Circular No. 103/2007/TT-BTC guides the implementation of Decision No. 59/2007/QD-TTg dated May 7, 2007 of the Prime Minister promulgating regulations on standards, quotas, and management and usage regimes for means of transportation in state agencies, public service units, and state-owned enterprises.

CIRCULAR

Guidelines for implementing Decision No. 59/2007/QD-TTg dated May 7, 2007

of the Prime Minister promulgating Standards, Quotas, and Management and Usage Regulations for Vehicles in State Administrative Agencies, Publicly Funded Organizations, and State-Owned Enterprises

and the management and use of means of transportation within state agencies,

public service units and state enterprises

___________________________

Pursuant to Decision No. 59/2007/QD-TTg dated May 7, 2007 of the Prime Minister on the issuance of Standards, Quotas, and Management and Usage Regulations for Vehicles in State Administrative Agencies, Publicly Funded Organizations, and State-Owned Enterprises (hereinafter referred to as Decision No. 59/2007/QD-TTg).

The Ministry of Finance hereby provides guidance on certain points as follows:

Part I

GENERAL PROVISIONS

1. This Circular guides the provision of automobiles for work purposes according to the standards and quotas prescribed for leadership positions; the system of budget allocation and the use of vehicle services from the market to ensure transportation means for positions with prescribed standards; the regulations on the provision, management, and usage of vehicles for work purposes in state administrative agencies, political organizations, political-social organizations funded by the state budget, publicly funded organizations (hereinafter collectively referred to as state administrative agencies and publicly funded organizations), State Project Management Boards for Construction Projects, and state-owned enterprises.

2. Automobiles within the scope regulated by this Circular include automobiles for work purposes with up to 16 passenger seats (referred to collectively as automobiles) and specialized automobiles formed from state budget funds, with state budget origins and state-owned enterprise capital (including borrowed funds, foreign aid, gifts from domestic and foreign organizations and individuals, or established ownership rights of the State in accordance with the law).

3. Automobiles for work purposes with more than 16 passenger seats, passenger buses, and cargo trucks are not within the scope regulated by this Circular.

4. For automobiles serving work purposes at agencies and units under the armed forces, the Ministers of National Defense and Public Security shall establish standards, quotas, and management and usage regulations for work-related vehicles based on the provisions of Decision No. 59/2007/QD-TTg and the characteristics of operations of the agencies and units under their jurisdiction, and submit them to the Prime Minister for approval and issuance.

5. For automobiles serving official receptions and international relations, they shall be implemented in accordance with separate regulations issued by the Prime Minister.

Part II

SPECIFIC PROVISIONS

I. Guidance on the provisions of Articles 3, 4, 5, 6, and Clause 1 of Article 9 of the Regulations issued together with Decision No. 59/2007/QD-TTg is as follows:

1. Automobiles for the positions specified in Articles 3 and 4 of the Regulations issued together with Decision No. 59/2007/QD-TTg shall be replaced according to work requirements. The funding for purchasing these vehicles shall be allocated within the state budget approved.

2. Automobiles for the positions specified in Articles 5 and 6 of the Regulations issued together with Decision No. 59/2007/QD-TTg shall be replaced according to the standards stipulated in this Decision. The funding for purchasing these vehicles shall be allocated within the state budget approved.

3. Automobiles for the positions specified in Clause 1 of Article 9 of the Regulations issued together with Decision No. 59/2007/QD-TTg shall be replaced based on the standards stipulated in this Decision and the financial capacity of the company, decided by the Board of Directors (for state-owned enterprises with a Board of Directors) or the General Director (for state-owned enterprises without a Board of Directors).

4. Automobiles for the positions specified in Articles 7, 8, Clause 2 of Article 9, and leadership positions with a leadership allowance coefficient from 0.7 to less than 1.25 of State Project Management Boards for Construction Projects as stipulated in Clause 1 of Article 10 of the Regulations issued together with Decision No. 59/2007/QD-TTg shall be liquidated after being used for at least 250,000 kilometers and shall not be replaced.

Notwithstanding, for state administrative agencies and publicly funded organizations operating in mountainous areas, remote regions, islands, and particularly difficult regions where existing vehicles meet the conditions for liquidation but there are no vehicles available for transfer, and it is not possible to lease vehicles from service providers, new vehicles may be purchased with a maximum price of 550 million VND per vehicle, or 800 million VND per vehicle if a four-wheel drive vehicle is required. The authority to purchase vehicles shall be carried out in accordance with the provisions of Clause 4 of Article 12 of the Regulations issued pursuant to Decision No. 59/2007/QD-TTg.

5. Replaced or liquidated vehicles must be sold through public auction in accordance with current regulations. After deducting reasonable related expenses, the proceeds from the sale of the vehicles shall be handled as follows: deposited into the state budget for state administrative agencies and State Project Management Boards for Construction Projects; supplemented into the Development Fund for Publicly Funded Organizations; and processed in accordance with the law on liquidation of assets in enterprises for state-owned enterprises.

II. Guidance on the provisions of Clauses 2 and 3 of Article 10 of the Regulations issued together with Decision No. 59/2007/QD-TTg is as follows:

1. For State Project Management Boards using Official Development Assistance (ODA) funds or foreign aid, they shall implement in accordance with the signed Agreement. In cases where the Agreement does not specify the purchase price of vehicles, the State Project Management Board may purchase vehicles according to the standards stipulated in Decision No. 59/2007/QD-TTg and the guidelines provided in this Circular based on the intended use of the vehicles.

2. State Project Management Boards for national key construction projects; group A and B investment projects along routes, implemented across two (02) provinces or cities or more, or projects deployed in remote, island, and particularly difficult regions included in the list of preferential investment areas as stipulated by investment laws, but where leadership positions do not meet the leadership allowance coefficient stipulated in Clause 1 of Article 10 of the Regulations issued together with Decision No. 59/2007/QD-TTg, may be equipped with vehicles for work purposes from transferred vehicles. If there are no transferred vehicles, new vehicles may be purchased with a maximum price of 550 million VND per vehicle, or 800 million VND per vehicle if a four-wheel drive vehicle is required. The funding for purchasing these vehicles shall be allocated from the operational budget of the State Project Management Board as approved by the competent authority.

3. On the basis of the proposal from the Project Management Board, the Minister, Head of a ministry-level agency, or central agency, after obtaining a written consensus from the Ministry of Finance, decides the number of cars to be used for each Project Management Board under central management. The Chairman of the Provincial People's Committee decides the number of cars to be used for each Project Management Board under local management after obtaining the opinion of the Standing Body of the Provincial People's Council.

4. Cars serving the activities of Project Management Boards must be promptly disposed of according to current regulations on the management and disposal of assets of projects funded by state budget funds upon completion of the project.

III. Guidance for Article 11 of the Regulations issued together with Decision No. 59/2007/QD-TTg is as follows:

1. Special-purpose vehicles as stipulated in Clause 1 of Article 11 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg include:

a) Vehicles equipped with specialized equipment or designed according to specific professional requirements such as: ambulances, fire trucks, money transport vehicles, prisoner transport vehicles, street sweeping vehicles, water spraying vehicles, waste collection vehicles, waste compaction vehicles, mobile repair vehicles, laboratory-equipped vehicles, power generation and alarm transmission vehicles, electrical repair vehicles, towing vehicles, crane vehicles, etc.

b)Vehicles used for special tasks of sectors or fields such as: traffic inspection vehicles, mobile broadcasting and television vehicles, dike protection vehicles, driving practice vehicles, artist transportation vehicles for performances, athlete transportation vehicles for training and competition, etc., bearing distinctive markings clearly printed on the side of the vehicle, shall not be used for other purposes outside their designated tasks.

c) Xc) Vehicles used for urgent and critical tasks based on political and social mission requirements that cannot be fulfilled through hiring vehicles or where hiring vehicles is not effective such as: epidemic prevention vehicles, forest protection vehicles, flood and storm prevention vehicles, anti-smuggling vehicles, etc.

2. The Minister, Head of a ministry-level agency, or central agency, after obtaining a written consensus from the Ministry of Finance, specifies the quantity and types of special-purpose vehicles to be equipped for administrative agencies and public institutions under central management; the Chairman of the Provincial People's Committee specifies the quantity and types of special-purpose vehicles to be equipped for administrative agencies and public institutions under local management after obtaining a written consensus from the Standing Body of the Provincial People's Council at the same level.

