Chương 1 Nghị định 120/2004/NĐ-CP: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Decree prescribes the management of medicine prices; posting up of medicine prices; stabilization of prices of a number of kinds of medicines; inspection, examination and handling of violations of the regulations on management of prices of human-use preventive and curative medicines.

Article 2.- Subjects of application

1. This Decree applies to domestic as well as foreign organizations and individuals that are licensed to produce, import and/or trade in human-use preventive and curative medicines as well as disease prevention and treatment establishments in Vietnam (hereinafter referred to as establishments).

2. In cases where the international treaties which the Socialist Republic of Vietnam has signed or acceded to contain the provisions different from those in this Decree, the provisions of such international treaties shall apply.

Article 3.- Human-use preventive and curative medicines prescribed in this Decree mean assorted finished medicines which are permitted for circulation and use in Vietnam by the Ministry of Health.

Article 4.- Medicine prices shall be managed on the following principles:

1. The State shall respect the right of the medicine-producing, -importing and/or trading establishments to set prices and to compete in prices strictly according to law, except for medicines with prices set by the State.

2. The State shall take necessary measures to stabilize the prices and set prices of a number of essential medicines in order to protect the rights and legitimate interests of the consumers, of the medicine-producing, -importing and/or -trading establishments, and the interests of the State.

3. To implement the national policy on medicines, enhance the capability to produce and supply medicines to meet domestic and export demands; create conditions for the development of Vietnam's pharmaceutical industry, contributing to the realization of the policy on protection and care of the people's health.

Article 5.- Interpretation of terms

The terms below are construed as follows:

1. Human-use preventive and curative medicines mean products originating from animals, plants, minerals, chemicals or biologicals, which are prepared for human use in order to prevent and treat diseases, to rehabilitate or regulate body functions, reduce ailment symptoms, diagnose diseases, recover or improve health, to desensitize part or whole of the body, to affect the reproductive process or create physical changes.

Finished medicines mean medicines which have gone through all stages of production under necessary processes and are permitted for use and circulation in Vietnam.

2. Price declaration means the exact record of, and report on, the import price as well as wholesale and retail prices of each medicine to functional agencies according to the provisions of this Decree and other relevant law provisions.

3. Retail surplus means reasonable expenditures and reasonable profits for the retail stage.

4. Wholesale surplus means reasonable expenditures and reasonable profits for the whole wholesale stage.

5. Retail price bracket means a permitted span of retail prices of a number of essential human-use preventive and curative medicines.

6. Posting up of medicine prices means the publicization of medicine sale prices by printing, affixing or inscribing the medicine sale prices on medicine containers or outer packings; publicization of their prices on boards or papers at drug stores.

7. Abnormal fluctuation of medicine prices means sudden increase or decrease of medicine prices due to natural disasters, epidemics or other abnormal circumstances, greatly affecting the socio-economic development.