Along with the laws passed by the National Assembly at its 10th session, the Law on Fees and Charges has also just been announced by the Office of the President. Accordingly, from January 1, 2017,The Law on Fees and Charges is considered to have established a complete, synchronized, and unified legal framework, consistent with relevant legal regulations, and gradually focusing on promptly and fully reflecting revenue from fees and charges.

The law also addresses limitations in managing revenue from fees and charges; gradually calculates costs accurately and comprehensively to meet the requirements of reforming the management mechanisms of public service units, promoting the socialization of certain types of public services, in line with the operation of a socialist-oriented market economy; and ensures transparent and open fee and charge policies, creating favorable conditions for citizens and businesses.

Specifically, current law regulates fees and charges associated with public services provided by the State and businesses. The collection, management, and use of these fees and charges are regulated by the State, which does not encourage businesses to participate in providing public services.

To promote socialization and attract resources to participate in providing public services, the Law on Fees and Charges stipulates a list of fees and charges associated with public services provided by state agencies, public service units, and organizations authorized by competent state agencies. In cases where the service is provided by a business enterprise, the service price shall be determined according to the provisions of the Law on Prices.

Notably, the detailed list of fees and charges issued with the law specifically stipulates the authority of four agencies—the Standing Committee of the National Assembly, the Government, the Ministry of Finance, and the provincial People's Councils—for each fee and charge.

The principle for determining fee levels was one of the issues that received much debate before the National Assembly voted to approve it.

Currently, the fees listed in the law are provided by state agencies and public service units. However, in the future, some fees have high potential for socialization and could be transferred to private businesses.

Therefore, the Law on Fees and Charges stipulates that the principle of fee collection is that the fee level is determined fundamentally to ensure cost recovery, taking into account the State's socio-economic development policies in each period, and ensuring fairness, transparency, and equality in the rights and obligations of citizens.

The law also clearly specifies the eligible beneficiaries, including children, poor households, the elderly, people with disabilities, and certain special groups as stipulated by law.

Regarding the management and use of fees and charges, the law stipulates that fees collected from service activities performed by state agencies must be remitted to the state budget, except in cases where operating expenses are covered by fee revenue, in which case they may be deducted. Fees collected from service activities performed by public non-profit organizations may be retained in part or in full to cover expenses, based on approved budget estimates, with the remainder remitted to the state budget.

Fees collected from service activities performed by organizations assigned by state agencies may be retained in part or in full to cover operating costs; the management and use of these fees are governed by law.

To encourage social participation, 17 products and services have been switched from fees to service prices determined by the State.

These include irrigation fees, road usage fees, port and terminal usage fees, vehicle inspection fees, securities trading fees, etc.

Shifting certain types of public services to a pricing mechanism that allows private sector participation is believed to better serve the people.

However, the law only shifts to a pricing mechanism for certain fees that the State does not need to control and allows for competition, aiming to reduce prices and improve the quality of services for citizens.

Specifically, services related to state management tasks remain regulated in the list of fees and charges provided by the State, serving the people. Some fees will be shifted to a pricing mechanism, but to ensure they are in line with people's income, the State will determine the prices or use social welfare and insurance policies to provide support.

According to VN Economy