3. Based on the specific operations of each administrative agency or public institution requiring the provision of special-purpose vehicles, approved standard norms and budget estimates, annually, the Minister, Head of a ministry-level agency, or central agency decides on the procurement and equipping of special-purpose vehicles according to current regulations for agencies and units under central management; the Chairman of the Provincial People's Committee decides for agencies and units under local management.

4. The Minister, Head of a ministry-level agency, or central agency, and the Chairman of the Provincial People's Committee issue management and usage regulations for special-purpose vehicles applicable to agencies and units within their jurisdiction to ensure proper use, economy, and effectiveness.

IV. Guidance for Article 12 of the Regulations issued together with Decision No. 59/2007/QD-TTg is as follows:

1. Administrative agencies, public institutions, and newly established Project Management Boards after the effective date of Decision No. 59/2007/QĐ-TTg (June 10, 2007), which have leadership positions with a coefficient ranging from 0.7 to less than 1.25, are provided with one car for work purposes from reallocated vehicles; if there are no reallocated vehicles and they cannot hire a car from service providers, they may purchase one new car for work purposes with a maximum price of 550 million VND per vehicle. In cases where units were established before the effective date of Decision No. 59/2007/QĐ-TTg but had not been provided with a car, they will also be provided according to Clause 1 of Article 12 of Decision No. 59/2007/QĐ-TTg.

2. Based on the state budget estimate allocated, the Minister, Head of a ministry-level agency, or central agency decides on the provision of cars for newly established units and replacement of cars for leadership positions for agencies and units under central management after obtaining a written consensus from the Ministry of Finance; the Chairman of the Provincial People's Committee decides on the provision of cars for agencies and units under local management after obtaining a written consensus from the Standing Body of the Provincial People's Council at the same level.

Part III

MECHANISMS FOR MANAGING AND USING CARS FOR WORK PURPOSES

I. REGIME FOR MANAGING AND USING TRANSPORTATION TOOLS FOR WORK PURPOSES FOR POSITIONS STIPULATED IN ARTICLES 6, 7, 8, AND 9 OF THE REGULATIONS ISSUED WITH DECISION NO. 59/2007/QĐ-TTG ARE GUIDED AS FOLLOWS:

1. For positions stipulated in Article 6 and Clause 1 of Article 9 of the Regulations issued with Decision No. 59/2007/QĐ-TTg, which have conditions and voluntarily register self-provision of transportation tools, the Head of the unit decides on the allocation of travel expenses for each position according to stages: daily pick-up and drop-off from home to workplace; business trips; pick-up and drop-off from home to workplace and business trips.

The allocated amount is paid along with the salary period of the unit for each position that has registered for allocation. The allocation rate is the rental rate announced by the Department of Finance, closely aligned with the rental rates in the local area. The allocation rate for each position within the agency is determined by the head of the agency according to the following principles:

a) In the case where a position registers for allocation of travel expenses for daily pick-up and drop-off from home to workplace, the allocation rate is determined as follows:

Allocation Rate for Pick-Up and Drop-Off (MKđđ) = Allocation Rate x Allocated Distance x 4 Trips x 22 Days, including:

- Allocated Distance is the distance from home to workplace for each position entitled to pick-up and drop-off services, determined by the head of the agency..

- 4 Trips: including two trips to and from work in a day.

- 22 Days: the number of working days per month as stipulated in the Labor Code.

b) In the case where a position registers for allocation for business trips, the allocation rate is determined as follows:

Allocation Rate for Business Trips (MKct) = Allocation Rate x Actual Distance Traveled Monthly for Each Position

The actual number of kilometers traveled for work each month for each position shall be determined based on the actual work itinerary of the position confirmed by the Head of the agency or unit.

c) In cases where positions are allocated a full allowance for transportation from their residence to workplace and for business trips, the allocation level will be the sum of the two aforementioned allocation levels.

Full allocation level (FA) = Pickup allocation (PA) + Business trip allocation (BA)

2. For positions specified in Article 7 and Article 8 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg, the Heads of agencies and units shall decide on the provision of transportation means for work based on organizational models, the current number of vehicles according to decisions of competent authorities, market vehicle service supply conditions, and budget capacity, in the following forms:

- Using the existing vehicles of the agency;

- Renting vehicles from organizations providing services;

- Allocating funds for self-provision of transportation means.

The expenses for using transportation means to serve work for positions with vehicle usage standards are arranged within the allocated state budget and determined specifically as follows:

a) In cases where the existing vehicles of the agency are used:

The Department of Finance shall take the lead in coordinating with relevant agencies to establish a framework price for vehicle usage (specifying maximum and minimum prices per kilometer for each type of vehicle based on engine displacement and seating capacity) to apply to agencies and units under local and central management when using existing vehicles; the framework price for vehicle usage shall be established based on market price surveys and reasonable cost calculations from previous periods (excluding vehicle depreciation costs), and submitted to the Chairman of the Provincial People's Committee for decision and adjustment when cost factors fluctuate by more than 20%, leading to an increase or decrease in vehicle usage costs.

- Based on the framework price for vehicle usage decided by the Chairman of the Provincial People's Committee, the Head of the unit shall stipulate the allocation rate for each vehicle as the basis for settling vehicle usage costs according to the actual kilometers used for individuals with usage standards.

- Agencies and units shall maintain accounting records to track actual usage costs (excluding depreciation costs) for each vehicle including driver wages, fuel costs, vehicle repair costs (including reasonable large-scale repair costs) and other operational and usage-related costs. Actual vehicle usage costs shall be publicly disclosed annually along with the disclosure of general fund usage by the agency.

- Any difference between the allocated expense and the actual annual expense shall be handled according to the regulations of each administrative agency or public institution based on the current financial mechanism.

b) In cases where the Heads of agencies and units choose to rent vehicles from organizations providing transportation services on the market to serve work for positions with usage standards, they shall settle vehicle usage costs according to economic contracts signed with service providers based on invoices, but not exceeding the rental price per vehicle according to market prices announced by the Department of Finance.

c) In cases where individuals are allocated funds to provide their own transportation for work, the allocation level is calculated using the formula: BA = Allocation rate x Average monthly kilometers traveled for work for each position, where the allocation rate is the rental price per vehicle according to market prices as announced by the Department of Finance.

Agencies and units shall base their determination of the average monthly kilometers for each position on statistical data from the previous period and the frequency of monthly work trips for each position.

II. ORGANIZATION, ARRANGEMENT, AND MANAGEMENT OF CURRENT VEHICLES AT AGENCIES AND UNITS AS SPECIFIED IN ARTICLE 18 OF THE REGULATIONS ISSUED TOGETHER WITH DECISION NO. 59/2007/QĐ-TTG ARE GUIDED AS FOLLOWS:

AS FOLLOWS:

1. For automobiles serving positions with vehicle usage standards as stipulated in Article 6 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg, which are managed at each agency and unit and subject to cost accounting and actual kilometers used for each vehicle to be publicly disclosed annually along with the disclosure of general fund usage by the agency.

2. For automobiles serving common work purposes that were equipped before Decision No. 59/2007/QĐ-TTg took effect and new vehicles equipped for positions with vehicle usage standards; Ministers, Heads of Ministries equivalent to Ministries, Government-affiliated agencies, and other central agencies; Chairmen of Provincial People's Committees shall organize management and use based on the number of vehicles, management level, and market vehicle service supply capacity to ensure efficiency, thrift, and meet the work requirements of the agency or unit according to one of the following methods:

- Assigning agencies and units to continue managing and using the already equipped vehicles;

- Concentrating the existing vehicles of agencies and units into one or several centers (in the form of a revenue-generating public institution) to serve common needs on the same territory.

The Heads of agencies and units responsible for managing and using vehicles shall develop a Vehicle Usage Regulation specifying clearly the rental of transportation means for work (renting from other administrative agencies or public institutions or market services).

If it is necessary to provide services to individuals within the agency and other administrative agencies or public institutions requiring work services, the Heads of agencies and units shall determine the service fee based on cost coverage principles and record the income according to regulations; simultaneously, the Vehicle Usage Regulation must specify clearly the service recipients, rental rates, and mechanisms for using income from service provision according to the current mechanism.

