Circular No. 198/2013/TT-BTC on the management, use, and disposal of assets of projects funded by state capital

CIRCULAR

Regulations on the management, use, and disposal of assets

of projects using state capital

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Pursuant to the Law on State Budget dated December 16, 2002;

Pursuant to Decree No. 38/2013/NĐ-CP dated April 23, 2013 of the Government on management and use of official development assistance (ODA) and preferential loans from donors;

Pursuant to Decree No. 93/2009/NĐ-CP dated October 22, 2009 of the Government promulgating the regulations on the management and use of non-governmental foreign aid;

Pursuant to Decree No. 137/2006/NĐ-CP dated November 14, 2006 of the Government stipulating the delegation of state asset management authority for administrative agencies, public service units, and state-owned assets;

Pursuant to Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain provisions of the Law on Management and Use of State Property;

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

Pursuant to Directive No. 17/2007/CT-TTg dated July 25, 2007 of the Prime Minister on strengthening the management of assets of project management boards using state capital;

At the proposal of the Director of the State Asset Management Department;

The Minister of Finance issues this Circular regulating the management, use, and disposal of assets of projects using state capital.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular stipulates the regime for the management, use, and disposal of assets of projects, programs, and proposals (hereinafter referred to collectively as projects) using state capital managed by ministries, ministerial-level agencies, government-affiliated agencies, other central agencies (hereinafter collectively referred to as ministries and central agencies), and People's Committees at all levels.

Projects using state capital as defined in this Circular include: projects using state budget funds, government bonds, local government bonds, official development assistance (ODA) sources, preferential loans, and non-governmental foreign aid sources included in state budget revenues.

Article 2. This Circular does not apply to projects of state-owned enterprises, economic organizations supported by state budget funds, state loan projects to enterprises and financial institutions, non-project aid assets, and projects under the management of the Ministry of National Defense and the Ministry of Public Security.

Article 3. In cases where a project management board is assigned to manage multiple projects and operates according to the model of a public service unit or enterprise, the management, use, and disposal of assets serving the common work of the project management board shall be carried out in accordance with the regulations on the management and use of state assets in public service units or enterprises; the management, use, and disposal of assets serving the specific activities of each project must be implemented in accordance with the provisions of this Circular.

Article 2. Applicability

Clause 1. State agencies with competent authority perform the function of managing state assets of projects.

Clause 2. Project sponsors, project owners, project management boards using state capital.

Clause 3. Project supervisory agencies, agencies deciding to establish project management boards, and agencies with authority to decide on investment.

Clause 4. Beneficiaries of assets resulting from the implementation process of projects.

Clause 5. Other entities related to the management, use, and disposal of assets of projects using state capital.

Article 3. Project Assets

Project assets as defined in this Circular include:

1. Assets serving the management of projects by project management boards, agencies, organizations, and units implementing projects (hereinafter collectively referred to as assets serving project management), including:

a) Office premises and other assets attached to land, including the area of land allocated to serve project management and construction;

b) Means of transportation;

c) Machinery, equipment, and other assets serving project management.

2. Assets resulting from the implementation process of projects.

3. Assets serving the activities of foreign experts, consulting, supervising, and construction contractors of ODA-funded, preferential loan-funded, and non-governmental foreign aid-funded projects when the projects conclude, and these experts and contractors transfer assets to Vietnam (hereinafter collectively referred to as assets transferred by foreign parties to the Vietnamese Government).

4. Materials recovered during the implementation process of projects.

Article 4. Principles for managing, using, and disposing of project assets

1. Investment and provision of assets to serve project management shall only be carried out for Project Management Boards established in accordance with the law, agencies, organizations, and units implementing the projects. Contractors, consultants, and supervisors must ensure their own assets for advisory, supervisory, and construction activities. The Project Management Board shall not invest in constructing, purchasing, or renting assets to equip contractors, consultants, or supervisors. For time-based consulting contracts, the Project Management Board shall use existing assets of the Project Management Board or rent assets to serve the consultant's work during the contract period.

2. Investment and provision of assets to serve project management must be appropriate to assigned tasks, standards, and norms prescribed by competent state agencies, within the approved budget, and in accordance with the regulations of the financier (if applicable), ensuring economy and thriftiness.

3. Project assets must be used for their intended purposes and fully recorded in terms of physical quantity and value according to prescribed regulations.

4. Project assets must be maintained, repaired, and protected according to prescribed regulations.

5. When the project ends or there is no longer a need for the assets, they must be disposed of promptly in accordance with this Circular and relevant laws.

