What are regulations on investment, construction and purchase of fixed assets of the Vietnam Debt and Asset Trading Corporation?

What are regulations on investment, construction and purchase of fixed assets of the Vietnam Debt and Asset Trading Corporation? - image from internet

Pursuant to Article 12 of the Regulation issued together with the Circular 62/2021/TT-BTC stipulating investment, construction and purchase of fixed assets of the Vietnam Debt and Asset Trading Corporation as follows:

1. The Company shall carry out investment, construction and purchase of fixed assets in accordance with regulations of the Law on management and use of state capital invested in manufacturing and business operations of enterprises. To be specific:

a) Authority to decide investment, construction and purchase of fixed assets shall comply with Article 24 of the Law on management and use of state capital invested in manufacturing and business operations of enterprises.

b) Provisions on certain cases:

- With regard to fixed asset investment and purchase conducted by the Company, the process of fixed asset investment and purchase must strictly comply with regulations of law on construction, bidding and other relevant laws.

- With regard to investment in and purchase of external fixed assets for use (including vehicles serving the Company’s business), the Company must comply with regulations of the Law on bidding and other relevant laws.

- With regard to investment in, purchase and use of vehicles (motor vehicles) to serve the business trips of managerial position holders and general work, the Company is required to meet rigorous purchase standards and limits in order to ensure openness, transparency, cost efficiency and effectiveness in accordance with regulations of law in force.

2. Depreciation of fixed assets: The Company shall carry out depreciation of fixed assets in accordance with the Ministry of Finance’s regulations on management, use and depreciation of fixed assets.

3. Leasing out, offering assets as pledges or collateral:

The Company is entitled to lease out or offer its assets as pledges or collateral by adhering the principle that efficiency, capital preservation and growth must be assured in accordance with regulations of law whereby the authority to decide the use of assets as pledges or collateral shall comply with Article 26 of the Government’s Decree No. 91/2015/ND-CP dated October 13, 2015 on state capital investments and utilization and management of capital and assets of enterprises (hereinafter referred to as “Decree No. 91/2015/ND-CP”) and its amending documents (if any).

4. Disposition, transfer or sale of fixed assets:

a) The Company shall be allowed to act on its initiative in disposition, transfer or sale of fixed assets which have been damaged, technically obsolete, or removed from service or utilization on the principle of openness, transparency and adherence to regulations of law;

b) Authority to make decision on disposition, transfer or sale of fixed assets shall comply with Clause 2 Article 27 of the Decree No. 91/2015/ND-CP and its amending documents (if any);

c) Method of disposition, transfer or sale of fixed assets:

- DATC shall carry out the disposition, transfer or sale of its fixed assets by means of auction conducted by a qualified auction service provider or by the enterprise on its own in an open manner according to procedures laid down in the law on asset auction. In case of disposition, transfer or sale of the fixed asset of which the residual value specified in accounting book equals less than VND 100 million, the Company’s General Director shall decide to conduct an auction or negotiation provided the selling price shall not be lower than the market price. In the event of fixed assets which are not available for transactions on the market, the Company shall be allowed to hire a qualified valuation organization to determine the asset’s value which shall be used as the basis for selling assets by employing aforesaid methods.

- Disposition, transfer or sale of fixed assets associated with land must comply with regulations of law on land;

d) Procedures for disposition, transfer or sale of fixed assets shall comply with regulations of law applicable to wholly state-owned enterprises.

5. The Company shall develop regulations on asset management which clearly defines the responsibility to manage asset in each stage; fully, accurately and promptly record assets; organize inventory and inspection of assets on a periodical basis or at the request of the owner; carry out investment, management and use of assets in accordance with regulations of law and this document.

Best regards!