Management and Use of Public Assets: Current Situation and Solutions

Director General of the Department of Public Asset Management Tran Duc Thang

The Government of Vietnam has reported to the National Assembly on the situation of the management and use of public assets. Could you please highlight the significant results in the management and use of public assets over the past years?

- Implementing the Law on the Management and Use of State Assets 2008, annually, the Ministry of Finance reports to the Government of Vietnam so that the Government of Vietnam may subsequently report to the National Assembly on the situation of the management and use of state assets nationwide. The compilation of these reports indicates that the management of public assets over the past period has achieved important results.

Firstly: Gradually improving the legislation on the management and use of public assets. From 2009 to the present, the Ministry of Finance has submitted proposals to competent authorities or issued under its authority: 01 Law, 26 Decrees of the Government of Vietnam, 14 Decisions of the Prime Minister of the Government of Vietnam; the Ministry of Finance has issued 42 Circulars on the management and use of public assets. The documents built under the leadership of the Ministry of Finance cover areas such as the management and use of public assets in administrative and public service units; the management and use of public assets in state-funded projects; the management, use, and exploitation of infrastructural assets; financial policies related to land levy and land rent collection. The issued documents generally meet the requirements of managing and using public assets in a more stringent, transparent, and efficient manner during the transition period.

Secondly: The management and use of public assets in administrative and public service units, as well as state-funded projects, have gradually been put into order. Incidents of misuse of government vehicles for personal purposes or inappropriate leasing and lending of assets have significantly decreased.

Thirdly: The reorganization and handling of houses, land, and vehicles to ensure use according to standards and surplus assets being redistributed or liquidated to serve other agencies and organizations have been implemented effectively, contributing to the state budget.

Fourthly: An allocation has been made between central and local management of public assets since 1998 (Decree 14/1998/ND-CP dated March 6, 1998) and has been consistently implemented ever since. The managing authority decides on investments, purchases, usage, exploitation, and handling of assets. The Ministry of Finance performs the state management function for public assets in administrative and public service units, and state-funded projects, while financial management for other assets is conducted by specialized Ministries for land, resources, and infrastructural assets. The valuation of land assets is done under the guidance of the Ministry of Natural Resources and Environment; local agencies determine and the provincial people’s committee decides on land valuations and asset auctions under legal provisions.

While these results are commendable, there have been many cases brought forward by authorities revealing shortcomings and losses in the management and use of public assets, particularly related to houses and public land. What is the current situation?

- Land is a type of public asset as defined in the 2013 Constitution. However, in the Law on the Management and Use of Public Assets 2017, only general principles for management and financial resource exploitation regarding land are adjusted, and the Ministry of Finance is responsible for aiding the Government of Vietnam in formulating policies regarding land finance, including land levy and land rent taxes. Other aspects such as planning, land use plans, land allocation, land leases, land recovery, compensation, support, resettlement, land use right certification, land price determination, and transfer rights are under the jurisdiction of the Ministry of Natural Resources and Environment and other responsible organizations and individuals authorized to use allocated or leased land.

Specifically, for houses and land in administrative units, these assets support state management and public service provision. Therefore, these assets are managed according to standards, capacities, and designated purposes. Historical factors, functional changes, and organizational restructuring have led to surpluses or shortages—these assets are then handled through retrieval, redistribution, or sale. Expired or irreparable assets are liquidated. Market-based sales, mainly through auctions, are the norm, though direct sales are occasionally authorized by the Prime Minister of the Government of Vietnam. The sale, transfer prices, and land use rights transfers must be approved by provincial people’s committees in line with market prices and reassessed values.

A review of asset allocation and handling has shown that most houses and land are used appropriately. However, some misuse patches, such as residential arrangements within office premises or inappropriate leases, remain. The task of reorganizing state-owned housing and land (including those managed by state enterprises) has resulted in transferring 621 house and land bases to local authorities, retrieving 641 bases, and terminating more than 100 inappropriate lease, loan, or joint venture agreements, among others.

Despite this, audits and inspections have revealed some instances of inappropriate sales or transfers, authority breaches, ill-determined sale prices causing losses and waste. The main issue lies in the implementation by managerial agencies and competent authorities pricing land use right transfers poorly.

What are the solutions to address these issues, sir?

- Addressing these issues requires comprehensive solutions. Alongside ongoing measures, focus should be on:

Fully implementing the 2017 Law on the Management and Use of Public Assets and related guidelines. Reviewing and amending relevant legal documents to close loopholes, particularly concerning land valuations and asset auctions.

Developing an Electronic Trading System for public assets to ensure transparent, accountable, and loss-preventing transactions.

Intensifying inspections, audits, and serious penalties for violations in public asset management and use. Early-stage checks are essential to prevent misdeeds, coupled with enhanced community supervision.

(The Ministry of Finance is evaluating and amending Decree 192/2013/ND-CP on administrative penalties in public asset management, aiming to clarify violations and stiffen penalties to deter misconduct).

Boosting auctions for land allocation, leases, resource rights, and handling state-owned houses and land in public and state enterprises.

Improving legislation on public asset management requires central ministries like the Ministry of Natural Resources and Environment, Planning and Investment, Justice, and Construction to review overlapping legal systems to ensure consistency across laws such as the Land Law, Bidding Law, Auction Law, and Housing Law.

Upgrading the National Public Asset Database to include all legally defined public assets, and building a trading system for asset transactions (sales, transfers, leases).

Thank you!

Source: Ministry of Finance

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