Price management is a core element in a market economy and profoundly affects both consumers and businesses. The Law on Price 2023, with many new points, brings significant changes to prices management in Vietnam. In an increasingly volatile and complex market, the reforms that the Law on Price 2023, which is effective from July 1, 2024, are attracting the attention of stakeholders and creating new opportunities for promoting economic prosperity. In this topic, TNTP lawyer will analyze some new point of the Law on Price 2023 compared to previous regulation.
Some new points of the Law on Price 2023
1. Principles for applying the Law on Price and other related laws
Article 3 of the Law on Price 2023 added provisions on the principles for applying the Law on Price and other laws. Accordingly, if there are differences between the Law on Price and other laws issued before the Law on Price comes into effect, the provisions of the Law on Price will apply, except for six specific fields outlined in Clause 4, Article 3, which will follow the regulations of specialized laws, specifically:
• Land prices: Follow the provisions of land law.
• Housing prices: Follow the provisions of housing law.
• Electricity prices and electricity-related services: Follow the provisions of electricity law.
• Medical examination and treatment service prices: Follow the provisions of medical examination and treatment law.
• Tuition fees and education service prices: Follow the provisions of education, higher education, and vocational education laws.
• Royalties and related compensations for intellectual property: Follow the provisions of intellectual property law, including royalties for exploiting and using works, sound recordings, and compensation for patent or plant variety rights usage in case of copyright or related rights limitation.
2. Addition of Prohibited Acts and Division by Subject Groups
The Law on Price 2023 added prohibited acts in the field of pricing and appraisal, with clear regulations for specific subject groups. Notably, the Law on Price 2023 introduces prohibited acts for two new groups: the appraisal council and its members. Below are the prohibited acts under the new regulations:
• State management agencies in pricing and appraisal: Prohibited from acts such as bribery, collusion, or manipulating prices of goods, services, or appraisal values for personal gain, and conspiring on prices or appraisals.
• Individuals and organizations: Prohibited from obstructing the price management activities of competent state agencies, creating or using fake appraisal certificates, using appraisal certificates without meeting the condition for conducting appraisal business, and signing appraisal certificates or reports when not being a qualified appraiser.
• Appraisal businesses: Prohibited from providing appraisal services to related parties as defined by enterprise law, issuing falsìlying appraisal certificates, engaging in bribery, collusion to manipulate prices or appraisal values for personal gain, and conspiring on prices or appraisals.
• Appraisal councils: Prohibited from interfering in appraisal activities, compromising the independence of members, issuing falsifying appraisal results or reports, engaging in bribery, and colluding to manipulate prices or appraisal values for personal gain.
• Members of appraisal councils: Prohibited from creating fake appraisal documents, engaging in bribery, and colluding to manipulate prices or appraisal values for personal gain.
3. Adding the list of Goods and Services Priced by the State
• Regarding the list of goods and services priced by the State, besides the three criteria already recognized in the Law on Price 2012, the Law on Price 2023 adds the criterion: Essential goods and services that are monopolistic in buying, selling, or have limited competitive markets affecting socio-economic conditions, people’s lives, and production activities.
• Additionally, the Law on Price 2023 has issued: A list of goods and services priced by the State and a list of price-stabilized goods that were not included in previous laws.
4. Price Declaration
Unlike the 2012 Price Law, which only mentioned price declaration in the term explanation and obligations of production and business organizations, the Law on Price 2023 has a specific clause on price declaration. Specifically, Article 28 of the Law on Price 2023 states:
• Declared price: The price decided by the business organization and notified to the competent authority receiving the declaration.
• Types of goods and services subject to price declaration: The Law on Price 2023 specifies four groups of goods and services that require price declaration, including:
– Goods and services on the price stabilization list.
– Goods and services with the price brackets, maximum or minimum prices are set by the State.
– Goods and services are priced by enterprises based on reference prices.
– Other essential goods and services issued by the Government.
• Price declaration content: The Law on Price 2023 clearly outlines the content that needs to be declared, including price components, product or service information, and the declared price level.
The Law on Price 2023 has introduced important changes, enhancing transparency and accountability in price management and appraisal. The regulations on price declaration, prohibited acts, and the list of price-stabilized goods provide a robust legal framework, protecting consumers and promoting healthy competition.
This is an article by TNTP lawyer on the topic: “Some new point of the Law on Price 2023”. Hopefully the above article bring value to our readers.
Best Regard.
