THE
GOVERNMENT
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THE
SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
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No.:
170/2003/ND-CP
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Hanoi
, December 25, 2003
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DECREE
OF THE GOVERNMENT No.170/2003/ND-CP DATED DECEMBER 25, 2003
DETAILING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE ORDINANCE ON PRICES
THE GOVERNMENT
Pursuant to the Governmental
Organization dated December 25, 2001;
Pursuant to the Ordinance on
Prices No.40/2002/PL-UBTVQH10 dated April 26, 2002;
At the request of the Minister
of Finance,
DECREES:
Article 1.
Scope of governing
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Article 2.
List of goods and services subject to price stabilization
1. List of goods subject to
price stabilization by Article 6 of the Ordinance on Prices include: gasoline,
oil, liquefied gas, cement, iron, steel, fertilizer, rice, coffee, cotton seed
and cotton fibers, sugar cane as raw materials, salt, and some drugs for
medical prevention and treatment for persons under the provisions of law.
2. The Prime Minister adjusts
the list of goods and services subject to price stabilization prescribed in
Clause 1 of this Article depending on each period and when the market prices
fluctuate abnormally.
Article 3.
The competence to decide and announce the application of measures to stabilize
prices
1. The Prime Minister decides
and announces the application of measures to stabilize prices for goods and
services on the list subject to price stabilization in case market prices
fluctuate abnormally in the whole country or in each region, the area in which
these prices of goods and services influence affecting the economic – social
development the whole country. Those measures are:
a) Adjustment of supply and
demand of domestically-produced goods and exports, imports between the regions
and localities in the country;
b) Buying or selling of national
reserve goods;
c) Inventory control when signs
of speculation appear;
d) Use of financial instruments,
currencies as needed.
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a) Stipulation of maximum
prices, minimum prices and price brackets;
b) Control of price constituents
when there are signs of monopoly connection on prices or price raising
speculation.
3. People's Committees of
provinces and cities under central authority (hereinafter referred to as
provincial-level People's Committee) decide and announce the application of
measures to stabilize prices in case market prices fluctuate abnormally in the
localities for goods and services on the list subject to price stabilization in
which these prices of goods and services influence affecting the economic –
social development in the localities. Those measures are:
a) Adjustment of demand and
supply of goods to ensure production, consumption in the localities;
b) Application of fiscal
measures, monetary as necessary to stabilize prices of goods and services under
their jurisdiction and use of local budgets.
4. Where specific goods and services
that the Prime Minister, Ministry of Finance has decided and announced the
application of measures to stabilize prices, the provincial-level People's
Committees implement those measures.
Article 4.
The time limit of application of measures to stabilize prices
1. The time limit of application
of measures to stabilize prices decided and announced by the Prime Minister,
Minister of Finance, the provincial-level People's Committees only takes effect
during the time that the market price fluctuates abnormally.
2. When the market price
situation is back to normal, the competent authorities that decide and announce
the application of price stabilization measures announce the termination of the
application time limit of such measures to stabilize prices.
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1. Ministry of Finance submits
to the Prime Minister for deciding and announcing the implementation of
measures to stabilize prices in case the market price has been unusually
volatile in the whole country or each region or each area.
2. Price Management Department
submits to the Minister of Finance for deciding and announcing the
implementation of measures to stabilize prices under the jurisdiction of the
Ministry of Finance in case the market price has been unusually volatile in the
whole country or each region or each area.
3. Department of Finance submits
to the provincial-level People's Committee for deciding and announcing the
implementation of measures to stabilize prices in cases where market price has
been unusually volatile in the locality.
4. Contents of the written
submission to the Prime Minister, Minister of Finance, the provincial-level
People's Committee for deciding the price stabilization measures include:
a) Status and causes of
fluctuation in market prices of goods and services on the list of price
stabilization;
b) The measures to stabilize
prices of goods, services and time limit for application of measures to
stabilize prices;
c) Conditions for the
implementation of measures to stabilize prices;
d) Responsibilities of agencies
and organizations to take measures to stabilize prices.
Article 6.
Responsibility for implementation of decisions on measures to stabilize the
prices of the competent authorities
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2. The ministries managing
branches, sectors and provincial-level People's Committees are responsible for
implementing the measures to stabilize prices as stipulated in the decision
issued by the Prime Minister and the decision issued by the Minister of
Finance.
3. Department of Finance is
responsible for guiding the implementation of decisions of the provincial-level
People's Committee on the application of measures to stabilize prices; the
Departments managing branches, sectors and People's Committees of districts and
towns and provincial cities are responsible for implementing the measures to
stabilize prices assigned by the provincial-level People's Committees.
4. Organizations and individuals
producing and trading goods and services on the list subject to price
stabilization are responsible for implementing concerned measures of price
stabilization that have been provided in the decisions issued by the Prime
Minister, Minister of Finance, the provincial-level People's Committee.
Article 7.
Assets, goods and services valued by the State
1. Assets, goods and services
valued by the State under clause 1 of Article 7 of the Ordinance on prices
include:
a) Land under the provisions of
the Land Law;
b) Water surface, important
natural resources in accordance with law provisions;
c) Assets of the State sold,
leased not through forms of bidding, auction:
State-owned houses for rent or
sale;
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State property is the
infrastructure works to serve national interests, public interests;
Goods and services produced by
order of the State.
d) Exclusive goods and services
of the State:
Electricity;
Passenger transport services by
aircraft of standard domestic routes;
Services of post,
telecommunications: regular domestic mail weighing up to 20 grams, telephone
subscribers and local telephone contact at home, domestic and international
long distance telephone; local, inter-provincial international
telecommunications circuit leasing and other services of post,
telecommunications defined by the Prime Minister under the Ordinance on Post
and Telecommunications.
đ) Goods and services which are
important to the country and the people:
Gasoline, oil according to
provisions of the Prime Minister;
Clean water for daily life;
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A number of essential drugs for
medical prevention and treatment;
Subsidized goods, transport
subsidies;
The Nhan Dan newspaper, the
newspaper of offices of the Party of Vietnam Communist Party of the provinces
and centrally-run cities.
2. Where it is necessary to
adjust the list of assets, goods and services valued by the State specified in
clause 1 of this Article, the Ministry of Finance submits to the Prime Minister
for decision.
Article 8.
Competence of valuation
1. Competence to valuate assets,
goods and services valued by the State is defined as follows:
a) The Government shall decide:
Land price bracket;
Price bracket for lease water
surface;
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b) The Prime Minister shall
decide:
Sale price or lease price of
State assets as infrastructure projects serving national interests, public
interests not through the forms of bidding, auction;
Housing prices owned by the state
for lease or sale to the resettled people, policy beneficiaries;
Standard electricity prices;
Charge or charge brackets for
transport services of regular domestic mail weighing up to 20 grams; rates or
rates bracket of telephone subscribers and local phone contacts at subscribers’
houses;
The Nhan Dan newspaper selling
price.
c) The Minister of Finance shall
decide:
Sale price or leasing price of
State assets as infrastructure projects serving national interests, public
interests not through the forms of bidding or auction as authorized by the
Prime Minister;
Prices of national reserve goods
and goods, services produced by order of the State not through the forms of
bidding, auction;
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Petrol, oil price in accordance
with provisions of the Prime Minister;
Bracket of clean water for daily
life;
Based on the Government's land
price bracket to guide provincial-level People's Committees to decide on land
prices;
Based on the price bracket of
the water surface lease of government to guide the provincial People's
Committees to decide on water surface rents;
Retail price bracket of some
essential medicines for the medical prevention and treatment for human being.
d) The Minister of Industry
based on the standard electricity price of the Prime Minister to decide the
specific price for selling electricity to consumers in the national network;
đ) The Minister of Post and
Telecommunications shall decide: domestic and international long distance phone
rates bracket; local, inter-provincial, international telecommunications
circuit leasing rates bracket; rates of other post, telecommunications services
defined by the Ministry of Post and Telecommunications under regulations issued
by the Prime Minister.
