Principles for applying standards, norms, and replacement of automobiles for work from November 10, 2023 in Vietnam

Principles for applying standards, norms, and replacement of automobiles for work from November 10, 2023 in Vietnam (Internet image)

Principles for applying standards, norms, and replacement of automobiles for work from November 10, 2023 in Vietnam

On September 26, 2023, the Government issued Decree 72/2023/ND-CP regulating standards and norms for automobile use, taking effect on November 10, 2023.

Regulations on principles for applying standards, norms, and replacement of automobiles for work are as follows:

(1) Standards and norms for automobile use specified in Decree 72/2023/ND-CP are used as a basis for: planning and budget estimates; assigning, purchasing, arranging, and allocating funds to use and rent automobile services; and managing, using, and disposing of automobiles.

(2) In case a person holds multiple titles or positions with standards for using automobiles, the highest standard will apply. When the predecessor retires, transfers jobs, or for other reasons no longer holds that position but the equipped automobile is not eligible for replacement or liquidation according to regulations, the successor continues to use it without new equipment, except in cases where the automobile is decided to be handled by a competent agency or person in accordance with the law on the management and use of public assets.

Whichever position an alternate member of the Party Central Committee is holding will be subject to the standards and norms for using automobiles according to the position he or she is working at.

For leadership and management positions and positions in agencies, organizations, and units that are not specifically regulated in Articles 5, 6, 7, and 8 of Decree 72/2023/ND-CP, when the competent authority stipulates which title or position is equivalent to which title or position prescribed in Article 5, Article 6, Article 7, and Points a, b, c, d, dd of Clause 2 of Article 8 of Decree 72/2023/ND-CP, the standards for using official automobiles and automobiles serving general work of equivalent titles and positions shall apply.

(3) automobiles serving the work of positions specified in Article 4 and Article 5 of Decree 72/2023/ND-CP are equipped and replaced according to work requirements; The handling of old automobiles when replaced is automobileried out in accordance with the provisions of the Law on Management and Use of Public Assets and detailed implementation documents.

automobiles serving state reception are replaced according to the provisions of Clause 1 and Clause 2, Article 19 of Decree 72/2023/ND-CP; handling of old automobiles when replaced is automobileried out according to the provisions of Clause 3, Article 19 of Decree 72/2023/ND-CP.

(4) automobiles not specified in Section (3) are replaced when eligible for liquidation. Liquidation of automobiles is automobileried out when one of the following conditions is met:

- The period of use for calculating depreciation according to the provisions of law on management and depreciation of fixed assets has passed.

- Being used over 200,000 km for automobiles of agencies, organizations, units, and state-owned enterprises with headquarters located in mountainous areas, islands, and areas with extremely difficult socio-economic conditions according to regulations of the Government, Prime Minister or/and located in provinces and cities with over 50% of district-level administrative units located in mountainous areas, islands, and areas with extremely difficult socio-economic conditions according to regulations of the Government and Prime Minister; used over 250,000 km for automobiles of the remaining agencies, organizations, units, and state-owned enterprises.

- Not meeting the conditions specified in Points a and b of this Clause but is damaged beyond repair or the repair is ineffective (estimated repair cost to fix the damage is 30% greater than the original price).

(5) Principles for determining the automobile purchase price:

- The purchase price of a automobile in the standards and norms is the purchase price, including all taxes payable according to the provisions of law, after deducting discounts and rebates (if any); Excludes: registration fee; fees for registration and issuance of vehicle license plates; insurance fees; fees for issuance of certificates of technical safety and environmental protection inspection for motor vehicles and specialized motorcycles; and road maintenance fees related to vehicle use. In cases where a automobile is exempt from taxes (import, special consumption, value added), this exempted tax amount must be included in the automobile purchase price to determine standards and norms.

In case more than 01 year from the effective date of Decree 72/2023/ND-CP, the automobile price is on the market with increased fluctuations, ministries, central agencies, Standing Committees of Provincial Party Committees, City Party Committees, and People's Committees of provinces and centrally run cities (hereinafter referred to as Provincial People's Committees), the Board of Members and the Board of Directors of the economic group may consider and decide on a higher automobile purchase price, but the increased price must not exceed 15% of the price according to the provisions of Decree 72/2023/ND-CP for agencies, organizations, units, and state-owned enterprises under its management.

When popular automobile prices on the market increase or decrease by over 15% compared to the prices specified in Decree 72/2023/ND-CP, the Minister of Finance submits to the Prime Minister for consideration and a decision to adjust the automobile purchase price specified in Decree 72/2023/ND-CP accordingly.

