Regulations on value negotiation specified in revised Law on Value

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Regulations on value negotiation are specified in the draft revised Law on Value

In a report on policy impact assessments of the revised Law on Value, the Ministry of Finance proposed to amend current regulations on the scope of application of price negotiation, which is conducted only between businesses and businesses with the role of State arbitration. The legality of price negotiation and the responsibilities of the parties in the negotiation is specified in the draft revised law.

The draft law stipulates more clearly the scope and principles of price negotiation. Accordingly, the price negotiation is an agreement between businesses on the purchase and sale prices of goods and services, which is assisted by the intermediary as competent state agency.

The negotiation is only conducted between the buyer and the seller which satisfy conditions of price negotiation. The both sides voluntarily propose the price negotiation with equality of rights and obligations.

The negotiation between the State party and the enterprise will be eliminated and implemented in accordance with the law on bidding and auction.

Accordingly, the price negotiation is also adjusted as follows: when receiving a written request for price negotiation from both the buyer and seller of goods or services, the agency organizing price negotiation will assess the goods or services and request the parties to provide additional information (if any).

The Ministry of Finance also proposed the agency organizing the price negotiation to hold a price negotiation conference for the buyer and seller to negotiate with each other on the price on the basis of cooperation and harmonization of interests between the parties. The agency serves as an intermediary and must not interfere in the negotiated price between the parties.

The negotiation conference will end after the buyer and seller agree on a price. The negotiated price is only applied to the purchase, sale and the quantity of goods and services that are agreed in the negotiation written request; the negotiated price is not applied to other cases. The parties will be responsible for the negotiated price and the implementation of the negotiated price.

If the buyer and the seller cannot negotiate the price, the agency organizing price negotiation will make minutes to record the contents of the conference and issue a decision on the negotiated price for the two parties to implement.

According to the Ministry of Finance, the issuance of a negotiated price decision is similar to the decision on the prices of goods and services set by the State. The buyer and the seller must provide sufficient dossiers and documents to the agency organizing price negotiation to conduct valuation. The negotiated price decision is only applied to the unit proposing the price negotiation and is not valid for other cases.

The above regulation clearly shows the nature of the measure of price negotiation aimed at promoting the agreement between the parties, including the intermediary role of competent agencies and organizations to achieve the goal of harmonizing interests, ensuring transparent transactions in line with the laws of the market economy.

On the other hand, it also clearly stipulates the scope of application of the negotiated price, to prevent abuse of this price for other purposes, which are not consistent with the regulations on negotiation and transaction," said the Ministry of Finance.