Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
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The draft Law supplements regulations on other contents on management, use and exploitation of financial resources from land and resources, in accordance with the provisions of the law on land and resources and related laws to ensure consistency. Photo: VNN
The draft Law supplements regulations on other contents on management, use and exploitation of financial resources from land and resources, in accordance with the provisions of the law on land and resources and related laws to ensure consistency. Photo: VNN

Inconsistent with the Law on organizing local government

Sharing about the shortcomings in the current Law on Management and Use of Public Assets, Ms. Tran Dieu An, Deputy Director of the Department of Public Asset Management (Ministry of Finance) said that, implementing the Law on Management and Use of Public Assets and documents detailing the implementation of the law, ministries, central agencies, People's Councils of provinces and centrally-run cities have issued regulations on decentralization in purchasing, leasing, managing, using and handling public assets.

Notably, the draft amends the regulation on authority to approve the Project on using public assets for purposes of business, leasing, joint ventures and associations in the direction of assigning ministries, central agencies and People's Councils at the provincial level to stipulate the authority to approve the Project to increase initiative, match with the actual status of assets and requirements for public asset management.

The decentralization is implemented by ministries, central and local agencies according to many different criteria such as: by type of asset, by value of asset, by level of autonomy of agencies, organizations, units, etc. and is assigned to many different subjects such as: People's Committees at provincial, district and commune levels; Chairman of the People's Committee at provincial, district and commune levels; Director of Department, Branch, Organization, Unit under the province; Head of State Agency, Head of Public Service Unit, etc.

The implementation of regulations on decentralization of ministries, central and local agencies has shown practical response and met requirements of public asset management of ministries, central and local agencies.

However, the above decentralization is not consistent with the Law on organizing local government because the Law on organizing local government stipulates that the Provincial People's Council only decentralizes to local authorities or lower-level State agencies.

In addition, the current law stipulates authority to approve the Project on using public assets for purposes of business, leasing, joint ventures and associations of ministers, heads of central agencies, and Chairmen of the Provincial People's Committees.

This regulation has restricted the initiative of ministries, central and local agencies and lower-level units in exploiting public assets at public service units; the time for approving the Project is prolonged due to having to go through many intermediary stages; and there is a lack of synchronization with the regulations on the authority applied to other acts related to the management and use of public assets at agencies, organizations, and units (purchase, lease, sale, transfer, liquidation, etc.).

At the same time, there are no specific regulations to distinguish the application between the Law on Management and Use of Public Assets and related laws such as the Land Law, laws on resources and other laws, making agencies, organizations, units, and enterprises confused in application.

Improving the efficiency in the management and use of public assets

In the draft of 1 law amending 7 laws in the financial sector, the drafting agency has amended and supplemented regulations to promote decentralization and improve the efficiency in the management and use of public assets.

Accordingly, amending the regulations on maintenance and repair of public assets in Article 39 in the direction of promoting decentralization and assigning the responsibility for promulgating norms for maintenance and repair of public assets to the heads of agencies, organizations, and units assigned to manage and use public assets, along with determining the specific basis for promulgating these norms as a basis for implementation, inspection, and supervision.

At the same time, adding the subject of application to the Vietnam Fatherland Front and stipulating the regime of management and use of public assets at the Vietnam Fatherland Front similar to the regime of management and use of public assets at socio-political organizations.

The drafting agency also amends the regulations on the authority to decide on the procurement, lease, management, use, and disposal of public assets at agencies, organizations, and units.

In addition, amending the provisions in Clause 6, Article 26 in the direction of decentralizing power to ministers, heads of central agencies, and provincial People's Committees to stipulate the authority to decide on standards and norms for the use of public assets at agencies, organizations, and units under their management (for assets that have not been prescribed standards and norms by the Government or the Prime Minister), except for consumable assets that do not require promulgation of standards and norms.

Regarding the application of law between the Law on Management and Use of Public Assets and other legal documents, Mr. Nguyen Tan Thinh, Director of the Department of Public Asset Management, said that, according to the direction of the Prime Minister, amending and supplementing the Law on Management and Use of Public Assets focuses on issues that are incongruous and have immediate impacts.

The amended and supplemented contents of the draft Law closely follow the policy groups in the project proposal dossier, including the policy on the application of law between the Law on Management and Use of Public Assets and other legal documents.

Accordingly, the draft Law also supplements regulations on other contents on management, use, and exploitation of financial resources from land and resources, which are implemented in accordance with the provisions of the law on land, resources, and related laws to ensure consistency between the laws.

At the same time, it supplements regulations on the use of national defense and security land in combination with labor production and economic construction activities, which are implemented in accordance with the provisions of the law on land.

The management and use of public assets at enterprises are implemented in accordance with relevant regulations, without having to be rearranged in accordance with the provisions of the law on management and use of public assets.

By Hoai Anh/ Huyen Trang

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