Thông tư 245/2009/TT-BTC

CIRCULAR

REGULATIONS ON IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE NO.52/2009/NĐ-CP DATED JUNE 03, 2009 PROVIDING INSTRUCTIONS ON THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LAW ON MANAGEMENT AND USE OF STATE PROPERTIES

Pursuant to the Government’s Decree No. 52/2009/NĐ-CP dated June 03, 2009 providing instructions on the implementation of a number of articles of the law on management and use of state properties;

Pursuant to the Government’s Decree No. 118/2008/NĐ-CP dated November 27, 2008 defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;

The Ministry of Finance regulates the implementation of a number of articles of the Government’s Decree No.52/2009/NĐ-CP dated June 03, 2009 providing instructions on the implementation of a number of articles of the law on management and use of state-owned properties:

Section 1. Scope and regulated entities

Article 1. Governing scope

1. This Circular regulates the implementation of a number of articles on management and use of state-owned properties by regulatory agencies, public service providers, political organizations, and socio-political organizations, socio-political, occupational organizations (hereinafter referred to as agencies, organizations and units) as prescribed in the Decree No. 52/2009/NĐ-CP.

2. Management and use of state-owned properties by the People’s armed units, Vietnamese agencies abroad beyond scope of this Circular;

Article 2. Regulated entities

Agencies, organizations and units as prescribed in Clause 1, Article 1 hereof shall be responsible for performing the management and use of state-owned properties as prescribed in the law on management and use of state-owned properties, the Decree No. 52/2009/NĐ-CP and this Circular.

Section 2. INVESTMENT AND CONSTRUCTION OF HEAD-OFFICE, PUBLIC SERVICE ESTABLISHMENTS

Article 3. Assignment made to organizations having function in investment and construction management

Based on agencies, organizations and units’ demand and scale of investment and existing organizations’ capacity for management of investment and construction:

1. The Prime Minister decides to establish or assign existing organizations to assume a role as investors to head offices, public service establishments (hereinafter referred to as head offices) intended for agencies, organizations and units under central management as requested by the Ministry of Finance, the Ministry of Construction, the Ministry of Planning and Investment and relevant agencies.

2. President of People’s committees of central-affiliated cities and provinces (hereinafter referred to as provincial level) decide to establish or assign existing organizations to assume a role as investors to head offices intended for agencies, organizations and units under local management as requested by the Service of Finance, Service of Construction, Service of Planning and Investment and relevant agencies.

Article 4. Hand-over of head offices

1. Hand-over of head offices between building contractors and organizations performing investment and construction management is instructed in the law on construction investment.

2. Within 30 days since receipt of hand-over from the building contractor, the investor shall hand over the head office to agencies, organizations and units charged with the management and use.

3. Hand-over of head offices as prescribed in Clause 2 of this Article shall be recorded according to the forms as prescribed in the Ministry of Finance’s Circular No. 122/2007/TT-BTC dated October 18, 2007 amending and supplementing a number of articles of the Ministry of Finance’s Circular No. 43TC/QLCS dated July 31, 1996 providing guidance on receipt and hand-over of properties between public service providers, economic organizations under decision by competent agencies.

Section 3. LEASE ON PROPERTIES SERVING ACTIVITIES OF AGENCIES, ORGANIZATIONS AND UNITS

Article 5. Authority to decide lease on properties

1. The ministers, heads of ministerial-level agencies, heads of other central agencies (hereinafter referred to as the Ministers, heads of central agencies) shall decide or decentralize authority to decide lease on properties serving activities of agencies, organizations and units within management.

2. Provincial People’s Councils shall decentralize authority to decide lease on properties serving activities of agencies, organizations and units within local management at the request of People’s Committee of the same level.

Article 6. Lease on properties as head offices

1. Agencies, organizations and units that are eligible for lease on head offices as prescribed in Clause 1, Article 7 of the Decree No. 52/2009/NĐ-CP shall rely on standards and norms of use of head offices and their current conditions to formulate plans for lease on head offices and make the submission to competent authorities as prescribed in Article 5 hereof for decision.

2. Plans for lease on head offices comprise following main information:

a) Necessity for lease on head offices;

b) Area of head offices leased;

c) Grade, class, standard of head offices leased;

d) Requirements for locations, positions of head offices leased;

dd) Lease term;

e) Maximum rent

3. In reliance on plans for lease on head offices approved by competent authorities, agencies, organizations and units shall formulate cost estimates for lease within annual budget estimate and make the submission to competent state agencies for decision according to the law on state budget.

4. Selection of provider of head office lease service (hereinafter referred to as the provider);

a) In case rent of a head office throughout a lease term is from VND 100 million and over (calculated for a contract), in reliance on the approved plan for lease on head offices, heads of agencies, organizations and units shall carry out selection of the provider according to the law on bidding;

Particularly for the invitation to bid (ITB), apart from making public announcement according to the law on bidding, agencies, organizations and units must post such announcement on websites of the Ministry of Finance, other ministries, central agencies (if any) for agencies, organizations and units under central management; websites of local regulatory bodies (if any) for agencies, organizations and units under local management;

b) In case rent of a head office over the entire lease term is under VND 100 million (under a single contract), selection of the provider shall be decided by heads of agencies, organizations and units through bidding or appointment;

c) In case only one provider throughout the local administrative division can meet requirements, fashion of appointment shall be applied regardless of contract value.

5. Unit price for lease on head offices:

a) In case bidding is applied, unit price shall be determined according to the law on bidding;

b) In case fashion of appointment is applied, unit price shall be negotiated between agencies, organizations and units and the provider on the basis of common rent in local market, and submission must be made to competent authorities as prescribed in Article 5 hereof for approval. If rent of a head office is from VND 100 million and over per year, to have good grounds for negotiation with the provider, agencies, organizations and units that lease head office must hire an organization eligible for price examination and verification to determine lease unit price.

6. Lease on head offices shall be made in a contract including following main information:

a) Name, address of lessor and lessee;

b) Purposes of lease;

c) Lease term (Not exceeding the term prescribed in the approved plan);

d) Lease unit price;

dd) Terms of payment;

e) Rights, responsibilities and commitments of lessor and lessee;

g) Contract validity

7. In case the lease term expires under the contract but the competent authorities as prescribed in Article 5 hereof allow extension of lease, agencies, organizations and units must negotiate with the provider about lease unit price appropriate for common unit price in the market at the time of negotiation; if the unit price is higher than previous unit price, agencies, organizations and units must make the report to competent authorities for consideration and decision.

