1. Regulation scope

This Circular guides the management and handling of assets of state budget-funded programs and projects (hereinafter referred to collectively as projects), covering also projects funded with ODA and nonrefundable aid sources, which are included in the state budget balance upon the completion of projects.

This Circular shall not apply to projects of economic organizations enjoying state budget capital supports.

2. Regulation objects

a/ Assets equipped or allocated for project operation and still existing upon the project completion, including:

- Houses and land belonging to working offices and other construction works attached to land;

- Means of transport;

- Machinery, working facilities and equipment, and other assets in service of operation of projects.

b/ Assets of projects funded with ODA and nonrefundable aid sources, which, upon the project completion, are transferred by donors to the Vietnamese State.

The handling of assets equipped or allocated for operation of projects, which are no longer usable or necessary in the course of project execution, shall also comply with the provisions of this Circular.

3. Where a project management board manages several projects, operate after the model of non-business units, the management and handling of assets for performance of the board’s common tasks shall comply with the regulations applicable to administrative and non-business units; the management and handling of assets equipped or allocated for separate operation of each project shall comply with the guidance in this Circular.

4. Upon the completion of projects, investors, project owners or project management boards (hereinafter referred to collectively as project management boards) shall have to preserve assets and asset dossiers in their status quo till they are handed over to eligible agencies or units or till the completion of the sale or liquidation of assets under decisions of competent authorities; and must neither dismantle nor alter the structure, replace components or spare parts of assets, neither lease nor lend such assets without permission.

Assets in service of operation of projects shall, upon the project completion (including partial or phase-based completion, and if such assets are no longer needed), be handled by one of the following modes:

1. Transfer to state agencies, units or organizations that wish to use them or have a quantity of assets below the use quota or norm set by competent state bodies;

2. Sale or liquidation for remittance of proceeds into the state budget, after subtracting expenses for preservation, handover and organization of the sale or liquidation of assets (if any).

3. The handling of assets being houses or construction works attached to land which is related to land use rights shall comply with current provisions of land law.

1. Competence for handling assets of centrally-run projects

a/ The Finance Ministry shall submit to the Prime Minister for decision the sale or transfer of assets being houses and other construction works attached to land to administrative agencies, non-business units and other organizations at the request of ministers, heads of ministerial-level agencies, Government-attached agencies, central bodies of mass organizations or provincial/municipal People's Committees.

b/ The Finance Minister shall decide on the transfer of assets other than those specified in Item a of this Point between administrative agencies, non-business units and other organizations at the request of ministers, heads of ministerial-level agencies, Government-attached agencies, central bodies of mass organizations or provincial/municipal People's Committees.

c/ Ministers, heads of ministerial-level agencies, Government-attached agencies or central bodies of mass organizations shall, after getting written consent of the Finance Ministry, decide on:

- The transfer of assets from projects under their management upon the completion of such projects to their attached administrative agencies and/or non-business units;

- The transfer of assets from the completed projects to other projects under their management in service of the latter's operation;

- Sale and liquidation of assets other than those specified in Item a of this Point.

2. Competence for handling assets of locally-run projects

a/ Provincial/municipal People's Committees shall decide on the transfer, sale and liquidation of assets being houses and land of working offices or other construction works attached to land as well as means of transport at the request of directors of provincial/municipal Finance Services.

b/ Directors of provincial/municipal Finance Services shall decide on:

- The transfer of assets other than those specified in Item a of this Point, to provincial-level services, departments, branches, agencies or mass organizations and district-level People's Committees;

- The sale and liquidation of assets other than those specified in Item a of this Point, whose original price per asset unit in accounting books is VND 100 million or more;

c/ Heads of provincial-level services, departments, branches and People's Committees of urban districts, rural districts, provincial towns or cities shall decide on the sale and liquidation of assets other than those specified in Item a of this Point, whose original price per asset unit in accounting books is under VND 100 million;

1. Within 30 days after the completion of projects or after assets become unusable or unneeded in the course of project execution, project management boards shall have to inventory assets of such projects according to asset inventory minutes (Appendix 01/TSDA enclosed with this Circular, not printed herein), which shall be sent to ministries, ministerial-level agencies, Government-attached agencies or central bodies of mass organizations being project-managing bodies (for centrally-run projects); or to provincial-level services, departments, branches or People's Committees of urban districts, rural districts, provincial towns or cities being project-managing bodies (for locally-run projects).

