04 assets of undetermined value at the converted public non-business unit in Vietnam

According to Article 10 of the Decree No. 150/2020/NĐ-CP of Vietnam’s Government, within 30 days from the date of receipt of the decision to perform the transformation from the competent authority, the converted public non-business unit shall organize the inventory and classification of assets, capital sources and and the converted public non-business unit funds being managed and used, clearly stating that:

- Public property is included in the state capital component in the converted public non-business unit; 

- Public property assigned to an enterprise converted from a public non-business unit for management shall not be included in the state capital portion of a public non-business unit; 

- Assets that are no longer in use to be handed over to the public property management agency for handling.

Thus, all assets at the converted public non-business unit must be valued, except for the following assets:

(1) Assets leased, borrowed, received for custody, processed, agent, consignment, capital contribution, joint venture, association of other organizations and individuals and other assets are not of the unit;

(2) Assets not in use, outstanding assets, assets awaiting liquidation;

(3) The premises of houses, land and other public properties which are not kept by the competent authority or person approved by the competent authority, shall continue to be used and shall be handed over to the competent public property management agency for handling;

(4) Public property is not included in the value of public non-business units.

Thus, except for the above 4 assets, all assets in the converted public non-business unit must be valued. Before determining the value for conversion, the public non-business unit shall:

- Prepare financial statements and settlement reports in accordance with the accounting regime of public non-business units and conduct audits at the time of unit valuation according to the State regulations for public non-business units, submit to competent agencies for approval;

- Having written requests to ministries, ministerial-level agencies, Governmental agencies, provincial-level People's Committees, Hanoi National University, Vietnam National University Ho Chi Minh City, enterprises with 100% state-owned capital the rate of making the final settlement or checking and determining the allocated funds;

- Make a written request to the tax authority to finalize or check and determine amounts payable to the state budget according to regulations.

Note: Within 30 working days from the date of receipt of a written request from the transformed public non-business unit, ministries, ministerial-level agencies, Governmental agencies, provincial-level People's Committees, Hanoi National University, the National University of Ho Chi Minh City and the tax authorities must conduct the inspection and finalization in accordance with the provisions of the tax law, the state budget and other relevant laws. If after this time limit, the agencies have not yet conducted the inspection and settlement, the converted public non-business unit shall base on the reported data to determine the value according to regulations.

View more details at the Decree No. 150/2020/NĐ-CP of Vietnam’s Government, effective from February 15, 2021.

Ty Na

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