8. Management and use of head offices for lease are implemented under a contract between a lessor and a lessee.

Article 7. Lease on properties other than head offices

1. Agencies, organizations and units that are eligible for lease on head offices as prescribed in Clause 1, Article 8 of the Decree No. 52/2009/NĐ-CP shall rely on standards and norms of use of head offices and their current conditions to make the submission to competent authorities as prescribed in Article 5 hereof for decision.

2. Selection of the provider, lease unit price, approval for unit price, lease agreement, extension of lease term, management and use of leased properties are instructed in Clauses 4,5,6,7,8, Article 6 hereof.

Article 8. Lease on properties serving activities of socio-political-occupational organizations, social organizations, and socio-occupational organizations

1. Lease on properties serving activities of socio-political-occupational organizations, social organizations, and socio-occupational organizations shall be decided by heads of organizations according to civil laws and the organizations’ statutes.

2. Rent of the properties is paid by organizations’ own budget

Section 4. REGULATIONS ON MANAGEMENT AND USE OF STATE-OWNED PROPERTIES AND DOCUMENTATION OF STATE-OWNED PROPERTIES

Article 9. Regulations on management and use of state-owned properties by agencies, organizations and units

1. Heads of agencies, organizations and units charged with managing and using state-owned properties shall be responsible for promulgating and executing the regulations on management, use of state-owned properties within management (hereinafter referred to as the Statute).

2. Foundations for formulation of the Statute

a) Standards, norms and regime of management and use of state-owned properties stipulated by competent state agencies

b) Functions, duties, organization and apparatus of agencies, organizations and units;

c) Process of management and use of state-owned properties by agencies, organizations and units

3. Content of the Statute:

a) Specific regulations on rights and obligations of each department, individual related to construction investment, procurement, receipt, lease, use, recovery, transfer, sale, liquidation and destruction of properties; establishment, management, storage of documentation of properties; protection of properties; maintenance, repair of properties; inventory and inspection of properties;

For public service providers with financial autonomy, in addition to the information prescribed above, the Statute must specify rights and obligations of each department, individual related to use of State-owned property for production, trading, services, leasing, joint undertaking and association;

b) Responsibilities for handing over state-owned properties when apparatus or head of an organization is changed;

c) Handling of organizations, individuals violating the Statute;

d) Other issues related to management and use of state-owned properties by agencies, organizations and units;

4. The Statute must be discussed broadly and at greater length in agencies, organizations and units before it is promulgated; after being promulgated, it must be made public according to the regulations on public announcement of management and use of state-owned properties by state agencies, public service units and organizations charged with managing and using state-owned properties enclosed with the Prime Minister’s Decision No.115/2008/QĐ-TTg dated August 27, 2008.

Article 10. Documentation related to formation and fluctuation of state-owned properties

1. Documentation related to formation and fluctuation of state-owned properties includes:

a) For head offices:

- Decision on allocation of land, leasing out land; land use right certificate; written record of value of land use right as prescribed by the Government’s Decree No. 13/2006/NĐ-CP dated January 24, 2006 on determination of land use right value to be included to value of the properties of organizations that are allocated with land by the state without land levy;

- Documentation related to approval for project, design, as-built drawings, inspection, acceptance, hand-over and putting the works into use;

- Written approval for purchase of head office by competent authorities;

- Contract for purchase of head office; invoice of purchase; written record of delivery and receipt of head office;

- Documents related to recovery, transfer, liquidation and sale of head offices;

- Other relevant documents;

b) For automobiles:

- Decision on purchase of automobiles by competent authorities;

- Contract for purchase of automobiles; invoice of purchase; written record of purchase; automobile registration certificate;

- Documents related to recovery, transfer, liquidation and sale of automobiles;

- Other relevant documents;

c) For other properties:

- Written approval for purchase of properties by competent authorities;

- Contract for purchase of properties; invoice of purchase; written record of delivery and receipt of properties;

- Documents related to recovery, transfer, liquidation and sale of automobiles;

- Other relevant documents;

2. For state-owned properties subject to registration of the ownership or use rights according to the law provisions, relevant agencies, organizations and units must retain copy of original documentation requested by competent agencies upon registration;

3. Documentation related to the formation and fluctuation of state-owned properties as prescribed in Clauses 1 and 2 of this Article shall be formulated and retained by agencies, organizations and units that are directly involved in management and use of properties.

4. Database of state-owned properties: State-owned property registration management program shall be unanimously applied to create database of state-owned properties and to manage enumeration of state-owned properties as prescribed in Section 6 hereof.

Section 5. TRANSFER, SALE AND LIQUIDATION OF STATE-OWNED PROPERTIES

Article 11. Lists of state-owned properties subject to transfer, sale and liquidation

1. The lists of state-owned properties subject to transfer, sale and liquidation as prescribed in Point d, Clause 1, Point c, Clause 2, Article 17; Point c, Clause 1, Point b, Clause 2, Article 21 and Point b, Clause 1, and Point b, Clause 2, Article 28 of the Decree No. 52/2009/NĐ-CP shall be formulated according to Forms 01-DM/TSNN, 02-DM/TSNN, and 03-DM/TSNN enclosed herewith;

2. In case the lists of state-owned properties subject to transfer are formulated according to forms 01-DM/TSNN, 02-DM/TSNN, and 03-DM/TSNN as prescribed in Clause 1 of this Article, it is required to include criteria about remaining value (according to revaluation) in the following cases:

a) Transfer of state-owned properties from agencies, organizations to public service units of financial autonomy or between public service units of financial autonomy;

b) Transfer of state-owned properties that are not monitored on accounting books between agencies, organizations and units

Article 12. Price Determination Council, Price Appraisal Council and state-owned property auction Council

