Guidelines for exploiting public property at State agencies in Vietnam from October 30, 2024

Guidelines for exploiting public property at State agencies 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 and supplementing several articles of Decree 151/2017/ND-CP detailing several provisions of the Law on Management and Use of Public Property.

Guidelines for exploiting public property at State agencies in Vietnam from October 30, 2024

Clause 7 Article 1 of Decree 114/2024/ND-CP has added Article 10b into Decree 151/2017/ND-CP providing guidelines for exploiting Public Property at state agencies from October 30, 2024, as follows:

(1) The list of Public Property at state agencies that can be exploited includes:

(i) Official residence houses.

(ii) Intellectual property rights, copyright of application software.

(iii) Databases.

(iv) Assets serving auxiliary and supportive activities for the performance of the political tasks of state agencies (canteens; parking lots/areas; positions for installing ATMs, vending machines; positions for installing and constructing telecommunication works; positions for installing LED screens, billboards serving information and propaganda purposes).

(v) Assets that are historical-cultural relics, historical relics associated with land belonging to the agency's head office land; agency's traditional rooms.

(vi) Other assets exploited according to relevant laws.

(2) The exploitation of Public Property at state agencies must ensure the following principles:

- It must not affect the performance of the political tasks of state agencies.

- It must not violate any prohibitions of the law in Vietnam.

- Ensure transparency, adherence to regulations in Decree 151/2017/ND-CP and relevant laws.

- Do not alter the structure, architecture, and original state of Public Property (except in cases of additional investment to enhance asset utilization; the added value belongs to the asset-owning agency after the exploitation period ends); do not infringe on agency's land use rights and public property ownership.

(3) The exploitation of assets stipulated in points (i), (ii), (iii) of clause (1) is carried out under housing laws, intellectual property laws, and other relevant laws.

(4) The exploitation of assets serving auxiliary and supportive activities for state agencies' political tasks stipulated in point (iv) clause (1) aims to serve the activities of the state agency and essential needs of officials, employees of the state agency, and visiting guests. The exploitation is regulated as follows:

(i) Forms of exploitation:

- State agencies self-manage and use canteens, parking lots/areas to provide services to meet the needs of officials, employees of the state agency, and visiting guests.

Service prices follow state regulations (for services prices set by state law) or are decided by the head of the state agency to cover costs and ensure reasonable profit (for services prices not set by state law);

- Allow other organizations and individuals to exploit canteens, parking lots/areas to provide services meeting the needs of officials, employees of the state agency, and visiting guests. The selection of other organizations and individuals to exploit canteens, parking lots/areas follows bidding or auction methods as regulated by procurement and auction laws. The head of the asset-owning agency decides on the bidding or auction method.

The price for other organizations and individuals to exploit is the winning bid or auction price; the starting price for auction or the package price for bidding is determined according to procurement pricing laws; the head of the state agency decides on the starting price and the bidding package price.

Organizations and individuals exploiting the asset can charge service fees according to state-regulated prices (for state-regulated services) or set prices ensuring cost coverage and reasonable profit (for non-state-regulated services);

- Allow other organizations and individuals to use positions at the agency's head office to install ATMs, vending machines, construct and install telecommunication works, and install LED screens, billboards for information and propaganda combined with advertising as regulated by law.

Allowing other organizations and individuals to use positions at the head office to install ATMs, construct and install telecommunication works is carried out through direct agreements with the interested organizations and individuals.

The state agency prepares a plan for other organizations and individuals to use positions at the head office to install ATMs, construct/install telecommunication works, then submits it to interested organizations and individuals; based on the application of interested organizations/individuals, the state agency negotiates and signs a contract for the use of the position to install ATMs and construct/ install telecommunication works. The price for other organizations and individuals to use the position at the head office is the negotiated price specified in the contract.

The selection of organizations and individuals to use positions at the head office to install vending machines, LED screens, billboards is carried out as per point a2 of this clause.

(ii) Authority to authorize exploitation:

- Ministers, heads of central agencies, authorize the exploitation of Public Property managed by their ministries, central agencies;

- Provincial People's Councils authorize the exploitation of Public Property managed by local agencies.

(iii) Procedures for exploitation:

- State agencies assigned the management and use of Public Property must prepare dossiers for exploitation requests, report to the superior management agency (if any) for submission to the competent authorities as specified in point b clause to consider and decide on asset exploitation. The exploitation dossier includes:

A written request for asset exploitation by the state agency (stating the necessity; list of assets for exploitation (type, quantity, area, original price, remaining value); method of exploitation; exploitation period; expected revenue (if any)): 01 original;

Other relevant documents concerning the assets proposed for exploitation: 01 copy.

- Within 30 days from the receipt of the exploitation dossier prepared by the state agency, the competent authorities consider and decide on public property exploitation or respond in writing in case of disagreement.

- Main content of the public property exploitation decision includes:

+ Name of the state agency authorized to exploit the asset;

+ List of assets for exploitation (type, quantity, area, original price, remaining value; method of exploitation; exploitation period);

+ Implementation responsibilities.

(iv) State agencies must issue sale invoices to organizations and individuals as stipulated by the laws on invoices and vouchers.

(v) Revenue from public property exploitation, after deducting direct costs related to the organization of asset exploitation (costs for valuation, auction organization, contractor selection, electricity, water, fuel, labor services, and other related costs), and fulfilling financial obligations to the State as per the law (if any), can be retained by the state agency 50% to supplement annual recurrent expenditure used for management and other activities specified in the internal expenditure regulations of the agency, considered as other legitimate revenue of the agency;

50% is remitted to the central state budget (for central state agencies) or local budget (for local state agencies). The head of the asset-exploiting agency is responsible for managing and using the revenue from exploitation and determining the amount to remit to the state budget.

(5) Exploitation of assets that are historical-cultural relics, historical relics associated with land belonging to the agency's head office land, or agency's traditional rooms is regulated as follows:

- Forms of exploitation:

Allow organizations and individuals to visit historical-cultural relics, historical relics associated with the agency's head office land, or agency's traditional rooms. State agencies can collect entrance fees as regulated by laws on fees and charges. Management and use of collected fees follow the laws on fees and charges.

Use positions at relic sites to sell souvenirs, display products. The use of positions at relic sites to sell souvenirs and display products and the management and usage of the revenue follow regulations in point (i), (v) clause (4).

- Authority, procedures, and steps to submit to competent authorities for exploitation decisions follow the regulations in point (ii), point (iii) clause (4).

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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