The government has issued Decree No. 94/2017/ND-CP declaring the State will hold the monopoly in the production and trading of 20 goods and services as from October 1st this year. Of which, the production of gold bars; Export-import of raw materials gold for the production of gold bars; Printing and minting money are within goods and services performed exclusively by the State.
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The decree points out that the State only holds monopoly in trading essential goods and services that are related to defence and security and national interests or in areas which the private sector does not wish to operate in or is not capable of doing.
Government agencies have the rights to exercise state monopoly in commercial activities through direct implementation or assignment to organizations and individuals for implementation. All monopolised sales of these goods and services must be under the surveillance and direct orders from the Prime Minister through official documents and in accordance with the law.
The Decree states that all ministries, municipal governments and agencies are not permitted to conduct trade of the 20 monopolised goods and service groups within their respected sector and territories. Goods and services that fall under the national defence and security category are to be governed by the Minister of National Defence and Minister of Public Security.
Goods, services and geographical areas on the list of goods and services subject to state monopolies shall be amended, supplemented and abolished in consideration of the State management requirements proposed by Ministries, Ministerial-level Agencies, Provincial People's Committees or on the basis of written proposals from enterprises of all economic sectors expressing their need and ability to participate in commercial activities for state-owned goods or services.
Ministries, ministerial-level agencies have the responsibility to consider the proposals of the enterprises of all economic sectors to assess their ability in applying the conditions of business investment, conditions for ensuring National security, National interests and other conditions as prescribed by relevant laws.
The Ministry of Industry and Trade is responsible for receiving and synthesizing all proposals; and coordinating with concerned ministries and ministerial-level agencies to review and evaluate proposals. Then Ministry must report to the Government for decision on amendments and supplements the list of goods and services subject to State monopoly.
Organizations, individuals and Government agencies conducting commercial activities under State monopoly shall be subject to control measures of competent Government agencies in accordance with provisions of the competition law, price law and other relevant laws; Government agencies performing national reserve activities must comply with the law on national reserves; The use of state capital by state-owned enterprises in trading of goods and services on the list of goods and services performed exclusively by the State must comply with the law on management and use of state capital.
Government agencies that manage entities directly conducting state monopoly commercial activities are responsible for inspecting and supervising state monopoly commercial activities of these entities.
The Decree takes effect on October 1st 2017.
VA