6. Management and use of project assets must be transparent; all violations of asset management and usage regulations must be promptly and strictly dealt with in accordance with the law.

7. In cases where specific international agreements on ODA or non-governmental foreign aid documents contain different provisions regarding the management, use, and disposal of project assets, such provisions shall be implemented in accordance with those agreements and documents.

Article 5. Rights and Obligations of the Project Management Board in Managing, Using, and Disposing of Project Assets

The project investor, project owner (in cases where a Project Management Board is not established), and the Project Management Board (hereinafter collectively referred to as the Project Management Board) have the following rights and obligations in managing, using, and disposing of project assets:

1. Rights:

a) To use project assets according to assigned functions and tasks;

b) To decide on measures to protect, exploit, and effectively use project assets;

c) To organize the implementation of asset management, use, and disposal in accordance with this Circular and relevant laws.

2. Obligations:

a) To use project assets for their intended purposes, in accordance with standards and norms, and to ensure efficiency and economy;

b) To implement maintenance, repair, and protection of project assets according to prescribed regulations;

c) To issue and implement regulations on the management and use of project assets;

d) To establish and manage asset records; to account for and record assets; to report on the declaration of assigned project assets in accordance with this Circular and accounting and statistical laws.

Chapter II

MANAGEMENT, USE, AND DISPOSAL OF ASSETS TO SERVE PROJECT MANAGEMENT WORK

Section 1

INVESTMENT AND PROVISION OF ASSETS TO SERVE PROJECT MANAGEMENT WORK

Article 6. Forms of Investment and Provision of Assets to Serve Project Management Work

1. Agencies and units assigned to implement the project are responsible for arranging and allocating existing assets within their agency or unit to serve project management work.

2. If it is not possible to arrange and allocate from existing assets, the agency or unit assigned to implement the project may invest in and provide assets through the following forms:

a) Transfer of assets from other agencies or units or from completed projects;

b) Renting assets;

c) Constructing and purchasing assets.

3. In cases where negotiations for signing specific international agreements on ODA require the construction of office premises and purchase of vehicles for project management work that differ from Vietnam’s regulations, in addition to complying with current regulations on procedures and formalities for signing, joining, and implementing international agreements, the agency or unit primarily responsible for negotiating the specific international agreement on ODA must obtain written approval from the same-level state financial agency before signing the agreement.

4. In cases where international agreements do not specifically stipulate vehicle purchases but financiers request the provision of vehicles during project implementation, the Project Management Board shall report to the project supervising agency to seek agreement from the same-level state financial agency on the number, type, and price of vehicles, and submit to the competent authority for a decision on procurement.

Article 7. Transfer of assets for project management work

1. In cases where the agency or unit assigned to implement the project cannot arrange and allocate existing assets within the agency or unit to serve project management work, the project’s main managing agency shall be responsible for reviewing assets under its management scope of other agencies, units, and projects to decide or report to the competent authority to decide on transferring assets to the Project Management Board to serve project management work.

2. The authority to decide on transferring assets to serve project management work shall be carried out in accordance with the provisions of the law on state asset management and utilization and the provisions of Articles 18, 20, and 26 of this Circular.

3. The procedures and formalities for transferring assets to serve project management work shall be carried out in accordance with the provisions of the law on state asset management and utilization and the provisions of Articles 19, 20, and 26 of this Circular.

Article 8. Leasing assets for project management work

1. Leasing assets for project management work shall be implemented when the following conditions are met:

a) It is not possible to arrange and allocate existing assets within the agency or unit assigned to carry out the project;

b) The asset transfer method cannot be applied or can only partially meet the requirements even if transferred;

c) There is a need to use assets for a short period (less than 50% of the usage time stipulated for each asset according to regulations) or not regularly, or has been permitted by the competent authority to invest, construct, purchase, or accept assets but must lease temporarily during the implementation of investment construction, purchasing, or acceptance.

2. The competent authority deciding to establish the Project Management Board shall decide or delegate the decision-making authority to lease assets for project management work.

3. The Project Management Board meeting the leasing asset conditions stipulated in Clause 1 of this Article shall base on standards, quotas, and asset usage needs to prepare a leasing plan to submit to the competent authority stipulated in Clause 2 of this Article for consideration and decision.

