Forms of asset liquidation of the State Bank of Vietnam

Forms of asset liquidation of the State Bank of Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Forms of asset liquidation of the State Bank of Vietnam

According to Article 29 of the Regulations issued together with Decision 2673/QD-NHNN in 2019, the State Bank's assets are liquidated in the following forms: Demolition, destruction, or sale (including: listing price, appointment, and auction).

Specifically:

(1) Liquidation of assets in the form of demolition or destruction:

- Units with liquidated assets may carry out the demolition or destruction by themselves or hire other organizations or individuals to carry out the demolition or destruction in accordance with the law.

- In case the demolished property is a working house with other fixed assets attached to the land with a historical cost according to the accounting books of VND 10 billion or more, it must be auctioned or liquidated. Specifically:

+ In case only one unit is selected to carry out demolition: The unit organizes the selection of a contractor to carry out the demolition of fixed assets. Supplies and materials recovered from demolition or destruction may be sold and liquidated in the form of a price listing or designation based on the provisions of Clauses 2.1 and 2.2, Article 29 of the Regulation promulgated together with Decision 2673/QD-NHNN in 2019;

+ In case the demolition of fixed assets is combined with the sale of recovered materials and supplies, and the estimated liquidation costs are larger than the expected value of recovered materials and supplies: The unit organizes the selection of contractors;

+ In case the demolition of fixed assets is combined with the sale of recovered materials and supplies, and the estimated liquidation costs are smaller than the expected value of recovered materials and supplies: The unit either hires an asset auction organization or conducts the asset auction itself if it cannot hire an asset auction organization.

- Organizations and individuals selected through bidding or auction to carry out the demolition of fixed assets in combination with the sale of recovered supplies and materials, clearing costs for demolition, and the value of recovered supplies and materials after demolition shall be determined on the basis of bidding and auction results.

(2) Liquidation of assets in the form of sale:

- Sale and liquidation of assets in the form of listing prices shall be applied in the following cases:

+ Assets (except for cars, working houses, and other assets attached to land) with a historical cost according to accounting books of less than VND 500 million/1 asset unit and a revaluation value from 10 million VND to less than 50 million VND/1 asset unit;

+ Supplies and materials recovered from demolition or destruction are valued at between VND 10 million and under VND 50 million.

- Sale and liquidation of assets in the form of designation shall be applied in the following cases:

+ Assets (except for cars, working houses, and other assets attached to land) with a historical cost according to accounting books of less than VND 500 million/1 asset unit and a revaluation value of less than 10 million dong/1 asset unit;

+ Supplies and materials recovered from asset liquidation in the form of demolition or destruction are valued at less than VND 10 million.

- For the remaining cases:

+ The sale and liquidation of assets are carried out through auction in accordance with the law;

+ The selection of an asset auction organization must comply with the law on asset auctions and the law on bidding.

If it is not possible to hire an asset auction organization, a council shall be established for auction according to the provisions of Decree 151/2017/ND-CP;

The head of the unit shall decide and take responsibility for the selection of the unit's asset auction organization.

(3) The determination of the value of recovered supplies and materials shall comply with the provisions of Points b and c, Clause 2, Article 24 of Decree 151/2017/ND-CP.

2. What are the sources of the State Bank of Vietnam's assets?

Sources of property formation for the State Bank of Vietnam include:

- Property assigned by the State;

- Assets invested and procured with capital investment capital for capital construction and procurement of fixed assets, professional expenses, and lump sum funding for the operation of the State Bank of Vietnam;

- Assets received from other lawful sources (property received as aid or donation, property formed from projects using state capital, property transferred from other projects when the operation ends, assets transferred from units other than the State Bank, etc.)

(Clause 1, Article 3 of the Regulation issued together with Decision 2673/QD-NHNN in 2019)

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