e) The provincial-level People's
Committees shall decide:
Rates of carriage of passengers
by bus in the city, towns and industrial zones;
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Based on the standard price
bracket of the Government, the Prime Minister, Ministers, and guidance of the
Ministry of Finance, the Ministries to decide on prices of following assets,
goods and services for the local application:
+ The prices of types of land;
+ The prices for water surface
leasing;
+ Housing leasing or sale prices
owned by the state for the resettled people, policy beneficiaries; Housing
leasing or sale prices owned by the state for working or use for other
purposes;
+ Price of selling electricity
for power managed by localities not belonging to national power grid;
+ The rates of price and freight
subsidies of goods on the list subject to price and transport subsidies paid
from local and central budgets; price rates or price bracket of retailing
commodities subject to price and transport subsidies;
+ Price of clean water for daily
life;
+ Price of goods and services
produced by order of the State under the local budget but not through the forms
of bidding, auction;
2. In case of changing the
competence to valuate as prescribed in Clause 1 of this Article, the Ministry
of Finance shall submit to the Prime Minister for consideration and decision.
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1. When the constituents of
domestic price and world price fluctuate affecting the production and life, the
state agencies that are competent to determine the price as specified in
Article 8 of this Decree shall promptly adjust prices. In case of not adjusting
price, apply the measures of finance, monetary and other measures necessary to
ensure that producing and trading organizations and individuals operate
normally and ensure legitimate interests of consumers.
2. Organizations and individuals
may request the state agencies that are competent to determine the price as
specified in Article 8 of this Decree to adjust prices in accordance with the
law provisions. When organizations and individuals producing and trading goods
and services valued by the State propose to the competent state agencies for
adjusting prices, they must clearly state the reasons and bases for determining
the rates proposed for adjustment.
3. Within 15 days (working) days
after receiving the recommendations of organizations and individuals, the state
agencies that are competent to determine the price must consider, adjust prices
within the time limit provided for in Article 10 of this Decree; in case of not
accepting proposals for price adjustment, it must answer to the organization or
individual in writing.
Article 10.
The order and time limit for decision on the prices
1. Submission, appraisal, and
collection of comments on the contents of the price plan
a) Price plan of assets, goods
and services subject to valuation by the Government, the Prime Minister shall
be submitted by the ministries managing branches, sectors after consulting the
relevant ministries and appraisal comments in writing by the Ministry of
Finance.
b) Price plan of assets, goods
and services subject to valuation by the Minister of Finance shall be decided
by the Minister of Finance on the basis of consulting the concerned ministries
managing branches, sectors.
c) Price plan of assets, goods
and services subject to valuation by the Minister of Ministries shall be
specified the procedures for submission, appraisal and price decisions by the
Ministers.
d) Price plan of assets, goods
and services subject to valuation by the provincial-level People's Committees
shall be submitted by the Departments managing branches, sectors after
consulting the relevant bodies and written appraisal of the Departments of
Finance.
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b) Since the date of receipt of
the price plan which attached the opinions of the concerned agencies and
written appraisal of the competent authorities, the time limit for deciding
price (in working days) of the levels is specified as follows:
- For the Prime Minister, not
more than 15 days;
- For the ministries,
ministerial-level agencies, provincial-level People's Committees not more than
10 days.
c) Where necessary to extend the
appraisal period of the price plan, making price decisions, the agencies or
units that are competent to appraise the price plan and the agencies that are
competent to decide on the prices must notify in writing and state clearly the
reasons for the extension to the agency submitting the price plan; the
extending duration is no longer than 15 days.
3. Ministry of Finance defines
the Regulation on the price valuation; dossier of the price plan and content of
the price plan.
Article 11.
