Vietnam’s regulation on public direct sale of commodities in national reserve to all subjects

1. Conditions for public direct sale to all subjects

According to Article 46 of the Law on the National Reserves 2012 of Vietnam and Article 23 of Circular No. 89/2015/TT-BTC, every year, national reserve units base their sales plans on a rotational basis and national technical standards for state reserves for each item, which is done to develop a proposal for approval by the authorized person for wide-scale direct sales to all entities for the following items:

- National reserve items include rice, vaccines, disinfectants, plant protection chemicals, plant seeds, and table salt.

- National reserve items that are required to be auctioned but its two auctions are unsuccessful.

2. Authority to approve public direct sale to all subjects

According to Article 24 of Circular No. 89/2015/TT-BTC of the Ministry of Finance of Vietnam, the authority to approve public direct sale to all subjects is as follows:

- For national reserve items managed by ministries or sectors: The Minister or the person authorized by the Minister at the subordinate level, as specified by the law, approves the plan for public direct sale to all subjects.

- For national reserve items managed by the Ministry of Finance: The Director General of the National Reserve Department approves the plan for public direct sale to all subjects.

3. Process for carrying out direct sale to all subjects

Public direct sale to all subjects are carried out in the following process:

- The unit assigned to sell commodities in national reserve draws up a plan for appointed sale or public direct sale to all subjects and submits it to the head of the Ministries and agencies in charge of the management of commodities in national reserve for approval.

- The content of the plan includes:

+ The quantity, quality, inventory, and location of the national reserve items for sale.

+ The selling price of national reserve items.

+ The timing for posting, notifying, and publicly listing the plan for the sale of national reserve items.

+ The duration for opening the warehouse for the sale of national reserve items.

+ The deadline for the completion of the sale of national reserve items.

- Based on the approved plan, the unit assigned to sell commodities in national reserve publishes the sale plan on a newspaper for three consecutive issues or on television for three consecutive times in three days and posts it up at the sale locations; organize the sale strictly according to the plan and at the quoted price.

- The national reserve unit shall follow the sales process as follows:

+ Conduct quality inspections of the items before they are sold.

+ Open the warehouse for sales at the designated time; collect payment before delivering the items.

+ Keep records of goods issued from the warehouse, document invoices and relevant documents as required, reconcile the amount of money and goods on the same day.

+ Comply with reporting requirements for the sale of national reserve items as stipulated.

This is the content specified in Clause 3 Article 46 of the Law on the National Reserves 2012 of Vietnam and Article 25 of Circular No. 89/2015/TT-BTC.

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