On the afternoon of June 19th, the National Assembly passed the Price Law (amendment) with nearly 93% of delegates in favor. This law will come into effect on July 1st, 2024. Notably, the State still stipulates price ranges for airfares and textbooks.
The report on the previous explanation by the Standing Committee of the National Assembly stated that there are currently six domestic airlines operating routes, but in practice, three major airlines still dominate the market, with Vietnam Airlines accounting for about 35%, Vietjet Air 40%, and Bamboo Airways 16%.
According to the Competition Law, this market has limited competition, so in the short term, a price management tool for domestic air services is still needed to stabilize the market. In the long run, when various modes of transportation develop synchronously and provide more choices, the State will calculate appropriate price regulations for domestic passenger transport services.
Without price regulations, it would mean that the State would abandon the tool for price regulation. Airlines could freely set higher prices for economy-class tickets.
Regarding textbooks, to stabilize the market, promote healthy competition, and protect consumer interests, the Standing Committee has requested permission from the National Assembly to only set price ceilings and not price floors for textbooks.
Accordingly, the law establishes the maximum price (price ceiling) for domestic passenger transport services and textbooks.
As for elderly formula milk and pork, upon review, the Standing Committee of the National Assembly has unanimously agreed not to include these two items in the list of goods and services for price stabilization.
Specifically, currently, elderly formula milk is considered a functional food, and in terms of price volatility, impact scope, and influence, it is not significant compared to formula milk for children.
Regarding pork, the Standing Committee of the National Assembly believes that listing pork prices is impractical due to the large number of organizations and individuals involved in the business, the daily price fluctuations for this product, and the difficulty for individual businesses to comply with price reporting regulations.
Under the current regulations, pork is not included in the list of goods and services for price stabilization, and the market situation in recent times does not impose a pressing requirement to include it in price stabilization measures.
@Zing News
Source: Vietnam Insider