What are clean water supply infrastructure assets in Vietnam? Which agency manages clean water supply infrastructure assets?
What are clean water supply infrastructure assets in Vietnam?
According to the provisions of Article 3 of Circular 73/2022/TT-BTC of Vietnam on clean water supply infrastructure assets as follows:
Standards for identification of clean water supply infrastructure assets in Vietnam
1. The clean water supply infrastructure asset is a complete centralized water supply system or each independent asset satisfying both of the following two criteria at the same time is a fixed asset:
a) Having used period of 01 year or more.
b) The original price is VND 10,000,000 (ten million VND) or more.
2. In case the clean water supply infrastructure asset is a system assigned to more than one agency or unit for management, the part of property assigned to each agency or unit that simultaneously satisfies 02 criteria specified at Points a and b, Clause 1 of this Article is a fixed asset.
3. Based on technical characteristics of clean water supply infrastructure assets and local realities; on the basis of the proposal of the agency or unit assigned to manage the clean water supply infrastructure assets and the superior management agency of the agency or unit assigned to manage the clean water supply infrastructure asset (if any), the specialized agency in charge of clean water supply shall report to the People's Committee of the province or centrally run city (hereinafter referred to as the People's Committee of the province) for consideration and decision on whether the accounting records of clean water supply infrastructure assets are made according to a complete centralized water supply system or each asset is independent for the agency or unit assigned to manage the clean water supply infrastructure assets shall make accounting books.
In case of necessity, the People's Committees of provinces shall delegate authority to specialized agencies in charge of clean water supply, and the People's Committees of districts shall decide that the accounting books of clean water supply infrastructure assets shall be made according to a complete centralized water supply system or each independent asset so that the agency or unit assigned to manage clean water supply infrastructure assets shall make accounting books.
Thus, the clean water supply infrastructure asset is a complete centralized water supply system or each independent asset satisfying both of the following two criteria as fixed assets:
- Having used period of 01 year or more;
- The original price is from VND 10 million or more.
In case the clean water supply infrastructure asset is a system assigned to more than one agency or unit for management, the part of property assigned to each agency or unit that simultaneously satisfies 02 criteria specified at Points a and b, Clause 1 of this Article is a fixed asset.
What are clean water supply infrastructure assets in Vietnam? Which agency manages clean water supply infrastructure assets?
Which agency manages clean water supply infrastructure assets?
According to Article 2 of Circular 73/2022/TT-BTC of Vietnam, agencies and units assigned to manage clean water supply infrastructure assets include:
- Public service providers with clean water supply functions are assigned to manage clean water supply infrastructure assets.
- People's Committees of communes, wards and townships (hereinafter referred to as commune-level People's Committees) are assigned to manage clean water supply infrastructure assets.
- Agencies specialized in clean water supply are assigned to manage clean water supply infrastructure assets.
What are the principles for the management of clean water supply infrastructure assets in Vietnam?
According to the provisions of Article 4 of Circular 73/2022/TT-BTC of Vietnam, the management of clean water supply infrastructure assets shall be carried out according to the following principles:
- Clean water supply infrastructure assets must be recorded in order to strictly manage in kind and their value according to the provisions of law on management and use of public property and relevant laws.
- Each clean water supply infrastructure asset is an accounting book entry. Accounting for clean water supply infrastructure assets must fully reflect and record information on the input value, residual value, wear and tear/depreciation of the asset.
- Agencies and units assigned to manage clean water supply infrastructure assets are responsible for:
+ Make asset cards, make accounting records for all clean water supply infrastructure assets assigned to manage according to the provisions of the current accounting regime.
+ Carrying out an annual inventory of assets; make adjustments to accounting data if there is any difference when making an inventory.
+ Make a declaration and report on the management and use of clean water supply infrastructure assets.
- For clean water supply infrastructure assets that are no longer in demand but have not been fully depreciated or fully depreciated according to regulations, the agency or unit assigned to manage the property shall continue to manage, monitor and preserve assets in accordance with current regulations and calculate depreciation according to the provisions of this Circular until they are handled according to regulations.
- For clean water supply infrastructure assets that have been fully depreciated or have been fully depreciated but can still be used, the agency or unit assigned to manage the asset shall continue to manage, use, monitor and preserve assets in accordance with current regulations and do not have to calculate depreciation and amortization.
In case clean water supply infrastructure assets have been fully depreciated or fully depreciated but then fall into the case of a change in their input value, the depreciation and amortization must be calculated according to regulations for the remaining useful life (if any) after the change in the input value.
- In case of leasing the right to exploit clean water supply infrastructure assets, the agency or unit assigned to manage the property shall continue to manage, monitor and calculate the depreciation of the property according to the provisions of this Circular during the lease of the mining rights.
- In case of definite transfer of the right to exploit clean water supply infrastructure assets, during the transfer period, the agency or unit assigned to manage the property (the assignor):
+ To be responsible for monitoring and supervising the performance of obligations of the transferee in accordance with the law and the transfer contract with a definite term of the right to exploit the property.
+ Failure to calculate depreciation and amortization according to the provisions of this Circular and not accounting for assets but monitoring the financial notes in accordance with current accounting regulations.
+ At the end of the term of transfer of the right to exploit clean water infrastructure assets, the agency or unit assigned to manage the property shall take over the property under the transfer contract with a definite term of the right to exploit property and the provisions of law, to redefine their input value and residual value for management, use, depreciation and amortization.
Circular 73/2022/TT-BTC of Vietnam will take effect from February 1, 2023
Nguyễn Thị Hồng Nhung
