Challenges in management and the use of public asset in Vietnam

Public asset is vital in the development of any nations. With the established legal system on management and use of public asset, Vietnam has gained positive achievements. However, as the state-owned asset management mechanism is fragmented with various related laws, there is no general law to unify principles of the management, use and exploitation of public assets, the management and use of public assets is therefore still limited to some extent.

On June 21, 2017, the National Assembly of the Socialist Republic of Vietnam passed the Law on Management and Use of Public Asset (replacing the Law on Management and Use of State Property in 2008). This is the foundation for the Government to continue to perfect the policy system for effective management and use of public assets.

Some rising issues and challenges in the management and use of public assets and the policy development of public asset management:

(1) The dissemination of the Law on Management and Use of Public Assets to related agencies, organizations and units.

(2) The development and issuance of detailed legal documents for the implementation of the Law on Management and Use of Public Asset; The development of unified standard and limit on the use of public assets and the competence in management and use of public assets.

(3) Completion of the policy on land and resource finance

(4) The modernization of public asset management and the improvement of National Database of Public Assets towards comprehensive and sufficient.

(5) Strengthening the supervision, inspection and audit of the management and use of public assets, especially the supervision from the National Assembly, the National Assembly delegations, the Vietnam Fatherland Front, other organizations and press agencies towards the management and use of public assets to promptly detect any violations.

Mr. Tran Duc Thang, Director General, Department of Public Asset Management, Ministry of Finance

Dr. Tran Duc Thang is currently Director General of Department of Public Asset Management, Ministry of Finance. His responsibilities include assisting the Minister of Finance in state management of public assets and the purchase and requisition of assets; assisting in financial management of national land and resources; assisting in management of infrastructure assets, state-owned properties; directly managing some types of state property in accordance with regulations. He has 23 years of experience in the financial industry, including almost 8 years in the field of public asset management.

Dr. Tran Duc Thang is chairman of various ministerial-level research projects such as: Current situation and solution for public procurement in Vietnam (2014); Research on Land Prices (2015); Research on Land Finance Policy in Industrial Zones (2016) … During his time in the field of public asset management, he has directed the Department of Public Asset Management to develop several major projects in the field of public asset management, creating a relatively adequate legal corridor to meet the management requirements, contributing to strict management and effective exploitation of public property resources for socio-economic development, specifically the Law on Management and Use of Public Asset promulgated on 21/6/2017 (effective on 01/01/2018).

Public Asset Management Mechanism Reform

1. An assessment on the management and use of state assets in accordance with the Law on Management and Use of State Asset in 2008 (before the promulgation of the Law on Management and Use of Public Asset) and the orientation in reforming Public Asset Management mechanism.
2. Reforming the mechanism of public asset management on the basis of amendments to the Law on Management and Use of State Asset in 2008:
The Law on Management and Use of Public Asset passed by 14th National Assembly at its third session and takes effect from January 1, 2018. What are new regulations on how to manage and use the public asset, specifically on several aspects as follows:
(1) Institutionalizing the Party’s guideline on building and completing the Vietnamese legal system and institutionalizing Article No. 53 of the Constitution in 2013; ensuring that all types of public assets are strictly and effectively controlled by law; ensuring the uniformity with relevant laws, such as the Law on Organization of the State apparatus, the State Budget Law, the State Audit Law,…
(2) Principles in management and use of public assets with full coverage of the scope, objects and contents related to the management and use of public assets; To inherit the current contents and regulations which are still suitable and have been stably and effectively implemented in reality;
(3). To assign public assets in service of management, public services provision and national interests, public interests, production and business;
(4). Renovating the method of management and use of public assets, which is suitable to each type of asset with firm grasp, accounting and statistics of public assets in terms of value and object; considering public assets as important resources for socio-economic development, the state budget restructuring
(5). Effectively and efficiently exploiting public assets in combination with the mobilization of social resources and the investment of the State in order to develop and exploit public assets with the aim of creating financial resources that contribute effectively to socio-economic development, the state budget restructuring; to gradually specialize and professionalize the management of public assets and develop public asset services according to the market mechanism on the basis of ensuring the ownership of asset by the entire people.
(6). Ensuring the publicity and transparency on public asset.
3. What needs to be done to concretize the viewpoint on reforming the mechanism for management and use of public asset under the Law on Management and Use of Public Asset.