4. The selection of service providers for leasing assets, determination of leasing rates (including additional leased assets) shall be carried out in accordance with current laws and guidance from the Ministry of Finance in Circular No. 245/2009/TT-BTC dated December 31, 2009 guiding the implementation of certain contents of Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain articles of the Law on State Asset Management and Utilization (hereinafter referred to as Circular No. 245/2009/TT-BTC), Circular No. 09/2012/TT-BTC dated January 19, 2012 amending and supplementing Circular No. 245/2009/TT-BTC (hereinafter referred to as Circular No. 09/2012/TT-BTC) or any subsequent amended and supplemented documents (if any).

5. The leasing expenses for assets serving project management work shall be sourced from the project management fee and other legitimate sources permitted for use by the Project Management Board in accordance with the law.

Article 9. Investment in construction, procurement of assets for project management work

1. Investment in construction, procurement of assets for project management work shall be carried out when the following conditions are met:

a) It is not possible to arrange and allocate existing assets within the agency or unit;

b) The asset transfer method prescribed in Article 7 of this Circular cannot be applied or can only partially meet the requirements even if it is applied;

c) The asset leasing method prescribed in Article 8 of this Circular cannot be applied.

2. Authority to decide on investment in construction, procurement of assets for project management work:

a) The authority to decide on investment in construction of offices for project management work shall be carried out in accordance with the law on investment, the law on construction, and other relevant laws.

b) The competent authority deciding to establish the Project Management Board shall decide or delegate the decision-making authority to procure assets for project management work. In cases where the competent authority deciding to establish the Project Management Board is different from the competent authority deciding on investment or approving the project, the agency of the person with the authority to decide on establishing the Project Management Board must seek the opinion of the agency with the authority to decide on investment or approve the project before making a decision on asset procurement.

3. The procedures and formalities for investment in construction, procurement of assets for project management work shall be carried out in accordance with the applicable laws for state agencies and public service organizations and the provisions of the sponsor (if any).

4. The investment and procurement expenses for assets shall be sourced from the project management fee and other legitimate sources permitted for use by the Project Management Board in accordance with the law.

Section 2

USE, REPAIR, MAINTENANCE, ACCOUNTING

OF ASSETS SERVING PROJECT MANAGEMENT WORK

Article 10. Use of assets for project management work

1. Assets serving project management work must be used for their intended purpose, functional capacity, standards, quotas, regulations, and ensure efficiency and economy.

2. The head of the Project Management Board assigned to manage and use assets must issue a Regulation on the management and use of assets; fuel consumption quotas for transportation vehicles must comply with legal provisions.

Article 11. Maintenance and repair of assets serving project management work

1. Assets serving project management work must be inspected, maintained, and repaired according to the prescribed regime, standards, and economic-technical quotas by the competent authority. The head of the Project Management Board assigned to manage and use assets decides on the maintenance and repair of assets.

2. The maintenance and repair costs of project assets are funded from the project management budget.

Article 12. Accounting for assets serving project management work

The Project Management Board is responsible for monitoring and accounting for assets serving project management work according to the current accounting system suitable for the type of activity of the Project Management Board.

Section 3

ASSET REPORTING AND DECLARATION FOR PROJECT MANAGEMENT WORK

Article 13. Scope of assets subject to reporting and declaration

Assets serving project management work within the scope of reporting and declaration include:

1. The office premises of the Project Management Board;

2. Various types of automobiles;

3. Other assets meeting the criteria for fixed assets as stipulated in the regulations on standards and identification of fixed assets in state agencies, public service units, and organizations using state budget funds.

Article 14. Types of Asset Reporting and Declaration

1. The Project Management Board is responsible for reporting and declaring assets serving project management work into the Project Asset Database within the National State Asset Database in the following cases:

a) Initial reporting and declaration: Applies to assets serving project management work existing at the time this Circular takes effect;

b) Supplementary reporting and declaration: Applies to situations where there are changes in assets serving project management work due to new construction, procurement, receipt from other units for use; recovery, transfer, sale, liquidation of assets according to decisions of competent state authorities.

2. Deadline for asset reporting and declaration:

a) Before September 30, 2014, for assets specified in point a, Clause 1 of this Article;

b) Not exceeding thirty days from the date of change for cases specified in point b, Clause 1 of this Article.

Article 15. Procedure for Reporting and Declaration

1. The Project Management Board is responsible for preparing the reporting and declaration form according to the forms issued along with this Circular (each form prepared in three copies), submitting to the main project management agency for confirmation: one copy sent to the financial department of the Ministry or central agency (for assets under central management), Department of Finance (for assets under local management), one copy sent to the Project Management Board, one copy retained by the main project management agency.

