Vietnam: What is public property? Which agency belongs to the authority to approve public property leasing schemes?
What is public property in Vietnam?
According to Clause 1, Article 3 of the Law on Management and Use of Public Property 2017, public assets are assets owned by the whole people and managed by the State on behalf of the owner and unified management, including:
- public property serving management, provision of public services, maintenance of national security for organizations and individuals;
- infrastructural property serving national and public interests;
- property established under public ownership;
- public property of enterprise;
- money in state budget, non-state budget financial funds, foreign exchange reserves; land and other resources.;
- Land and other resources.
Vietnam: What is public property? Which agency belongs to the authority to approve public property leasing schemes?
In what form is public property leased in Vietnam?
The leasing of public assets at public non-business units shall be carried out in the forms specified in Clause 3 Article 46 of Decree 151/2017/ND-CPpublic property as follows:
Use of public assets at public non-business units for leasing purposes
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3. The leasing of public assets at public non-business units shall be carried out in the following forms:
a) Auction applies to the rental package of assets that are the basis of professional activities. The auction for lease of property shall comply with the provisions of Clauses 3, 4, 5 and 6, Article 24 of this Decree and the law on property auction;
b) Direct leasing applies in the following cases:
- Assets are means of transport, machinery and equipment;
- Lease each item of professional activity facility (hall, meeting room, conference room, laboratory, treatment room ...) for a period of less than 15 days or 15 days or more but not continuously.
The head of the public non-business unit determines and lists the rental price at the unit headquarters; At the same time, publicly announce the rental price of assets on the information page of the unit (if any), the portal of the Ministry, central and local agencies, the website on public assets of the Ministry of Finance, the electronic transaction system on public assets.
Accordingly, the leasing of public assets at public non-business units shall be carried out in the following 02 forms:
-Auction
- Direct rental.
Which agency belongs to the authority to approve public property leasing schemes in Vietnam?
According to the provisions of Clause 2, Article 57 of the Law on Management and Use of Public Property 2017 as follows:
Article 57. Use of public property of public service providers for lease
1. A public service provider is entitled to lease out public property if:
a) The property is distributed, invested in construction or purchased to perform tasks assigned by the State but it has not been used at full capacity;
b) The property is invested in construction or purchased in accordance with a project approved by a competent authority for lease that is not funded by the state budget.
2. Power to approve plans for the lease of public property of public service providers:
a) Ministers, heads of central authorities and chairmen of People’s Committees of provinces shall approve plans towards property which is public service facilities; other property with high value as prescribed by the Government;
b) Management councils or heads of public service providers shall approve plans towards property that is not specified in Point a of this Clause.
3. Form of lease and property rental:
a) The property which is a public service facility and other property with high value as prescribed by the Government shall be leased out in the form of an auction; property rental shall be the final bid;
b) The property that is not specified in Point a this Clause shall be leased out by negotiation; property rental shall be negotiated by and between the lessor and the lessee according to the rental listed on the market of the property with the same type or the property having the same specification, quality or origin.
Thus, according to the above provisions, the use of public assets in public non-business units for the purpose of leasing must be approved by:
- Ministers, heads of central authorities and chairmen of People’s Committees of provinces shall approve plans towards property which is public service facilities; other property with high value as prescribed by the Government;
- Management councils or heads of public service providers shall approve plans towards property that is not specified in Point a of this Clause.
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