VIETNAM: NEW ORDINANCE ON PRICES

UNCLAS SECTION 01 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN E.O. 12958: N/A TAGS: ECON ETRD VM SUBJECT: VIETNAM: NEW ORDINANCE ON PRICES ¶1. THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY PASSED A NEW PRICE ORDINANCE NO. 40 ON APRIL 26, 2002. THE ORDINANCE CAME INTO EFFECT ON JULY 1, 2002. THE TEXT IS REPEATED BELOW FOR THE RECORD. THE ORDINANCE ADDRESSES A WIDE UNCLASSIFIED PAGE 02 HANOI 01769 01 OF 10 150933Z VARIETY OF PRICING-RELATED ISSUES INCLUDING CONSUMER PROTECTION CLAUSES AND DUMPING. WHILE RESPECTING THE RIGHTS OF BUSINESSES TO ESTABLISH THEIR OWN PRICING MECHANISMS, IT RESERVES THE RIGHT FOR THE STATE TO INTERVENE WHEN NEEDED TO STABILIZE PRICES FOR ESSENTIAL GOODS OR WHEN DUMPING OCCURS. ¶2. BEGIN TEXT - INFORMAL TRANSLATION: STANDING COMMITTEE OF THE NATIONAL ASSEMBLY SOCIALIST REPUBLIC OF VIETNAM INDEPENDENCE - FREEDOM - HAPPINESS NO.: 40/2002/PL-UBTVQH10 PRICE ORDINANCE IN ORDER TO CONTRIBUTE TO THE DEVELOPMENT OF THE MARKET- ORIENTED ECONOMY IN THE SOCIALIST DIRECTION, STABILIZE PRICES, AND PROTECT THE LEGAL RIGHTS AND INTERESTS OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS AND OF THE CONSUMERS, AND PROTECT THE INTERESTS OF THE STATE; BASED ON THE 1992 CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM AS SUPPLEMENTED AND AMENDED PURSUANT TO RESOLUTION NO. 51/2001/QH10, WHICH WAS ADOPTED BY THE NATIONAL ASSEMBLY ON DECEMBER 25, 2001 DURING THE 10TH SESSION OF ITS LEGISLATURE X; BASED ON RESOLUTION NO. 52/2001/NQ-QH10 ADOPTED BY THE NATIONAL ASSEMBLY DURING THE 10TH SESSION OF ITS LEGISLATURE UNCLASSIFIED PAGE 03 HANOI 01769 01 OF 10 150933Z X CONCERNING THE LAWS AND ORDINANCES MAKING PROGRAM FOR THE YEAR 2002; THIS ORDINANCE SETS FORTH PROVISIONS CONCERNING PRICES. CHAPTER I GENERAL PROVISIONS ARTICLE 1: SCOPE OF APPLICATION AND ENTITIES SUBJECT TO APPLICATION ¶1. THIS ORDINANCE SETS FORTH PROVISIONS ON STATE ADMINISTRATION OVER PRICES AND PRICING ACTIVITIES OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS. ¶2. THIS ORDINANCE APPLIES TO DOMESTIC AND FOREIGN ORGANIZATIONS AND INDIVIDUALS ENGAGING IN BUSINESS [AND/OR] PRODUCTION ACTIVITIES IN VIETNAM. ¶3. IN THE EVENT THAT AN INTERNATIONAL TREATY WHICH, THE SOCIALIST REPUBLIC OF VIETNAM HAS EXECUTED OR TO WHICH IT HAS ACCEDED CONTAINS PRICE-RELATED PROVISIONS THAT ARE DIFFERENT FROM THIS ORDINANCE, THE INTERNATIONAL TREATY SHALL APPLY. ARTICLE 2: PRINCIPLES FOR PRICE ADMINISTRATION ¶1. THE STATE RESPECTS THE RIGHT OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS TO SELF-DETERMINATION OF PRICES AND COMPETITION IN PRICES IN STRICT ACCORDANCE WITH THE PROVISIONS OF LAW. UNCLASSIFIED PAGE 04 HANOI 01769 01 OF 10 150933Z ¶2. THE STATE ADOPTS NECESSARY MEASURES TO STABILIZE PRICES, PROTECT THE LEGAL RIGHTS AND INTERESTS OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS AND OF THE CONSUMERS, AND PROTECT THE INTERESTS OF THE STATE. ARTICLE 3: OVERSEEING THE IMPLEMENTATION OF THE LAWS CONCERNING PRICES ¶1. THE ORGANS OF THE NATIONAL ASSEMBLY, DEPUTIES TO THE NATIONAL ASSEMBLY, AND THE PEOPLE'S COUNCILS AT ALL LEVELS, WITHIN THEIR SCOPE OF FUNCTIONS, DUTIES AND AUTHORITY, OVERSEE THE IMPLEMENTATION OF THE LAWS CONCERNING PRICES. ¶2. THE FATHERLAND FRONT OF VIETNAM AND ITS INSTITUTIONAL MEMBERS ENCOURAGE THE PEOPLE TO IMPLEMENT THE PROVISIONS OF THE LAWS CONCERNING PRICES, AND OVERSEE THE IMPLEMENTATION OF THE LAWS CONCERNING PRICES. ARTICLE 4: INTERPRETATION OF TERMS IN THIS ORDINANCE, THE FOLLOWING TERMS ARE CONSTRUED AS FOLLOWS: ¶1. "PRICES" INCLUDE THE PRICES SET BY THE GOVERNMENT, THE UNCLASSIFIED UNCLASSIFIED PTQ0584 PAGE 01 HANOI 01769 02 OF 10 150933Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB232D 150934Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7007 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 02 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN PRICES SET BY BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS, AND THE MARKET PRICES. ¶2. "PRICE APPRAISAL" IS THE ACT OF EVALUATING OR RE- UNCLASSIFIED PAGE 02 HANOI 01769 02 OF 10 150933Z EVALUATING THE VALUE OF AN ASSET IN ACCORDANCE WITH THE MARKET IN A LOCATION AT A CERTAIN TIME BASED ON THE VIETNAMESE STANDARDS OR INTERNATIONAL PRACTICE. ¶3. "DUMPING SALE" IS THE ACT OF SELLING GOODS [OR] SERVICES AT PRICES THAT ARE TOO LOW AS COMPARED TO THEIR REGULAR PRICES IN THE VIETNAMESE MARKET FOR THE PURPOSES OF DOMINATING THE MARKET AND RESTRICTING