Guidance on the management and use of public property, and operation of infrastructure projects in the Capital of Vietnam from January 1, 2025

Guidance on the management and use of public property, and operation of infrastructure projects in the Capital of Vietnam from January 1, 2025 (Image from the Internet)

Capital Law 2024 was passed by the National Assembly of the Socialist Republic of Vietnam, 15th Legislature, at its 7th session on June 28, 2024.

Guidance on the management and use of public property, and operation of infrastructure projects in the Capital of Vietnam from January 1, 2025

According to the provision in Article 41 of Capital Law 2024, the management and use of public property, and operation of infrastructure projects in the Capital of Vietnam are as follows:

- Agencies and organizations entrusted with the management and utilization of projects and project components as public assets, as stipulated in Clause 2, Article 41 of Capital Law 2024 within the City, are allowed to sign concession contracts for exploitation and management with investors and enterprises for a certain period.

- Projects and project components eligible for exploitation and management concessions include:

+ Cultural and sports infrastructure projects and components;

+ Architectural works of value.

- The management board of public service providers within the City's governance, the National Innovation Center, or the head of a public service provider (in cases where no management board is organized) may decide to utilize public assets under City management for business, leasing, joint ventures, and partnerships. This is applicable when using public assets to provide services for hi-tech activities, shared equipment, co-working spaces, research, incubation, experimentation, and technology demonstration to support hi-tech activities, innovation ecosystem development, and startups, or in cases stipulated by laws pertaining to the management and utilization of public assets consistent with the entity's functions and missions.

- The City's People's Council holds the following responsibilities:

+ Deciding the list of projects and project components to be concessioned for exploitation and management as per Clause 2, Article 41 of Capital Law 2024 within the City’s jurisdiction; stipulating principles, conditions, content, financial mechanisms, procedures, and methods for executing exploitation and management concessions; principles, conditions, content, financial mechanisms, procedures, and methods for formulating, consulting, and approving proposals for the utilization of public assets within the City's jurisdiction for business, leasing, joint ventures, and partnerships;

+ Stipulating measures for protecting, preserving, and restoring projects and project components within the City's jurisdiction during the concession period for exploitation, management, and business, leasing, joint ventures, partnerships.

- Ministers, heads of ministerial-level agencies, and central agencies decide the list of projects and project components within their jurisdiction eligible for exploitation and management concessions. They also stipulate principles, conditions, content, financial mechanisms, procedures, and measures for protecting, managing, using, and exploiting projects and project components under concession as stipulated in Clauses 1 and 2, Article 41 of Capital Law 2024.

- The Minister of Planning and Investment stipulates principles, conditions, content, financial mechanisms, procedures, and methods for formulating, consulting, and approving proposals for the utilization of public assets for business, leasing, joint ventures, and partnerships as stipulated in Clause 3, Article 41 of Capital Law 2024 for the National Innovation Center.

Refer to the full Capital Law 2024, which comes into force in Vietnam from January 1, 2025, except for the following provisions which comes into force in Vietnam from July 1, 2025:

- Management and utilization of underground space as stipulated in Article 19 of Capital Law 2024;

- Establishment of commercial and cultural development zones as stipulated in Clause 7, Article 21 of Capital Law 2024;

- Development of science and technology, innovation, digital transformation as stipulated in Article 23 of Capital Law 2024;

- Controlled experimental implementation as stipulated in Article 25 of Capital Law 2024;

- Execution of build-transfer contracts as stipulated in Article 40 of Capital Law 2024.

Vo Tan Dai

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