Mr. Vu Danh Hiep, Deparment of Budget Finance, The National Assembly Office of Vietnam

  • From February 2008 to February 2010: He was the specialist in Department of Budget Finance, directly assisted the Chairman of the Committee on Finance and Budget and worked as a professional in the Estimating team.
  • February 2010: He was appointed to the position of Head of Division, Department of Budget Finance, worked as Secretary of the Chairman in the Committee on Finance and Budget from 1 February 2010, and continued to participate in professional work the Estimating team under the assignment of the Standing Committee and Department of Budget Finance.
  • October 2011: Under the assignment of the Standing Committee and the leadership of Department of Budget Finance, he was assigned to be Head of Public Investment, assisted the Sub-Committee of Public Investment and worked as Secretary for the Chairman of Committee.
  • January 2014: He stopped working as Secretary for the Chairman of Committee and was assigned to be Head of Budget Collection Policy and Budget Collection, assisting the Sub-committee on budget collection policies and budget collection.

Orientation of national database on finance and strategic plan for IT application in public asset management

Mr. Dang Duc Mai, Director General, Department of Financial Informatics and Statistics, Ministry of Finance

Public Financial Management in the 4IR Era – Applying new technologies and approaches to manage risk and increase revenues

New information and communication technologies and trends driving the Fourth Industrial Revolution (4IR) present both challenges and opportunities for public financial managers. Big data, artificial intelligence, and advance analytics are particularly relevant. Commercial financial service providers have been quick to adopt and deploy these technologies to offer innovative customer services and improve internal effectiveness and efficiency. While 4IR technologies present new opportunities for fraudulent and criminal behavior, they also provide authorities with increasingly sophisticated ways to detect that behavior, identify perpetrators, and capture previously uncollected revenues. FPT Information System can help to deploy 4IR technology to augment existing risk management and increase revenue collection dramatically.

Mr. Steven Furst, Director of Strategy & Architecture of FPT IS’s Public Sector

Steven (“Steve”) is a senior international strategy, management and information systems specialist with over thirty years of experience in the consulting and ICT industries.  As a seasoned consulting services business manager, his client base and network covers both the public sector and private enterprise.  For public sector clients, his focus is on digital strategy, architecture, and strengthening service delivery through the application of ICT. For private and state owned/operated enterprises, his focus has been on the nexus of business and digital strategy, and systems program delivery assurance. His areas of experience include leadership, program and project management, ICT acquisition, enterprise solutions and technology platforms, business process reform, and change management.

Steve has consulted to a wide range of governments and enterprises in a variety of Asian, African, and Latin American countries as well as in the United States.  With a focus on emerging economies, he has advised Prime Ministers’ offices and initiatives, national councils, Ministries of Finance, national and state-level transportation agencies, and public and private commercial enterprises. He has presented to a variety of senior-level regional and international conferences. Working with FPT Information System since mid-2016, Steve is focused on conceptualizing, developing, and delivering a portfolio of digital government and smart city solutions to clients in Vietnam and the region.

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Mr. Tony Meng, Country Manager, Delta Green Industrial Vietnam Rep. Office

Tony Meng has more than 25 years working experience on ICT infrastructure industry, including below items:

  • ITRI/CCL a Taiwan government institute developing ICT equipment and software as a project leader.
  • Tailyn Communication for broadband data access product development and business development as a ODM business unit Vice President.
  • ZyXEL Communication Broadband Access Product Line Management Head
  • Delta Electronics, Inc. Head quarter ICT infrastructure business group, Telecom Power Solution global business management and head of APAC region.
  • Delta Electronics, Thailand, Data Center Solution SEA region head.
  • Delta Electronics, Vietnam, Country Manager.

Best practice sharing on building database of public asset in Japan

Mr. Hideaki Hamada, Senior Specialist of Financial Services, World Bank

Hideaki Hamada is a senior financial sector specialist in the Disaster Risk Financing and Insurance Program of the World Bank Group (WBG) in Washington D.C. He is in charge of technical assistance and lending operations in Southeast Asian countries and Pacific Island Countries to enhance financial resilience against disaster risks. He supports the discussion in ASEAN+3 Finance Minister process to develop a regional disaster risk insurance pool, Southeast Asia Disaster Risk Insurance Facility (SEADRIF). Prior to joining the WBG, he was Deputy Director of Multilateral Development Banks Division of the Ministry of Finance in Japan, contributing to the IDA18 replenishment negotiation and international discussion on WBG policy to mainstream disaster risk management. Within ten years experiences in the Government of Japan, he was involved in supervision of insurance companies and fiscal planning. Hideaki obtained Master’s degree of Public Administration at Columbia University in New York and B.A. from University of Tokyo.