LAWFUL COMPETITION, THEREBY CAUSING INJURY TO THE LEGAL INTERESTS OF OTHER BUSINESS [AND/OR] PRODUCTION ORGANIZATIONS [AND/OR] INDIVIDUALS, AND THE INTERESTS OF THE STATE. ¶4. "ASSOCIATION FOR PRICE EXCLUSIVITY" IS AN AGREEMENT AMONG BUSINESS [AND/OR] ORGANIZATIONS [AND/OR] INDIVIDUALS TO SET A PRICE LEVEL IN ORDER TO DOMINATE THE MARKET, THEREBY CAUSING INJURY TO THE LEGAL INTERESTS OF OTHER BUSINESS [AND/OR] PRODUCTION ORGANIZATIONS [AND/OR] INDIVIDUALS AND THE CONSUMERS, AND THE INTERESTS OF THE STATE. ¶5. "EXCLUSIVE PRICE" IS A PRICE OF GOODS [OR] SERVICES ONLY AT WHICH THEY ARE SOLD OR PURCHASED IN THE MARKET BY ONE ORGANIZATION OR INDIVIDUAL OR A PRICE OF GOODS [OR] SERVICES SET BY ORGANIZATIONS [AND/OR] INDIVIDUALS ENGAGING IN AN ASSOCIATION FOR PRICE EXCLUSIVITY THAT DOMINATE THE MAJORITY OF THE MARKET SHARE AND HAVE THE POWER OF CONTROLLING THE MARKET PRICES. ¶6. "EXTRAORDINARY FLUCTUATIONS IN PRICES" IS A REDUCTION OR INCREASE IN PRICES IN THE EVENT OF AN ECONOMIC CRISIS, ACT OF GOD, OR ACT OF PUBLIC ENEMY, OR IN OTHER EXTRAORDINARY UNCLASSIFIED PAGE 03 HANOI 01769 02 OF 10 150933Z CIRCUMSTANCES. CHAPTER II STATE MANAGEMENT OF PRICES SECTION 1: MARKET PRICE STABILIZATION ARTICLE 5: OBJECTIVES OF PRICE STABILIZATION THE STATE IMPLEMENTS NECESSARY POLICIES AND MEASURES THAT INFLUENCE THE DEMAND AND SUPPLY RELATIONSHIP IN ORDER TO STABILIZE THE MARKET PRICES OF IMPORTANT [AND/OR] ESSENTIAL GOODS AND SERVICES, CONTROL INFLATION, STABILIZE THE SOCIO- ECONOMIC CONDITION, AND PROTECT THE LEGAL RIGHTS AND INTERESTS OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS AND OF THE CONSUMERS, AND PROTECT THE INTERESTS OF THE STATE, HENCE CONTRIBUTING TO THE ENCOURAGEMENT OF INVESTMENT AND DEVELOPMENT. ARTICLE 6: MEASURES FOR STABILIZING PRICES ¶1. IN THE EVENT THAT THE MARKET PRICES OF IMPORTANT [OR] ESSENTIAL GOODS [OR] SERVICES SUFFER AN EXTRAORDINARY FLUCTUATION, THE STATE MAY ADOPT THE FOLLOWING MEASURES TO STABILIZE THE PRICES: (A) TO ADJUST THE SUPPLY AND DEMAND OF DOMESTIC, IMPORTED AND EXPORTED GOODS; AND GOODS [EXCHANGED] AMONG LOCALITIES AND REGIONS IN THE COUNTRY; (B) TO PURCHASE OR SELL RESERVED GOODS; UNCLASSIFIED PAGE 04 HANOI 01769 02 OF 10 150933Z (C) TO CONTROL GOODS IN STOCK; (D) TO STIPULATE MAXIMUM AND MINIMUM PRICES AND PRICE BRACKET SCHEDULES; (E) TO CONTROL FACTORS CONSTITUTING PRICES; AND (F) TO PROVIDE SUBSIDIES TO AGRICULTURAL PRODUCTS WHEN [THEIR] MARKET PRICES DECLINE TOO LOW THUS CAUSING DAMAGE TO THE PRODUCERS; TO PROVIDE PRICE SUBSIDIES TO OTHER IMPORTANT [AND/OR] ESSENTIAL GOODS AND SERVICES. ¶2. THE AUTHORITY OF, FORMALITIES FOR, AND PERIOD OF APPLICATION OF, AND THE KINDS OF GOODS [AND/OR] SERVICES ELIGIBLE FOR THE APPLICATION OF, THE MEASURES PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE ARE PRESCRIBED BY THE GOVERNMENT. ¶3. ORGANIZATIONS AND INDIVIDUALS THAT PRODUCE AND/OR DO BUSINESS IN IMPORTANT [AND/OR] ESSENTIAL GOODS [AND/OR] SERVICES ARE RESPONSIBLE FOR CARRYING OUT THE RELEVANT MEASURES PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE IN ORDER TO ASSIST IN THE STABILIZATION OF PRICES. UNCLASSIFIED UNCLASSIFIED PTQ0587 PAGE 01 HANOI 01769 03 OF 10 150934Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB2338 150934Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7008 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 03 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN SECTION 2: PRICE SETTING AND AGREEMENT [MEETINGS] ON PRICES ARTICLE 7: ASSETS, GOODS AND SERVICES THE PRICES OF WHICH ARE SET BY THE GOVERNMENT UNCLASSIFIED PAGE 02 HANOI 01769 03 OF 10 150934Z ¶1. ASSETS, GOODS AND SERVICES THE PRICES OF WHICH ARE SET BY THE GOVERNMENT INCLUDE: (A) LAND, WATER BODIES, AND IMPORTANT [NATURAL] RESOURCES; (B) ASSETS OF THE STATE FOR SALE OR LEASE; (C) EXCLUSIVE GOODS AND SERVICES; AND (D) GOODS AND SERVICES THAT ARE IMPORTANT TO THE NATIONAL PLANS AND PEOPLE'S LIFE. ¶2. THE STATE SETS THE PRICES FOR THE ASSETS, GOODS AND SERVICES PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE VIA THE FOLLOWING FORMS: (A) SPECIFIC PRICE; (B) STANDARD PRICE; (C) PRICE BRACKET; AND (D) MAXIMUM OR MINIMUM PRICE. ¶3. THE GOVERNMENT SETS FORTH A SPECIFIC LIST OF ASSETS, GOODS AND SERVICES THE PRICES OF WHICH ARE SET BY THE GOVERNMENT AS PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE, AND THE APPLICATION OF THE PRICE SETTING FORMS PROVIDED IN CLAUSE 2 OF THIS ARTICLE, FROM TIME TO TIME. UNCLASSIFIED PAGE 03 HANOI 01769 03 OF 