How are purchased and received properties of Vietnam Debt and Asset Trading Corporation handled?

According to the Decree No. 129/2020/NĐ-CP of Vietnam’s Government, there are 3 methods of handling property purchased and received, including:

1. Property transfers (including purchased and assigned projects).

2. Use assets (including purchased and assigned projects) for business cooperation, share capital contribution, joint venture, association.

3. Management and investment to exploit, sell and lease assets (including purchased and assigned projects).

The handling of purchased and received properties is based on the following principles:

- Assets must be revalued through a consulting organization with valuation function in accordance with the law on management and use of state capital invested in enterprises and as a basis for handling according to Article 18 of Decree No. 129/2020/NĐ-CP of Vietnam’s Government. In case assets or projects are used for business cooperation, share capital contribution, joint venture or association, the value of capital contribution shall comply with the principle of consensus between the parties but must not be lower than the value approved by the private organization.

- Organize public auction, competitive bid or direct agreement in accordance with the provisions of law.

- For property received by DATC for business purposes, DATC pays money to the state budget according to the Government's regulations on management and use of revenue from enterprise ownership conversion corresponding to the revalued asset value after deducting (-) the cost of transferring and returning to the property custodian before handing over to DATC and expenses related to the receipt and valuation of the property by DATC.

- For properties purchased and received on appointment, the DATC shall base itself on the plan for purchase, sale and disposal of designated properties approved by a competent authority (if any) and the forms and principles of property handling specified in Article 18 and Clauses 1, 2, 3 Article 19 of Decree No. 129/2020/NĐ-CP of Vietnam’s Government for handling. In case the DATC receives designated assets for handling and recovery for the State, they are entitled to a property handling fee under the guidance of the Ministry of Finance on the principle of fully covering the costs of property handling plus (+) part of the administrative costs.

View more details at the Decree No. 129/2020/NĐ-CP of Vietnam’s Government, effective from December 10, 2020.

Thuy Tram

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