2. The declaration forms are defined as follows:

a) For assets declared for the first time: Implemented according to Form No. 01a-ĐK/TSDA, Form No. 01b-ĐK/TSDA, Form No. 01c-ĐK/TSDA.

b) For newly constructed, purchased, or received assets for use after initial reporting and declaration: Implemented according to Form No. 01a-ĐK/TSDA, Form No. 01b-ĐK/TSDA, Form No. 01c-ĐK/TSDA.

c) Changes in asset information according to Form No. 02a-ĐK/TSDA, Form No. 02b-ĐK/TSDA, Form No. 02c-ĐK/TSDA;

d) Deletion of asset information from the database according to Form No. 03/TSDA;

3. Based on the reported and declared information of the Project Management Board confirmed by the main project management agency, the financial department of the Ministry, central agency, or Department of Finance is responsible for entering asset data into the State Asset Registration Management Software within three working days from the date of receiving the report and declaration.

Depending on actual circumstances, the Ministry, central agency, provincial People's Committee, or centrally-administered city (hereinafter referred to collectively as provincial level) may delegate the entry of data to the main project management agency or the Project Management Board after obtaining written agreement from the Ministry of Finance.

Article 16. Exploitation and use of information on project assets in the National Database on State Assets

1. Information exploitation:

a) The Ministry of Finance shall exploit information on project assets nationwide;

b) Ministries, central agencies, Provincial Departments of Finance, and project management agencies shall exploit information on assets of projects under their jurisdiction;

c) Project Management Boards shall exploit information on assets within the scope of their management.

2. Information stored in the Database shall be used for:

a) Implementing reports on the management, use, and handling of project assets as required by competent state authorities;

b) Serving as a basis for budget preparation, settlement approval, decision-making, inspection, auditing, and supervision of investment construction, procurement, leasing, upgrading, renovation, and repair of assets; inventory, establishment, and approval of asset disposal plans (recovery, sale, transfer, liquidation) of project assets.

3. The Minister, Head of Central Agencies, and People's Committee of provinces shall issue Regulations on cooperation in providing information to check and verify the results of registering project asset data into the Asset Registration Management Software and using information on assets stored in the Database for purposes specified in Clause 2 of this Article.

Section 4

DISPOSAL OF ASSETS FOR PROJECT MANAGEMENT WORK

Article 17. Forms of asset disposal serving project management work when the project ends

1. Transfer of Assets:

a) Transfer to state agencies, public service units, people's armed forces units, political organizations, and political-social organizations (hereinafter referred to collectively as agencies, organizations, and units) that have a need to use assets but fall short of the prescribed standards and usage norms set by competent state authorities;

b) Transfer to serve the activities of other projects;

c) Special cases not covered by points a and b of this clause shall be decided by the Prime Minister.

2. Liquidate assets that have exceeded the usage period according to regulations and cannot continue to be used; assets that are damaged and cannot be used or where repairs would not be effective; office premises or other assets attached to land that must be demolished according to the decision of the competent authority, and other cases allowed to be liquidated under the law.

3. Sell assets that are not disposed of through the transfer or liquidation methods stipulated in Clauses 1 and 2 of this Article. The sale of assets shall be conducted through public auction in accordance with the law, except for the following cases permitted to sell by designation:

a) Organizations or individuals who register to purchase assets on land, accept the transfer of land use rights for socialization purposes in education, vocational training, healthcare, culture, sports, and environmental sectors in line with approved planning. If there are two or more organizations or individuals registering to purchase assets on land, accept the transfer of land use rights for socialization purposes in the aforementioned sectors, then auctions shall be held among the participating registrants;

b) In cases where only one organization or individual registers to purchase assets and offers at least the starting price after the auction registration deadline has expired;

c) Cases where the re-evaluated value of the asset is less than 50 million dong/unit (The re-evaluation of the asset value shall be carried out by the Asset Liquidation Board of the Project Management Board or hired valuation enterprises);

4. Transfer to local management for the area of land assigned (or temporarily assigned) to the Project Management Board to serve project construction work.