10 150934Z ARTICLE 8: BASIS FOR SETTING A PRICE THE STATE SETS PRICES FOR THE ASSETS, GOODS AND SERVICES PROVIDED FOR IN ARTICLE 7 OF THIS ORDINANCE BASED ON [THEIR] PRODUCTION AND CIRCULATION COSTS, SUPPLY AND DEMAND RELATIONSHIP, BUYING POWER OF THE VIETNAMESE CURRENCY, DOMESTIC AND INTERNATIONAL MARKET PRICES, AND THE POLICIES ON SOCIO-ECONOMIC DEVELOPMENT FROM TIME TO TIME. ARTICLE 9: AUTHORITIES TO SET PRICES ¶1. THE AUTHORITIES TO SET PRICES ARE STIPULATED AS FOLLOWS: A) THE GOVERNMENT DECIDES ON THE PRICES OF ESPECIALLY IMPORTANT ASSETS, GOODS AND SERVICES THAT HAVE AN INFLUENCE ON THE SOCIO-ECONOMIC DEVELOPMENT OF THE WHOLE COUNTRY. B) THE PRIME MINISTER OF THE GOVERNMENT DECIDES ON THE PRICES FOR IMPORTANT ASSETS, GOODS AND SERVICES THAT HAVE AN INFLUENCE ON THE SOCIO-ECONOMIC DEVELOPMENT OF MANY INDUSTRIES; C) THE MINISTERS AND HEADS OF MINISTERIAL-LEVEL AUTHORITIES DECIDE ON THE PRICES OF ASSETS, GOODS AND SERVICES THAT HAVE A SUBSTANTIAL INFLUENCE ON THE SOCIO-ECONOMIC DEVELOPMENT OF THEIR OWN INDUSTRIES; AND D) PEOPLE'S COMMITTEES OF PROVINCES AND CITIES DIRECTLY UNDER THE CENTRAL AUTHORITY DECIDE ON THE PRICES OF ASSETS, GOODS AND SERVICES THAT HAVE A SUBSTANTIAL INFLUENCE ON THE UNCLASSIFIED PAGE 04 HANOI 01769 03 OF 10 150934Z SOCIO-ECONOMIC DEVELOPMENT IN THEIR OWN LOCALITY. ¶2. THE GOVERNMENT SETS FORTH SPECIFIC PROVISIONS ON THE PRICE SETTING AUTHORITY PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE. ARTICLE 10: MAKING ADJUSTMENTS TO THE PRICES SET BY THE GOVERNMENT ¶1. THE COMPETENT PRICE SETTING STATE AUTHORITY MUST ADJUST, IN A TIMELY MANNER, THE PRICES OF THE ASSETS, GOODS AND SERVICES THAT FALL UNDER THE LIST OF THOSE FOR WHICH THE STATE SETS PRICES WHEN THE FACTORS CONSTITUTING THE DOMESTIC AND INTERNATIONAL PRICES, THUS AFFECTING PRODUCTION AND [PEOPLE'S] LIFE. ¶2. ORGANIZATIONS AND INDIVIDUALS HAVE THE RIGHT TO PROPOSE THAT THE COMPETENT PRICE SETTING STATE AUTHORITY ADJUSTS PRICES IN ACCORDANCE WITH THE PROVISIONS OF LAW. ARTICLE 11: AGREEMENT [MEETINGS] ON PRICES THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES ORGANIZES AGREEMENT [MEETINGS] ON PRICES BETWEEN SELLERS AND BUYERS WITH RESPECT TO IMPORTANT GOODS AND SERVICES THAT ARE UNCLASSIFIED UNCLASSIFIED PTQ0591 PAGE 01 HANOI 01769 04 OF 10 150934Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB2347 150934Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7009 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 04 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN OF AN EXCLUSIVE NATURE IN TERMS OF SALE AND PURCHASE AND THAT DO NOT FALL UNDER THE STATE PRICE-SETTING SCOPE AS PROVIDED FOR IN ARTICLE 7 OF THIS ORDINANCE AT THE REQUEST OF THE [CONCERNED] SELLERS [OR] BUYERS, OR AT THE REQUEST OF UNCLASSIFIED PAGE 02 HANOI 01769 04 OF 10 150934Z THE PRIME MINISTER OF THE GOVERNMENT, A MINISTER, A HEAD OF A MINISTERIAL-LEVEL AUTHORITY, OR A CHAIRMAN OF THE PEOPLE'S COMMITTEE OF A PROVINCE OR CITY DIRECTLY UNDER THE CENTRAL AUTHORITY. ARTICLE 12: RESULT OF AN AGREEMENT [MEETING] ON PRICES ¶1. THE RESULT OF AN AGREEMENT [MEETING] ON PRICES AS AGREED UPON BY THE PARTIES WILL BE ANNOUNCED BY THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES FOR IMPLEMENTATION PURPOSES. ¶2. IN THE EVENT THAT THE PARTIES ARE STILL UNABLE TO REACH AN AGREEMENT ON A PRICE LEVEL AFTER AN AGREEMENT [MEETING] ON PRICES HAS BEEN HELD, THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES WILL DETERMINE A TEMPORARY PRICE FOR THE PARTIES TO IMPLEMENT, AND WHICH PRICE IS EFFECTIVE UNTIL THE PARTIES ARE ABLE TO REACH AN AGREEMENT ON THE PRICE LEVEL, IN ORDER TO SERVICE BUSINESS AND PRODUCTION ACTIVITIES IN A TIMELY MANNER. SECTION 3: PRICE APPRAISAL ARTICLE 13: STATE ASSETS THE PRICES OF WHICH MUST BE APPRAISED ¶1. STATE ASSETS THE PRICES OF WHICH MUST BE APPRAISED INCLUDE: (A) ASSETS THAT ARE PURCHASED USING PARTLY OR WHOLLY THE FUNDS OBTAINED FROM THE STATE BUDGET; UNCLASSIFIED PAGE 03 HANOI 01769 04 OF 10 150934Z (B) STATE ASSETS THAT ARE LEASED OUT, TRANSFERRED, SOLD, CONTRIBUTED AS CAPITAL, [OR] DISPOSED IN OTHER FORMS OF TRANSFER OF RIGHTS; (C) ASSETS OF STATE ENTERPRISES THAT ARE LEASED OUT, TRANSFERRED, SOLD, CONTRIBUTED AS CAPITAL, UNDERGONE A EQUITIZATION OR DISSOLUTION, [OR] DISPOSED IN OTHER FORMS OF CONVERSION; AND (D) OTHER ASSETS OF THE STATE THE PRICES OF WHICH MUST BE APPRAISED UNDER THE PROVISIONS OF LAW. THE GOVERNMENT STIPULATES THE VALUE LEVELS OF THE STATE ASSETS FALLING UNDER