Circular No. 87/2010/TT-BTC provides for the management and disposal of assets of projects funded by state capital upon completion of the projects.

CIRCULAR

Regulations on the management and disposal of assets of state-funded projects upon completion of the projects.

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According to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to the Law on Management and Use of State Property dated June 3, 2008;

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;

Based on Decree No. 137/2006/NĐ-CP dated November 14, 2006 of the Government stipulating the delegation of state administrative management over state-owned assets at administrative agencies and public service units, including those established with state ownership rights.

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;

The Ministry of Finance stipulates the management and disposal of assets of state-funded projects upon completion as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Circular regulates the management and disposal of assets belonging to programs, plans, and projects (hereinafter referred to collectively as projects) funded by state capital, including projects utilizing official development assistance (ODA) and non-governmental foreign aid from budget revenues when the project concludes.

This Circular does not apply to projects of economic organizations supported by state budget capital, non-project aid assets.

Clause 2. In cases where the project has not concluded but requires the disposal of assets serving the project's activities that are no longer usable or necessary during the implementation process, such actions shall be carried out according to the provisions of this Circular.

Clause 3. Where specific documents concerning ODA or non-governmental foreign aid contain different provisions regarding the disposal of project assets upon project conclusion, such provisions shall be implemented according to those documents.

Clause 4. In cases where the Project Management Board is responsible for managing multiple projects and operates under the model of a public service unit or enterprise, the management and disposal of assets serving the common work of the Project Management Board shall be carried out according to the regulations on the management and use of state assets at public service units or enterprises; the management and disposal of assets serving the individual activities of each project shall be carried out according to the provisions of this Circular.

Article 2. Scope of Application

Point 1. Assets serving the activities of the project upon its conclusion (including projects concluding partially or in stages of implementation) include:

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

b) Transportation means;

c) Machinery, equipment, and other assets serving the project's activities.

Point 2. Assets serving the activities of foreign experts, consulting contractors, supervisors, and construction workers implementing ODA-funded and non-governmental foreign aid projects, when the project concludes, these experts and contractors transfer assets to Vietnam (collectively referred to as assets transferred by foreign parties to the Vietnamese Government).

Point 3. Materials recovered from dismantling old infrastructure facilities serving public interest or national interest (hereinafter referred to as infrastructure facilities) when constructing new infrastructure facilities.

Chapter II

DISPOSAL OF ASSETS SERVING PROJECT ACTIVITIES

Article 3. Preservation of Assets

Clause 1. Upon project completion, the project investor, project owner, or Project Management Board (hereinafter collectively referred to as the Project Management Board) shall have the responsibility to preserve the assets and asset records in their original condition until they are handed over to the receiving agency, organization, unit, or project, or until the sale or liquidation of the assets is completed according to the decision of the competent authority.

In cases where the project has been completed and the Project Management Board has been dissolved but the assets have not yet been fully disposed of, the supervising agency shall be responsible for preserving the assets and asset records and performing other tasks of the Project Management Board as stipulated in this Circular.

Clause 2. Strictly prohibited are the disassembly, alteration of structure, replacement of parts, or components of assets; renting, lending, or unauthorized use of assets without the decision of the competent state authority.

Article 4. Forms of Asset Disposal

Assets serving the operation of the project when the project ends shall be disposed of in the following forms:

1. Transfer to state agencies, public service units, people's armed forces units, political organizations, and political-social organizations (hereinafter collectively referred to as agencies, organizations, and units) that have a need for assets but lack assets according to the standards and usage quotas set by competent state authorities; transfer to serve the activities of other projects.

2. Liquidation for assets that have exceeded their usage period under the system and cannot continue to be used; damaged assets that cannot be used or repairs would not be effective; office premises or other assets attached to land that must be demolished according to the decision of competent state authorities, and other cases allowed for liquidation under the provisions of the law.

