3 forms of infrastructure asset transfer for markets starting from July 22, 2024 in Vietnam

3 forms of infrastructure asset transfer for markets starting from July 22, 2024 in Vietnam​ (Image from Internet)

Subjects eligible for infrastructure asset transfer for markets from July 22, 2024 in Vietnam

- Subjects eligible for infrastructure asset transfer for markets, which is managed by the provincial level:

+ Public service units;

+ Enterprises wholly owned by the State (hereinafter referred to as state-owned enterprises);

+ Provincial-level specialized agencies on market infrastructure assets.

- Subjects eligible for infrastructure asset transfer for markets, which is managed by the district level:

+ Public service units;

+ Commune-level People’s Committees;

+ District-level specialized agencies on market infrastructure assets.

(Clauses 1, 2 Article 15 Decree 60/2024/ND-CP)

3 forms of infrastructure asset transfer for markets starting from July 22, 2024 in Vietnam

According to Clause 3 Article 15 of Decree 60/2024/ND-CP, there will be 03 forms of infrastructure asset transfer for markets from July 22, 2024, including:

(1) Assigning market infrastructure assets in the form of asset increment recording to public service providers as stipulated at Point a Clause 1 and Point a Clause 2, Article 15 Decree 60/2024/ND-CP (hereinafter referred to as units), and commune-level People’s Committees as stipulated at Point b Clause 2 Article 15 Decree 60/2024/ND-CP (hereinafter referred to as agencies);

(2) Assigning to state-owned enterprises for management in the form of state capital investment in the enterprise to conduct market business as per legal regulations on the management and use of state investment capital in business enterprises, business law, and other related laws;

(3) Assigning to specialized agencies on market infrastructure assets to develop exploitation plans in cases where assets have been assigned to public service providers, commune-level People’s Committees but actual management, usage, and exploitation have been ineffective.

Principles of management, usage, and exploitation of market infrastructure assets invested and managed by the State of Vietnam

The management, usage, and exploitation of market infrastructure assets invested and managed by the State must be based on principles defined in Article 13 Decree 60/2024/ND-CP:

- Market infrastructure assets are assigned by competent State management agencies to subjects for management and usage in accordance with specific conditions regarding market scale, economic and social characteristics of each locality, and legal regulations.

The allocation, leasing, collection of land rent, exemption, reduction of land rent, and management, use of land associated with market infrastructure assets are conducted as per legal regulations on land and related laws.

- The provincial-level People’s Committee decides to assign agencies responsible for State management of market infrastructure assets in the area ensuring unified management, clear decentralization of authority, responsibility of each agency, and coordination between agencies, fitting with the market scale, legal regulations, and socio-economic characteristics of the locality.

- The State encourages the implementation of private investment to mobilize and diversify resources to maintain, develop, and exploit market infrastructure assets.

- Market infrastructure assets are fully accounted for in terms of physical and value; depreciation and asset wear and tear are recorded; asset maintenance is conducted as per legal regulations. The subjects assigned to manage market infrastructure assets as defined in Clauses 1, 2 Article 15 Decree 60/2024/ND-CP and related organizations conduct accounting as per current regulations.

- The management, usage, handling, and exploitation of market infrastructure assets must: ensure public transparency; ensure social welfare objectives; have appropriate relocation and compensation plans; ensure security and order; not cause state asset loss; be supervised, inspected, audited; fit with planning; preserve structures of historical, cultural, and architectural value; any legal violations in management, usage, and exploitation must be promptly, strictly handled per legal regulations.

- Market infrastructure assets managed, used, and exploited inefficiently, not fitting with the approved planning, or not conforming to the initial usage purpose of the assets will undergo land recovery associated with the assets as per legal regulations on land and other related laws.

More details can be found in Decree 60/2024/ND-CP effective July 22, 2024.

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