The Vietnamese government has recently issued Decree No. 50, which amends and supplements provisions in existing decrees regarding the Law on the Management and Use of Public Assets.

Under this new regulation, state agencies undergoing mergers, consolidations, separations, dissolutions, or terminations must conduct a thorough inventory and classification of assets under their management. They are also responsible for addressing any discrepancies discovered during the inventory process in accordance with the law.

For assets that do not belong to the agency - such as borrowed, leased, or custodial property - the agency must process them following relevant legal provisions.

Public asset management in cases of mergers and consolidations

When state agencies are merged or consolidated, including cases where a new agency or unit is established by restructuring existing ones, the newly formed entity inherits the management and use of assets from the previous agencies. This entity must ensure that all assets are allocated according to public asset use standards and regulations.

Additionally, the newly merged entity must identify surplus assets that are no longer required under the revised organizational structure. These assets, or any that must be processed according to legal regulations, must be documented and reported to the appropriate authorities for approval.

If an asset disposal or reassignment process had been initiated before the merger but was not completed, the new entity must continue handling these outstanding procedures.

Asset division in cases of agency separation

When a state agency is split into multiple entities, the original agency must develop a plan for asset division and assign responsibilities for handling any ongoing asset-related processes. This plan must be submitted to the appropriate authorities for approval.

After the separation is completed, the newly formed agencies are responsible for:

Utilizing the allocated assets in accordance with official regulations
Finalizing any ongoing asset management procedures assigned to them
Reporting surplus or legally mandated assets for further processing by relevant authorities
Asset reallocation when an agency ceases operations or transfers responsibilities

If a state agency is dissolved or its responsibilities are transferred to another institution, it must develop a plan for asset reallocation based on its new functions and the condition of the assets. This plan must be incorporated into the overall restructuring proposal and submitted for approval.

If an agency is dissolved without its responsibilities being transferred, it must hand over all assets to a higher-level management agency or another designated organization.

The receiving agency is responsible for:

Documenting and reporting the assets to relevant authorities for processing
Managing or disposing of the assets in compliance with legal regulations

For assets that had already been approved for disposal or reassignment before the agency’s dissolution but had not been fully processed, the receiving entity must continue completing these procedures.

The restructuring of government agencies requires a clear and efficient process for managing, redistributing, or disposing of public assets. Decree No. 50 establishes a transparent legal framework for handling these assets, ensuring that they are utilized effectively and in accordance with national regulations. However, its success will depend on careful oversight and coordination among the involved agencies.

Tran Thuong