3. Sale for assets that cannot be disposed of through the form of transfer or liquidation as stipulated in Clause 1 and Clause 2 of this Article. The sale of assets shall be conducted through public auction methods as prescribed by law, except for the following cases permitted to sell by designation:

a) Organizations or individuals registering to purchase assets on land, receiving the transfer of land use rights for socialization purposes in the fields of education, vocational training, healthcare, culture, sports, and environment in accordance with approved planning. If there are two or more organizations or individuals registering to purchase assets on land, receiving the transfer of land use rights for socialization purposes in the aforementioned fields, then auctions shall be conducted 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) In cases where the asset value assessed again is less than 50 million VND per unit of asset.

4. For the area of land allocated (or temporarily allocated) to serve construction work of the project, after completing the construction of the project, the Project Management Board is responsible for returning it to the People's Committee of the province or centrally-administered city (hereinafter collectively referred to as the Provincial People's Committee) for disposal in accordance with the laws on land.

Article 5. Authority to Dispose of Assets of Projects Under Central Management

1. The Minister of Finance decides:

a) Selling office premises and other assets attached to land at the proposal of the Minister, Head of a ministry-level agency, government agency, or other central agency (hereinafter collectively referred to as the Minister or Head of a central agency);

b) Transferring assets between ministries, central agencies, or between agencies, organizations, units, and projects under central management and those under local management at the proposal of the Minister or Head of a central agency and the Chairman of the Provincial People's Committee concerned.

2. The Minister or Head of a central agency decides:

a) Transferring assets to agencies, organizations, and units within their jurisdiction;

b) Transferring assets to serve the activities of other projects within the jurisdiction of the ministry or central agency;

c) Selling assets not falling within the scope of point a, Clause 1 of this Article;

d) Liquidating assets.

Decisions on transferring office premises and other assets attached to land; decisions on transferring, selling, and liquidating motor vehicles as stipulated in this clause shall be implemented after obtaining a written consensus from the Ministry of Finance.

Article 6. Competence to handle assets of projects under local management

1. The Minister of Finance shall decide on the transfer of assets of projects under local management to agencies, organizations, units, or projects under central management, or between provinces and centrally-administered cities upon the proposal of the Minister, the head of the central agency, or the Chairman of the People's Committee of the province concerned.

2. The Chairman of the People's Committee of the province shall decide on the transfer of assets within the province or centrally-administered city, sell, or liquidate assets serving as office premises, other assets attached to land, and transportation means based on the proposal of the Director of the Department of Finance and the heads of related agencies; decide or delegate authority to decide on the transfer, sale, or liquidation of remaining assets.

Article 7. Procedures for handling assets

1. Within fifteen days from the date the project ends, the Project Management Board shall be responsible for inventorying assets serving the project's operations according to the Asset Inventory Form (Form No. 01/TSDA issued together with this Circular) and send it to the Ministry or central agency that is the main managing agency of the project (for projects under central management); send it to the provincial Departments, bureaus, sectors, district, county, town, and city-level People's Committees that are the main managing agencies of the project (for projects under local management).

In cases where excess or shortage of assets is discovered during the inventory, it must be clearly recorded in the Asset Inventory Form, with the cause, responsibility identified, and measures proposed for handling according to the regulations on the management and use of fixed assets at agencies, organizations, and units.

2. Ministries and central agencies (for projects under central management); provincial Departments, bureaus, sectors, district, county, town, and city-level People's Committees (for projects under local management) shall be responsible for preparing files to propose asset handling for concluded projects to decide on handling within their competence or submit them to competent authorities for decision-making according to Articles 5 and 6 of this Circular.

The file proposing asset handling includes:

a) A document proposing asset handling;

b) A consolidated list of assets proposed for handling according to Form No. 02/TSDA issued together with this Circular;

c) In cases where assets are proposed to be handled through transfer to agencies, organizations, units, or projects, there must be a document proposing acceptance of assets from relevant agencies as stipulated in point b, Clause 1, Article 5 and Clauses 1 and 2, Article 6 of this Circular.

3. In cases where the Project Management Board or the main managing agency of the project does not propose a handling plan or proposes a handling plan inconsistent with this Circular, the competent state agency approving the asset handling plan as stipulated in Articles 5 and 6 of this Circular shall decide to recover the assets for handling according to the laws on the management and use of state assets.