- The price of a automobile as a basis for determining standards and norms in the case of delivery or transfer of used automobiles is the remaining value on the accounting books or the reassessed value according to the provisions of law (for automobiles whose value has not been tracked in accounting books or cases that must be re-evaluated when handled according to the provisions of law); ensure the residual value or re-evaluation value does not exceed 15% of the maximum vehicle purchase price specifically specified in Decree 72/2023/ND-CP. In cases of necessity, the Chief of the Party Central Office, after obtaining the unanimous opinion of the Standing Comrade of the Secretariat (for cases of delivering and moving automobiles of central Party agencies and units), the Prime Minister at the request of the Minister, the Head of the central agency, and the Chairman of the relevant Provincial People's Committee (for the remaining cases), shall consider and decide to hand over or transfer used automobiles with a residual value or re-evaluation value higher than 15% of the maximum automobile purchase price specifically specified in Decree 72/2023/ND-CP.

(6) The number of employees as a basis for determining standards and norms for using automobiles for general work of agencies, organizations and units is the number of employees or the number of people working under a job position plan approved by a competent agency or person and the number of people working for an agency, organization or unit signing an indefinite-term labor contract (including affiliated and subordinate agencies and units - if any) are decided by competent agencies and persons according to the provisions of law at the time of determining standards and norms for automobile use; In cases where Decree 72/2023/ND-CP stipulates that the payrolls of affiliated and subordinate units are separated to calculate norms, the payrolls of affiliated units cannot be included in the payrolls of agencies, organizations, and units.

The number of employees and other criteria at the time Decree 72/2023/ND-CP takes effect are the basis for determining standards and norms for using automobiles to serve the common work of agencies, organizations, and units. Standards and norms for using automobiles for general work are stable every 5 years. After each stabilization cycle, ministries, central agencies, and provincial People's Committees must re-determine and publicly announce standards and norms for using automobiles to serve the general work of agencies, organizations, and units under their management according to payroll numbers and other criteria at the time of redetermination.

The adjustment of standards and norms for using automobiles for general work in a stable period only applies in case there is a change in the organizational structure of units belonging to ministries, central agencies, units directly under the general department, departments, branches, and equivalent at the provincial level and district administrative units.

(7) Standards and norms for using automobiles to serve the general work of agencies and units of the Party at the Central Government and affiliated agencies and units: Office of the President, Office of the Government, Office of the National Assembly, People's Court, People's Procuracy, State Audit, Government Inspectorate, civil judgment enforcement agencies, market management agencies, Vietnam News Agency, Voice of Vietnam, and Ho Chi Minh Mausoleum Management Board comply with the provisions of Decree 72/2023/ND-CP; In case the number of automobiles serving general work is specified in Decree 72/2023/ND-CP lower than the number of automobiles serving general work plus pickup trucks and other specialized automobiles serving specific tasks issued by competent agencies and persons according to the provisions of Decree 04/2019/ND-CP. The number of automobiles serving general work is determined by the number of automobiles serving general work as prescribed in Decree 04/2019/ND-CPP plus pickup trucks. Other specialized automobiles serving specific tasks have been issued by competent agencies and persons according to the provisions of Decree 04/2019/ND-CP. In cases of changes in structure, organization, functions, tasks, and other necessary cases, the Chief of the Party Central Committee's Office shall approve (after obtaining the unanimous opinion of the Standing Comrades of the Secretariat) standards and norms for using automobiles to serve the general work of agencies and units of the Party at the Central level; Office of the President, Office of the Government, Office of the National Assembly, Supreme People's Court, Supreme People's Procuracy, State Audit, Government Inspectorate, Ministry of Justice, Ministry of Industry and Trade, Vietnam News Agency, Voice of Vietnam, and Ho Chi Minh Mausoleum Management Board report to the Prime Minister to approve the number of automobiles for general work to meet the requirements of performing assigned tasks.

(8) Specialized automobiles specified in Article 16 and Article 17 of Decree 72/2023/ND-CP must be used for the correct purpose, specifically determined according to the assigned functions and tasks of agencies, organizations, and units; In cases where combined use can be arranged to serve common tasks without affecting the main purpose of the specialized vehicle, Ministers, Heads of central agencies, and Provincial People's Committees decide to allow combined use but must balance the number of automobiles serving common work to ensure savings and efficiency and must be specifically regulated when promulgating standards and norms for the use of specialized automobiles by agencies, organizations, and units under their management.

(9) The quantity and price of buying automobiles specified in Decree 72/2023/ND-CP are the maximum quantity and price. Based on the actual need to use automobiles to perform assigned tasks and sources of asset formation at agencies, organizations, units, and state-owned enterprises, funding sources for procurement (state budget allocation, state budget support, the public service development fund of public service units, and other funding sources allowed to be used according to the provisions of law), agencies and persons with authority to decide on delivery, transfer, and procurement shall consider and decide on the appropriate quantity and purchase price of vehicles, ensuring savings and efficiency.

Mai Thanh Loi

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