Conditions to hold the price negotiation
Ministry of Finance, Department
of Finance hold the price negotiation when having the following two full
conditions:
1. At the request of either the
purchaser or seller when these parties cannot agree the purchase price, the
sale price to sign a contract or at the request of the Prime Minister,
ministers, heads of ministerial-level agencies, heads of Governmental agencies,
Chairmen of Provincial-level People's Committees.
2. It must be goods and
important services with exclusive nature of purchase, sale not belonging to the
scope of valuation in Article 7 of this Decree. Goods and important services
with exclusive nature of purchase, sale are the exclusive goods and services
produced in terms of production, special business that the parties depend
mutually in the relationship of purchase and sale, it is not replaceable and
there is no competition in the market.
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1. Ministry of Finance holds the
price negotiation at the request of the Prime Minister, ministers, heads of
ministerial-level agencies, heads of governmental agencies or at the request of
the buyers, the sellers or either the purchaser or the seller of important
goods and services having an impact on economic – social development of many
branches of the country.
2. Department of Finance holds
the price negotiation at the request of the Chairman of provincial-level
People's Committee or at the request of the buyers, the sellers or either the
purchaser or the seller that both parties are headquartered at the locality,
trading important goods and services having an impact on economic – social
development at the locality.
3. Ministry of Finance regulates
dossier and procedures for the price negotiation.
Article 13.
Price negotiation results
1. Price negotiation results are
complied with provisions in Article 12 of the Ordinance on Prices.
2. Decision on interim prices in
the price negotiation as prescribed in Clause 2 of Article 12 of the Ordinance
on prices is valid for a maximum period of 6 months. During the duration of
executing decisions on interim price, the parties continue to exchange for
agreement of purchase price, sale price, when this time limit expires if the
buyer, the seller cannot reach agreement of the purchase price, sale price and
have proposal, the Ministry of Finance or the Department of Finance will hold
the price negotiation under Article 11 of this Decree.
Article 14.
Vietnam price appraisal standards
1.Price appraisal activities of
enterprises on the territory of Vietnam must comply with the Vietnam price
appraisal standards and international price appraisal guiding standards
recognized by the Vietnam State.
2. The Ministry of Finance
issues Vietnam price appraisal standards.
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1. State assets required to be
appraised include:
a) Assets acquired in whole or
in part from state funds;
b) The assets of the State for
lease, transfer, sale, capital contribution and other forms of right transfer;
c) The assets of state
enterprises for lease, transfer, sale, capital contribution, equitization,
dissolution and other forms of conversion;
d) Other state assets as
prescribed by law required to be appraised.
2. Assets of the State in clause
1 of this Article with value as below must be appraised:
a) With a single-unit value at
100 million VND or more, or buy once at the same type of property with a large
quantity of a total value of 100 million VND or more for assets purchased in
whole or in part from state funds;
b) With a value at VND 500
million or more for assets of the State for lease, transfer, sale, capital
contribution and other forms of right transfer;
c) With a value at VND 500
million or more for the assets of state enterprises for lease, transfer, sale,
capital contribution, equitization, dissolution and other forms of conversion;
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3. Agencies, organizations,
enterprises and units using state funds to procure assets specified in clause 1
of this Article (state funds for procurement of state assets required to be
appraised include: capital used for investment in basic construction, the
non-business capital, credit capital for investment and development of the
State, credit loans guaranteed by the State and other capitals of state funds)
if they are not been through bidding but through the Price Determination
Council, are required to be conducted the price appraisal.
4. Assets of the state required
to be evaluated provided for in Article 13 of the Ordinance on Prices passed
the bidding price or determined by the Price Determination Council established
under the provisions of law, are not necessarily to be conducted price
appraisal; the price appraisal of the assets derived from other capital shall
comply with the requirements of state agencies, organizations and individuals
wishing for evaluation.
Article 16.
Establishment of the enterprises of price appraisal
1. The enterprises of price
appraisal are organized in the form of state-owned enterprises, partnerships or
foreign-owned enterprises.
