MoF replies to domestic aviation service prices

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The Ministry of Finance (MoF) issued Official Letter No. 168/QLG-CNTD to the Civil Aviation Administration of Vietnam, Vietnam Register, the Department of Finance, the Department of Transportation (Ministry of Transport) related to domestic aviation service prices and vehicle registration service prices.

The Official Letter says that in the process of developing the revised Price Law, the Department of Price Management received proposals related to the domestic aviation service prices

Specifically, the proposals of the Vietnam Aviation Business Association, Vietnam Airlines Corporation (Vietnam Airlines), and Tre Viet Aviation Joint Stock Company (Bamboo Airways) related to abolishment of the domestic price cap for air service and reduction of the selling price for passenger air transport services are not considered a violation on Competition Law and Anti-dumping Law on imported goods.

The Department of Price Management Department held a meeting on April 26, with the participation of units under the Ministry of Transport and representatives of aviation enterprises. At the meeting, representatives of aviation businesses proposed content related to domestic aviation service prices.

Regarding this content, the MoF cites the Law amending and supplementing several articles of the Law on Vietnam Civil Aviation, saying that "Airlines will decide on the domestic aviation service prices under the price bracket prescribed by the Ministry of Transport and declare the price with the Ministry of Transport".

Clause 3, Article 1 stipulates that "the body performing the specialized state management of civil aviation under the Ministry of Transport is the Aviation Authority.

Accordingly, the Ministry of Transport will be responsible to the Government for performing the state management of civil aviation.

Under the state management function of aviation of the Ministry of Transport, as stipulated in the Law amending and supplementing several articles of the Law on Vietnam Civil Aviation, the Department of Price Management asks the Department of Transport, the Civil Aviation Authority of Vietnam, the Department of Finance to report to the Ministry of Transport for specific comments together with an impact assessment on the contents related to domestic aviation service prices.

The MoF has also sent official dispatches to the Ministry of Transport about vehicle registration service prices.

Accordingly, the MoF has asked the Ministry of Transport to evaluate the implementation and the level of cost compensation of the vehicle registration service prices. The Ministry of Transport should direct management and business units to develop the price plan and submit it to the Ministry of Transport for appraisal. Then, the Ministry of Transport sends a written request to the MoF to amend and supplement the current regulations on vehicle registration service prices (if any).

However, the Ministry of Finance has not received any comments from the Ministry of Transport. Therefore, the Department of Price Management proposed that the advisory agencies of the Ministry of Transport soon reply on the vehicle registration service prices.