1. The Price Determination Council is established in the following cases:

a) Determine reserve price for sale at state-owned property auction as prescribed in Point a, Clause 1, Article 22 of the Decree No. 52/2009/NĐ-CP;

b) Determine reserve price for sale at state-owned property auction as prescribed in Point b, Clause 1, Article 22 of the Decree No. 52/2009/NĐ-CP;

c) Determine designated selling price of state-owned properties as prescribed in Clause 1, Article 23 of the Decree No. 52/2009/NĐ-CP;

d) Determine designated selling price of state-owned properties as prescribed in Point b, Clause 1, Article 23 of the Decree No. 52/2009/NĐ-CP;

dd) Determine value of land use right as the grounds for the determination of state-owned properties allocated to public service units of financial autonomy as prescribed in Point c, Clause 2, Article 22 hereof;

e) Determine remaining value of state-owned properties (except value of land use right) for allocation to public service units of financial autonomy as prescribed in Point b, Clause 3, Article 22 hereof;

2. The Price Appraisal Council is established in the following cases:

a) Appraise price of properties on the basis of the price determined by an organization eligible for appraisal of price for sale of state-owned properties in the form of appointment as prescribed in Point a, Clause 1, Article 23 of the Decree No. 52/2009/NĐ-CP;

b) Appraise value of land use right determined by an organization eligible for appraisal of price as the grounds for allocation of the properties to public service units of financial autonomy as prescribed in Point b, Clause 2, Article 22 hereof;

3. The state-owned property auction Council is established in the following cases:

a) Carry out auction for properties of high value, including:

- Properties as head offices, land-linked properties (including land use right) with original price from VND 1,000 million and over according to accounting books;

- Other properties other than head offices, land-linked properties with reserve price for auction from VND 100 billion and over;

b) Properties that are complicated in origin, rare and precious, subject to special management by the state or other special cases under competent state agencies’ decision;

c) Properties that do not fall within Points a and b of this Clause and unable to hire an organization having function of auction;

4. Components of the Price Determination Council, Price Appraisal Council:

a) The Service of Finance establishes the Price Determination Council, Price Appraisal Council for the implementation of the tasks as prescribed in Points a, c and dd, Clauses 1 and 2 of this Article. The Council is comprised of:

- Leader of the Service of Finance- Chairman of the Council;

- Representatives of the Service of Natural Resources and Environment, Service of Construction, Service of Planning – Architecture (if any);

- Representatives of agencies, organizations and units having properties;

- Representatives of other relevant agencies;

b) Agencies, organizations and units establish the Price Determination Council for the implementation of the tasks as prescribed in Points b, d and e, Clause 1 of this Article. The Council is comprised of:

- Leader of agencies, organizations and units- Chairman of the Council;

- Representatives of upper management agencies;

- Representatives of the department charged with using properties;

- Representatives of the financial – accounting department of agencies, organizations and units;

- Representatives of professional and technical agencies (if necessary);

- Other relevant members;

5. Components of state-owned property auction Council:

a) In case of state-owned property auction as prescribed in Points a, b, Clause 3 of this Article, the Ministry of Finance (with respect to properties that belong to agencies, organizations and units under central management), the Service of Finance (with respect to properties that belong to agencies, organizations and units under local management) shall establish the state-owned property auction Council including representative of an agency that decides formulation of the Council as the Chairman; representatives of agencies, organizations and units having state-owned properties for auction; representatives of professional and technical agencies (if necessary) and other relevant members;

b) In case of property auction as prescribed in Point c, Clause 3 of this Article, organizations and units shall establish the state-owned property auction Council with components prescribed in Point b, Clause 4 of this Article.

c) State-owned property auction Council does not necessarily includes auctioneers;

6. Budget for the operation of the Price Determination Council and Price Appraisal Council serving sale of state-owned properties, state-owned property auction Council are included in the cost of sale of state-owned properties.

Budget for the operation of the Price Determination Council and Price Appraisal Council serving the determination of value of state-owned properties assigned to public service units of financial autonomy is allocated from the budget of public service units having state-owned properties valuated.

7. Based on actual conditions of the locality, People’s Committees of provinces shall decide establishment of one or more councils to deal with common issues related to state-owned properties or by specific case.

Article 13. Sequence and procedures for state-owned property auction

Sequence and procedures for state-owned property auction shall be instructed by the law on property auction.

Particularly for making public notice about auction of state-owned properties as head offices, land use right, automobiles of all kinds and properties with original price from VND 500 million and over per unit of property, apart from complying with the law on auction, the public notice must be posted on the websites by the Ministry of Finance, other Ministries, central agencies (if any) if the properties belong to agencies, organizations and units under central management; on local websites if the properties belong to agencies, organizations and units under local management;

Section 6. REPORTS AND DECLARATION OF STATE-OWNED PROPERTIES

Article 14. State-owned properties subject to declaration

1. Make reports, declaration and updates of information into the database of state-owned properties as prescribed below:

a) Head offices, land use rights, land-linked properties;

b) Automobiles of all kinds;

c) Properties that do not fall within Points a and b of this Clause with original price from VND 500 million/unit of property according to accounting books;

2. For properties as prescribed in Clause 1 of this Article with the declaration form (the Ministry of Finance’s Circular No. 35/2007/TT-BTC dated April 10, 2007 providing guidance on the implementation of the Government’s Decree No. 137/2006/NĐ-CP dated November 14, 2006) being formulated by agencies, organizations and units, this declaration form can be re-used without repetition as prescribed hereof.

3. For immovable properties that do not fall within the provisions set out in Clause 1 of this Article, the agencies, organizations and units charged with managing and using the properties shall carry out establishment of immovable property card according to Form 01-TSCĐ/TSNN enclosed herewith for monitoring and accounting under current accounting regime. In case the immovable property card is established according to the Circular No. 35/2007/TT-BTC continue to use this card without repetition as prescribed hereof.

