUER

Article 34. Criteria of valuer

1. Having civil act capacity.

2. Possessing ethical qualities and being righteous, honest and impartial.

3. Possessing a university degree in a discipline related to valuation.

4. Having actually worked in the trained discipline for 36 months or more after receiving the university degree in the discipline specified in Clause 3 of this Article.

5. Having a certificate of professional valuation training granted by a competent agency.

6. Having a valuer card as prescribed by the Ministry of Finance.

Article 35. Practicing valuer

1. Practicing valuers are persons who fully satisfy the criteria specified in Article 34 of this Law and have registered for practicing valuation in a valuation enterprise.

2. The rights and obligations of practicing valuers in valuation enterprises are specified in Article 37 of this Law.

Article 36. Persons who are not allowed to practice in valuation enterprises

1. Persons who fail to fully satisfy the criteria specified in Article 34 of this Law.

2. Cadres and civil servants as defined in the law on cadres and civil servants; officers, professional army men and defense workers in agencies and units of the People’s Army; professional and technical operation officers and non-commissioned officers in agencies and units of the People’s Public Security.

3. Persons who are banned from practicing valuation under legally effective court judgments or rulings; persons who are currently examined for penal liability; persons who had been convicted for an economic or position-related crime in relation to finance, price or valuation and have not yet had their convictions wiped out; persons who are subject to the administrative handling measure of community-based education or consignment to a compulsory detoxification or compulsory education establishment.

4. Persons who have been convicted for serious or more serious economic crime.

5. Persons who committed a violation of the law on finance and have been administratively sanctioned within one year counting from the date of issuance of the sanctioning decisions are issued.

6. Persons who are suspended from practicing valuation.

Article 37. Rights and obligations of practicing valuers

1. Rights of practicing valuers:

a/ To practice valuation in accordance with this Law and other relevant laws;

b/ To be independent in professional activities;

c/ To request clients to provide dossiers and documents related to assets subject to valuation and create favorable conditions for valuation;

d/ To refuse to conduct valuation when seeing that valuation conditions are insufficient;

e/ To join domestic and foreign professional valuation associations in accordance with law;

f/ To have other rights provided by law.

2. Obligations of practicing valuers:

a/ To comply with the provisions on valuation activities of this Law and other relevant laws;

b/ To properly and adequately perform valuation contracts;

c/ To sign valuation result reports and valuation brief reports, and take responsibility before law and at-law representatives, directors general or directors of valuation enterprises for valuation results;

d/ To explain or defend, when so requested, results of valuation they have conducted before valuation clients or third parties that use valuation results but are not valuation clients as stated in valuation contracts;

e/ To participate in programs on training in professional knowledge of valuation organized by licensed agencies or institutions;

f/ To preserve dossiers and documents on valuation;

g/ To have other obligations provided by law.

Section 3

VALUATION ENTERPRISES

Article 38. Conditions for establishment and operation of valuation enterprises

1. Valuation enterprises shall be established in accordance with the Law on Enterprises.

2. Valuation enterprises may operate after obtaining a certificate of eligibility for provision of valuation services granted by the Ministry of Finance in accordance with law.

Article 39. Conditions for grant of certificates of eligibility for provision of valuation services

1. When applying for a certificate of eligibility for provision of valuation services, a single-member limited liability company must fully satisfy the following conditions: