Allowing procurement for public cars completed procedures before 1st January 2018

	The number of public cars will sharply decrease
	Billions of dong saved per year thanks to the expenditure package for public cars
	The disbursement rate of capital investment must be calculated under assigned plan

Illustrative photo. Source: Internet

The Law on management and use of public assets which took effect on 1st January 2018, stipulates that the Government shall provide the specific standards and norms of using public cars in agencies, organizations and units.

However, until now, the decree guiding in detail the standards and norms of procurement and use of public cars has not been issued, so that agencies and units cannot implement procurement due to there being no legal framework for determining the standards and norms for the use of public cars.

In order to overcome this matter, the Ministry of Finance reported to the Prime Minister and the Government assigned the Ministry of Finance to provide a specific guidance. On that basis, the Ministry of Finance has issued a guidance document on the procurement of public assets funded by State budget 2018.

Accordingly, the procurement of public cars 2018 is implemented as follows: From 1st January 2018, while waiting for the promulgation of the decree by the Government, agencies, organizations and units are not permitted to procure cars under standards and norms as prescribed in Decisions of Prime Minister that were issued before 1st January 2018 (specifically Decision 32/2015/QD-Ttg of the Prime Minister regulating standards, norms and regimes of management and use of cars in the State agencies, public non-business units, one-member limited liability companies with 100% of their charter capital owned by the State was invalid).

The Ministry of Finance said that ministries, sectors and localities have strictly complied with the Prime Minister’s direction and the Ministry of Finance’s guidance. However, during the implementation, many shortcomings have arisen such as some agencies, organizations and units, which were allocated funds for car procurement in 2017, implemented a part of procedures to select suppliers before 1st January 2018, but until 2018, the selection of suppliers has been completed, so the payment cannot be implemented.

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Currently, although the legal framework for determining the standards and norms of car use has not been issued, the procurement of cars from the fund in 2017 is considered basing on the standards and norms as prescribed in the Prime Minister’s previous decisions; and agencies, organizations that have implemented procedures related to the selection of suppliers before 1st January 2018.

Therefore, in order to remove shortcomings arising in reality, the Ministry of Finance has submitted to the Prime Minister the solution: In case where the car procurement including cars for privileged officers, cars for general works, specialized cars of agencies, organizations and units which comply with regulations on standards, and norms prescribed before 1st January 2018 (Decision 32) and agencies, organizations and units that implemented one or some procedures for supplier selection under regulations of the law such as approving estimates and plans for bidder selection, publicizing bid invitation letters, Bid closing, Bid opening before 1st January 2018, shall be permitted to carry out the procurement procedures in accordance with the law.

The fund for car procurement used in the units’ estimate allocated by competent agency must be in accordance with regulations of the law on State budget.

The number of cars shall be included in the number of cars of agencies and units for rearrangement and settlement according to the new regulations on standards and norms of the car use after the promulgation of the Government's decree.