Circular No. 46/TC-QLCS guides the acceptance, transfer, and revaluation of the value of houses and land belonging to surplus office premises resulting from the restructuring of the working house fund of Ministries, ministerial-level agencies, and agencies under the Government's management and use.

CIRCULAR

OF THE MINISTRY OF FINANCE NUMBER: 46/TC-QLCS DATE: JUNE 14, 1995

GUIDELINES FOR RECEIVING, HANDING OVER, REASSESSING THE VALUE OF OFFICE BUILDINGS AND LAND

REMOVED DUE TO THE IMPLEMENTATION OF REORGANIZATION

OF THE OFFICE HOUSING FUNDS OF MINISTRIES, GOVERNMENT-EQUIVALENT ORGANIZATIONS, AND GOVERNMENT AFFILIATED ORGANIZATIONS

UNDER MANAGEMENT AND USE.

In recent times, the use of state-owned office buildings and land allocated to ministries, government-equivalent organizations, and government-affiliated organizations (collectively referred to as state agencies) for office purposes has generally been unreasonable, wasteful, and inefficient. To address this situation, on November 16, 1994, the Prime Minister issued Directive No. 683/TTg, requiring heads of state agencies, People's Committees of provinces and centrally-administered cities related to organize the reorganization of office buildings and land funds to be reasonable, economical, ensuring sufficient working conditions, complying with regulations and policies, and handing over excess buildings and land to the Government according to the proposals of the Ministry of Finance and the Ministry of Construction.

The Ministry of Finance provides guidelines for receiving, handing over, and reassessing the value of office buildings and land, and other assets attached to such buildings and land, as follows:

I - ASSETS TO BE HANDOVERED:

Assets handed over to the Government are the original condition of buildings, land, and other assets attached to excess buildings and land in the following cases:

1/ Buildings, land, and other assets that are excess due to the merger of two to three agencies into one, where the new agency selects to retain the office premises of one of the former agencies;

2/ Buildings, land, and other assets that are excess due to organizational restructuring, reduction in staff, or reduction in central offices located in localities.

3/ Buildings and land belonging to the office premises of agencies that have been improperly used for purposes not permitted by the Government or competent authorities, such as transfer, lease, conversion into business service bases, or distribution to officials as residences, now the Government decides that the agencies must return the buildings and land.

II - REASSESSING THE VALUE OF BUILDINGS, LAND, AND OTHER ASSETS TO BE HANDOVERED:

State agencies with assets to hand over must organize the reassessment of the value of buildings, land, and other assets attached to buildings and land before handing them over to the Government. The reassessment of the value of these assets shall be carried out according to the following principles and methods:

1- Principles of reassessment:

- Based on scientific and technical grounds.

- Ensuring strictness and accuracy.

- Consistent with reality.

2- Methods of reassessment:

a/ For buildings:

Determining the residual value of office buildings is a very complex task. The Ministry of Construction, Ministry of Finance, and the Government Price Control Board will provide specific regulations. Pending the issuance of Circulars by the aforementioned Ministries guiding this matter, the temporary method for determining the residual value of buildings to be handed over is as follows:

- The residual value of each building to be handed over is determined based on the remaining quality ratio of each type of office building, the price of newly constructed office buildings of the corresponding type, and the area to be handed over at the time of preparing the handover dossier. The formula for calculation is as follows:

- If the agency needs to hand over two or more buildings, the residual value is the total residual value of all office buildings.

- Determining the remaining quality ratio of office buildings is applied according to two methods specified in Circular No. 13/LB-TT dated August 18, 1994, issued by the Joint Ministry of Construction, Finance, and Government Price Control.

- The price per square meter of newly constructed similar buildings is the minimum standard price for new construction of office buildings as stipulated by the Ministry of Construction.

b/ For land:

It is determined based on the urban land price set by the Provincial People's Committee or the Central City People's Committee (where the land to be handed over is located), based on the framework prices of various types of land prescribed by the Government in Decree No. 87-CP dated August 17, 1994, and the area and location of the land to be handed over at the time of preparing the handover dossier.

c/ For other assets attached to buildings and land:

It is determined based on the remaining quality ratio of each type of asset; the actual market selling price of each type of asset with the same function and technical standards, and the number of equipment of each type to be handed over at the time of preparing the handover dossier.

III - HANDOVER, RECEIPT, AND PRESERVATION:

To ensure thorough handover, receipt, and preservation without loss of state assets, agencies with buildings, land, and other assets attached to buildings and land to be handed over (the handing-over party) and the receiving party must strictly comply with the following regulations:

1/ For the handing-over party:

- After receiving the Government's decision to reclaim buildings, land, and other assets attached to buildings and land, the head of the state agency must conduct measurement, inventory, and reassessment of the value of all assets to be handed over according to the Government's decision.

The reassessment of the value of assets to be handed over must follow the principles and methods prescribed in Point II of this Circular.

- Prepare complete documents identifying each type of asset to be handed over: address, building, total construction area, total usable area, number of floors, building structure, origin of the building, relevant documents concerning land, land parcel map and floor plan, other assets attached to buildings and land, and the value of assets to be handed over.

- The handing-over party is responsible for preserving the assets until the handover.

2/ For the receiving party:

The Ministry of Finance (State Asset Management Department) as the agency receiving and handing over office buildings according to the Government's decision is responsible for:

- Checking, verifying, and ensuring consistency between the buildings, land, and other assets attached to buildings and land according to the documents and dossier of the handing-over party with the actual quantity received (including both value and physical items) according to the Government's decision.

- Immediately transferring the reclaimed buildings, land, and other assets attached to buildings and land to the unit designated by the Government to manage and use (if the Government issues a decision to reclaim and hand over simultaneously).

- Organizing sealing, preservation of buildings, land, and other assets attached to buildings and land according to the Government's decision (if there is no decision assigning management and use to any agency after receipt).

- Chair and work with the Ministry of Construction to propose plans for using houses, land, and other assets attached to houses and land that have been recovered, to be submitted to the Prime Minister for decision.

- Organize and inspect the use of houses, land, and other assets attached to houses and land that have been recovered according to the Decisions of the Government.

VI - EXPENSES FOR HANDOVER, ACCEPTANCE, AND PRESERVATION.

1/ All the following expenses shall be covered by the State budget.

- Expenses for inspection, acceptance, and sealing of assets handed over.

- Preservation costs for assets handed over from the time of handover acceptance until the implementation of the Government's Decision on the use of such assets.

- Expenses for developing plans for the use of recovered assets to be submitted.

2/ All revenues obtained (if any) from the handling of recovered assets according to the Government's Decision shall be deposited into the Central State budget at 100%.

V - ORGANIZATION AND IMPLEMENTATION:

1/ Initially, the Ministry of Finance, together with relevant state agencies, will organize the handover, acceptance, and careful preservation of surplus houses, land, and other assets attached to houses and land resulting from reorganization in the two cities of Hanoi and Ho Chi Minh City.

This Circular takes effect from the date of signature. During the implementation process, if any issues arise, please promptly report them to the Ministry of Finance (State Asset Management Department) for consideration and resolution.