THIS CLAUSE THAT ARE SUBJECT TO A PRICE APPRAISAL. ¶2. THE STATE ASSETS THE PRICES OF WHICH MUST BE APPRAISED AS PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE DO NOT NECESSARILY HAVE TO UNDERGO A PRICE APPRAISAL IF THEY HAVE UNDERGONE A TENDER OR GONE THROUGH THE PRICE DETERMINATION COUNCIL. ARTICLE 14: PRICE APPRAISAL ENTERPRISES ¶1. PRICE APPRAISAL ENTERPRISES INCLUDE STATE ENTERPRISES AND ENTERPRISES IN ANY OTHER ECONOMIC SECTOR. THE GOVERNMENT SETS FORTH REGULATIONS ON THE ORGANIZATIONAL FORM AND CONDITIONS FOR ESTABLISHING A PRICE APPRAISAL ENTERPRISE. ¶2. ORGANIZATIONS AND INDIVIDUALS THAT MEET FULLY THE CONDITIONS UNDER THE REGULATIONS OF THE GOVERNMENT MAY UNCLASSIFIED PAGE 04 HANOI 01769 04 OF 10 150934Z ESTABLISH A PRICE APPRAISAL ENTERPRISE. ARTICLE 15: ACTIVITIES OF A PRICE APPRAISAL ENTERPRISE ¶1. A PRICE APPRAISAL ENTERPRISE CONDUCTS APPRAISALS OF ASSET PRICES IN THE INSTANCES PROVIDED FOR IN ARTICLE 13 OF THIS ORDINANCE, AND OTHER ASSETS, AT THE REQUEST OF A STATE AUTHORITY, ORGANIZATION [OR] INDIVIDUAL. ¶2. THE ACTIVITY OF PRICE APPRAISAL OF THE ENTERPRISE IS CARRIED OUT UNDER A CONTRACT EXECUTED WITH THE STATE AUTHORITY, ORGANIZATION OR INDIVIDUAL THAT IS IN NEED OF THE PRICE APPRAISAL. ARTICLE 16: QUALIFICATIONS OF A PRICE APPRAISER ¶1. AN INDIVIDUAL WHO MAY BE RECOGNIZED AS A PRICE APPRAISER MUST HAVE THE FOLLOWING QUALIFICATIONS: A) HE/SHE MUST BE A VIETNAMESE CITIZEN; B) HE/SHE HOLDS A SPECIALIZED UNIVERSITY DEGREE RELATING TO PRICE APPRAISAL WORK; C) HE/SHE HOLDS A CERTIFICATION ISSUED BY A COMPETENT UNCLASSIFIED UNCLASSIFIED PTQ0595 PAGE 01 HANOI 01769 05 OF 10 150934Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB235A 150934Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7010 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 05 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN AUTHORITY EVIDENCING THAT HE/SHE HAS UNDERGONE A SPECIALIZED PROFESSIONAL TRAINING FOR PRICE APPRAISAL; AND D) HE/SHE HAS WORKED CONTINUOUSLY FOR 3 YEARS OR MORE IN THE UNCLASSIFIED PAGE 02 HANOI 01769 05 OF 10 150934Z SPECIALIZED AREA WHICH HE/SHE HAS BEEN TRAINED FOR. ¶2. AN INDIVIDUAL WHO MEETS FULLY THE QUALIFICATIONS PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE MAY BE CONSIDERED BY THE CENTRAL AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES FOR THE ISSUANCE OF A PRICE APPRAISER CARD. ARTICLE 17: RESULT OF A PRICE APPRAISAL THE RESULT OF A PRICE APPRAISAL CONDUCTED BY A PRICE APPRAISAL ENTERPRISE MUST BE MADE IN WRITING AND MAY ONLY BE USED FOR THE PURPOSES STATED IN THE [RELEVANT] CONTRACT. THE PRICE APPRAISAL RESULT MAY BE USED AS ONE OF THE BASES FOR CONSIDERING AN APPROVAL OF PAYMENT FROM THE STATE BUDGET, TAX COMPUTATION, DETERMINATION OF THE VALUE OF THE ASSET PLACED AS A SECURITY FOR OBTAINING A BANK LOAN, PURCHASE OF INSURANCE, LEASE, TRANSFER, SALE, CAPITAL CONTRIBUTION, AND ENTERPRISE SECURITIZATION AND DISSOLUTION, AND FOR OTHER PURPOSES AS STATED IN THE PRICE APPRAISAL CONTRACT. ARTICLE 18: RIGHTS AND OBLIGATIONS OF A PRICE APPRAISAL ENTERPRISE A PRICE APPRAISAL ENTERPRISE HAS THE FOLLOWING RIGHTS AND OBLIGATIONS: ¶1. TO REQUEST THE AUTHORITY, ORGANIZATION [OR] INDIVIDUAL REQUESTING A PRICE APPRAISAL TO PROVIDE DATA AND DOCUMENTS RELEVANT FOR THE PRICE APPRAISAL; UNCLASSIFIED PAGE 03 HANOI 01769 05 OF 10 150934Z ¶2. TO CHARGE A FEE FOR THE PRICE APPRAISAL SERVICE IN ACCORDANCE WITH THE AGREEMENT THEREON IN THE CONTRACT; ¶3. TO BE LIABLE BEFORE THE LAW FOR THE RESULT OF ITS PRICE APPRAISAL. IN THE EVENT THAT THE PRICE APPRAISAL RESULT IS NOT CORRECT THUS CAUSING DAMAGE TO THE [CONCERNED] STATE AUTHORITY, ORGANIZATION OR INDIVIDUAL, COMPENSATION MUST BE PAID IN ACCORDANCE WITH THE PROVISIONS OF LAW; AND ¶4. OTHER RIGHTS AND OBLIGATIONS UNDER THE PROVISIONS OF LAW. SECTION 4: CONTROL OF EXCLUSIVE PRICES ARTICLE 19: STATE CONTROL OF EXCLUSIVE PRICES IN NECESSARY CIRCUMSTANCES, THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES WILL PROCEED WITH A CONTROL OF THE COSTS OF PRODUCTION AND CIRCULATION OF, AND THE PRICES OF, GOODS AND SERVICES OF ORGANIZATIONS AND INDIVIDUALS WHEN IT DISCOVERS A MANIFESTATION OF ASSOCIATION FOR PRICE EXCLUSIVITY, OR WHEN IT NEEDS TO REVIEW A FORMATION OF EXCLUSIVE PRICES. ARTICLE 20: RESPONSIBILITIES OF BUSINESS [AND/OR] PRODUCTION ORGANIZATIONS AND INDIVIDUALS UPON RECEIPT OF A REQUEST OF CONTROL OF EXCLUSIVE PRICES BUSINESS [AND/OR] PRODUCTION ORGANIZATION AND INDIVIDUALS UPON RECEIPT OF A REQUEST