Can a State-Owned Enterprise Rent a Private Car for the Director of the Enterprise?

According to Point d Clause 1 Article 7 Decree 04/2019/ND-CP stipulating the standards for positions entitled to use cars for transportation from residence to office and for business trips with a maximum purchase price of 920 million VND/car, specifically for the following subjects:

- Deputy Heads of the Central Committee of the Communist Party, Deputy Chairpersons of the National Assembly's Ethnic Council, Deputy Chairpersons of the National Assembly's Committees, Deputy Chief Justices of the Supreme People's Court, Deputy Directors of the Supreme People's Procuracy, Deputy General State Auditors; Heads of agencies under the Government of Vietnam, Deputy Ministers, Deputy Chairpersons of the Central Committee of the Vietnam Fatherland Front, Deputies of central organizations, Permanent Secretary of the Central Committee of the Ho Chi Minh Communist Youth Union, General Directors and leadership positions with a position allowance coefficient of 1.25 or higher;

- Deputy Secretaries of the Provincial Party Committees, Municipal Party Committees, Chairpersons of People's Councils, Chairpersons of People's Committees, Heads of Specialized National Assembly Delegations of provinces and centrally governed cities, excluding Hanoi and Ho Chi Minh City;

- Following titles of Hanoi and Ho Chi Minh City: Members of the Standing Committee of the City Party Committee, Deputy Chairpersons of People's Councils, Deputy Chairpersons of People's Committees, Deputy Heads of Specialized National Assembly Delegations, Chairpersons of the Committees of Fatherland Front;

- Chairpersons of the Member Councils, General Directors of corporations and conglomerates established by the Prime Minister of the Government of Vietnam (hereinafter referred to as Economic Groups).

According to the above regulations, state-owned enterprises are only allowed to use official cars for the transportation of the Chairpersons of Member Councils and General Directors of economic groups.

On the other hand, Article 24 of Decree 91/2015/ND-CP stipulates the provisions on state-owned enterprises renting operational assets as follows:

- State-owned enterprises are permitted to rent assets (including financial leasing) to serve production and business activities in accordance with the needs of the enterprise and ensure effective business operations.

- The rental and use of leased assets must comply with the provisions of the Civil Code and other relevant legal regulations.

Thus, your enterprise is not allowed to rent private cars for the transportation of the Director as it does not serve the production and business needs of the enterprise.

Sincerely!