Implementing the Law on Management and Use of Public Asset 2017

The Law on Management and Use of Public Assets was passed by the XIV National Assembly on June 21, 2017 and will take effect on January 1, 2018. Law on Management and Use of Public Assets was promulgated in order to institutionalize Article 53 of the Constitution of the Socialist Republic of Vietnam 2013, creating synchronism in the legal system; to utilize achieved results, overcome shortcomings and limitations in the management and use of public assets, prevent and repel wastefulness and loss in the management, use and handling of public assets; to reasonably and efficiently exploit financial resources from public assets for the socio-economic development of the country. For effective implementation of the Law, ministries, central agencies and localities shall have to comprehensively and coherently perform the following major tasks:

– Developing and submitting legal documents of detailed rules and instructions for the implementation of the Law to competent authorities;

– Disseminating information towards affected stakeholders for comprehensive understanding of the Law and the guiding documents

– Upgrading the National database of public assets towards all-inclusive data management of public assets;

– Promulgate regulations on the jurisdiction in procurement, lease, use and disposal of public assets.

Mr. Nguyen Tan Thinh, Deputy Director General, Department of Public Asset Management, Ministry of Finance

Mr. Nguyen Tan Thinh is currently Deputy Director General of the Public Property Management Department – Ministry of Finance, in charge of legislative work on management and use of public assets, state-owned properties, infrastructure properties, and in-charge of National database of public assets. He holds a Master Degree in Economics, having 22 years of work experience in the field of public asset management. During the course of his work, he chaired and participated in the development of various major policies in the field of public asset management, creating the legal framework for managing public assets in Vietnam. Typical policy proposals include:

– Law on Management and Use of State Assets 2008;

– Law on Compulsory Purchase and Requisition of Property 2008;

– Decree No. 52/2009 / ND-CP dated 03/6/2009 of the Government on Detailed rules and instructions for the implementation of a number of provisions of the Law on Management and Use of State Property;

– Decree No. 29/2014 / ND-CP dated 10/4/2014 of the Government on Jurisdiction authorization, the Procedures for establishing ownership of the State property and the Management of State-owned Property, and the State ownership of Property;

– Law on Management and use of public assets 2017, etc.

Mr. Nguyen Tan Thinh is currently chairing the drafting of two decrees on detailed rules for implementation of the Law on Management and Use of Public Assets.

Property auction in public asset management

Public auction is one of the forms of disposal of public property, specified in the Law on Management and use of public property. The advantage of public asset disposal through auction is that it ensures openness, transparency, maximizes asset value, and avoids the loss of public assets.

Public assets must be sold through public auctions in accordance to Law on Management and use of public asset. Public asset auctions shall be conducted in accordance with the principles and procedures given in the Law on Property Auction.

In order to ensure the effectiveness of public asset auctions, the Law on Property Auction specifies the separation of asset auction procedures with pre- and post-auction procedures prescribed in the Law on Management and use of public assets, including determination of starting price, asset valuation, handling of property when the auction fails … especially the contracting and purchasing of assets after auction as the contract between the property owner and the auction winner, avoiding the situation where the signatory does not have the authority to hand over the property and issue invoice.

Public property auctions, apart from having to comply with the general procedure of asset auction, must also comply with the procedures for selection of qualified property auction agency (facilities, auctioneers, approved by Ministry of Justice, etc.); auction is only in bid up way, must public the starting price via printed news agencies, television broadcast stations and specialized websites; the establishment of Property auction Council is strictly regulated (when detailed in law or when the auction agency is not successfully chosen). In addition, the Law on Property Auction also specifies the rights and obligations of property owners before, during and after auctions.

Ms. Nguyen Thi Mai, Deputy Director General, Ministry of Justice

Prior to the current position since 2014 as Deputy Director General of the Agency of Judicial Support, Nguyen Thi Mai was Head of Lawyer Management Division, Agency of Judicial Support. At her position, Ms. Nguyen Thi Mai has participated in the development of various important laws and decrees of Vietnam Government, namely the Law on Lawyers, the Decree on Asset Administrator and the practice of asset management and liquidation, Law on Property Auction and the detailing legislative documents, Decree on commercial conciliation, and regulations on commercial arbitration, etc.

Nguyen Thi Mai holds a Bachelor degree in Law from the National University of Moldova (former Soviet Union) and a Master Degree in Law from Kyushu University, Japan.

International experience of financial risk management for public asset

Ms. Vu Thu Hang, Financial Service Specialist, World Bank

Ms. Hang has been with the World Bank since 2013 as a Consultant and then as a Financial Sector Specialist in the Finance and Markets Global Practice of the World Bank based in Hanoi, Vietnam. She currently works with various government counterparts on disaster risk finance and insurance, non-bank financial institutions development and financial inclusion programs. Before working for the World Bank, Hang spent almost seven years in the private sector working on asset management and insurance management following a stint in the public sector facilitating foreign non-governmental operations in Vietnam. She holds a bachelor of economics from the Hanoi Foreign Trade University and a masters of economics from the University of Leeds, UK, and completed the finance and management program at Boston University.  

