Guidance on lease of property serving operation of public service providers in Vietnam from October 30, 2024

Guidance on lease of property serving operation of public service providers in Vietnam from October 30, 2024​ (Image from Internet)

On September 15, 2024, the Government of Vietnam promulgated Decree 114/2024/ND-CP amending Decree 151/2017/ND-CP guiding the Law on Management and Use of Public Property 2017.

Guidance on lease of property serving operation of public service providers in Vietnam from October 30, 2024

According to the provisions of Article 38 of Decree 151/2017/ND-CP (amended by Clause 32, Article 1 of Decree 114/2024/ND-CP), the lease of property serving operation of public service providers in Vietnam is carried out as follows:

- Authority to decide on the lease of property serving operation of public service providers in Vietnam:

+ Ministers, heads of central agencies prescribe the authority to decide on the lease of property serving operation of public service providers in Vietnam under the management of their respective ministries or central agencies, except as provided in Point c, Clause 2, Article 38 of Decree 151/2017/ND-CP (amended by Clause 32, Article 1 of Decree 114/2024/ND-CP).

+ The Provincial People's Council prescribes the authority to decide on the lease of property serving operation of public service providers in Vietnam under the management of their respective localities, except as provided in Point c, Clause 2, Article 38 of Decree 151/2017/ND-CP (amended by Clause 32, Article 1 of Decree 114/2024/ND-CP).

+ Heads of public service providers that are self-sufficient in regular expenses and investment expenses, and public service providers that are self-sufficient in regular expenses decide on the leasing of assets for the activities of their units.

- Based on the scope of the assigned budget estimate and the permissible funding sources, public service providers shall organize the leasing of assets for the activities of their units in accordance with the provisions of the law on bidding.

Additionally, according to current regulations, the lease of property serving operation of public service providers in Vietnam is stipulated in Article 38 of Decree 151/2017/ND-CP as follows:

- Authority to decide on the lease of property serving operation of public service providers in Vietnam:

+ Ministers, heads of central agencies decide or decentralize the authority to decide on the lease of property serving operation of public service providers in Vietnam under the management of their respective ministries or central agencies, except as provided in Point c, Clause 1, Article 38 of Decree 151/2017/ND-CP;

+ The Provincial People's Council decides or decentralizes the authority to decide on the lease of property serving operation of public service providers in Vietnam under the management of their respective localities, except as provided in Point c, Clause 1, Article 38 of Decree 151/2017/ND-CP;

+ Heads of public service providers that are self-sufficient in regular expenses and investment expenses decide on the leasing of assets from the Development Fund for Operational Activities and borrowed capital, raised capital according to prescribed policies to serve the unit's operational and business activities;

+ In cases where public service providers use multiple funding sources to lease assets, including state budget funds, the authority to decide on the leasing of assets shall be implemented as prescribed in Points a and b, Clause 1, Article 38 of Decree 151/2017/ND-CP.

- The procedures for deciding on the lease of property serving operation of public service providers in Vietnam are carried out in accordance with the provisions of Clauses 2, 3, and 4, Article 4 of Decree 151/2017/ND-CP.

- The funding sources for leasing assets are to be used from the permissible funding sources of public service providers.

For more details, see Decree 114/2024/ND-CP, which takes effect in Vietnam from October 30, 2024.

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