OF CONTROL OF EXCLUSIVE PRICES ARE RESPONSIBLE FOR MAKING FULL AND ACCURATE REPORTS IN A TIMELY MANNER ON THE DATA AND DOCUMENTS RELEVANT TO THE COSTS OF UNCLASSIFIED PAGE 04 HANOI 01769 05 OF 10 150934Z PRODUCTION AND CIRCULATION OF, AND THE PRICES OF, THE GOODS AND SERVICES IN THEIR EXCLUSIVITY IN ACCORDANCE WITH THE REQUEST OF THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES. ARTICLE 21: POWERS AND RESPONSIBILITIES OF THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES IN CONTROLLING EXCLUSIVE PRICES, THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES HAS THE FOLLOWING POWERS AND RESPONSIBILITIES: ¶1. TO CEASE THE EXERCISE OF PRICE DETERMINATION BY THE ORGANIZATION OR INDIVIDUAL ENGAGING IN AN ASSOCIATION FOR PRICE EXCLUSIVITY FOR [THEIR] GOODS AND SERVICES; ¶2. TO REQUEST THAT THE ORGANIZATION OR INDIVIDUAL ENGAGING IN AN ASSOCIATION FOR PRICE EXCLUSIVITY MUST SELL AND/OR PURCHASE IN STRICT ACCORDANCE WITH THE SELLING AND/OR PURCHASING PRICES PRIOR TO THEIR ENGAGEMENT IN THE ASSOCIATION FOR PRICE EXCLUSIVITY. IN THE EVENT THAT THE SELLING AND/OR BUYING PRICES REQUIRE AN ADJUSTMENT, THE [CONCERNED] ORGANIZATION OR INDIVIDUAL MUST PREPARE A PRICE PLAN FOR SUBMISSION TO THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES FOR CONSIDERATION AND DECISION; UNCLASSIFIED UNCLASSIFIED PTQ0599 PAGE 01 HANOI 01769 06 OF 10 150935Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB2370 150935Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7011 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 06 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN ¶3. TO MAKE A DECISION ON PRICES WITHIN THE PRESCRIBED TIME PERIOD ON THE BASIS OF THE PRICE PLAN SUBMITTED OR PROPOSED BY THE [CONCERNED] BUSINESS OR PRODUCTION ORGANIZATION OR UNCLASSIFIED PAGE 02 HANOI 01769 06 OF 10 150935Z INDIVIDUAL TO THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES FOR A SUITABLE PRICE ADJUSTMENT; AND ¶4. TO HANDLE VIOLATIONS OF THE LAWS CONCERNING PRICES IN ACCORDANCE WITH THE PROVISIONS OF LAW. SECTION 5: COMBAT AGAINST DUMPING SALES ARTICLE 22: PROHIBITION OF DUMPING SALE BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS ARE PROHIBITED FROM COMMITTING ACTS OF DUMPING SALE. ARTICLE 23: ACTS THAT ARE NOT DEEMED ACT OF DUMPING SALE ¶1. THE FOLLOWING ACTS ARE NOT DEEMED ACT OF DUMPING SALE A) PRICE REDUCTION FOR LIVE AND FRESH GOODS; B) PRICE REDUCTION FOR GOODS IN STOCK THAT ARE OF INFERIOR QUALITY, OBSOLETE IN TERMS OF APPEARANCE, OR NO LONGER SUITABLE FOR THE CONSUMERS' TASTE; C) PRICE REDUCTION FOR SEASONAL GOODS; D) PRICE REDUCTION FOR GOODS IN ORDER TO PROMOTE THEIR SALES IN ACCORDANCE WITH THE PROVISIONS OF LAW; AND E) PRICE REDUCTION FOR GOODS IN THE EVENT OF BANKRUPTCY, DISSOLUTION, TERMINATION OF BUSINESS AND/OR PRODUCTION UNCLASSIFIED PAGE 03 HANOI 01769 06 OF 10 150935Z ACTIVITIES, CHANGE OF LOCATION, AND SHIFT IN BUSINESS AND/OR PRODUCTION OPERATIONS. ¶2. THE CIRCUMSTANCES OF PRICE REDUCTION PROVIDED FOR IN CLAUSE 1 OF THIS ARTICLE MUST BE POSTED IN AN EXPRESS AND OVERT MANNER AT THE SHOPS OR BUSINESS PLACES IN TERMS OF THE PREVIOUS PRICES, NEW PRICES AND PERIOD OF REDUCTION. ARTICLE 24: COMPLAINTS AGAINST AND REPORTS OF ACTS OF DUMPING SALE ORGANIZATIONS AND INDIVIDUALS HAVE THE RIGHT TO LODGE A COMPLAINT AGAINST OR REPORT OF ACTS OF DUMPING SALE IN ACCORDANCE WITH THE PROVISIONS OF LAW. ARTICLE 25: INVESTIGATION INTO AND HANDLING OF AN ACT OF DUMPING SALE ¶1. UPON RECEIPT OF A LETTER COMPLAINING AGAINST, OR REPORTING OF, AN ACT OF DUMPING SALE, OR UPON DISCOVERY OF AN ACT OF DUMPING SALE, THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES MUST ORGANIZE AN INVESTIGATION INTO THE ACT OF DUMPING SALE. ¶2. ASPECTS OF AN INVESTIGATION INTO AN ACT OF DUMPING SALE: A) TO VERIFY THE ACT OF DUMPING SALE; AND B) TO IDENTIFY THE DAMAGE CAUSED BY THE ACT OF DUMPING SALE TO THE LEGAL INTERESTS OF OTHER BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS, AND THE INTERESTS OF THE UNCLASSIFIED PAGE 04 HANOI 01769 06 OF 10 150935Z STATE. ¶3. BASED ON THE RESULT OF THE INVESTIGATION, THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES HAS TO AUTHORITY, OR PROPOSES THE COMPETENT AUTHORITY, TO HANDLE SUCH ACT OF DUMPING SALE, IN ACCORDANCE WITH THE PROVISIONS OF LAW . ARTICLE 26: MEASURES FOR HANDLING ACTS OF DUMPING SALE ¶1. DETERMINATION OF A MINIMUM PRICE WITHOUT LIMITING LAWFUL COMPETITION [AND] CAUSING INJURY TO THE CONSUMERS' LEGAL INTERESTS AND THE