Law on Management and Use of State Property No. 09/2008/QH12

LAW

Management and use of state property

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BASED ON THE CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM IN 1992 AS AMENDED AND COMPLEMENTED BY RESOLUTION NO. 51/2001/QH10;

The National Assembly enacts the Law on Management and Use of State Property.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Law stipulates the regime for managing and using state property at state agencies, people's armed forces units, public service organizations, political organizations, socio-political organizations, occupational socio-political organizations, social organizations, occupational social organizations (hereinafter referred to collectively as agencies, organizations, units), including office premises and other assets attached to land; rights to use land for constructing office premises and operating facilities of agencies, organizations, units; machinery, transportation equipment, working equipment, and other assets as prescribed by law.

2. The management and use of state property not within the scope prescribed in Clause 1 of Article 1 shall be carried out in accordance with relevant laws.

Article 2. Principles of management and use of state property

1. All state property must be assigned by the State to agencies, organizations, units for management and use.

2. State management over state property shall be conducted uniformly, with clear division of authority and responsibility among state agencies, and coordination responsibilities between state agencies.

3. State property must be invested in, equipped, and used according to its intended purpose, standards, quotas, and regulations, ensuring fairness, efficiency, and economy.

4. State property must be fully accounted for in terms of physical items and value as prescribed by law. The determination of asset value in purchase, sale, lease, rental, joint venture, cooperation, liquidation transactions, or other dealings shall be carried out under market mechanisms, except where otherwise provided by law.

5. State property must be maintained, repaired, and protected according to prescribed regulations.

6. The management and use of state property must be transparent; all violations of the management and use regime of state property must be promptly and strictly dealt with in accordance with the law.

Article 3. Policies for management and use of state property

The State has policies for investment in developing, exploiting, and protecting state property; modernizing state management work; and enhancing the effectiveness and efficacy of management and use of state property.

Article 4. Rights and Obligations of Agencies, Organizations, Units Assigned to Manage and Use State Property

1. Agencies, organizations, units assigned to manage and use state property have the following rights:

a) To use state property to serve activities according to their assigned functions and tasks;

b) To decide on measures to protect, exploit, and use state property effectively;

c) To be protected by the State in their lawful rights and interests;

d) To lodge complaints and initiate lawsuits in accordance with the law.

2. Agencies, organizations, units assigned by the State to manage and use state property have the following obligations:

a) To use state property for its intended purpose, according to standards, quotas, and regulations, and to ensure efficiency and economy;

b) To carry out maintenance, repair, and protection of state property according to prescribed regulations;

c) To establish and manage records of state property; account for and record state property; report on the management and use of state property assigned in accordance with this Law and laws on accounting and statistics.

Article 5. Rights and obligations of the head of agencies, organizations, units entrusted with managing and using state assets

1. The head of agencies, organizations, units entrusted with managing and using state assets shall have the following rights:

a) Direct the organization to implement management and use of state assets at the agency, organization, unit;

b) Handle violations of laws on management and use of state assets within their authority or refer such violations to competent authorities for handling.

2. The head of agencies, organizations, units entrusted with managing and using state assets shall have the following obligations:

a) Issue and organize the implementation of regulations on management and use of state assets within their jurisdiction;

b) Comply with the provisions of this Law and other relevant laws, ensuring the proper, standard, quota, system, and efficient, economical use of state assets;

c) Bear responsibility under the law for the management and use of state assets within their jurisdiction.

Article 6. Prohibited Acts

1. Exploiting or abusing positions and powers to embezzle state assets in any form.

2. Intentionally violating state regulations on management and use of state assets.

3. Using state assets for purposes not intended, beyond standards, quotas, systems; wasting state assets or failing to use assigned assets leading to waste; using state assets for illegal business activities.

4. Destroying or intentionally damaging state assets; illegally possessing or using state assets.

5. Neglecting responsibilities in management resulting in violations of laws on management and use of state assets.

6. Failing to perform or performing incompletely the obligations towards the State in managing and using state assets.

Chapter II

STATE MANAGEMENT RESPONSIBILITIES FOR STATE ASSETS

Article 7. Responsibilities of the Government, Prime Minister

1. The Government shall uniformly manage state affairs concerning state assets and shall be responsible for the following:

a) Issuing or submitting to competent state agencies for issuance and implementation of legal normative documents on management and use of state assets within their authority;

b) Delegating investment construction, procurement, leasing, repair, maintenance, transfer, recovery, liquidation, sale, joint venture, joint operation, leasing, destruction of state assets;

c) Annually reporting to the National Assembly on the situation of management and use of state assets.

2. The Prime Minister shall stipulate standards and quotas for the use of office premises, cars, and other valuable assets commonly equipped at agencies, organizations, units.

Article 8. Responsibilities of the Ministry of Finance

The Ministry of Finance shall be responsible before the Government for implementing state management over state assets and shall be responsible for the following:

1. Issuing or submitting to competent state agencies for issuance of legal normative documents on management and use of state assets within their authority;

2. Stipulating management and use systems for office premises, cars, and other assets at agencies, organizations, units, except for assets specified in Clause 1, Article 9 of this Law;

3. Stipulating standards and quotas for the use of state assets, except for assets specified in Clause 2, Article 7 and Clause 1, Article 9 of this Law;

4. Organizing the implementation of work on management and use of state assets;

5. Cooperating with ministries, ministerial-level agencies, central-level agencies in issuing standards, quotas, systems for management and use of specialized assets;

6. Deciding on the transfer of state assets between ministries, ministerial-level agencies, central-level agencies, provinces, centrally-administered cities (hereinafter referred to collectively as provincial level); procurement, recovery, liquidation, sale of state assets according to the delegation of the Government;

7. Annually reporting to the Government on the situation of management and use of state assets nationwide;

8. Inspecting, auditing, resolving complaints and denunciations, and handling violations of laws on management and use of state assets within their authority.

Article 9. Responsibilities of Ministries, Equivalent Ministries, and Other Central Agencies

Ministries, equivalent ministries, and other central agencies shall implement state management over state assets within their scope of management and have the following responsibilities:

1. Lead and coordinate with the Ministry of Finance in issuing standards, norms, and regulations for the management and use of specialized assets at agencies, organizations, and units under their scope of management.

2. Decide on investment construction, procurement, leasing, repair, maintenance, reallocation, recovery, liquidation, sale, joint venture, joint operation, leasing, and destruction of state assets within their scope of management according to the分级授权 of the Government;

3. Annually report to the Ministry of Finance on the situation of managing and using state assets within their scope of management;

4. Inspect, audit, resolve complaints and denunciations, and handle violations of laws related to the management and use of state assets within their scope of management.

Article 10. Responsibilities of Provincial People's Councils

Based on the provisions of this Law and the分级授权 of the Government, provincial people's councils shall have the following responsibilities:

1. Decide on policies and measures for the management and use of state assets at agencies, organizations, and units under the local scope of management;

2. Decide on the分级授权 for investment construction, procurement, leasing, repair, maintenance, reallocation, recovery, liquidation, sale, joint venture, joint operation, leasing, and destruction of state assets at agencies, organizations, and units under the local scope of management;

3. Supervise the implementation of laws on the management and use of state assets in the locality.

Article 11. Responsibilities of the People's Committee of the Province

Based on the provisions of this Law and the分级授权 of the Government and provincial people's councils, people's committees at all levels shall have the following responsibilities:

1. Develop and organize the implementation of plans for the management and use of state assets within the local scope of management.

2. Decide on investment construction, procurement, leasing, repair, maintenance, reallocation, recovery, liquidation, sale, joint venture, joint operation, leasing, and destruction of state assets at agencies, organizations, and units under the local scope of management.

3. Annually report to the same-level people's council and the directly superior people's committee; the provincial people's committee reports to the Ministry of Finance on the situation of managing and using state assets within the local scope of management;

4. Establish and manage files on state assets within the local scope of management;

5. Inspect, audit, resolve complaints and denunciations, and handle violations of laws related to the management and use of state assets within the local scope of management.

Chapter III

MANAGEMENT AND USE OF STATE ASSETS AT STATE AGENCIES

PEOPLE'S ARMED FORCES UNITS

Article 12. Sources of Formation of State Assets at State Agencies

1. The State transfers assets in kind and land use rights.

2. The State allocates the budget for investment construction and procurement of assets.

Article 13. Investment Construction of Office Premises

1. The State invests in constructing office premises to serve the activities of state agencies through the following methods:

a) Transfer to organizations with the function of implementing investment construction of office premises;

b) Allocate the budget to the agency directly using the office premises to implement investment construction.

2. The competent authority deciding on investment construction of office premises decides on the investment method prescribed in Clause 1 of this Article.

3. Investment construction of office premises must meet the following requirements:

a) Be consistent with the planning already approved by the competent state authority;

b) Be consistent with the functions, tasks, organizational structure of the agency already approved by the competent state authority and the standards, norms for using office premises;

c) Comply with the provisions of laws on investment and construction.