3. Specifically, vehicles of the Central Party Office, the President's Office, the National Assembly Office, and the Government Office shall not provide services to individuals within the agency or other administrative agencies or public institutions; the management and use of vehicles in these agencies shall be carried out according to the provisions of point 1 of this Section.

4. Workers who become redundant during the process of organization and restructuring according to the new model and due to the gradual reduction in the number of automobiles (which are not replaced) as stipulated in Decision No. 59/2007/QĐ-TTg and detailed in this Circular shall be settled under the reduction in staff establishment regime applicable to state agencies and public institutions.

III. MANAGEMENT AND USE OF SPECIAL PURPOSE VEHICLES AS PROVIDED FOR IN ARTICLE 11 OF THE REGULATIONS ISSUED TOGETHER WITH DECISION NO. 59/2007/QĐ-TTg ARE GUIDED AS FOLLOWS:

1. Special purpose vehicles equipped in accordance with Article 11 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg shall be assigned for management at administrative agencies and public institutions for use in their respective tasks.

2. Each agency or unit managing special purpose vehicles must establish a vehicle management and usage regulation, a unit price for usage (VND/km) for each type of vehicle, to submit to the budget allocation authority for approval to implement payment and accounting for usage costs for each vehicle. The vehicle usage regulations, unit prices for vehicle usage, and actual usage costs of special purpose vehicles of the agency or unit must be made public along with the annual public disclosure of the agency's budget usage.

Part IV

RESPONSIBILITIES OF MINISTRIES, SECTORS, AND LOCALITIES

1. The Minister, Heads of Ministries equivalent to Ministries, Government Agencies, and other central agencies have the responsibility:

- Based on the allocated budget estimate, decide on the provision of automobiles for newly established units and positions entitled to automobile provision as stipulated in Article 12 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg and guided in this Circular.

- Direct subordinate agencies and units to establish vehicle management and usage regulations based on the vehicle usage price framework prescribed by the Chairman of the Provincial People's Committee at point a, Clause 2, Section I Part III to follow the guidance provided in this Circular.

- Organize and manage the existing fleet of vehicles in accordance with Article 18 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg and guided in this Circular.

- Review the number of vehicles already provided to subordinate agencies and units within their jurisdiction to decide or propose to the competent authority to decide on the transfer of vehicles from completed projects and those from agencies and units that do not need them to units that have not been provided with automobiles for work purposes; inspect the procurement, provision, management, and use of automobiles for work purposes by subordinate agencies and units to promptly report or report to the competent authority for timely handling of violations as stipulated in Article 22 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg and guided in this Circular.

2. The Provincial People's Committee directs the Department of Finance to coordinate with relevant Departments:

- To establish a rental car rate in the locality after this Circular takes effect; adjust the rental car rate when market prices fluctuate by more than 20%, to submit to the Chairman of the Provincial People's Committee for decision to serve as a basis for agencies and units in the locality to calculate the payment level for positions specified in Article 6 and Clause 1 of Article 9 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg when registering to implement the package system.

- To establish a vehicle usage price framework to submit to the Chairman of the Provincial People's Committee for issuance as a basis for agencies and units in the locality to determine the unit price for the current vehicles being used, to account for and publicly disclose vehicle usage costs as required.

- Based on the need for automobile provision for newly established units and positions entitled to automobile provision as stipulated in Article 12 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg and guided in this Circular, allocate in the annual budget estimate for submission to the competent authority for decision and assignment to agencies and units in the locality to implement.

- Study and establish a model for organizing and managing the existing fleet of vehicles to submit to the competent authority for decision in accordance with Article 18 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg and guided in this Circular.

- Review the number of vehicles already provided to agencies and units under local management to propose the Provincial People's Committee to decide on the transfer of vehicles from completed projects and those from agencies and units that do not need them to units that have not been provided with automobiles for work purposes; inspect the procurement, provision, management, and use of automobiles for work purposes by agencies and units under local management; identify and report to the competent authority for prompt handling of violations as stipulated in Article 22 of the Regulations issued together with Decision No. 59/2007/QĐ-TTg and guided in this Circular.

Part V

IMPLEMENTATION

This Circular shall take effect fifteen days from the date of publication in the Official Gazette. During the implementation process, if any difficulties arise, they are requested to be promptly reported to the Ministry of Finance by relevant ministries, sectors, and localities for study and resolution./.