INTERESTS OF THE STATE. ¶2. HANDLING OF THE VIOLATION USING ADMINISTRATIVE MEASURES. ¶3. THE [CONCERNED] BUSINESS AND/OR PRODUCTION ORGANIZATION OR INDIVIDUAL IS COMPELLED TO PAY COMPENSATION TO BUSINESS AND/OR PRODUCTION ORGANIZATIONS AND INDIVIDUALS SUFFERING LOSSES CAUSED BY THE ACT OF DUMPING SALE. ¶4. THE PERSON COMMITTING AN ACT OF DUMPING SALE THAT MANIFESTS A CRIME COMMISSION WILL BE PUT UNDER INVESTIGATION FOR CRIMINAL LIABILITY IN ACCORDANCE WITH THE PROVISIONS OF LAW. UNCLASSIFIED UNCLASSIFIED PTQ0603 PAGE 01 HANOI 01769 07 OF 10 150935Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB237D 150935Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7012 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 07 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN CHAPTER III PRICING ACTIVITIES OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS UNCLASSIFIED PAGE 02 HANOI 01769 07 OF 10 150935Z ARTICLE 27: PRICE SETTING BY BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS SET THE PRICES FOR THEIR GOODS AND SERVICES IN ACCORDANCE WITH THE PROVISIONS OF THIS ORDINANCE AND OTHER RELEVANT STATUTORY INSTRUMENTS. ARTICLE 28: PROHIBITED ACTS BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS ARE PROHIBITED FROM ENGAGING IN ANY OF THE FOLLOWING ACTS: ¶1. TO COLLUDE WITH ANOTHER BUSINESS AND/OR PRODUCTION ORGANIZATION AND/OR INDIVIDUAL TO ENTER INTO AN ASSOCIATION FOR PRICE EXCLUSIVITY THEREBY CAUSING INJURY TO THE LEGAL INTERESTS OF OTHER BUSINESS AND/OR PRODUCTION ORGANIZATIONS AND/OR INDIVIDUALS AND THE CONSUMERS, AND THE INTERESTS OF THE STATE; ¶2. TO CONDUCT A DUMPING SALE OF GOODS AND/OR SERVICES; ¶3. TO FALSIFY OR DISSEMINATE NEWS, WITHOUT A BASIS, ON A PRICE REDUCTION OR INCREASE, THEREBY CAUSING INJURY TO THE LEGAL INTERESTS OF OTHER BUSINESS AND/OR PRODUCTION ORGANIZATIONS AND/OR INDIVIDUALS AND THE CONSUMERS, AND THE INTERESTS OF THE STATE; ¶4. TO SET AN INCORRECT PRICE IN ORDER TO DECEIVE THE CONSUMERS OR THE ORGANIZATIONS AND/OR INDIVIDUALS THAT HAVE UNCLASSIFIED PAGE 03 HANOI 01769 07 OF 10 150935Z ENTERED INTO A BUSINESS AND/OR PRODUCTION CO-OPERATION WITH THEM; ¶5. TO INCREASE OR REDUCE PRICES FALSELY BY MEANS OF CHANGING THE QUANTITY, QUALITY AND/OR LOCATION OF DELIVERY OR RECEIPT OF GOODS AND/OR SERVICES; ¶6. TO TAKE ADVANTAGES OF AN ACT OF GOD, ACT OF PUBLIC ENEMY, OR ANOTHER EXTRAORDINARY EVENT TO SPECULATE FOR A INCREASE IN PRICES OR FIXING OF PRICES(1); AND ¶7. OTHER ACTS PRESCRIBED UNDER THE PROVISIONS OF LAW. ARTICLE 29: PRICE QUOTATION ¶1. BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS MUST HAVE PRICE QUOTATIONS FOR GOODS AND SERVICES AT THEIR SHOPS AND BUSINESS PLACES WHERE GOODS AND SERVICES ARE PURCHASED OR SOLD, OR PROVIDED RESPECTIVELY. A PRICE QUOTATION MUST BE CLEAR WITHOUT CAUSING CONFUSION TO CUSTOMERS. ¶2. WITH RESPECT TO GOODS AND SERVICES THE PRICES OF WHICH ARE SET BY THE STATE, THE [CONCERNED] BUSINESS AND _______________________________ PRODUCTION ENTERPRISES AND INDIVIDUALS MUST CORRECTLY QUOTE THE PRICES SET BY THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES, AND BUY AND SELL IN STRICT ACCORDANCE WITH THE QUOTED PRICES. ¶3. WITH RESPECT TO GOODS AND SERVICES THAT DO NOT FALL UNDER UNCLASSIFIED PAGE 04 HANOI 01769 07 OF 10 150935Z THE LIST OF THOSE FOR WHICH THE STATE SETS PRICES, THEIR PRICES ARE QUOTED ACCORDING THE PRICES SET BY THE [CONCERNED] BUSINESS AND/OR PRODUCTION ENTERPRISE OR INDIVIDUAL. ARTICLE 30: RIGHTS AND OBLIGATIONS OF BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS IN PRICING ¶1. BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS HAVE THE FOLLOWING RIGHTS: A) TO DECIDE ON THE SELLING AND BUYING PRICES FOR GOODS AND SERVICES, EXCEPT FOR GOODS AND SERVICES THAT FALL UNDER THE LIST OF THOSE FOR WHICH THE STATE SETS PRICES; B) TO DECIDE ON THE PRICES OF GOODS AND SERVICES WITHIN THE PRICE BRACKET SCHEDULE AND PRICE LIMIT PRESCRIBED BY THE COMPETENT STATE AUTHORITY; C) TO LODGE A COMPLAINT AGAINST A PRICE DECISION OF THE COMPETENT STATE AUTHORITY WHICH CAUSES INJURY TO THEIR LEGAL INTERESTS; D) TO LODGE A COMPLAINT AGAINST, OR REPORT ON, ACTS OF VIOLATION OF THE LAWS CONCERNING PRICES; AND UNCLASSIFIED UNCLASSIFIED PTQ0607 PAGE 01 HANOI 01769 08 OF 10 150935Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB2396 150935Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7013 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 08 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN E) TO REQUEST ORGANIZATIONS AND INDIVIDUALS TO PAY COMPENSATION IN ACCORDANCE WITH THE PROVISIONS OF LAW. UNCLASSIFIED PAGE 02 HANOI 01769 08 OF 10 150935Z ¶2. BUSINESS AND PRODUCTION ENTERPRISES AND INDIVIDUALS HAVE THE FOLLOWING OBLIGATIONS: A) TO MAKE A PRICE PLAN FOR GOODS AND SERVICES THAT FALL UNDER THE LIST OF THOSE FOR WHICH THE STATE SETS PRICES FOR SUBMISSION TO THE COMPETENT STATE AUTHORITY FOR DECISION, AND COMPLY WITH THE PRICES AS DECIDED; B) TO PROVIDE INFORMATION ON THE PRICES OF, AND DECISIONS ON THE PRICES FOR, THE GOODS AND SERVICES PRODUCED BY THEM OR IN WHICH THEY ARE DOING BUSINESS THAT THEY HAVE SET, IN ACCORDANCE WITH THE REQUEST OF THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES; C) TO COMPLY WITH THE MEASURES ADOPTED BY THE STATE FOR THE PURPOSES OF STABILIZING THE MARKET PRICES AS PROVIDED FOR IN THIS ORDINANCE; D) TO PAY COMPENSATION FOR DAMAGES RESULTING FROM THEIR ACTS OF VIOLATION OF THE LAWS CONCERNING PRICES IN ACCORDANCE WITH THE PROVISIONS OF LAW; AND E) OTHER OBLIGATIONS UNDER THE PROVISIONS OF LAW. CHAPTER IV STATE ADMINISTRATION OVER PRICES SECTION 1: ASPECTS AND AUTHORITY OF STATE ADMINISTRATION OVER PRICES ARTICLE 31: ASPECTS OF STATE ADMINISTRATION OVER PRICES UNCLASSIFIED PAGE 03 HANOI 01769 08 OF 10 150935Z ¶1. TO STUDY, FORMULATE, AND ORGANIZE THE IMPLEMENTATION OF POLICIES AND MEASURES CONCERNING PRICES IN ACCORDANCE WITH THE SOCIO-ECONOMIC DEVELOPMENT REQUIREMENTS FROM TIME TO TIME; ¶2. TO PROMULGATE STATUTORY INSTRUMENTS CONCERNING PRICES; ¶3. TO DECIDE ON THE PRICES FOR IMPORTANT GOODS AND SERVICES, AND EXCLUSIVE GOODS AND SERVICES; ¶4. TO SET FORTH QUALIFICATIONS FOR PRICE APPRAISERS; TO ORGANIZE TRAININGS FOR MANAGERIAL OFFICERS AND PRICE APPRAISAL WORK; AND TO ISSUE AND REVOKE PRICE APPRAISER CARDS; ¶5. TO CONTROL EXCLUSIVE PRICES AND COMBAT AGAINST DUMPING SALES; ¶6. TO COLLECT, ANALYZE, AND PROVIDE INFORMATION AND FORECASTS ON THE DOMESTIC AND INTERNATIONAL MARKET PRICES; ¶7. TO ORGANIZE AND ADMINISTER THE TASKS OF SCIENTIFIC RESEARCH, INTERNATIONAL CO-OPERATION, TRAININGS, AND WORKSHOPS FOR OFFICIALS WORKING IN THE PRICE AREA; AND ¶8. TO CONDUCT CHECKS AND INSPECTIONS; TO RESOLVE COMPLAINTS AND REPORTS; AND TO HANDLE VIOLATIONS OF THE LAWS CONCERNING PRICES. ARTICLE 32: AUTHORITIES COMPETENT FOR STATE UNCLASSIFIED PAGE 04 HANOI 01769 08 OF 10 150935Z ADMINISTRATION OVER PRICES ¶1. THE GOVERNMENT OVERSEES UNIFORM STATE ADMINISTRATION OVER PRICES ON A NATIONWIDE BASIS. ¶2. THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES IS RESPONSIBLE BEFORE THE GOVERNMENT FOR EFFECTING STATE ADMINISTRATION OVER PRICES. ¶3. MINISTRIES AND MINISTERIAL-LEVEL AUTHORITIES, WITHIN THEIR SCOPE OF DUTIES AND AUTHORITY, ARE RESPONSIBLE FOR CO- COORDINATING WITH THE AUTHORITY COMPETENT FOR STATE ADMINISTRATION OVER PRICES IN PERFORMING THE FUNCTION OF STATE ADMINISTRATION OVER PRICES WITHIN THEIR OWN BRANCHES IN ACCORDANCE WITH THE PRICE ADMINISTRATION AUTHORITY DELEGATED BY THE GOVERNMENT. ¶4. PEOPLE'S COMMITTEES OF PROVINCES AND CITIES DIRECTLY UNDER THE CENTRAL AUTHORITY, WITHIN THEIR SCOPE OF DUTIES AND AUTHORITY, ARE RESPONSIBLE FOR PERFORMING THE FUNCTION OF STATE ADMINISTRATION OVER PRICES WITHIN THEIR OWN LOCALITY IN ACCORDANCE WITH THE PRICE ADMINISTRATION AUTHORITY DELEGATED BY THE GOVERNMENT. ARTICLE 33: ORGANIZATIONAL STRUCTURE OF THE AUTHORITY IN UNCLASSIFIED UNCLASSIFIED PTQ0612 PAGE 01 HANOI 01769 09 OF 10 150936Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB23AF 150936Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7014 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 09 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN CHARGE OF STATE ADMINISTRATION OVER PRICES THE GOVERNMENT PRESCRIBES THE ORGANIZATIONAL SYSTEM, FUNCTIONS, DUTIES, AND POWERS OF THE AUTHORITY IN CHARGE OF UNCLASSIFIED PAGE 02 HANOI 01769 09 OF 10 150936Z STATE ADMINISTRATION OVER PRICES. SECTION 2: PRICE-RELATED CHECKS AND INSPECTIONS ARTICLE 34: BRANCH-SPECIFIC PRICE INSPECTIONS ¶1. THE AUTHORITY IN CHARGE OF STATE ADMINISTRATION OVER PRICES PERFORMS THE FUNCTION OF BRANCH-SPECIFIC PRICE INSPECTIONS. ¶2. BRANCH-SPECIFIC PRICE INSPECTORS CONDUCT CHECKS AND INSPECTIONS ON THE COMPLIANCE BY ORGANIZATIONS AND INDIVIDUALS OF THE PROVISIONS OF THE LAWS CONCERNING PRICES AND THE PROVISIONS OF OTHER RELEVANT LAWS. ARTICLE 35: POWERS AND RESPONSIBILITIES OF BRANCH- SPECIFIC PRICE INSPECTORS ¶1. A BRANCH-SPECIFIC PRICE INSPECTOR HAS THE