Article 18. Authority to Decide on the Disposal of Assets Serving Project Management When the Project Ends

1. For projects under central management:

a) The Minister of Finance decides on the sale of office premises and other assets attached to land (including land use rights); transfer of assets between ministries, central agencies, or between central-managed organizations, units, projects and local-managed organizations, units, projects upon the proposal of the Minister, Head of Central Agency, and the Chairman of the Provincial People's Committee concerned;

b) The Minister, Head of Central Agency decides or delegates authority to decide: Transfer of assets to organizations, units within their jurisdiction for serving the management work of other projects under their jurisdiction; sell non-office assets and other assets attached to land; liquidate assets of concluded projects; hand over land areas allocated (or temporarily allocated) for project construction to the Provincial People's Committee after completing the project construction. Decisions on transferring office premises and other assets attached to land; decisions on transferring, selling, and liquidating vehicles as stipulated in this clause shall be implemented after obtaining written consensus from the Ministry of Finance.

2. For projects under local management:

a) The Minister of Finance decides on the transfer of assets of locally managed projects to central-managed organizations, units, projects or among provinces directly under the central government upon the proposal of the Minister, Head of Central Agency, and the Chairman of the Provincial People's Committee concerned.

b) The Chairman of the Provincial People's Committee decides on the transfer of assets to organizations, units within their jurisdiction; sell and liquidate office premises, other assets attached to land, and transportation means upon the proposal of the Director of the Department of Finance and Heads of related agencies; decide or delegate authority to decide on the transfer, sale, and liquidation of remaining assets.

3. In cases where asset transfers require acceptance proposals from the Minister, Head of Central Agency, and the Chairman of the Provincial People's Committee as stipulated in point a, Clause 1 and point a, Clause 2 of this Article, the Minister, Head of Central Agency, and the Chairman of the Provincial People's Committee have the right to delegate authority to the heads of supervising agencies of the receiving organizations, units, Project Management Boards to submit proposals for accepting assets that are not the following types of assets:

a) Office premises, other assets attached to land;

b) Vehicles;

c) Other assets with original value of 500 million VND/unit or more.

4. For cases stipulated in point c, Clause 1 of Article 17 of this Circular, the Minister of Finance, the Minister, Head of Central Agency, and the Chairman of the Provincial People's Committee concerned report to the Prime Minister for decision on asset transfer.

Article 19. Procedure for Disposing of Assets Serving Project Management When the Project Ends

1. Upon the project's conclusion, the Project Management Board is responsible for preserving the status quo of assets and asset records until they are handed over to the receiving organization, unit, project or until the disposal of assets according to the competent authority's decision is completed.

In cases where the project has ended and the Project Management Board has been dissolved but has not yet disposed of all assets, the main managing agency of the project is responsible for preserving the assets and asset records and performing other tasks of the Project Management Board as stipulated in this Circular.

2. At least 30 days before the project's end date as decided by the competent authority, the Project Management Board is responsible for inventorying assets serving project management, proposing disposal plans, reporting to the ministry or central agency acting as the main managing agency (for centrally managed projects); sending to the provincial department, district, county, town, city people's committee acting as the main managing agency (for locally managed projects). In cases where excess or shortage of assets is discovered, it must be clearly recorded in the Asset Inventory Report, specifying the cause, responsibility, and proposing measures for handling according to the state asset management and utilization regulations.

List of assets proposed for disposal: Implemented according to Model No. 04a-DM/TSDA, Model No. 04b-DM/TSDA, Model No. 04c-DM/TSDA; Asset Inventory Report: Implemented according to Model No. 05a/TSDA issued together with this Circular.

For programs and projects where there is a main managing agency playing a coordinating role and managing component projects: The Project Management Board of component projects is responsible for inventorying and reporting to the main Project Management Board for consolidation and proposal of disposal plans.

3. Ministries, central agencies (for centrally managed projects); provincial departments, district, county, town, city people's committees (for locally managed projects) are responsible for establishing disposal plans for concluded projects within their jurisdiction to decide on disposal according to their authority or submit to the competent authority for decision according to Article 18 of this Circular.

4. In cases where the Project Management Board or the main managing agency of the project does not propose a disposal plan or proposes a plan inconsistent with this Circular, the competent authority approving the disposal plan stipulated in Article 18 of this Circular decides to recover the assets for disposal according to the laws on state asset management and utilization.