4. After the competent state agency has made a decision on asset handling, the organization of asset handling shall be carried out as follows:

a) For assets with a decision on transfer: The Project Management Board shall take the lead and coordinate with the agency, organization, unit, or project receiving the assets to hand over and accept the assets according to the Circular of the Ministry of Finance guiding the receipt and transfer of assets among administrative and service agencies and economic organizations based on the decision of the competent authority.

b) For assets with a decision on sale: The procedures for auction sale and designated sale shall be carried out according to the Government Decree and the Circular of the Ministry of Finance detailing and guiding the implementation of the Law on Management and Use of State Assets.

c) For assets with a decision on liquidation: The method, procedure, and process of liquidation shall be carried out according to the Government Decree and the Circular of the Ministry of Finance detailing and guiding the implementation of the Law on Management and Use of State Assets.

d) In cases where infrastructure construction projects along routes have assets serving the project's operations under central management equipped in multiple provinces and centrally-administered cities, the central Project Management Board may authorize the agency, organization, or unit directly using the assets in the locality to organize the sale or liquidation of the assets according to the decision of the competent state agency as stipulated in Article 5 of this Circular.

đ) When selling or liquidating assets serving the project's operations, the entity entrusted with asset handling must issue a State Asset Sale Invoice issued by the Ministry of Finance to the buyer of the asset.

Chapter III

HANDLING OF ASSETS TRANSFERRED BY FOREIGN PARTIES TO THE GOVERNMENT OF VIETNAM

Article 8. Acceptance and storage of assets

1. The project owner shall be responsible for accepting assets transferred from abroad. The acceptance of assets shall be recorded in Form No. 03/TSDA issued together with this Circular, specifying the quantity, condition, and value of the assets (if applicable), along with relevant documents related to the assets.

2. The project owner shall be responsible for preserving the accepted assets and their related documents in their original state until they are handed over to the receiving agency, organization, unit, or project, or until the sale or liquidation of the assets is completed according to the decision of the competent authority.

It is strictly prohibited to dismantle, alter the structure, parts, or components of the assets; to lease, lend, or use the assets without the decision of the competent state agency.

3. For assets transferred from abroad but not yet fully settled for taxes with the State, the project owner must complete the transfer procedures and pay taxes 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.

If the project owner cannot allocate funds for advance tax payment, the project owner shall report to the competent state agency to approve the asset disposal plan, deciding to pay taxes after selling or liquidating the assets or transferring them to the receiving agency, organization, unit, or project to handle tax payment procedures as prescribed by law.

Article 9. Establishment of State Ownership Rights over Transferred Assets

1. The project owner shall be responsible for submitting to the competent authority specified in Clause 2 of this Article to decide on establishing the State's ownership rights over the accepted assets in accordance with the law.

2. Competent authority to decide on establishing State ownership rights:

a) The Minister of Finance decides to establish 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 to establish the State's ownership rights over assets transferred by experts or contractors implementing locally-managed projects.

Article 10. Forms, Authority, and Procedures for Asset Disposal

1. The forms of asset disposal, authority to decide on asset disposal, and procedures for asset disposal shall be carried out in accordance with Articles 4, 5, 6, and 7 of this Circular.

2. When selling or liquidating assets transferred from abroad to the Government of Vietnam, the entity responsible for handling the assets must issue a confiscated asset sales invoice, which is issued by the Ministry of Finance, to the buyer.

Chapter IV

DISPOSAL OF MATERIALS RECOVERED FROM THE DEMOLITION OF OLD INFRASTRUCTURE STRUCTURES

Article 11. Demolition and Storage of Recovered Materials

1. When constructing infrastructure structures, the Project Management Board shall be responsible for organizing the demolition or hiring organizations or individuals with the capability to demolish old infrastructure structures (if any) and recovering materials that still have usable value for disposal as prescribed (except in cases where the competent authority has approved the construction contractor to be responsible for demolishing old infrastructure structures).

2. The Project Management Board shall be responsible for preserving recovered materials from the demolition of old infrastructure structures in their original state until the transfer, sale, or disposal is completed according to the decision of the competent authority.

It is strictly prohibited to lease, lend, or use, sell recovered materials from the demolition of old infrastructure structures without authorization.

