Must prepare a scheme on the use of public property for business purposes

Fri, 30 Dec 2022 13:35:00  |  Print  |  Email   Share:

The assets of public non-business units assigned by the State or formed from the non-business development fund and lawful financial sources of the units are public property.

Mr. Dinh Hoang Nguyen works at the center for training and business cooperation, which is a fully autonomous public administrative and non-business unit (self-financed for recurrent and investment expenses), directly under a fully autonomous public universities (self-financed recurrent and investment expenditures).

The university researches and produces products such as cordyceps, coconut wax, etc. The center is assigned by the university to sell this product to the market. The assets of the center used for operation are the property of the center, none of which belongs to the state budget or public property.

Mr. Nguyen asked, if the center wants to sell these products on the market, does it need to make a plan on using public property before doing business, joint venture or association as prescribed in the Law on Management and Use of Public Property? Or just need to be in the center's regulations to have a business function?

The Ministry of Finance responded to this issue as follows:

According to Article 50 of the Law on Management and Use of Public Property, sources of public property formation at public non-business units include:

- Equitable property in kind assigned by the State;

- Assets invested in construction, purchased from the state budget/ fund for development of non-business activities, fund for asset depreciation, and other funding sources as prescribed by law;

- Assets are formed from borrowed capital, mobilized capital, joint venture, and association with organizations and individuals as prescribed by law (regardless of the degree of autonomy of public non-business units).

According to the provisions of Article 8 of Decree No. 60/2021/ND-CP dated June 21, 2021 of the Government, stipulating those assets formed from the fund for development of non-business activities and legal financial sources of the application public service is the property and capital of the State.

Pursuant to the above provisions, assets of public non-business units assigned by the State or formed from the non-business development fund and lawful financial sources of the units are public property.

According to the provisions of Article 55, Clause 1, Article 56 of the Law on Management and Use of Public Property, the public non-business unit may use the property for business purposes and must prepare a scheme on the use of public property for business purpose in the following case:

- Assets assigned, invested in construction, purchased to perform tasks assigned by the State but have not been used at full capacity;

- Assets invested in construction or purchased under projects approved by competent agencies or persons to serve business activities without investment from the state budget.

Therefore, it is suggested that Mr. Nguyen should base on the provisions of the above law and specific properties to implement.

According to Mai Chi (Government Newspaper)

 

By: Translator: LeAnh-Bizic

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