5. After the competent authority's disposal decision, the organization and implementation of asset disposal shall proceed as follows:

a) For assets with a decision on reallocation, land with a decision to transfer land to localities: Within thirty days from the date of the competent authority's decision, the Project Management Board shall take the lead and coordinate with agencies, organizations, units, projects receiving the assets to hand over and accept the assets in accordance with the provisions of Circular No. 43 TC/QLCS dated July 31, 1996 guiding the receipt and transfer of assets between administrative and public service agencies and economic organizations based on decisions of competent authorities, Circular No. 122/2007/TT-BTC dated October 18, 2007 amending and supplementing Circular No. 43 TC/QLCS, or other amended and supplemented documents (if any).

b) For assets with a decision to sell: The procedures and formalities for auction sales and designated sales shall be carried out in accordance with the laws on management and use of state assets and the law on auction sales of assets.

c) For assets with a decision to liquidate: The methods, procedures, and formalities for liquidation shall be implemented in accordance with the provisions of Decree No. 52/2009/NĐ-CP dated June 3, 2009 of the Government detailing and guiding the implementation of certain articles of the Law on Management and Use of State Assets (hereinafter referred to as Decree No. 52/2009/NĐ-CP); Circular No. 245/2009/TT-BTC and Circular No. 09/2012/TT-BTC of the Ministry of Finance, or other amended and supplemented documents (if any).

d) In cases where infrastructure construction projects along routes involve assets under central management that are equipped in multiple provinces and centrally-administered cities, the central Project Management Board may delegate to the agencies, organizations, and units directly using such assets at the locality to organize the sale and liquidation of assets according to the decision of the competent authority stipulated in Article 18 of this Circular.

Article 20. Handling of Assets Serving Project Management That Are Not Yet Completed But No Longer Needed Or Usable

1. For projects that have not been completed but have assets that are no longer needed or usable, the Project Management Board must conduct an inventory and propose handling solutions to submit to the competent authority specified in Article 18 of this Circular for consideration and decision.

2. The form, authority, procedures, and formalities for handling assets serving project management that are not yet completed but no longer needed or usable during the implementation of the project shall be carried out in accordance with the provisions of Articles 17, 18, and 19 of this Circular.

Chapter III

MANAGEMENT AND HANDLING OF ASSETS RESULTING FROM THE IMPLEMENTATION OF PROJECTS

Article 21. Assets Resulting from the Implementation of Projects

1. Assets resulting from the implementation of projects include:

a) Transportation means, machinery, equipment, and other assets invested in and purchased with project funds and handed over to beneficiaries for use during the project implementation process;

b) Construction works and other assets invested in and purchased with project funds, when the project is completed in full or partially (individual components or sub-projects that can operate independently upon completion), settled and transferred to beneficiaries for use.

2. Assets resulting from the implementation of projects and their beneficiaries must be specifically defined in the project approved by the competent authority.

Article 22. Management of the process of forming assets

1. For assets specified in point a, Clause 1, Article 21 of this Circular:

a) The management of the investment and procurement process to form assets shall be carried out in accordance with the laws on investment, asset procurement, construction laws, other relevant laws, and project documentation (if applicable).

b) After completing the investment and procurement, the Project Management Board shall be responsible for transferring the assets to the beneficiaries of the project for exploitation and use in accordance with the project's objectives.

c) The procedures for transferring assets for exploitation and use shall be implemented in accordance with the guidance of the Ministry of Finance in Circular No. 43/TC-QLCS dated July 31, 1996, and Circular No. 122/2007/TT-BTC dated October 18, 2007, or any subsequent amendments and supplements (if applicable).

d) Assets transferred to the beneficiary unit after the transfer are state assets assigned to agencies, organizations, and units for management and use. The receiving agency, organization, or unit shall be responsible for monitoring, recording the increase in assets and their sources, and reporting changes in assets according to the current regime of the State. If the final settlement has been completed, the assets shall be recorded at the approved settlement value. If the final settlement has not been completed, the assets shall be temporarily recorded at the approved budgeted value; once the approved settlement is received, the asset value on the accounting books shall be adjusted accordingly. During the implementation of the project, the entity receiving the assets shall be responsible for protecting and using the assigned assets in accordance with their intended purpose; ensuring efficiency and economy.

2. For assets specified in point b, Clause 1, Article 21 of this Circular, the management of the investment and procurement process to form assets shall be carried out in accordance with the laws on investment management, procurement laws, and other relevant laws.

Article 23. Handling of assets after the completion of the project

1. For assets specified in point a, Clause 1, Article 21 of this Circular, when the project ends, the Project Management Board shall be responsible for:

a) Submitting to the competent authority for approval of the final settlement in accordance with regulations;

b) Notifying the beneficiary unit to adjust the asset value on the accounting books (if necessary);

c) The management and use of assets by the project beneficiaries shall be carried out in accordance with the provisions of Clause 3 of this Article.