Article 15. Agencies to receive and manage reports on declaration of state-owned properties

1. Agencies to receive and manage reports on declaration of state-owned properties:

a) State-owned properties as prescribed in Points a and b, Clause 1, Article 14 hereof that belong to agencies, organizations and units under central management must be reported to Public Asset Management Authority - the Ministry of Finance;

b) State-owned properties as prescribed in Points c, Clause 1, Article 14 hereof that belong to agencies, organizations and units under central management must be reported to the Ministries, central agencies (Department of Finance, Department of Planning – Finance…);

c) State-owned properties as prescribed in Clause 1, Article 14 hereof that belong to agencies, organizations and units under local management must be reported to Public Asset Management Authority - the Ministry of Finance;

2. Responsibilities of the agencies that receive and manage reports on declaration of state-owned properties

a) Speed up agencies, organizations and units within management to carry out reports on declaration of properties in accordance with prescribed time;

b) Update information of the properties subject to declaration within management into database of state-owned properties:

c) Manage and store results of reporting and declaration within management;

d) Instruct and inspect reports on declaration of properties made by agencies, organizations and units within management; confirm information on properties and compliance with declaration reporting regime performed by agencies, organizations and units within management as requested by competent state agencies;

dd) The Ministry of Finance shall be responsible for updating and managing database of state-owned properties; making public announcement of results of declaration reporting on properties on the website of the Ministry of Finance according to the law provisions.

Article 16. Content of declaration reports on state-owned properties

1. Agencies, organizations and units that use state-owned properties must establish reports on declaration according to forms enclosed herewith, specifically:

a) For head offices, use Form 01-ĐK/TSNN; each head office is accompanied by a separate declaration report;

In case one single head office allocated to multiple agencies, organizations and units can be separated into different parts used by each agency, organization and unit, such agency, organization and unit must establish a report on its own part. In case one single head office allocated to multiple agencies, organizations and units can be separated into different parts used by each agency, organization and unit, such agency, organization and unit must establish a declaration report on its own part.

b) For automobiles, use Form 02-ĐK/TSNN; each unit establishes a declaration report of its own;

c) For other properties (other than head offices, automobiles) with original price from VND 500 million and over per unit of property, use Form 03-ĐK/TSNN; each unit establishes a declaration report of its own;

2. Declaration reports on state-owned properties used by agencies, organizations and units must conform to prescribed forms. The agencies that receive and manage declaration reports on state-owned properties are allowed to reject and request re-declaration upon detection of any unconformity or lack of information in the declaration report. Heads of agencies, organizations and units shall be responsible to the law on accuracy of the figures declared.

Article 17. Sequence and documentation of state-owned properties

1. Fashion of reporting state-owned properties:

a) Initial declaration reporting is applicable to state-owned properties currently managed and used since the Decree No. 52/2009/NĐ-CP takes effect.

For state-owned properties that are registered under the Decree No. 137/2006/NĐ-CP initial declaration reporting is not required. The agencies that receive and manage declaration report on state-owned properties shall be responsible for updating registration results into the declaration report on state-owned properties used by agencies, organizations and units.

b) Supplemental declaration reporting is applicable to cases of changes to state-owned properties as a result of construction investment; new procurement; new users taking over; liquidation, transfer, recovery, destruction, sale or change of use purpose under competent state agencies’ decision; names changed by agencies, organizations and units; separation, merger, dissolution under competent state agencies’ decision;

c) Regular declaration reports are made by the Ministries, central agencies, People’s Committees of provinces as prescribed in Point dd, Clause 3, Article 18 hereof.

2. Sequence and documentation of initial declaration reporting

a) Agencies, organizations and units charged with managing and using state-owned properties shall:

- Establish three sets of documentation of declaration reports on properties as prescribed in Clause 1, Article 16 hereof and attach documents related to properties subject to declaration including papers related to houses, lands being currently used (in case of head offices); automobile registration certificates; written record of acceptance and putting the properties into use (in case of properties with original price from VND 500 million and over per unit of property);

- Send two sets of documentation to the Ministries, central agencies (in case the properties are head offices, automobiles of all kinds and belong to agencies, organizations and units under central management); to upper management agencies (in case the properties have original price from VND 500 million and over per unit of property and belong to agencies, organizations and units under central management); to regulatory departments, bodies or People’s Committees of districts (in case the properties belong to agencies, organizations and units under local management);

- Retain one (01) set of documentation at agencies, organizations and units;

b) The Ministries, central agencies, upper management agencies, regulatory departments, bodies or People’s Committees of districts shall:

- Confirm documentation submitted by agencies, organizations and units within management;

- Send one (01) set of confirmed documentation to the Ministry of Finance (in case the properties are head offices, automobiles of all kinds and belong to agencies, organizations and units under central management); ministerial-affiliated financial agencies, central agencies (in case the properties have original price from VND 500 million and over per unit of property and belong to agencies, organizations and units under central management); to the Service of Finance (in case the properties belong to agencies, organizations and units under local management);

- Retain one (01) set of documentation at the ministries, central agencies, and upper management agencies, regulatory departments, bodies or People’s Committees of districts;

3. Sequence and documentation of supplemental declaration reporting

Agencies, organizations and units charged with managing and using properties shall establish the supplemental declaration report according to Form 04-ĐK/TSNN and make the submission to the agencies in charge in a sequence as prescribed in Clause 2 of this Article.

4. Sequence and documentation of regular declaration reporting:

The Ministries, central agencies, People’s Committees of provinces shall be responsible for establishing the declaration reports within management on the basis of figures taken from database of state-owned properties, including:

- General reports on current conditions of houses, land according to Form 02B-ĐK/TSNN including three parts (Summary report, details by type of unit and details of individual units).

General reports on increase, decrease of state-owned properties according to Form 02C-ĐK/TSNN including three parts (Summary report, details by type of unit and details of individual units).

5. Time limit for declaration reporting on state-owned properties:

a) Agencies, organizations and units charged with managing and using properties must complete initial declaration reporting as prescribed in Point a, Clause 2, Article 33 of the Decree No.52/2009/NĐ-CP After this time limit, in case the agencies, organizations and units fail to carry out declaration reporting, the financial agencies have the right to ask State Treasuries to temporarily suspend payment for expenses related to properties subject to declaration and not to allocate budget for procurement of immovable properties into the budget estimates of such agency, organization and unit in the following year and head of such agency, organization and unit charged with managing and using state-owned properties shall be dealt with according to the law provisions;

b) Agencies, organizations and units charged with managing and using state-owned properties must carry out supplemental declaration reporting within 30 days since the change takes place. For properties that are put into use after completion of construction, renovation, upgrading, major repairs, the time of change is calculated from the date the written record of acceptance and putting the works into use is signed.

c) The Ministries, central agencies, People’s Committees of provinces shall carry out regular declaration reporting concurrently with reporting on their management and use of state-owned properties as prescribed in Clause 2, Article 19 hereof.