Article 12. Forms of Handling

1. Materials recovered from dismantling old infrastructure projects shall be handled according to the transfer or sale forms prescribed in Article 4 of this Circular.

2. In cases where the competent authority approves the investment project with the provision that the value of recovered materials can be deducted from the total investment cost of the project, the contractor implementing the project shall organize the handling of assets in accordance with the provisions of the law; it shall not handle them according to the provisions of this Circular.

Article 13. Competent Authority for Decision-Making and Handling Procedures

1. The authority for deciding on the handling and the procedures for handling materials recovered from dismantling old infrastructure projects shall be carried out in accordance with the provisions of Articles 5, 6, and 7 of this Circular.

2. When selling materials recovered from dismantling old infrastructure projects, the unit entrusted with handling the assets must issue a State Asset Sale Invoice issued by the Ministry of Finance to the buyer of the asset.

Chapter V

FINANCIAL MANAGEMENT DURING THE HANDLING OF ASSETS

Article 14. Costs Incurred During the Handling of Assets

1. Asset storage costs: Costs for renting warehouses and yards to store assets, expenses for protecting assets.

2. Costs for transferring procedures and paying taxes (if applicable) for assets transferred from foreign entities to the Government of Vietnam.

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

4. Auction sale costs: Costs for determining the starting price; auction fees in cases where the organization authorized to conduct the auction sale handles the auction.

In cases where the auction sale is conducted by the Valuation and Auction Committee, the auction sale costs include: Costs for determining the starting price, publicizing the auction sale, organizing the auction session, compensating committee members, and other related costs.

5. Liquidation costs: Costs for organizing the sale or demolition and disposal of assets.

6. Costs incurred during the handover and receipt of assets.

7. Other related costs.

Article 15. Levels of Expenditure

The levels of expenditure for each item specified in Article 14 of this Circular shall be implemented in accordance with standards, norms, and regulations set by the competent state authorities; in cases where there are no such standards, norms, and regulations, the head of the agency responsible for handling the assets shall decide on the expenditure, ensuring compliance with current state financial management systems and bearing responsibility for their decisions.

Article 16. Sources of Funding

1. For assets subject to sale or liquidation: The sources of funding for the items specified in Article 14 of this Circular shall be derived from the proceeds of the sale or liquidation of the assets. In cases where the handling of assets does not generate revenue or the revenue is insufficient to cover the costs, the shortfall shall be settled as part of the other costs of the project.

2. For assets subject to transfer, the receiving agencies, organizations, units, or projects shall bear the costs related to the transfer.

Article 17. 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 14 of this Circular, shall be deposited into the state budget in accordance with the laws on the state budget.

Chapter VI

IMPLEMENTING PROVISIONS

Article 18. Implementation Organization

1. Ministries, central agencies, provincial People's Committees shall be responsible for:

a) Directing the implementation of asset management and disposal of projects within their jurisdiction in accordance with the guidelines set out in this Circular and relevant laws;

b) Implementing regular annual reporting on the status of asset disposal of completed projects according to Form No. 04/TSDA and Form No. 05/TSDA issued together with this Circular, and submitting them to the Ministry of Finance before January 31 of the following year.

2. The State Asset Management Agency, provincial finance departments under the direct control of the Central Government shall be responsible for assisting the Minister of Finance and the Chairman of the provincial People's Committee in guiding and inspecting the management and disposal of assets of completed projects in accordance with the guidelines set out in this Circular.

Article 19. Effective Date

1. This Circular takes effect from August 1, 2010.

2. The Circular No. 116/2005/TT-BTC dated December 19, 2005 of the Ministry of Finance guiding the management and disposal of assets of projects using state budget funds upon project completion is hereby abolished.

3. For assets of projects that have been completed prior to the effective date of this Circular but have not yet received a disposal decision, they shall be disposed of in accordance with the provisions of this Circular. In cases where assets have already received a disposal decision, they shall be implemented in accordance with the regulations at the time of the disposal decision.

4. During the implementation of this Circular, if any difficulties arise, it is requested that agencies, organizations, and units promptly report to the Ministry of Finance (State Asset Management Agency) for coordination in resolving them./.