2. For assets specified in point b, Clause 1, Article 21 of this Circular, the Project Management Board shall be responsible for submitting to the competent authority for approval of the final settlement in accordance with regulations. The Project Management Board shall be responsible for transferring all project assets and related documents to the project beneficiaries for exploitation and use. The value of the transferred assets is the investment and procurement value according to the approved final settlement. If the final settlement has not been completed, the transferred asset value shall be temporarily calculated based on the approved budgeted value; once the approved final settlement is received, the transferred asset value on the accounting books shall be adjusted accordingly.

3. The accounting and management of project assets after the transfer shall be carried out as follows:

a) For entities receiving project assets that are state agencies, public service units, people's armed forces units, political organizations, political-social organizations, political-social-professional organizations, social organizations, and social-professional organizations: The receiving entity must record the increase in assets, report and declare assets subject to reporting and declaration requirements, and manage and use assets in accordance with the laws on the management and use of state assets.

b) For entities receiving project assets that are economic organizations: The receiving entity must record the increase in state capital assigned to the organization and manage and use the assigned assets in accordance with the financial system applicable to that economic organization.

c) For entities receiving project assets that are households or individuals: The management and use of assets shall be carried out in accordance with civil laws, other relevant laws concerning the received assets, and project documents, clauses, and decisions of the competent authority.

Chapter IV

MANAGEMENT AND HANDLING OF ASSETS TRANSFERRED BY FOREIGN COUNTRIES TO THE GOVERNMENT OF VIETNAM

Article 24. Acceptance and storage of assets

1. The project management board shall be responsible for accepting assets transferred from foreign parties and preserving the accepted assets and their documentation (registration certificate or ownership certificate of equipment; purchase invoices, documents related to asset tax obligations) in their original condition until they are handed over to the receiving agencies, organizations, units, or projects, or until the sale or liquidation of the assets is completed according to the competent authority's decision. In cases where foreign parties fail to transfer the asset documentation, the project management board must clearly record the missing types of documents and papers in the Asset Acceptance Minutes.

The Asset Acceptance Minutes for assets transferred to the Government of Vietnam by foreign parties shall be carried out according to Model No. 05b/TSDA issued together with this Circular.

2. The project management board shall be responsible for completing the procedures for transfer and tax payment as prescribed by law before submitting to the competent authority to establish the State's ownership rights over the assets and approve the asset disposal plan.

In cases where the project management board cannot allocate funds for advance tax payment, the project management board shall report to the competent state agency approving the asset disposal plan to decide on tax payment after selling or liquidating the assets, or transferring them to the receiving agencies, organizations, units, or projects to handle tax payment procedures as prescribed by law.

Article 25. Establishment of State Ownership Rights over Transferred Assets

1. Within fifteen working days from the date of completing the transfer and tax payment procedures (if applicable) as prescribed by law, the project management board shall be responsible for reporting to the supervising agency to submit to the competent authority specified in Clause 3 of this Article to decide on establishing the State's ownership rights over the received assets as prescribed by law.

2. The documents submitted to the competent authority to establish the State's ownership rights over the assets include:

a) A proposal requesting the establishment of the State's ownership rights over the assets by the receiving agency (one original copy);

b) A list detailing the types, quantities, volumes, values, and current conditions of the assets (one original copy);

c) The Asset Transfer Acceptance Minutes (one original copy);

d) Documentation proving ownership and usage rights of the transferred assets (one original copy or certified true copy);

đ) Documents regarding the transfer and tax payment (if applicable) (one original copy or certified true copy).

3. Authority to decide on establishing State ownership rights:

a) The Minister of Finance decides on establishing the State's ownership rights over assets transferred by experts or contractors implementing central-managed projects;

b) The Chairman of the People's Committee of the province decides on establishing the State's ownership rights over assets transferred by experts or contractors implementing locally-managed projects.

4. The time limit for the competent authority specified in Clause 3 of this Article to issue a decision on establishing State ownership rights is no later than five working days from the date of receipt of complete and valid documents as stipulated in Clause 2 of this Article.

Article 26. Disposal of Assets Transferred to the Government of Vietnam by Foreign Parties

1. The forms of asset disposal, authority to decide on asset disposal, and the procedure for asset disposal shall be implemented according to the provisions of Articles 17, 18, and 19 of this Circular.

2. In cases where the project management board has been dissolved, the project supervising agency shall perform the tasks of the project management board as stipulated in Articles 24, 25, and Clause 1 of this Article.