Section 7. REGIME OF REPORTING MANAGEMENT AND USE OF STATE-OWNED PROPERTIES

Article 18. Content of reports on management and use of state-owned properties

1. Content of reports made by agencies, organizations and units charged with managing and using state-owned properties:

a) Management and use of state-owned properties:

- Actual situations of managing and using state-owned properties by agencies, organizations and units;

- Assessment of positive aspects, efficiency, shortcomings and irregularities in the management and use of state-owned properties by agencies, organizations and units in the reporting period;

- Assessment of performance of conclusions, proposals by state investigation and audit agencies on management and use of state-owned properties in the reporting period;

b) Propose measures to complete legal system and increase efficiency of the management and use of state-owned properties.

2. Content of reports made by upper management agencies, regulatory departments, bodies or People’s Committees of districts:

a) Management and use of state-owned properties to be reported must accord with Point a, Clause 1 of this Article with respect to agencies, organizations and units within management;

b) Tasks of directing, instructing and inspecting the management and use of state-owned properties that belong to agencies, organizations and units within management;

c) Propose measures to complete legal system and increase efficiency of the management and use of state-owned properties.

3. Content of reports made by the Ministries, central agencies, People’s Committees of provinces:

a) Promulgation and implementation of legislative documents on management and use of state-owned properties:

- Systemize current legislative documents on management and use of state-owned properties promulgated by the Ministries, central and provincial agencies (including documents that are promulgated prior to the reporting period but remain valid in the reporting period);

- Assessment of the execution of legislative documents within competence on management and use of stated-owned properties by the Ministries, central and provincial agencies; punctuality, contradiction and inadequacy of promulgated documents; impacts of documents on the management and use of state-owned properties by the Ministries, central and provincial agencies;

b) Management and use of state-owned properties to be reported must accord with Point a, Clause 1 of this Article with respect to agencies, organizations and units within management;

c) Tasks of directing, instructing and inspecting the management and use of state-owned properties that belong to agencies, organizations and units within management;

d) Propose measures to complete legal system and increase efficiency of the management and use of state-owned properties;

dd) Attachment of regular declaration reports with respect to state-owned properties within management;

4. Content of reports made by the Ministry of Finance:

a) Promulgation of legislative documents on management and use of state-owned properties:

- Systemize current legislative documents on management and use of state-owned properties promulgated by competent state agencies;

- Assessment of the formulation, promulgation and execution of legislative documents on management and use of stated-owned properties; punctuality, contradiction and inadequacy of promulgated documents; impacts of documents on the management and use of state-owned properties;

b) Management and use of state-owned properties to be reported must accord with Point a, Clause 1 of this Article with respect to agencies, organizations and units throughout the country;

c) Propose measures to complete legal system and increase efficiency of the management and use of state-owned properties;

Article 19. Sequence and time limit for reporting management and use of state-owned properties

1. Before December 31 annually, the Ministry of Finance shall issue a written guidance to the Ministries, central agencies and People’s Committees of provinces, agencies, organizations and units on a number of specific issues of the report (if necessary).

2. Time limit for reporting management and use of state-owned properties is prescribed in Clause 2, Article 34 of the Decree No. 52/2009/NĐ-CP.

3. Based on the time limit as prescribed in Point b, Clause 2, Article 34 of the Decree No. 52/2009/NĐ-CP the Ministers, heads of central agencies, president of People’s Committees of provinces shall stipulate time limit for individual levels within management to ensure the time limit for submission of the report to the Ministry of Finance as prescribed.

Section 8. DETERMINATION OF VALUE OF STATE-OWNED PROPERTIES FOR ASSIGNMENT TO PUBLIC SERVICE UNITS OF FINANCIAL AUTONOMY

Article 20. Inventory and classify state-owned properties before determination of their value for assignment to public service units of financial autonomy

After the Ministries, central agencies and People’s Committees of provinces confirm that public service units are eligible for determination of value of state-owned properties for assignment, the units shall inventory and classify the properties at their units into the following main groups:

1. State-owned properties subject to determination of value for assignment to public service units of financial autonomy consist of:

a) Properties assigned by the state;

b) State-owned properties constructed or procured by state budget;

c) State-owned properties constructed or procured by money originated from state budget and the units' public service development funds;

d) Value of state-owned properties formed from state budget or originated from state budget with respect to properties invested, constructed and procured by various sources.

2. State-owned properties that are unwanted and pending liquidation shall not be evaluated and the units shall keep managing and handling them.

3. State-owned properties subject to determination of value for assignment to public service units of financial autonomy consist of:

a) For state-owned properties under construction, procurement or supplied unfinished, the units shall be responsible for management and continue implementation of

b) For state-owned properties as head offices, land-linked properties (including land use right), the units shall be responsible for making the plan for re-arrangement, handling of state-owned houses, land and making the submission to competent authorities for approval as prescribed in the Prime Minister’s Decision No. 09/2007/QĐ-TTg dated January 19, 2007 regarding re-arrangement and handling of state-owned houses, land, Decision No. 140/2008/QĐ-TTg dated October 21, 2008 amending and supplementing the Decision No. 09/2007/QĐ-TTg and the Ministry of Finance’s guiding documents.

After construction, procurement, receipt, re-arrangement and handling of state-owned houses, land are completed, if assigned to public–service units of financial autonomy by competent authorities, determination and adjustment of value of the state-owned properties must be carried out.

Article 21. Handling of state-owned properties with value undetermined for assignment to public service units

1. For state-owned properties as prescribed in Point a, Clause 2, Article 20 hereof, the units shall be responsible for handling according to the law on management and use of state-owned properties. If the units fail to handle these properties up to the time of determination of value, such unit shall be responsible for:

a) Continue management and protection of the properties;

b) Making the report to competent authorities as prescribed in Articles 47 and 48 of the Decree No. 52/2009/NĐ-CP for recovery, transfer, sale, or liquidation as prescribed and assigning the tasks of handling the properties to relevant agencies, organizations and units;

c) Based on the handling decision by competent authorities, the units shall hand over the properties to agencies, organizations and units assigned unless otherwise as regulated;

d) Agencies, organizations and units assigned to handle the properties shall be responsible for handling the properties as prescribed.