POWERS: A) TO REQUEST BUSINESS AND PRODUCTION ORGANIZATIONS AND INDIVIDUALS TO MAKE ACCURATE AND TRUTHFUL REPORTS IN A TIMELY MANNER ON THE DATA AND DOCUMENTS RELEVANT TO THE ASPECTS OF THE PRICE CHECK OR INSPECTION IN ACCORDANCE WITH THE PROVISIONS OF LAW; B) TO REQUEST THE RELEVANT ORGANIZATION TO DISPATCH AN INDIVIDUAL TO PARTICIPATE, AND PROVIDE DATA AND DOCUMENTS DIRECTLY RELEVANT TO THE ASPECTS OF THE PRICE CHECK OR INSPECTION; AND UNCLASSIFIED PAGE 03 HANOI 01769 09 OF 10 150936Z C) TO HANDLE ACTS OF VIOLATION OF THE LAWS CONCERNING PRICES IN ACCORDANCE WITH THE PROVISIONS OF LAW. ¶2. THE RESPONSIBILITIES OF BRANCH-SPECIFIC PRICE INSPECTORS: A) TO NOT USE THE ACQUIRED DATA, DOCUMENTS, AND INFORMATION FOR ANY OTHER PURPOSES OTHER THAN FOR STATE ADMINISTRATION OVER PRICES; B) TO NOT DISCLOSE SECRETS RELATING TO THE BUSINESS [AND/OR] PRODUCTION ACTIVITIES OF THE [CONCERNED] BUSINESS AND/OR PRODUCTION ORGANIZATION [OR] INDIVIDUAL; AND C) TO BE LIABLE BEFORE THE LAW FOR THEIR PRICE CHECKS AND INSPECTIONS. ARTICLE 36: RIGHTS AND OBLIGATIONS OF THE ORGANIZATION OR INDIVIDUAL UPON A PRICE CHECK OR INSPECTION ¶1. THE ORGANIZATION WHICH, OR INDIVIDUAL WHO, IS REQUESTED BY THE AUTHORITY COMPETENT FOR A PRICE CHECK OR INSPECTION MUST MAKE AN ACCURATE AND TRUTHFUL REPORT IN A TIMELY MANNER ON THE DATA AND DOCUMENTS RELEVANT TO THE ASPECTS OF THE PRICE INSPECTION OR CHECK. ¶2. THE [CONCERNED] ORGANIZATION OR INDIVIDUAL MUST COMPLY STRICTLY WITH THE HANDLING DECISIONS OF THE AUTHORITY IN CHARGE OF STATE ADMINISTRATION OVER PRICES; IN THE EVENT THAT IT/HE/SHE DOES NOT AGREE WITH SUCH DECISION, IT/HE/SHE HAS THE RIGHT TO LODGE A COMPLAINT IN ACCORDANCE WITH THE PROVISIONS OF LAW. DURING THE PERIOD OF COMPLAINT, UNCLASSIFIED PAGE 04 HANOI 01769 09 OF 10 150936Z IT/HE/SHE STILL HAS TO COMPLY WITH THE HANDLING DECISION. ¶3. ORGANIZATIONS AND INDIVIDUALS HAVE THE RIGHT TO REFUSE REQUESTS OF PRICE INSPECTION [AND/OR] CHECK THAT ARE NOT CONSISTENT WITH THE PROVISIONS OF LAW. SECTION 3: REWARDS AND HANDLING OF VIOLATIONS ARTICLE 37: REWARDS ORGANIZATIONS AND INDIVIDUALS ACHIEVE MERITS IN THEIR IMPLEMENTATION OF THE LAWS CONCERNING PRICES WILL BE REWARDED IN ACCORDANCE WITH THE STATE REGULATIONS. ARTICLE 38: HANDLING OF VIOLATIONS OF THE LAWS CONCERNING PRICES ¶1. ORGANIZATIONS AND INDIVIDUALS COMMITTING AN ACT OF VIOLATION OF THE LAWS CONCERNING PRICES WILL BE PENALIZED ADMINISTRATIVELY OR PUT UNDER INVESTIGATION FOR CRIMINAL LIABILITY, DEPENDING ON THE NATURE AND EXTENT OF THEIR VIOLATION; IF CAUSING DAMAGE, COMPENSATION MUST BE PAID IN ACCORDANCE WITH THE PROVISIONS OF LAW. ¶2. ANY ONE WHO TAKES ADVANTAGE OF HIS/HER POSITION AND UNCLASSIFIED UNCLASSIFIED PTQ0613 PAGE 01 HANOI 01769 10 OF 10 150936Z ACTION STR-00 INFO LOG-00 AGRE-00 AID-00 CEA-01 CIAE-00 CTME-00 DODE-00 ITCE-00 DOTE-00 SRPP-00 EAP-00 EB-00 EXME-00 E-00 FAAE-00 FBIE-00 UTED-00 VC-00 FRB-00 H-01 TEDE-00 INR-00 ITC-01 L-00 VCE-00 MOFM-05 MOF-01 AC-01 NSAE-00 NSCE-00 OES-01 OMB-01 OPIC-01 ACE-00 SP-00 SSO-00 SS-00 TEST-00 TRSE-00 USIE-00 EPAE-00 DRL-02 G-00 NFAT-00 SAS-00 /015W -------------- CB23B5 150936Z /38 O 150923Z JUL 02 FM AMEMBASSY HANOI TO SECSTATE WASHDC IMMEDIATE 7015 INFO AMCONSUL HO CHI MINH CITY USDOC WASHDC USDA WASHDC UNCLAS SECTION 10 OF 10 HANOI 001769 SIPDIS STATE PASS USTR FOR EBRYAN AUTHORITY TO VIOLATE THE PROVISIONS ON PRICES, ACCEPT BRIBES, OR COVER FOR THOSE VIOLATING THE LAWS CONCERNING PRICES, OR IS IRRESPONSIBLE, OR INTENTIONALLY ACTS IN CONTRARY TO THE STATE REGULATIONS IN EFFECTING STATE UNCLASSIFIED PAGE 02 HANOI 01769 10 OF 10 150936Z ADMINISTRATION OVER PRICES, OR COMMIT OTHER ACTS IN VIOLATION OF THE LAWS CONCERNING PRICES WILL BE DISCIPLINED OR PUT UNDER INVESTIGATION FOR CRIMINAL LIABILITY, DEPENDING ON THE NATURE AND EXTENT OF HIS/HER VIOLATION; IF CAUSING DAMAGE, COMPENSATION MUST BE PAID IN ACCORDANCE WITH THE PROVISIONS OF LAW. CHAPTER V IMPLEMENTING PROVISIONS ARTICLE 39: EFFECTIVE DATE FOR IMPLEMENTATION THIS ORDINANCE TAKES EFFECT FOR IMPLEMENTATION FROM JULY 01, 2002. PREVIOUS PROVISIONS THAT ARE INCONSISTENT WITH THIS ORDINANCE ARE HEREBY REPEALED. ARTICLE 40: GUIDELINES FOR IMPLEMENTATION THE GOVERNMENT SETS FORTH DETAILED REGULATIONS AND GUIDELINES FOR IMPLEMENTING THIS ORDINANCE. HANOI, APRIL 26, 2002 ON BEHALF OF THE STANDING COMMITTEE OF THE NATIONAL ASSEMBLY [SIGNED AND SEALED BY] MR. NGUYEN VAN AN, PRESIDENT END TEXT. BURGHARDT UNCLASSIFIED PAGE 03 HANOI 01769 10 OF 10 150936Z UNCLASSIFIED