Where assets are found to be redundant or deficient through inventory, such must be stated in the asset inventory minutes, with explicit reasons and responsibilities therefor, and with handling measures in accordance with current provisions of law on management of fixed assets.

2. Ministries, ministerial-level agencies, Government-attached agencies and central bodies of mass organizations (for centrally-run projects); provincial-level services, departments and branches, and People's Committees of urban districts, rural districts, provincial towns or cities (for locally-run projects) shall have to compile dossiers of request for handling of assets of completed projects according to their competence or submit such dossiers to competent authorities for handling according to the provisions of Section II, Part B of this Circular.

A dossier of request for asset handling shall comprise:

- A written request on the asset-handling mode;

- A sum-up list of assets requested for handling, made according to Appendix 02/TSDA enclosed with this Circular (not printed herein);

- Where assets are requested for handling through transfer to state agencies, units or organizations, there must be official letters from ministries, ministerial-level agencies, Government-attached agencies, central bodies of mass organizations or provincial/municipal People's Committees (if any), requesting to receive assets from centrally-run projects; or official letters from provincial-level services, departments, branches or People's Committees of urban districts, rural districts, provincial towns or cities (if any), requesting to receive assets from locally-run projects.

3. After the competent state agency has issued an asset-handling decision, the handling of assets shall be carried out as follows:

a/ With regard to assets for transfer under decisions: The project management boards shall assume the prime responsibility for, and coordinate with asset-receiving agencies, units or organizations in, carrying out the handover and receipt of assets under the guidance in the Finance Ministry's Circular No. 43TC/QLCS of July 31, 1996, guiding the receipt and handover of assets between administrative and non-business agencies and economic organizations under decisions of competent agencies.

b/ With regard to assets for sale or liquidation under decisions, the sale and liquidation must be organized in accordance with the provisions of law. The determination of reserve prices and handover of assets for auction or delivery to auctioning organizations shall comply with the guidance in the Finance Ministry's Circular No. 34/2005/TT-BTC of May 12, 2005, guiding the determination of reserve prices and handover of state assets for auction.

1. Spending contents:

a/ Asset-preservation expenses: Rents of warehouses and storing yards for asset preservation, expenses for the protection of assets.

b/ Asset-auction expenses: Expenses for determination of reserve prices, auction charges in case of authorizing the auctioning organizations to carry out the auction of assets.

Where the auction is carried out by a Valuation and Auction Council, asset auction expenses shall cover expenses for determination of reserve prices, for making announcements and public posting on the auction, for organization of auction sessions, for remunerations to the Council members, and other auction-related expenses.

c/ Asset-liquidation expenses: Expenses for organization of the sale or destruction of assets.

d/ Expenses arising in the course of asset handover.

The expense level for each of the above contents shall comply with the state criteria, norms and regimes; where such criteria, norms or regimes are unavailable, heads of concerned agencies shall have to decide thereon in accordance with the State's current financial management regime and shall take responsibility for their decisions.

2. Funding sources:

a/ For assets sold or liquidated under decisions, sources of funding for the contents defined at Point 1 of this Section shall be asset auction or liquidation proceeds. Where no proceeds are gained from the liquidation of assets or the gained proceeds are insufficient to offset expenses, the deficit shall be accounted into other expenses of projects.

b/ For assets handed over to state agencies, units or organizations under decisions:

- Expenses arising before the issue of asset-handling decisions by competent authorities shall be paid by project management boards and accounted into other expenses of projects;

- Expenses arising after the issue of asset-handling decisions by competent authorities shall be paid by asset-receiving agencies, units or organizations.

1. Ministries, ministerial-level agencies, Government-attached agencies, central bodies of mass organizations and provincial/municipal People's Committees shall have to direct the management and handling of assets of projects under their respective management according to the guidance in this Circular and current provisions of law.

2. The Public Asset Management Department and provincial/municipal Finance Services shall have to assist the Finance Minister and provincial/municipal People's Committees in guiding and inspecting the management and handling of assets of completed projects under the guidance in this Circular.

3. With regard to assets of projects completed before the effective date of this Circular, for which, however, no handling decisions have been issued, they shall be handled according to the guidance in this Circular.

4. This Circular takes effect 15 days after its publication in "CONG BAO." All previous regulations contrary to this Circular are hereby annulled.

5. Any problems arising in the course of implementation should be reported to the Finance Ministry (the Public Asset Management Department) for coordinated settlement.