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

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

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

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

According to the provisions of Article 37 of Decree 151/2017/ND-CP (amended by Clause 30, Article 1 of Decree 114/2024/ND-CP), the purchase of public property serving operation of public service providers in Vietnam is carried out as follows:

- The authority, order, and procedures for deciding on the purchase of public property serving operation of public service providers in cases where a project must be established are carried out in accordance with other relevant legal provisions in Vietnam.

- The authority to decide on the procurement of Public Property in cases not falling under the scope of Clause 1, Article 37 of Decree 151/2017/ND-CP (amended by Clause 30, Article 1 of Decree 114/2024/ND-CP) is performed as follows:

+ Ministers, Heads of central agencies determine the authority to decide on the procurement of Public Property to serve the activities of public service providers under the management scope of the ministry, central agency, except as provided for in Point c1, Clause 2, Article 37 of Decree 151/2017/ND-CP (amended by Clause 30, Article 1 of Decree 114/2024/ND-CP).

+ Provincial People's Councils determine the authority to decide on the procurement of Public Property to serve the activities of public service providers under the management scope of the locality, except as provided for in Point c1, Clause 2, Article 37 of Decree 151/2017/ND-CP (amended by Clause 30, Article 1 of Decree 114/2024/ND-CP).

+ Heads of public service providers that self-finance regular expenditures and investment or public service providers that self-finance regular expenditures decide on the procurement of:

++  Assets  serving  the  activities  of  the  unit  (excluding  properties  for  operational  premises,  automobiles).

+ Assets that are operational premises, automobiles decided by Ministers, Heads of central agencies, and Provincial People's Councils.

- Based on the assigned budget estimates and permissible funding sources, public service providers organize the procurement of assets in accordance with the laws on bidding.

The organization of asset procurement by the centralized method is carried out following the laws on bidding and the provisions in Chapter VI of Decree 151/2017/ND-CP.

Under the current regulations, the purchase of public property serving operation of public service providers is stipulated in Article 37 of Decree 151/2017/ND-CP as follows:

Article 37. Purchase of public property serving operation of public service providers

1. The authority, order, and procedures for deciding on the purchase of public property serving operation of public service providers in cases where an investment project must be established are carried out in accordance with regulations on public investment and other relevant laws.

2. The authority to decide on the procurement of Public Property in cases not under the scope of Clause 1 of this Article is as follows:

a) Ministers, Heads of central agencies decide or delegate the decision-making authority for the procurement of Public Property serving the activities of public service providers under their management, except as provided for in Point c of this Clause;

b) Provincial People's Councils decide or delegate the decision-making authority for the procurement of Public Property serving the activities of public service providers under their local management, except as provided for in Point c of this Clause;

c) Heads of public service providers that self-finance regular and investment expenditures decide on the procurement of assets (excluding properties for operational premises, automobiles) from the Development Funds for Professional Activities and loans, mobilized funds according to policies to serve the unit's professional activities and business operations;

d) In cases where public service providers use multiple funding sources for asset procurement, including state budget funds, the decision-making authority for asset procurement follows the provisions in Points a, b of this Clause.

3. Procedures for deciding and organizing the purchase of public property serving operation of public service providers are carried out following the provisions in Clauses 3, 4, and 5, Article 3 of this Decree.

4. Funding for the procurement of Public Property is utilized from the permissible funding sources of the public service provider.

More details can be found in Decree 114/2024/ND-CP, which comes into force in Vietnam from October 30, 2024.

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