Chapter V

DISPOSAL OF MATERIALS RECOVERED DURING PROJECT IMPLEMENTATION

Article 27. Recovered materials during project implementation

Recovered materials during project implementation are materials recovered from dismantling infrastructure construction works serving public interest and national interest (hereinafter referred to as old infrastructure construction works) when constructing new infrastructure construction works.

Article 28. Dismantling and preserving recovered materials

1. When constructing infrastructure construction works, the Project Management Board shall be responsible for organizing the dismantling or hiring organizations or individuals with the function of dismantling old infrastructure construction works (if any) and recovering reusable materials for disposal according to regulations (except in cases where the competent authority has approved the investment project stipulating that the contractor is responsible for dismantling old infrastructure construction works).

2. The Project Management Board shall be responsible for preserving recovered materials from the dismantling of old infrastructure construction works in their original condition until the transfer and sale process is completed according to the decision of the competent authority.

Article 29. Forms of handling recovered materials

1. Recovered materials from the dismantling of old infrastructure construction works shall be handled in the following forms:

a) Transfer according to Clause 1 of Article 17 of this Circular;

b) Auction;

c) Directed sale for cases where the value of recovered materials from a single disposal is less than fifty million dong.

2. In cases where the investment project is approved by the competent authority stipulating that the value of recovered materials is deducted from the total investment cost of the project, the contractor implementing the project shall organize the disposal of assets in accordance with the provisions of the law; not to handle according to the provisions of this Circular.

Article 30. Authority to decide and procedures for handling recovered materials

The authority to decide on handling and the procedures for handling recovered materials from the dismantling of old infrastructure construction works shall be implemented according to the provisions of Articles 18 and 19 of this Circular.

Chapter VI

FINANCIAL MANAGEMENT IN THE PROCESS OF HANDLING PROJECT ASSETS

Article 31. Content of Expenditure

1. Costs for inventorying, classifying, and appraising assets.

2. Asset preservation costs: Costs for renting warehouses and storage areas to preserve assets, expenses for asset protection work.

3. Costs for transferring ownership procedures, paying taxes (if applicable) for assets transferred from foreign parties to the Government of Vietnam.

4. Costs for dismantling and recovering materials from old infrastructure construction works when constructing new infrastructure construction works (in cases where these costs are not included in the total investment cost of the new infrastructure construction project).

5. Costs for auctioning assets.

6. Costs for determining asset values, costs for hiring valuation services.

7. Costs for liquidating assets: Costs for organizing the sale or demolition and scrapping of assets.

8. Costs arising during the handover and receipt of assets.

9. Other costs directly related to the disposal of project assets.

Article 32. Level of Expenditure

The level of expenditure for each item specified in Article 31 of this Circular shall be implemented according to standards, norms, and regulations set by competent state agencies; in cases where there are no such standards, norms, and regulations, the head of the agency responsible for asset disposal shall determine the level of expenditure, ensuring it is consistent with current state financial management regulations and shall be accountable for their decision.

Article 33. Sources of funds

1. For assets with a decision to sell or liquidate: The funds for expenditures specified in Article 31 of this Circular shall be sourced from the proceeds obtained from selling or liquidating the assets. In cases where the asset disposal does not generate revenue or the revenue is insufficient to cover the costs, the shortfall shall be settled and paid from the project management fund.

2. For assets with a decision to transfer, the organization, entity, unit, or project receiving the assets shall be responsible for covering the related costs specified in Article 31 of this Circular.

Article 34. Management and use of proceeds from the sale or liquidation of assets

The proceeds from the sale or liquidation of assets, after deducting related expenses as prescribed in Article 31 of this Circular (if applicable), shall be deposited into the state budget in accordance with the laws on the state budget as follows:

1. Deposited into the central budget for projects under central management;

2. Deposited into the local budget for projects under local management.

Chapter VII

IMPLEMENTING PROVISIONS

Article 35. Effective Date

1. This Circular shall take effect from February 15, 2014.

2. This Circular replaces and abolishes Circular No. 87/2010/TT-BTC dated June 15, 2010 of the Ministry of Finance regarding the management and disposal of assets of state-funded projects upon project completion, which ceases to be effective.

3. For assets of projects that have been completed before the date this Circular takes effect but have not yet received a disposal decision, they shall be disposed of in accordance with the provisions of this Circular. In cases where a disposal decision has already been made but the disposal has not yet been completed, it shall be carried out in accordance with the provisions at the time of the disposal decision.

4. During the implementation of this Circular, if any difficulties arise, relevant agencies, organizations, and units are requested to promptly report to the Ministry of Finance for coordination in resolving them./.