2. For state-owned properties as prescribed in Point b, Clause 2, Article 20 hereof, the units shall be responsible for complying with the Prime Minister’s decision on re-arrangement and handling of state-owned houses, land.

Article 22. Determination of value of state-owned properties for assignment to public service units of financial autonomy

1. Value of state-owned properties assigned to public service units of financial autonomy is determined in Vietnam dong. In case the properties are accounted for in foreign currency, it must be converted into Vietnam dong at the exchange rate on inter-bank foreign exchange market announced by the State Bank at the time of determination of value.

2. For properties as land use right:

a) Value of land use right is determined according to land price laid down by People’s Committees of provinces at the time of determination of value;

b) In case land price laid down by People’s Committees of provinces at the time of determination of value is not close to actual price of land use right in the market in normal conditions, the units must hire a qualified organization to determine the land price, make submission to the Appraisal Council for consideration and submission to presidents of People’s Committees of provinces as foundations for determination of value of land use right. Components of the Price Appraisal Council is prescribed in Point a, Clause 4, Article 12 hereof;

c) In case a qualified price appraisal organization can not be hired, the Price Determination Council as prescribed in Point a, Clause 4, Article 12 hereof shall carry out determination of land price and make submission to president of People’s Committees of provinces as foundations for determination of land use right value.

3. For properties that do not fall within Point 2 of this Article, heads of the units shall decide either of the following ways to determine the remaining value of the properties:

a) Hire a qualified price appraisal organization to determine remaining value of the properties;

b) Formulate the Price Determination Council as prescribed in Point b, Clause 4, Article 12 hereof to determine remaining value of the properties;

4. For state-owned properties with level of wear not yet accounted for during the period of use or adequately accounted for but still usable, heads of the units shall formulate a council with components as prescribed in Point b, Clause 4, Article 12 hereof to determine remaining value of the properties.

Article 23. Decision to assign state-owned properties to public service units of financial autonomy

1. In reliance on result of determination of value as prescribed in Article 22 hereof, competent authorities as prescribed in Clause 4, Article 38 of the Decree No. 52/2009/NĐ-CP shall decide to assign state-owned properties to public service units of financial autonomy.

2. Main information of the decision to assign state-owned properties to public service units of financial autonomy as follows:

a) Name of the unit to be assigned state-owned properties;

b) Lists of state-owned properties assigned to the unit;

c) Total value of state-owned properties assigned to the unit;

3. Lists of state-owned properties assigned to public service units of financial autonomy are made in accordance with Forms 01-DM/ĐVSN, 02-DM/ĐVSN, 03-DM/ĐVSN enclosed herewith;

4. Assignment of state-owned properties to public service units must be recorded in accordance with Form 04-BB/ĐVSN enclosed herewith.

Section 9. USE OF STATE-OWNED PROPERTIES FOR LEASE, JOINT UNDERTAKING AND ASSOCIATION BY PUBLIC SERVICE UNITS OF FINANCIAL AUTONOMY

Article 24. Properties constructed for lease under the project approved by competent authorities

1. The properties constructed for lease as prescribed in Point b, Clause 1, Article 43 of the Decree No. 52/2009/NĐ-CP include investment projects based on exploitation of existing houses, land that belong to public service units to ensure effective use under the project approved by competent authorities, not only intended for lease.

2. Construction projects for lease as prescribed in Clause 1 of this Article shall be approved by competent state agencies according to the legislation on construction investment after a written agreement is issued by the Ministry of Finance (in case of public service units under central management), the Service of Finance (in case of public service units under local management).

Article 25. Term and rent of properties as head offices, land-linked properties

1. For properties as head offices, land-linked properties, only part of the properties are leased on the basis of exploitation of the unit’s housing funds to increase efficiency of use.

2. Rent of properties shall be based on the auction method if value of the lease package (calculated for the entire lease term) is from VND 100 million and over. If value of the lease package is under VND 100 million, selection by public notice can be applied and the highest bidder shall be selected.

3. Leasing out properties shall be executed in a contract according to the law provisions.

4. To lease out the items that belong to head office in a short and discontinued term (halls, meeting rooms, seminar room, laboratory…), heads of the units as lessor shall determine and announce the rent and at the same time make the submission to upper management agencies for monitoring. Leasing out properties shall be carried out according to the announced price level.

Article 26. Term and rent of properties other than head offices, land-linked properties

1. For properties other than head offices, land-linked properties, both the lessor and lessee can negotiate in reliance on market rent of properties of the same kind, technical standards, quality, and origin.

2. Leasing out properties shall be executed in a contract according to the law provisions.

3. In case the lease term expires under the contract while the lessor is permitted to extend the lease by competent authorities as prescribed in Clause 3, Article 43 of the Decree No. 52/2009/NĐ-CP and the lessee still has a demand for extended lease, both parties can extend the lease contract. Level of rent agreed by and between the lessor and lessee must be close to the market rent. In case the rent is lower than rent of the previous lease, the units possessing the properties must make the report to competent authorities as prescribed in Clause 3, Article 43 of the Decree No. 52/2009/NĐ-CP for consideration and decision.

4. For assets to be put up for lease in a short, discontinued term (projectors, audio equipment, computers…), heads of the units as lessor shall determine and announce the rent. Leasing out properties shall be carried out according to the announced price level.

Article 27. Management and use of money collected from leasing out state-owned properties

1. Money collected from leasing out properties must be separately accounted for by the units and used to pay relevant expenses, land rents, tax and financial obligations according to the law provisions. The remaining amount of money shall be added to the unit’s public service development fund.

In case the unit uses the properties that are constructed, procured by mobilized capital sources for lease, such unit must conduct separate accounting and use it to pay relevant expenses, land rent, tax and financial obligations, refund mobilized capital (including interests). The remaining amount of money shall be added to the unit’s public service development fund.

2. Expenses related to leasing out state-owned properties:

a) Expenses of depreciation of immovable properties leased out;

b) Expenses of depreciation of immovable properties leased out;

c) Expenses of property lease management;

d) Other relevant expenses;

Article 28. Public announcement of leasing out state-owned properties

1. Public service units of financial autonomy permitted to lease out state-owned properties must carry out public announcement of quantity, types of properties, lease method, organizations, individuals leased to, management and use of amount of money collected from leasing out state-owned properties.

