What is public utility in Vietnam? Where does the budget or funding for supply of public goods come from?
What is public utility in Vietnam?
Pursuant to the provisions of Clause 4, Article 3 of Decree 32/2019/ND-CP on the interpretation of terms as follows:
Interpretation
…
4. Public utility refers to a commodity or service of which production and supply according to the market mechanism can hardly offset any cost incurred; or which is a particular commodity or service that has access to the Government’s subsidy against the spread between the selling price, the market or selling price or value under the Government's regulations; or between the sum that a beneficiary of a public utility pays as per the Government's regulations and total reasonable production cost that a producer or supplier thereof incurs to production or supply of any public utility ordered by the Government (or commissioned under regulatory provisions of relevant industry-specific law (if any)).
Thus, public utility refers to a commodity or service of which production and supply according to the market mechanism can hardly offset any cost incurred; or which is a particular commodity or service that has access to the Government’s subsidy against the spread between the selling price, the market or selling price or value under the Government's regulations; or between the sum that a beneficiary of a public utility pays as per the Government's regulations and total reasonable production cost that a producer or supplier thereof incurs to production or supply of any public utility ordered by the Government (or commissioned under regulatory provisions of relevant industry-specific law (if any)).
What is public utility in Vietnam? Where does the budget or funding for supply of public goods come from? (Image from the Internet)
Where does budget or funding for supply of public goods come from?
Pursuant to Article 4 of Decree 32/2019/ND-CP stipulating this content as follows:
Budget or funding for supply of public goods
1. State budget’s regular expenditures available for use in public and economic activities prescribed in the Law on State Budget, including:
a) The central government’s budget expenditures used as funding for the process of commissioning, ordering or tendering for public goods by Ministries and central authorities;
b) The local government’s budget expenditures used as funding for the process of commissioning, ordering or tendering for public goods by local authorities.
2. Amounts retained to pay for service provision and fee or charge collection according to law on fees and charges.
3. Revenue gained from public services at the public service prices regulated by the Government.
4. Other financial sources stipulated in law (if any).
Thus, state budget’s regular expenditures available for use in public and economic activities prescribed in the Law on State Budget, including:
+ The central government’s budget expenditures used as funding for the process of commissioning, ordering or tendering for public goods by Ministries and central authorities;
+ The local government’s budget expenditures used as funding for the process of commissioning, ordering or tendering for public goods by local authorities.
- Amounts retained to pay for service provision and fee or charge collection according to law on fees and charges.
- Revenue gained from public services at the public service prices regulated by the Government.
- Other financial sources stipulated in law (if any).
Who has the authority to decide on the method of commissioning, ordering and tendering for public goods and services in Vietnam?
Pursuant to Article 7 of Decree 32/2019/ND-CP on this content as follows:
Authority to decide on the method of commissioning, ordering and tendering for public goods and services in Vietnam
1. Ministries, central authorities or directly-affiliated managing bodies may delegate the authority to make decisions to commission or order public goods and services to their directly-controlled public service units; may assign the authority to make decisions to order (or commission, once permitted by specialized law) public goods and services to other public service providers; producers or suppliers of public utilities; or put public goods and services out to tender as allowed according to regulatory provisions by using the central government budget’s funds.
2. Provincial People’s Committees, district People’s Committees or managing bodies under their direct control may delegate the authority to make decisions to commission or order public goods and services to their directly-controlled public service units; may assign the authority to make decisions to order (or commission, once permitted by specialized law) public goods and services to other public service providers; producers or suppliers of public utilities; or put public goods and services out to tender as allowed according to regulatory provisions by using the local government budget’s funds.
3. In case of commissioning or ordering any particular public goods and services by using the central government budget’s funds, the Prime Minister’s decisions shall be applied.
Thus, the authority to decide on the method of commissioning, ordering and tendering for public goods and services in Vietnam shall be vested in:
- Ministries, central authorities or directly-affiliated managing bodies may delegate the authority to make decisions to commission or order public goods and services to their directly-controlled public service units; may assign the authority to make decisions to order (or commission, once permitted by specialized law) public goods and services to other public service providers; producers or suppliers of public utilities; or put public goods and services out to tender as allowed according to regulatory provisions by using the central government budget’s funds.
- Provincial People’s Committees, district People’s Committees or managing bodies under their direct control may delegate the authority to make decisions to commission or order public goods and services to their directly-controlled public service units; may assign the authority to make decisions to order (or commission, once permitted by specialized law) public goods and services to other public service providers; producers or suppliers of public utilities; or put public goods and services out to tender as allowed according to regulatory provisions by using the local government budget’s funds.
- In case of commissioning or ordering any particular public goods and services by using the central government budget’s funds, the Prime Minister’s decisions shall be applied.
Nguyễn Thị Hồng Nhung
