Regulations on competence to decide on withdrawal of public property in Vietnam

Regulations on competence to decide on withdrawal of public property in Vietnam (Internet image)

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

1. What are the cases of withdrawal of public property of state authorities in Vietnam?

According to Clause 1, Article 41 of the Law on Management and use of public property 2017, public property shall be withdrawn if:

- A workplace has not been operated continuously for over 12 months;

- The State appoints a new location of workplace or invests in construction of another workplace to replace the current one;

- Property is used for improper subjects, exceeding criteria and norms; used for improper purposes or lent;

- Property is transferred, sold, given, contributed capital or used to ensure the fulfillment of civil obligations illegally; used for commercial purposes, for lease or for joint venture purposes illegally;

- Property has been distributed, invested in construction, purchases but no longer used or the use and operation of property is not effective or demand for use is declined due to change in organizational structure, functions or tasks;

- Property is replaced due to demand for technical and technological innovation according to a competent authority's decision;

- A competent state authority assigned to manage and use property voluntarily returns it to the State;

- Other cases as prescribed by law.

2. Regulations on competence to decide on withdrawal of public property in Vietnam

According to Article 17 of Decree 151/2017/ND-CP stipulating the authority to decide on the recovery of public property in the cases specified in Section 1 is as follows:

(1) The Minister of Finance decides to withdraw:

- Working offices of state agencies under the central management;

- Property that is not the working office of centrally-managed state agencies that must be recovered but not recovered by ministries or central agencies;

- The office of the state agency under the management of the locality must be withdrawn, but the locality does not withdraw.

(2) Ministers and heads of central agencies shall decide or delegate authority to decide on the recovery of public property that is not the working office of a state agency under the management of a ministry or central authority.

(3) Provincial-level People's Councils decentralize authority to decide on the recovery of public property of state agencies under their local management.

(4) In case it is discovered that public property managed by a central state agency in the locality is used for wrong purposes, exceeding standards and norms, regimes issued and leased by competent agencies or persons, or performs other activities in contravention of regulations and must be withdrawn, the President of the People's Committee of the province shall propose the Minister of Finance, the Minister or the head of the central agency to decide on the recall according to their prescribed competence at (1), (2).

3. Rules for management and use of public property in Vietnam

The management and use of public property must comply with the principles specified in Article 6 of the Law on Management and use of public property 2017, specifically as follows:

- The State shall authorize management and use of each public property corresponding to each organization and individual in accordance with this Law and relevant law.

- Public property invested by the State shall be managed, operated, maintained, repaired, statistically and financially accounted for both exhibits and value; highly risky property due to natural disasters, fires and other force majeure events shall be managed through insurance or other instruments as regulated by law.

- Public property are resources that shall be inventoried, prepared statistics on exhibits, provided information in line with nature and characteristics of property; managed, protected and operated according to the planning and plans in order to ensure cost-effectiveness and lawfulness.

- Public property serving management and provision of public services and assurance of national security shall be used cost-effectively for the right purposes, utility, subjects, standards, norms and policies as prescribe by law.

- Use of financial resources obtained from public property shall be subjected to market mechanism, effectiveness, transparence and lawfulness.

- Management and use of public property shall apply the principle of transparence and ensure thrift practice, waste combat, corruption prevention and control.

- Management and use of public property shall be monitored, inspected and audited; any violations against management and use of public property shall be promptly and strictly handled according to regulations of law.

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