According to the 2023 Price Law, retail electricity is no longer included in the list of price-stabilized goods and services but is now part of the list of goods and services priced by the state.

The 2023 Price Law introduces several fundamental changes aimed at encouraging price competition and decentralizing price management according to the market mechanism with state regulation. It includes the issuance of two lists of goods and services: the Price-Stabilized Goods and Services List and the State-Priced Goods and Services List.

Amendments and Additions to the Price-Stabilized Goods and Services List

Compared to the 2012 Price Law, the 2023 Price Law’s Price-Stabilized Goods and Services List adds two items: DAP fertilizer and animal, aquaculture feed. Conversely, table salt and retail electricity have been removed from this list. Thus, the list under the 2023 Price Law includes the following nine goods and services: refined petrol and oil; liquefied petroleum gas (LPG); milk for children under six years old; ordinary paddy and rice; urea, DAP, NPK fertilizers; animal feed, aquaculture feed; vaccines for livestock and poultry; plant protection drugs; and essential medicines used in medical examination and treatment facilities.

Decentralization of Pricing for the State-Priced Goods and Services List

Compared to the 2012 Price Law, Appendix 02 of the 2023 Price Law specifies the responsibilities of central and local specialized agencies in pricing goods. For goods and services using central funds or managed centrally, the specialized ministries are responsible for pricing. For those using local funds or managed locally, the provincial People’s Committees are responsible. Additionally, for certain services such as medical quarantine, preventive healthcare at public health facilities, clean water, and public irrigation services using state funds, pricing requires collaboration between specialized ministries and provincial People’s Committees.

Additions to the State-Priced Goods and Services List

The 2023 Price Law adds new items to the State-Priced Goods and Services List, such as natural gas transportation by pipeline for electricity production and technical inspection services for machinery, equipment, materials, and substances requiring strict safety regulations. Simultaneously, it removes domestically produced cigarettes and planning services from the list.

Adjusting Price Stabilization Measures

According to the 2023 Price Law, price stabilization measures include supply-demand regulation (including domestic production, export, and import regulation); inter-regional and inter-local commodity circulation through organized distribution; national and circulating reserve purchases and sales; financial and monetary measures in accordance with legal regulations; and setting specific prices, maximum prices, minimum prices, or price ranges appropriate for each type of goods and services.

To ensure flexibility and timeliness in response to practical situations, the 2023 Price Law stipulates that if necessary, the Price-Stabilized Goods and Services List and the State-Priced Goods and Services List can be adjusted based on proposals from ministries, sector management agencies, and provincial People’s Committees. The Ministry of Finance will present these proposals to the Government for submission to the Standing Committee of the National Assembly for review and decision. This regulation enhances the effectiveness of state price management, thereby contributing to promoting the production and business activities of organizations and individuals.

The 2023 Price Law takes effect on July 1, 2024.

This bulletin is intended solely to provide information about newly enacted legal regulations and should not be used for advising or applying to specific cases.

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