Strengthening management, enhancing efficiency in utilization, and handling of housing and land at state-owned enterprises in Vietnam

Strengthening management, enhancing efficiency in utilization, and handling of housing and land at state-owned enterprises in Vietnam (Image from the Internet)

On December 24, 2024, the Prime Minister of Vietnam issued Directive 47/CT-TTg on strengthening management, enhancing the efficiency in the use and handling of properties and lands in state-owned enterprises.

Strengthening management, enhancing efficiency in utilization, and handling of housing and land at state-owned enterprises in Vietnam

To ensure the management, use, and handling of real estate in state-owned enterprises are purposeful, effective, and in compliance with the law while preventing loss and waste, the Prime Minister of Vietnam requires ministries, central and local authorities, state ownership representatives, and state-owned enterprises to strictly adhere to laws regarding land, state investment capital management, auction regulations, and equitization laws. The focus is on the following key tasks and solutions:

* Assigning the Ministry of Finance to

- Promptly complete the draft decree on rearranging and handling public assets to be submitted for government issuance in December 2024, specifying the transitional handling of the arrangement and handling of enterprises' properties and lands.

- Amend and supplement within authority or propose higher authorities to amend regulations on enterprise equitization ensuring consistency with land laws and related legislation, including a decree amending the Government of Vietnam's decree on converting state enterprises and single-member limited liability companies with 100% state capital into joint-stock companies by December 2024.

* Assigning the Ministry of Natural Resources and Environment to

- Amend and supplement guidelines on land use plans when equitizing state enterprises, to be completed in 2024.

- Regularly review and assess land management policies of economic organizations (including state-owned enterprises) according to land laws to amend and supplement as appropriate, ensuring strict management and effective use of land by state-owned enterprises.

- Direct localities and related units to review land use plans post-equitization of state-owned enterprises, addressing difficulties and challenges in land management and use by state-owned enterprises.

* Local Authorities shall

- People's Councils at all levels exercise their supervisory rights over land management and use in state-owned enterprises according to the Constitution, the Supervisory Law of the National Assembly and People's Councils, and the Law on Local Government Organization.

- People's Committees at all levels have the responsibility to:

(1) Manage local lands according to the authority and responsibilities as outlined in the Land Law 2024 and related implementing guidelines;

(2) Direct the review to complete legal land documents (land lease contracts, land use rights certificates) for state enterprises to avoid burdening businesses unnecessarily;

(3) Direct the reception of properties and lands of state-owned enterprises approved for withdrawal and transfer to local entities for management according to the law, avoiding delays that cause waste;

(4) Decisively reclaim lands for state-owned enterprises misusing lands, leasing or lending against regulations, not utilized or delayed according to project timelines, and not fulfilling financial obligations with the state;

(5) Conduct inspections and enforce strict actions against violations in land management and use in state-owned enterprises, ensuring transparency, preventing loss and waste.

* For the State Ownership Representatives of State-Owned Enterprises:

- Direct state enterprises to comply with land laws, state investment capital laws, auction and equitization laws, and other related regulations.

- Conduct or propose competent state agencies to oversee, inspect, and audit compliance with the management and use of properties and lands in state enterprises.

- The legal representative of the state enterprise is responsible to the government for the enterprise's land use.

* For State-Owned Enterprises Managing and Using Properties and Lands:

- Use land in accordance with its purpose and boundaries, register land use, fulfill land financial obligations, and return land upon state reclamation.

- Conduct land use changes, transfers, and asset sales per land laws, ensuring transparency.

- Dispose of fixed assets through auctions according to relevant laws.

- Review all managed lands when undergoing equitization to formulate a land use plan according to the law.

- Ensure management and use of properties and lands preventing rent, loan, residential allocation, joint ventures, contrary to regulations.

* The Government Inspectorate and inspection agencies must intensify inspections of property and land management in enterprises.

* Ministries, central agencies, provincial People's Committees must collaborate with National Assembly bodies, Delegations of National Assembly Deputies, provincial People's Councils, Vietnam Fatherland Front, and socio-political organizations to supervise compliance with laws on property and land management in state enterprises.

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