2. Fashion, time limit and method of making public announcement shall be applied in accordance with the regulations on public announcement of management and use of state-owned properties by regulatory agencies, public service units and organizations charged with managing and using state-owned properties enclosed with the Decision No. 115/2008/QĐ-TTg.

Article 29. Using properties invested on land and value of land use right for lease, production, business, services, joint undertaking and association

1. In case public service units of financial autonomy are yet to pay land levy as prescribed in Clause 2, Article 40 of the Decree No. 52/2009/NĐ-CP such units shall be only permitted to use the properties invested on land for production, business, services, joint undertaking, association, leasing out, and must pay land rents (for the area used for abovementioned purposes) according to the law on land.

2. In case public service units of financial autonomy have paid land levy which does not originate from state budget, such units shall be permitted to use the properties invested on land and value of land use right for production, business, services, association, leasing out, contribution of capital for joint undertaking as prescribed.

Section 10. RE-ARRANGEMENT AND HANDLING OF STATE-OWNED PROPERTIES

Article 30. Re-arrangement and handling of state-owned properties

1. Re-arrangement and handling of state-owned properties as head offices shall be executed in accordance with the Prime Minister’s Decision No. 09/2007/QĐ-TTg dated January 19, 2007 regarding re-arrangement and handling of state-owned properties, Decision No. 140/2008/QĐ-TTg amending and supplementing Decision No. 09/2007/QĐ-TTg the Ministry of Finance’s guiding documents and must be completed before December 31, 2010.

2. Re-arrangement and handling of state-owned properties as head offices shall be executed in accordance with the Prime Minister’s Decision No. 09/2007/QĐ-TTg dated January 19, 2007 regarding re-arrangement and handling of state-owned properties, Decision No. 140/2008/QĐ-TTg amending and supplementing Decision No. 09/2007/QĐ-TTg the Ministry of Finance’s guiding documents and must be completed before December 31, 2010.

3. Re-arrangement of guesthouses of regulatory agencies, political organizations, socio-political organizations are executed in accordance with Articles 32, 33, 34, 35 and 36 hereof.

Article 31. Re-arrangement and handling of state-owned properties other than head offices

1. Agencies, organizations and units charged with managing and using state-owned properties shall be responsible for:

a) Making declaration reports and proposing plans for re-arrangement and handling of each state-owned property according to Form 01-SX/TSNN enclosed herewith in reliance on existing management and use of state-owned properties, functions, assigned duties, approved payroll, prescribed standards, norms for use of properties. For properties other than immovable properties that agencies, organizations and units have proposed plans for continued use, the declaration report is not necessarily made for each property;

b) Declaration reporting and plans for re-arrangement and handling of state-owned properties shall be sent to upper management agencies.

2. Upper management agencies shall be responsible for checking declaration reports and plans for re-arrangement and handling of each property by the units within management in order to:

a) Decide to retain properties for continued use according to prescribed purpose, standard and regime;

b) Make the report to upper management agencies for compilation and submission to competent agencies as prescribed in Clause 2, Article 58 of the Decision No. 52/2009/NĐ-CP for decision on properties proposed for transfer or recovery;

3. Competent state agencies as prescribed in Clause 2, Article 58 of the Decision No. 52/2009/NĐ-CP shall decide transfer or recovery of properties as prescribed.

4. Re-arrangement and handling of state-owned properties other than head offices must be completed before December 31, 2010.

Article 32. Organization model for guesthouses

1. Guesthouses of regulatory agencies, political organizations, socio-political organizations after being arranged shall operate in either of the following organization models:

a) Public service units of financial autonomy;

b) Enterprises (state-owned single member limited companies, limited liability companies from two members and over, joint-stock companies).

2. Principles of arrangement of guesthouses:

a) The guesthouses after being arranged must meet conditions for operation according to model of public service units of financial autonomy or enterprises as prescribed by the state law, have premises separate from head offices of agencies, organizations and units;

b) After arrangement, each Ministry, agency of central-affiliated cities and provinces shall have a maximum of one guesthouse that operates according to the model of public service units of financial autonomy except the cases as prescribed in Article 36 hereof;

c) Any guesthouse that fails to meet conditions set out in Points a and b of this Clause shall be terminated from operation.

Article 33. Sequence and procedures for arrangement of guesthouses

1. Based on actual circumstances, principles of arrangement as prescribed in Clause 2, Article 32 hereof, the Ministries, central agencies, People’s Committees of provinces shall direct the guesthouses within management to carry out reporting financial assets, labor and propose operation model.

2. Based on the reports and proposals made by the guesthouses, the Ministers, heads of central agencies, president of the People’s Committees of provinces shall make decision on:

a) Operation model of each guesthouse after re-arrangement;

b) Termination of operation for guesthouses that fail to meet operation conditions

3. Guesthouses subject to conversion of operation model shall be responsible for:

a) Making plans for conversion of organization model no later than 180 days since the operation model is decided by competent authorities; Plans for conversion of guesthouse organization model include the following basic information:

- Determination of types of capital, assets, existing debts, formulation of financial report to the time of conversion;

- Plans for handling financial asset, debts, arrangement of labor as prescribed in Articles 34, 35 hereof;

- Operation statutes and planned charter capital (in case of an enterprise);

b) Implementation of conversion of guesthouse organization model according to the approved plan;

4. For each guesthouse subject to conversion of operation model, the ministers, heads of central agencies, president of the People’s Committees of provinces shall decide to formulate the Conversion Council (hereinafter referred to as the Council) including:

a) For guesthouses that belong to the ministries, central agencies: leaders of the ministries, central agencies shall function as chairman of the Council; other members include representatives of financial agencies, trade union, central agencies, representatives of trade unions of guesthouses subject to conversion and other relevant agencies;

b) For guesthouses under local management: Leaders of People’s committees of provinces shall function as chairman of the Council; other members include representatives of the Service of Finance, Service of Labor, War Invalids and Social Affairs; representatives of trade unions of guesthouses subject to conversion and other relevant agencies.

