Vietnam: What are the principles for the management and use of assets in higher education institutions?

What are the principles for the management and use of assets in higher education institutions in Vietnam?

According to Article 67 of the Law on Higher Education 2012, amended by Clause 35 Article 1 of the Law on Amendments to Law on Higher Education 2018, the principles for the management and use of assets of higher education institutions are as follows:

- Assets of public higher education institutions shall be managed and used in the same manner as public property. Higher education institutions may use public property for business operation, lease, business association to develop higher education in a manner that improves higher education, maintains and develops the property and is suitable for the educational environment.

- Management and use of assets of for-profit and non-profit private higher education institutions:

+ State-owned property and land use right (LUR) given by the State to a higher education institution shall be managed and used in accordance with regulations of law on management and use of public property and land, and must not be put under private ownership in any shape or form. The repurposing of other state-owned property shall be done in a manner that maintains and develop the property; land repurposing shall comply with land laws;

+ Non-distributable property includes property that is donated or given as aid, and other property defined by law as non-distributable property, owned by the institution as a whole, managed and used by the school council as prescribed by law or at the request of the transferor (if any) to serve the institution and collective benefits, ensure maintenance and development of the property; such a property must not be put under private ownership in any shape or form.

In case of transfer of stakes in a higher education institution, the non-distributable property shall not be included in the valuated assets of the institution.

In case of dissolution of a higher education institution, the non-distributable property shall be put under public ownership, management and used by competent authorities to serve higher education;

+ Higher education institutions are entitled to use and dispose of assets other than those mentioned in Point a and Point b, Clause 2, Article 67 of the Law on Higher Education 2012 (amended by Clause 35, Article 1 of the Law on Amendments to Law on Higher Education 2018) and take responsibility for such actions in accordance with the Law on Enterprises and relevant laws.

What are the principles for the management and use of assets in higher education institutions in Vietnam? (Image from Internet)

Do higher education institutions in Vietnam have the right to exercise autonomy over assets?

According to Article 32 of the Law on Higher Education 2012, amended by Clause 17 Article 1 of the Law on Amendments to Law on Higher Education 2018, the regulations are as follows:

Autonomy and accountability of higher education institutions

1. Higher education institutions shall have autonomy and accountability as prescribed by law. Organizations and individuals shall respect and protect autonomy of higher education institutions.

2. In order to have autonomy, a higher education institution shall:

a) have a school council; has certification of quality issued by a lawful training quality assessment organization;

b) has issued and implemented its internal rules and regulations; finance regulations; other internal regulations and procedures; has policies on quality assurance and fulfillment of standards prescribed by the State;

c) assign specific autonomy and accountability to every unit and individual in the higher education institution;

d) publish the conditions for quality assurance; inspection result; ratio of graduated and employed students as prescribed by law.

3. Academic autonomy and professional autonomy include promulgating and organizing implementation of quality policies and standards, offering new programs, enrolment, training, scientific activities, domestic and international cooperation in accordance with law.

4. Autonomy over organization and personnel include promulgating and organizing implementation of internal rules and regulations on organizational structure, personnel, list, standards and benefits of each position; employing and dismissing lecturers and other employees, deciding executive and managerial personnel in the higher education institution in accordance with law.

5. Financial autonomy include promulgating and organizing implementation of internal rules and regulations on sources of income, management and use of assets and sources of income; attracting investment; tuition fees and scholarships, and other policies in accordance with law.

6. Accountability of a higher education institution to its owner, students, the public, competent authorities and relevant parties include:

a) Providing description of implementation of quality policies and standards, promulgation and implementation of its regulations; responsibility for failure to adhere to regulation or commitment to quality;

b) Publishing of annual reports on performance indicators on its website; submit periodic and irregular reports to the owners and competent authorities;

c) Providing explanation for salaries, bonuses and other benefits of managers of the higher education institution for the general assembly of employees; have annual financial statements, investment and purchases audited, provide explanation for operation of the higher education institution for its owner and competent authorities;

d) Publishing of annual financial statements and other contents on its website in accordance with regulations of the Ministry of Education and Training;

dd) Other contents prescribed by law

7. The Government shall elaborate regulations on autonomy and accountability of higher education institutions.

Thus, higher education institutions have the right to exercise autonomy over assets while being accountable as stipulated by law.

Who will be responsible for submitting annual reports to the school council about the assets of the higher education institution in Vietnam?

According to Point dd Clause 3 Article 20 of the Law on Higher Education 2012, amended by Clause 14 Article 1 of the Law on Amendments to Law on Higher Education 2018, the regulations are as follows:

Principals of higher education institutions

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3. Duties and entitlements of the principal:

a) Act as the legal representative and account holder of the higher education institution, unless otherwise prescribed by the internal rules and regulations of the for-profit or non-profit private higher education institution;

b) organize professional and academic activities, personnel, finance, assets, domestic and international cooperation and other activities prescribed by law, the higher education institution’s internal rules and regulations and decisions of the school council;

c) Submit documents to the school council for issuance after getting comments from relevant entities within the higher education institution; issue other regulations of the higher education institution in accordance with its existing internal rules and regulations;

d) Propose designation and dismissal of managers under the management of the school council; designate and dismiss other managers of the higher education institution; decide investment projects in accordance with the higher education institution’s internal rules and regulations;

dd)) Submit annual reports to the school council on performance of the principal and the board of administrators, finance and assets of the higher education institution; ensure transparency and availability of information; comply with regulations on reporting and inspections by competent authorities; assume accountability for the principal’s duties and entitlements;

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Thus, the principal of the higher education institution has the responsibility to submit annual reports to the school council about the assets of the higher education institution.