2. The enterprise of price
appraisal is established when three are three price appraisers or more; for a
partnership, all partners must be price appraisers and having technical
material facilities to ensure the price appraisal activities.
3. The order and procedures to
establish enterprise of price appraisal shall comply with the State-owned
Enterprise Law, Enterprise Law, Law on Foreign Investment in Vietnam.
Article 17.
Price appraiser criteria
1. Those who are recognized as
the price appraisers must meet the following criteria:
a) Being a citizen of Vietnam;
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c) Having a certificate of price
appraisal professional skill issued by a university, college or establishment
having training function specialized in price appraisal. Those who have
graduated a foreign or domestic university on the subjects of price appraisal
are not required to possess certificates of training price appraisal
professional skill;
d) Having a period of continuous
working for 3 years or more by speciality trained at the state agencies,
political organizations, political- social organizations, enterprises and other
organizations.
2. Persons who meet the
conditions specified in Article 16 of the Ordinance on Prices and the specific
provisions in this Article without criminal records shall be considered by the
Minister of Finance to issue cards of price appraisers.
3. Ministry of Finance issues
Regulations on issuance, use and management of cards of price appraisers.
Article 18.
Rights and obligations of the price appraisal enterprises
1. Rights and obligations of the
price appraisal enterprises shall comply with Article 18 of the Ordinance on
Prices.
2. The compensation for damage
caused by improper price appraisal is done as agreed in the contract between
the price appraisal enterprise and agency, organization or individual with
demand of price appraisal in accordance with the law provisions.
Article 19.
Responsibilities of agencies and organizations that use price appraisal results
Agencies and organizations using
price appraisal results of assets stipulated in Article 13 of the Ordinance on
Prices are responsible before law for their decisions upon purchase or sale,
transfer, lease, equitization, capital contribution and other forms of right
transfer of state assets.
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1. Links for price monopoly is
an agreement between the manufacturing, trading organizations and individuals
defining a price rate to control market, exceeding the market share according
to law provisions, causing damage to the legitimate interests of other
manufacturing, trading organizations and individuals, of consumers and the
interests of the State.
2. Organizations and individuals
with one or more of the following acts shall be considered to identify as links
for price monopoly:
a) The agreement between the
organizations and individuals to fix prices, control prices, change prices of
selling goods and services in order to restrict competition or infringe the
legitimate interests of other manufacturing, trading organizations and
individuals or consumers;
b) At one time, a number of
organizations and individuals have the phenomena to abruptly sell together the
same price of goods and services (the same or similar);
c) Agreement between the
organizations and individuals to create a shortage of goods by limiting
production, distribution, transportation and sale of goods or provision of
services; destruction, damage of goods; speculation to raise price;
d) Agreement between the
organizations and individuals to perform the conditions of sale, purchase,
provision of services after-sales affecting the price of goods or services;
đ) Agreement between the
organizations and individuals to change the purchase price, the sale price of
goods and services to eliminate or force other enterprises to link with them or
become their affiliates.
Article 21.
Investigation, control, treatment of monopoly prices and links for price
monopoly
1. Investigation of monopoly
prices and links for price monopoly:
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b) The Ministry of Finance,
Department of Finance investigate, control monopoly prices and link for price
monopoly when:
There are written denunciations
of the organizations representing the production industry or consumers;
There are signs of abusing
monopoly and linking price monopoly as the state agencies detect.
2. The investigation contents.
Investigate the cost of
production, circulation, prices of goods and services of organizations and
individuals dealing in monopoly goods, services and linking for monopoly price.
3. Investigation procedures are
conducted as follows:
a) Issuing decision on
investigation and sending to the organization or individual having behavior of
monopoly and link for price monopoly;
b) Sending a written request to
the organization or individuals for providing the following documents:
Plan pricing goods, services and
prices of goods and services;
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The annual financial report;
Other documents related to the
investigation contents.