5. The Council shall be responsible for:

a) Appraising plans for conversion of organization model formulated by guesthouses and making submission to the Ministers, heads of central agencies, president of the People’s Committees of provinces for decision;

b) Directing the implementation of conversion of guesthouse organization model according to the approved plan;

Article 34. Plans for handling financial assets, labor for guesthouses subject to conversion to model of public service units of financial autonomy

1. Handling of state-owned properties:

a) State-owned properties to be assigned to guesthouses (after conversion) shall be evaluated and assigned to the units as prescribed in Article 22 hereof;

b) State-owned properties not assigned to guesthouses shall be handled as prescribed in Article 21 hereof;

c) State-owned properties under construction, procurement or received unfinished shall be handled as prescribed in Clause 3, Article 20 hereof.

2. Finance: Guesthouses after being converted shall be responsible for taking over and handling payables, receivables, cash balance, cash deposited at State Treasuries and credit institutions as prescribed by the law provisions.

3. Labor: Guesthouses after being converted shall be responsible for arranging and using labor; inheriting every right, obligation of employees according to the legislation on labor.

Article 35. Plans for handling financial assets, labor for guesthouses subject to conversion into model of enterprises

1. Handling of state-owned properties:

a) State-owned properties to be assigned to guesthouses (after conversion) shall be determined in value and state capital contributed. Determination of value of properties shall be executed in accordance with the law on enterprises;

Particularly for land use right, the enterprise is permitted to choose either land allocation or land lease according to the law on land;

b) State-owned properties not assigned to guesthouses shall be handled as prescribed in Article 21 hereof;

2. Handling of finance and labor shall be executed in accordance with Clauses 2 and 3, Article 34 hereof; Particularly for properties invested by commendation, welfare funds, cash balance from these two funds is handled as follows:

a) Properties invested by commendation, welfare funds kept for continued use for production and business by guesthouses (after conversion) shall be handled as follows:

- In case a guesthouse is converted into a joint-stock company, it shall be included to the value of enterprises and converted into shares for employees present at the time of conversion according to actual working time of each employee.

- In case a guesthouse is converted into limited liability company, the company shall be responsible for refunding employees according to actual working time of each employee at the guesthouse;

b) Properties invested by commendation, welfare funds not used for production and business by guesthouses (after conversion) shall be sold and shared to employees at the time of conversion according to actual working time of each employee;

c) Cash balance from commendation, welfare funds shall be shared to at the time of conversion according to actual working time of each employee;

Article 36. Organization model for guesthouses of Office of Central Communist Party, the Office of the National Assembly, Office of the Government, socio-political organizations

1. In reliance on actual situation and provisions as set out in Point a, Clause 2, Article 32 hereof, Office of Central Communist Party, the Office of the National Assembly, Office of the Government, socio-political organizations shall decide organization model for guesthouses within management.

2. In case conversion of guesthouse organization model is necessary, the conversion shall be done in accordance with Articles 33, 34, 35 hereof

Section 11. ACCOUNTING FOR EXPENSES, RECEIPTS RELATED TO COMMON USE OF STATE-OWNED PROPERTIES

Article 37. Expenses

1. Agencies, organizations that allow common use of state-owned properties as prescribed in Article 62 of the Decision No. 52/2009/NĐ-CP shall be entitled to expenses of electricity and water, petroleum, oil, workers and other expenses related to common use of properties.

2. Agencies, organizations that allow common use of state-owned properties shall negotiate level of collection with agencies, organizations and units (that have common use of the properties) on the basis of appropriate loss rate, property use term without inclusion of depreciation of immovable properties.

Article 38. Accounting for receipts, expenses

1. Agencies, organizations that allow common use of state-owned properties shall account receipts as prescribed in Article 37 hereof into the entry of state-owned property rent under state budget index and use it for operation of agencies, organizations according to the law on state budget.

2. Public service units without financial autonomy that have state-owned properties leased out for common use shall account for receipts as prescribed in Article 37 hereof as a receipt for services and used according to the law provisions.

Section 12. IMPLEMENTATION

Article 39. Responsibilities of agencies, organizations and units

1. Financial agencies affiliated to the Ministry, central agencies, the Service of Finance shall be responsible for formulating regulations on decentralization of management of state-owned properties according to the law on management and use of state-owned properties and Decree No. 52/2009/NĐ-CP making submission to the Minister, heads of central agencies, People’s Committees of provinces for making report to People’s Council of the same level for promulgation as prescribed in clause 4, Article 65 of the Decree No. 52/2009/NĐ-CP; and at the same time to the Ministry of Finance (Public Asset Management Authority) one copy for coordination.

2. The Ministries, central agencies and People’s Committees of provinces shall report result of re-arrangement and conversion of guesthouse organization model within management to the Ministry of Finance before January 30, 2011 according to Form 02-SX/NK enclosed herewith.

3. The Ministries, central agencies and People’s Committees of provinces shall be responsible for checking legislative documents promulgated by the Ministries, central agencies and local regulatory bodies in contrary to the law on management and use of state-owned properties, Decree No. 52/2009/NĐ-CP and this Circular to annul and make amendments, supplements as appropriate; and at the same making notice about result of handling to the Ministry of Finance (Public Asset Management Authority) before June 30, 2010 for compilation and reporting to the Prime Minister.

Article 40. Implementation

1. This Circular takes effect after 45 days since the signing date.

2. Annul the following documents:

a) Circular No. 35/2007/TT-BTC dated April 10, 2007 of the Ministry of Finance instructing the implementation of the Government’s Decree No. 137/2006/NĐ-CP dated November 14, 2006 regulating decentralization of state management of state-owned properties at administrative agencies, public service units.

b) Circular No. 112/2006/TT-BTC  dated December 27, 2006 of the Ministry of Finance instructing the implementation of the statute of management of state-owned properties at public service units enclosed with the Prime Minister’s Decision No. 202/2006/QĐ-TTg;

c) Section IV of the Ministry of Finance’s Circular No. 71/2006/TT-BTC dated August 09, 2006 instructing the implementation of the Government’s Decree No. 43/2006/NĐ-CP dated April 25, 2006 regulating autonomy, self-responsibility for the implementation of duties, apparatus organization, payroll and finance with respect to public service units;

d) Other regulations in contrary to this Circular;

3. Difficulties that arise during the implementation of this Circular should be reported (by the Ministries, central agencies, People’s Committees of provinces) to the Ministry of Finance for coordination and handling./.