4. The authority to decide on investment construction of office premises is implemented in accordance with the provisions of laws on investment, laws on construction, and other relevant laws.

Article 14. State Asset Procurement

1. State asset procurement must comply with standards, quotas, management and usage regulations for state assets.

2. The budget for state asset procurement shall be guaranteed by the state budget in accordance with the laws on the state budget.

3. State asset procurement shall be conducted openly, following procedures and formalities prescribed by the laws on bidding and related laws.

4. The authority to decide on state asset procurement is defined as follows:

a) The Minister, Head of a ministerial-level agency, or head of another central agency decides or delegates the authority to decide on state asset procurement at state agencies under their jurisdiction.

b) The People's Council of a province delegates the authority to decide on state asset procurement at state agencies under the jurisdiction of local authorities.

Article 15. Leasing Office Premises and Other Assets for State Agency Operations

1. State agencies may lease office premises and other assets to serve operations in the following cases:

a) When they do not have office premises or have not been allocated a budget for construction or procurement;

b) Leasing office premises and other assets is more effective than constructing or procuring them.

2. The quantity and types of office premises and other assets leased must comply with standards, quotas, and regulations; rental prices shall be determined according to market mechanisms.

3. The state ensures funding for leasing office premises and other assets serving state agency operations in accordance with the laws on the state budget.

4. The authority to decide on leasing office premises and other assets is defined as follows:

a) The Minister, Head of a ministerial-level agency, or head of another central agency decides or delegates the authority to decide on leasing office premises and other assets for state agency operations within their jurisdiction.

b) The People's Council of a province delegates the authority to decide on leasing office premises and other assets for state agency operations within the jurisdiction of local authorities.

Article 16. Utilization of State Assets

1. State assets at state agencies must be utilized for their intended purposes, functions, in compliance with standards, quotas, and regulations, ensuring efficiency and thrift.

2. State agencies may not use state assets for personal purposes, lease them, or engage in other business activities.

Article 17. Maintenance and Repair of State Assets

1. State assets at state agencies must be inspected, maintained, and repaired in accordance with established regulations, standards, and economic-technical quotas.

2. The budget for maintenance and repair of state assets shall be guaranteed by the state budget in accordance with the laws on the state budget.

Article 18. Establishment and Management of State Asset Records

1. State agencies entrusted with the management and utilization of state assets must establish, manage, and store state asset records in accordance with accounting and statistical laws and other relevant laws.

2. Financial authorities uniformly manage and store state asset records within their jurisdiction in accordance with the laws.

Article 19. Accounting for State Assets

State assets must be promptly and fully accounted for both in terms of physical assets and value in accordance with accounting and statistical laws.

Article 20. Recovery of State Property

1. Recovery of State Property is the act of a state agency with authority deciding to reclaim State Property that has been transferred for management and use by another state agency.

2. State Property shall be recovered in the following cases:

a) Not being used;

b) Being used for purposes other than those intended, exceeding standards, quotas, or regulations;

c) Other cases as prescribed by law.

3. State Property subject to recovery may be reallocated according to Article 21 of this Law or sold according to Article 23 of this Law.

4. The authority to decide on the recovery of State Property at state agencies shall be implemented according to the分级制度 of the Government.

Article 21. Reallocation of State Property

1. Reallocation of State Property is the act of a state agency with authority deciding to transfer State Property between state agencies, people's armed forces units, public service organizations, political organizations, and political-social organizations, except in special cases decided by the Prime Minister.

2. State Property may be reallocated in the following cases:

a) From places where there is excess to places where there is shortage;

b) To achieve higher utilization efficiency;

c) Other cases as prescribed by law.

3. The authority to decide on the reallocation of State Property at state agencies shall be implemented according to the分级制度 of the Government.

Article 22. Liquidation of State Property

1. State Property may be liquidated in the following cases:

a) When the property has reached its useful life;

b) When the property is damaged beyond repair or when repairs would not be effective;

c) When office premises or other immovable property must be demolished according to the decision of a competent state agency, and other cases as prescribed by law.

2. The authority to decide on the liquidation of State Property is defined as follows:

a) The Minister, Head of a ministry-level agency, or head of another central agency decides or delegates the authority to decide on the liquidation of State Property within their jurisdiction;

b) The People's Council of a province delegates the authority to decide on the liquidation of State Property of state agencies within the local jurisdiction.

3. The liquidation through the sale of State Property shall be conducted openly, in accordance with market mechanisms.

4. Proceeds from the liquidation of State Property, after deducting reasonable expenses related to the liquidation, shall be managed and used in accordance with the provisions of law.

Article 23. Sale of State Property

1. Sale of State Property is the act of transferring ownership of State Property to an organization or individual in exchange for corresponding funds.

2. State Property may be sold in the following cases:

a) When there is no longer a need for use or when use is not efficient, except in cases where the sale of the property is prohibited by law;

b) Other cases as prescribed by law.

3. The sale of State Property shall be conducted openly, in accordance with market mechanisms.

The sale of State Property that is office premises or other immovable property shall be carried out in accordance with this Law and other relevant legal provisions.

4. The authority to decide on the sale of State Property at state agencies shall be implemented according to the分级制度of the Government.

5. Proceeds from the sale of State Property, after deducting reasonable expenses related to the sale, shall be managed and used in accordance with the provisions of law.

Article 24. Destruction of State Property

1. The destruction of State property refers to the act where the competent State agency decides to eliminate the existence of State property.

2. State property subject to destruction shall be governed by laws on environmental protection and other relevant laws.

3. The authority to decide on the destruction of State property is defined as follows:

a) The Minister, Head of a ministry-level agency, or head of another central agency decides or delegates the authority to decide on the destruction of State property under their management.

b) The People's Council at the provincial level delegates the authority to decide on the destruction of State property under the management of local agencies.

c) Other persons as prescribed by law.

4. The cost of destroying State property shall be covered by the State budget.

Article 25. Inventory and Reporting of State Property

The State agency entrusted with managing and using State property must conduct inventory and report the quantity, value, management, and usage status of State property within its jurisdiction as prescribed by law.

Article 26. Publicizing Management and Usage of State Property

1. The State agency responsible for managing State property must publicize the implementation of the system for managing and using State property.

2. The State agency entrusted with managing and using State property must publicize procurement, construction investment, and usage of State property within its jurisdiction.

The Government shall specify the contents and forms of publicizing the management and usage of State property.

Article 27. Management and Usage of State Property by Vietnamese State Agencies Abroad

The management and usage of State property by Vietnamese State agencies abroad shall be carried out in accordance with this Law, consistent with diplomatic regulations and the laws of the host country.

The Government shall specify the details of the management and usage of State property by Vietnamese State agencies abroad.

Article 28. Management and Usage of State Property at Civilian Armed Units

Based on the principles stipulated in this Law, the Government shall specify the detailed management and usage of State property at civilian armed units.

Chapter IV

MANAGEMENT AND USE OF STATE PROPERTY AT UNITS

PUBLIC SERVICE ORGANIZATIONS WITH FINANCIAL AUTONOMY AND UNITS

PUBLIC SERVICE ORGANIZATIONS WITHOUT FINANCIAL AUTONOMY

Article 29. Sources of Formation of State Property at Public Service Organizations

1. The State transfers assets in kind and land use rights.

2. The State allocates the budget for investment construction and procurement of assets.

3. Property constructed or purchased with funds from the State budget.

Article 30. Management and Usage of State Property at Public Service Organizations with Financial Autonomy

1. A public service organization with financial autonomy is an entity that meets the conditions set forth by the Government and is recognized by the State to manage State property according to the capital allocation mechanism for enterprises.

2. The authority to decide on the allocation of State property is defined as follows:

a) The Minister, Head of a ministry-level agency, or head of another central agency decides or delegates the authority to decide on allocating State property to public service organizations with financial autonomy under their management.

b) The Chairman of the Provincial People's Committee allocates State property to public service organizations with financial autonomy under the management of local authorities.

Article 31. Rights and obligations of public service units with financial autonomy in managing and using state assets

Public service units with financial autonomy have the rights and obligations of agencies, organizations, and units entrusted with managing and using state assets as stipulated in Articles 4 and 5 of this Law, and the following rights and obligations:

1. Using state assets for production, business services, leasing, joint ventures, and joint operations as provided for in Articles 32 and 33 of this Law;

2. Safeguarding and developing capital and state assets entrusted for management and use;

3. Fulfilling financial obligations to the State in accordance with the provisions of the law.

Article 32. Management and use of state assets for production, business services, leasing, joint ventures, and joint operations at public service units with financial autonomy

The management and use of state assets for production, business services, leasing, joint ventures, and joint operations must ensure the following requirements:

1. Not affecting the performance of assigned functions and tasks;

2. Using assets for the intended investment construction and procurement purposes;

3. Maximizing asset utilization efficiency;

4. Operating under market mechanisms and complying with relevant legal regulations.

Article 33. Management and use of funds derived from production, business services, joint ventures, joint operations, and leasing of state assets by public service units with financial autonomy

1. Funds derived from production, business services, joint ventures, and joint operations must be fully recorded according to the legal provisions on accounting, statistics, and managed and used under the financial mechanism applicable to enterprises.

