Why is it proposed to add pork to the price stabilization list?

On the afternoon of May 23, continuing the program of the 5th session of the 15th National Assembly , the National Assembly discussed in the hall a number of contents with different opinions of the draft Law on Prices (amended).

Regarding the authority to decide on the list of goods and services for price stabilization, Mr. Le Quang Manh - Chairman of the Finance and Budget Committee said that at the 4th Session, the Government submitted a Draft Law in which the Government was assigned to decide on the list of goods and services for price stabilization.

However, through the opinions of the National Assembly Deputies, the Standing Committee of the National Assembly sees that price is an issue that directly affects each citizen, business, and market stability, so goods and services with price stabilization need to be specifically regulated in the Law to create publicity, transparency, and minimize intervention from State management agencies in the law of supply and demand.

Therefore, to be consistent with the functions and duties of the elected body, but still meet the flexibility and timeliness, the Standing Committee of the National Assembly has directed to accept. Accordingly, keeping the provisions of the current Law, the National Assembly decides on the list.

In case of adjustment, the Government shall submit to the Standing Committee of the National Assembly for consideration and decision. Next, Appendix 01 shall be added to specify the price-stabilized goods, ensuring publicity and transparency; relevant provisions in other articles and clauses shall be adjusted to ensure compatibility.

Event - Why is pork included in the price stabilization list? — The National Assembly discussed in the hall a number of contents with different opinions of the draft Law on Prices (amended).

Regarding the list of goods and services subject to price stabilization, there are suggestions to add some goods and services to the list of goods and services subject to price stabilization such as medical equipment for Covid-19 prevention and control; food and foodstuffs.

Regarding this issue, the Chairman of the Finance and Budget Committee said that for medical equipment serving the prevention and control of the Covid-19 epidemic, Decree 98 on medical equipment management and Decree 07 have stipulated measures to declare prices for medical equipment.

In the current normal context before and after the pandemic, the price level of medical equipment is relatively stable, basically unchanged. Therefore, this item is not included in the list of goods and services subject to price stabilization.

Regarding food items, there are suggestions to add sticky rice, meat, eggs, vegetables, cooking oil, instant noodles, and cooking spices to the list.

Based on the assessment of the necessity and supply-demand capacity, the Standing Committee of the National Assembly found that these products have a very high market value; associated with the initiative of businesses trading in these products.

Pork is a commodity with high consumer demand, basically essential for people and if there is a problem with disease, supply... it will greatly affect people's lives.

"Therefore, accepting the opinions of National Assembly deputies, pork will be added to the list. Other items will be stabilized in emergency cases according to the provisions of Point b, Clause 2, Article 18 of the Draft Law," said Mr. Le Quang Manh.

Event - Why is pork included in the price stabilization list? (Figure 2). — Add pork to the list of price-stabilized goods and services.

Regarding the Gasoline and Oil Price Stabilization Fund: Many opinions agree to maintain the Gasoline and Oil Price Stabilization Fund; some opinions suggest not continuing to maintain the Gasoline and Oil Price Stabilization Fund.

According to Mr. Le Quang Manh, the Standing Committee of the National Assembly believes that in the current conditions, the Gasoline and Oil Price Stabilization Fund should be maintained because the Gasoline and Oil Price Stabilization Fund is one of the tools to regulate domestic gasoline and oil prices, an economic measure, not an administrative intervention.

In the current context, abandoning the fund is not appropriate because Vietnam's petroleum market has not yet fully operated according to market rules; management and operation of domestic petroleum retail prices are still through base prices; the domestic petroleum price adjustment cycle is still relatively long (currently 10 days); and petroleum reserves are still thin.

In fact, when world oil and gasoline prices fluctuate, the Stabilization Fund has played a "regulating" role, contributing to reducing the frequency and level of adjustments to increase oil and gasoline prices.

However, the Standing Committee of the National Assembly also proposed the need to innovate in the management and operation of gasoline and oil prices; promote publicity and transparency in the status of sources and use of the Fund, improve timeliness and efficiency in operation, and at the same time carefully evaluate the implementation of Decree 95; and soon put Vietnam's gasoline and oil prices completely into operation according to market rules.

The list of price-stabilized goods and services includes 10 items, including:

1. Finished gasoline and oil products;

2. Liquefied petroleum gas;

3. Milk for children under 6 years old; milk for the elderly;

4. Rice;

5. Pork;

6. Nitrogen fertilizer; DAP fertilizer; NPK fertilizer;

7. Animal feed; aquatic feed;

8. Vaccines for livestock and poultry;

9. Pesticides;

10. Medicines for disease prevention and treatment for people on the list of essential medicines used at medical examination and treatment facilities .

Source