VN draft decree on state monopoly in trade submitted
VIETNAM’S Ministry of Industry and Trade has submitted to the government a draft decree declaring a state trade monopoly in 16 goods and services.
On Saturday, the government website published the draft, which mentioned the state would hold a monopoly in trading 20 goods and services, such as those for national defence; the production, sale, import and export of industrial explosives; gold bar production; export and import of gold materials to produce gold bars; and issuing lotteries.
The state’s monopoly would also extend to tobacco imports; lottery tickets; activity of the national reserve; money printing and minting; postage stamps; and the production, sale, import-export, transport and storage of fireworks and related services; besides operating lighthouses and public navigable systems.
According to the ministry, the draft decree is aimed at implementing the Commercial Law of 2005, which permits state monopolies with no timelines on commercial operations for several goods and services, especially in areas of national interest.
The government will specify the categories of goods and services, and the geographical areas of the state monopoly.
The draft mentioned that the state monopoly in trade implied commercial activities in which only state agencies or state-owned firms would be authorised to trade.
“The state monopoly in trade is only in essential goods and services, such as defence and security to which the state would have exclusive rights,” it said.
The enacted decree will contribute to improving the transparency, consistency and accuracy of the legal system on the state monopoly in commercial activities, the ministry said.
The ministry said it would promote a healthy competitive environment, while classifying the scope of the state monopoly, as well as the rights and obligations of related businesses, thereby instilling confidence and trust in the public, besides allowing other economic sectors to monitor state intervention through legislation.
The firms implementing the state monopoly will have to be under strict inspection and supervision, according to the laws on enterprises, competition, pricing and management and use of state funds, the ministry said.