2. Funds derived from leasing assets, the unit must record separately, after deducting reasonable related expenses, paying taxes, and fulfilling other financial obligations to the State, the unit may use the remaining funds to develop its activities.

Article 34. Management and use of state assets at public service units without financial autonomy

The management and use of state assets at public service units without financial autonomy shall be carried out in accordance with the provisions on the management and use of state assets at government agencies as stipulated in Chapter III of this Law.

Chapter V

MANAGEMENT AND USE OF STATE ASSETS AT POLITICAL ORGANIZATIONS, POLITICAL-SOCIAL ORGANIZATIONS, SOCIAL-POLITICAL PROFESSIONAL ORGANIZATIONS, SOCIAL ORGANIZATIONS, SOCIAL-PROFESSIONAL ORGANIZATIONS

POLITICAL, POLITICAL-SOCIAL ORGANIZATION, ORGANIZATION

POLITICAL-SOCIAL AND PROFESSIONAL ORGANIZATION, SOCIAL ORGANIZATION,

SOCIAL AND PROFESSIONAL ORGANIZATION

Article 35. Management and use of state assets at political organizations and political-social organizations

1. The State entrusts tangible assets, land use rights, and allocates budget to political organizations and political-social organizations to invest in constructing and purchasing assets that are appropriate to their functions, tasks, standards, quotas, and management and usage systems of state assets.

2. Assets entrusted by the State to political organizations and political-social organizations for management and use, or assets purchased with the State budget allocation belong to the State's ownership; the management and use of these assets shall be carried out in accordance with the provisions on the management and use of state assets at government agencies as stipulated in Chapter III of this Law.

Article 36. Management and use of state property at political-social organizations and occupational associations

1. Property that is office premises or other property attached to land which the State transfers to political-social organizations and occupational associations for management and use belongs to the State; the management and use of such property shall be carried out in accordance with the regulations on the management and use of state property at state agencies as stipulated in Chapter III of this Law. Political-social organizations and occupational associations entrusted with the management and use of state property have the responsibility to protect state property in accordance with the law and to carry out maintenance and repair of the property using their own funds.

2. Property not falling under the provisions of Clause 1 of this Article, which the State transfers to political-social organizations and occupational associations for management and use belongs to the organization; the management and use of such property shall be carried out in accordance with civil law, relevant laws, and the Charter of the organization.

Article 37. Management and use of state property at social organizations and social-occupational associations

1. Social organizations and social-occupational associations shall independently ensure funding for investment in construction, purchase, and acquisition of property; the State does not transfer property or provide budget support for investment and acquisition of property for social organizations and social-occupational associations.

2. Property that is office premises or other property attached to land which the State has transferred to social organizations and social-occupational associations for management and use belongs to the State; the management and use of such property shall be carried out in accordance with the regulations on the management and use of state property at state agencies as stipulated in Chapter III of this Law. Social organizations and social-occupational associations entrusted with the management and use of state property have the responsibility to protect the state property they are entrusted with in accordance with the law and to carry out maintenance and repair of the property using their own funds.

3. Property not falling under the provisions of Clause 2 of this Article, which the State has transferred to social organizations and social-occupational associations for management and use belongs to the organization; the management and use of such property shall be carried out in accordance with civil law, relevant laws, and the Charter of the organization.

Chapter VI

IMPLEMENTING PROVISIONS

Article 38. Implementation guidance

The Government is tasked with carrying out the following tasks to ensure the implementation of this Law:

1. Organize the reorganization of the management and use of state property according to the assigned purpose, ensuring that state property not being used or used incorrectly, exceeding standards, quotas, and prescribed systems must be recovered before December 31, 2010;

2. Specify the detailed procedures for transferring guesthouses of state agencies, political organizations, and political-social organizations to operate under the mechanism of public service units or enterprises;

3. Specify the detailed procedures for utilizing conference halls and transportation means of state agencies, political organizations, and political-social organizations that have not reached full capacity for use by agencies, organizations, and units in accordance with the intended purpose and collecting a portion of funds to cover costs.

Article 39. Effective date

This Law takes effect from January 1, 2009.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the 12th term, third session, on June 3, 2008./.