4. Time limit for investigation:
a) Maximum period of one
investigation is 30 days from the date of the decision to investigate. Where
necessary to extend the investigation period, the Ministry of Finance or the
Department of Finance shall notify in writing, state clearly the reason to the
concerned organizations and individuals; extended investigation time limit is
not more than15 days from the end of the first investigation;
b) Within a maximum period of 10
(working) days from the end of the investigation, the Ministry of Finance or
the Department of Finance is responsible for issuing and sending written notice
on the investigation conclusion to the concerned organizations, individuals and
agencies.
5. Based on investigation
results, Ministry of Finance or the Department of Finance handles under its
jurisdiction and depending on the seriousness of the violation can handle in
one of the following forms:
a) To suspend the implementation
of the prices of goods and services decided by organizations and individuals of
monopoly, link for price monopoly;
b) To request organizations and
individuals of monopoly, link for price monopoly to purchase or sell according
to the right purchase price, sale price before having a link for price
monopoly;
c) To sanction administrative
violations, compensation for persons suffering from damages under the
provisions of law;
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Article 22.
Responsibilities of producing, trading organizations and individuals after
receiving requests for control of monopoly prices
1. When producing, trading
organizations, individuals receive requests for control of monopoly prices and
monopoly link on prices are responsible for providing full, accurate and timely
data and related documents in accordance with provisions in Article 21 of this
Decree to the Ministry of Finance or the Department of Finance after receiving
the request for investigation.
2. Time limit for providing
report is 07 (working) days from the date of receiving the request for
investigation of the Finance Ministry or the Department of Finance.
Article 23.
Competent of state management on prices of the Ministry of Finance
1. To submit to the Government
the policies and measures on prices.
2. To issue or submit to the
competent state agencies for promulgating legal documents on prices.
3. To organize, direct and guide
the implementation of policies and measures on prices and the decisions on
prices of assets, goods and services of the Government, the Prime Minister.
4. To decide on prices of asset,
goods and services on the list valuated by the State under the authority
provided for in Article 8 of this Decree.
5. To perform the function of
specialized inspection of prices: examine and inspect the organizations and
individuals in compliance of the provisions of the law on price and other
provisions of law relating to state management on prices within its
jurisdiction.
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Article 24.
Competent of state management on prices of the ministries, ministerial-level
agencies
1. To submit to the Government
the policies and measures prices of goods and services in the field of
management of ministries, ministerial-level agencies.
2. To promulgate legal documents
on prices within its jurisdiction.
3. To organize, direct the
implementation of policies and measures on prices and the decisions on prices
of assets, goods and services of the Government, the Prime Minister, the
Ministry of Finance under the management sector of ministries,
ministerial-level agencies.
4. To decide on prices of asset,
goods and services on the list valuated by the State under the authority
provided for in Article 8 of this Decree.
5. To examine and inspect the organizations
and individuals in compliance of the provisions of the law on price and other
provisions of law relating to state management on prices within its sector.
Article 25.
Competent of state management on prices of the provincial-level People's Committee
1. To promulgate legal documents
on prices within its jurisdiction.
2. To organize, direct the
implementation of policies and measures on prices and the decisions on prices
of assets, goods and services of the Government, the Prime Minister, the Ministry
of Finance and the ministries, ministerial-level agencies.
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4. To examine and inspect the
organizations and individuals operating in the municipal, provincial areas in
compliance of the provisions of the law on price and other provisions of law
relating to state management on prices in the locality; to handle violation on
prices within its jurisdiction.
Article 26.
Effect
1. This Decree takes effect 15
days from the date of its publication in the Official Gazette.
2. To annul the Decision
No.137/HDBT dated April 27, 1992 of the Council of Ministers on price
management. The previous regulations contrary to this Decree are annulled.
Article 27.
Responsibility for the implementation of Decree
1. The Ministry of Finance is
responsible for guiding and organizing the implementation of this Decree.
2. The ministers, heads of
ministerial-level agencies, heads of governmental agencies and the presidents
of the People's Committees of provinces and centrally-run cities shall
implement this Decree./.
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(Signed)