Procedure for Liquidation of Assets in the Vietnam Bank for Social Policies

Circular 62 stipulates that when the Social Policy Bank proceeds to liquidate or sell off assets, it must follow the following procedures and steps:

- The General Director of the Social Policy Bank shall establish the Council for the liquidation and sale of fixed assets at the Social Policy Bank. The task of the Council for the liquidation and sale of fixed assets is to assist the General Director of the Social Policy Bank in performing the following tasks:

- Determine the actual technical status and the remaining value of the assets to be liquidated or sold.- Determine the causes and responsibilities of the collective or individuals related to cases where newly invested fixed assets do not bring economic efficiency and must be sold, but there is no possibility of recovering the full investment capital; assets that have not yet been fully depreciated but are damaged beyond repair must be liquidated or sold to report to the Board of Directors for handling as prescribed.- Organize the determination or hire an organization with the function of price appraisal to determine the recoverable value of the assets to be liquidated or sold.- Organize auctions or hire an organization with auctioning functions to auction the types of assets to be liquidated and sold in accordance with relevant laws.- In the case of negotiated sales, follow the provisions of the General Director;

- In cases where the Social Policy Bank implements investment construction projects approved by competent authorities, and the Social Policy Bank must dismantle or cancel old fixed assets, the liquidation and accounting of old fixed assets when dismantling or canceling shall be conducted in the same manner as for the liquidation of fixed assets.

See details in Circular 62/2016/TT-BTC, effective from June 1, 2016.

-Thao Uyen-

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