Vietnam: How is the “procurement of property without decision issued by competent authorities”?

Specifically, according to Article 4 of the Circular No. 29/2020/TT-BTC of the Ministry of Finance of Vietnam, the procurement of property without decision issued by competent authorities or officials prescribed in Clause 1 Article 6 of Decree No. 63/2019/NĐ-CP is the procurement performed without a Decision on procurement of public property issued by a competent authority at the time of conclusion of the procurement contract (where the conclusion of the procurement contract is required by law) or at the date specified in the sales invoice (where the conclusion of the procurement contract is not required by law).

The authority competent to issue decisions on procurement of public property is prescribed in the Law on Management and Utilization of Public Property No. 15/2017/QH14 dated June 21, 2017 of Vietnam and its guiding documents.

Moreover, the violation of failure to apply the centralized procurement method when purchasing property on the list of property items subject to centralized procurement method prescribed in Clause 2 Article 6 of Decree No. 63/2019/NĐ-CP is determined in each procurement.

The investment in or procurement of property beyond the limits imposed by competent authorities prescribed in Clause 3 Article 6 of Decree No. 63/2019/NĐ-CP is the act of investment in construction of or procurement of property exceeding the prescribed limits in terms of area (in respect of working offices and public service facilities), or quantity or prices (in respect of means of travel, machinery, equipment and other property).

View more details at Circular No. 29/2020/TT-BTC of the Ministry of Finance of Vietnam, effective from June 02, 2020.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE