05 assets under indivisible common ownership by integration of a private higher education institution in Vietnam

According to Article 5 of Decree No. 141/2013/NĐ-CP of Vietnam’s Government, assets under indivisible common ownership by integration of a private higher education institution include:

- Assets accumulated from the deductions at least 25% of the difference between revenues from and expenses for annual training and scientific research activities of the higher education institution;

- The value of assets formed from profits accumulated during operation of the higher education institution;

- The value of assets which are invested or allocated or of which the use rights are assigned by the State;

- The value of assets financed or donated;

- The value of assets transferred from people-founded higher education institutions (if any).

It should be noted that assets under indivisible common ownership by integration may be used only for education activities, expansion of the scope and increase of the quality of training and scientific research activities, construction of physical foundations, procurement of equipment, training and retraining for lecturers, civil servants and education administrators, serve of learners’ study and daily-life activities, for charitable purposes, or implementation of social responsibility. Value of assets which are invested in, allocated to, or of which the use rights are assigned by the State to private higher education institutions must be properly used and managed in accordance with the Law on the State Budget of Vietnam.

Capital sources under indivisible common ownership by integration must be accounted in a clear and transparent manner in compliance with the accounting principles applicable to private higher education institutions and have financial statements publicly at annual Shareholders’ General Meetings.

The boards of directors of private higher education institutions shall elaborate plans and methods of using assets and capital sources under indivisible common ownership by integration in accordance with prevailing regulations of the State and the organization and operation regulations of the institutions. The principles and methods of accounting assets and capital sources under indivisible common ownership by integration of private higher education institutions shall comply with the Ministry of Finance’s regulations.

View more details at Decree No. 141/2013/NĐ-CP of Vietnam’s Government, effective from December 10, 2013.

Thu Ba

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