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Official Gazette

Sunday, June 7, 2020

Draft law tightens management of public assets

Updated: 16:43’ - 12/12/2016
The revised draft Law on Management and Use of State Property aims to serve as a legal foundation for tight management and efficient use of public assets, and prevent loss, waste and corruption, according to Minister of Finance Dinh Tien Dung.

Compared to the 2008 Law, the draft amends several specific contents on state management of public assets as well as tasks and powers of state agencies in charge of public assets. Noteworthy are the provisions on criteria and norms for use of public assets, and the regime on management and use of public assets in different agencies, organizations and units.
State agencies and public non-business units may manage and operate public assets by themselves or hire functional units to do so__Photo: Internet

The draft defines responsibilities to observe criteria and norms for use of public assets throughout the process of construction investment, procurement, use, exploitation and handling of public assets, and to supervise and inspect the observance in order to remedy existing shortcomings over the recent time.

Some new forms in construction investment, procurement, use and handling of public assets may be cited from the draft, such as centralized procurement, construction of working offices after the model of public-private partnership, fund assignment for use of public assets, raising of capital for construction investment and asset procurement at public non-business units, and accounting as decrease in assets for a force majeure reason.

The draft allows state agencies and public non-business units to manage and operate public assets by themselves or hire functional units to do so in an attempt to ensure a more professional management and operation of public assets.

Minister Dung suggested annulling the provision on revaluation of assets to grant autonomy for non-business units in deciding on asset use norms, arranging assets for operation, raising construction investment capital, and procuring assets.

The draft law also sets out conditions for furnishing public assets with priority given to the methods of funding assignment, asset hiring, procurement and construction investment.

Of these methods, funding assignment is the first choice when there arises the demand for use of public assets at an agency, organization or unit, Dung said, noting that only when funding assignment cannot be applied, would other methods be utilized.- (VLLF)

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