The insurance tools in public asset management

Natural disasters and global climate change have tended to increase in recent years, causing a great deal of damages to the economy and negatively affecting the investment environment of both developed countries and developing countries.

According to recent research by the Asia Foundation and Viet Nam Institute of Meteorology, Hydrology and Climate Change (Ministry of Natural Resources and Environment), Vietnam has been one of the five countries having the highest natural disaster risk in the past 10 years. In average, annual disasters cause about 500 deaths per year and losses of 14,500 billion VND which is equivalent to 1.2-1.5% of GDP in the whole country. In particular, losses on public assets account for 0.41% of GDP. The expenditures for natural disaster recovery (from both the state budget and loans from international organizations) are around VND 11,000 billion VND per year (excluding the cost of reconstruction and rehabilitation).

Some countries have used a variety of measures to manage financial risks towards public assets and most countries tend to use insurance as a tool for risk management and transfer towards public assets.

In Vietnam, the management of financial risks towards public assets through insurance has also been covered by the Law on Management and Use of Public Assets (approved by the National Assembly in June 2017). Therefore, researching and developing an appropriate mechanism in order to effectively implement of public asset insurance in Vietnam is essential.

Mr. Ngo Viet Trung, Deputy Director General, Insurance Supervisory and Authority,Ministry of Finance

Mr. Ngo Viet Trung is awarded a Bachelor degree in Business Administration from National Economics University of Vietnam in 1995. He qualified for Master degree in Public Policy in National Graduate Institute for Policy Studies – GRIPS (Japan) in 2003.

From 1996 to 2004, Mr. Ngo Viet Trung worked for Ministry of Finance as an official of Department of Accounting and Auditing Regulations. He then moved to the Department of Insurance Supervisory Authority, and became the head of life insurance supervision division in February 2007. Mr. Ngo Viet Trung has been the Deputy Director General of Insurance Supervisory Authority since March 2011.

Management mechanism of transportation infrastructure

  1. The overview of transportation infrastructure assets in Vietnam
  2. Current status of management, use and exploitation of transportation infrastructure assets
  3. The solution for completing mechanism

3.1. Total planning solution

3.2. The solution for policy mechanism

3.3. The solution for implementation

Ms. Pham Thi Tuyet, Deputy Head of Infrastructure assets Division, Department of Public Asset Management, Ministry of Finance

She has worked at Department of Public Asset Management, Ministry of Finance for 10 years.

From 2007 to 2013: Executive at Infrastructure Assets Division

From 2014 to now: Deputy Head of Infrastructure Assets Division

During working, she moderated to make the draft reporting to authorities having the right to promulgate policies related to the management, use and exploitation of road and railway infrastructure assets. In addition, she participated in making the draft for remaining transport sectors.

Best practices sharing of management and use of public asset in Da Nang

Under the implementation of Law on Management and Use of Public Assets 2008 and related regulations, the management and use of public assets in Da Nang city has got followed achievements:

– The investment in the construction of working offices and the procurement of public assets has been implemented in accordance with law on construction investment and the bidding law; ensuring the standards and allowances prescribed;

– The list of centralized procurement assets has been issued in accordance with Decision No. 08/2016 / QD-TTg of the Prime Minister;

– Public assets in Da Nang city have been updated completely and timely in the National database of State assets, contributing to improving the management and use of public assets.

In addition, to implement the Law on Management and Use of Public Assets passed by the National Assembly on June 21, 2001, effective from 01/01/2018, Da Nang city authorities has set out the management direction in the coming time as follows:

– Organizing trainings, workshops for agencies, organizations and units in the city for thorough understanding of the Law on Management and Use of Public Assets;

– Developing legal documents within the Department’s scope of promulgation;

– Focusing on the implementation of the Law on Management and Use of Public Assets, ensuring transparency and efficiency.

Mr. Le Ba Dung, Deputy Director, Da Nang Department of Finance

– Mr. Le Ba Dung was born on October 15th 1959 in Phu Tho province (former Vinh Phu) and worked at Department of Finance from 1984 to present.

–  He was admitted to the Communist Party of Vietnam on July 20th 1996 (the official date was on July 20th 1997).

– The training process: From 1986 to 1991, he studied at Hanoi University of Accounting and Finance, majoring in Industrial Accounting. From 2009 to 2011, he studied a master degree at Da Nang University, majoring in Banking and Finance. At the same time, he attended English courses for B1 certificate, courses for chief accountant and fostering programs for the specialist and principal specialist.

– During the working path, he has taken different duties in the Division of Administration, the Division of Financial Capital Construction, the Division of Aid Management, the Division of Finance and Investment, and the Division of Budget Management.

– For many years, he hasn the course of working for many years, he received the title of Emulative Soldier at the Grassroots and provincial levels that are awarded by Ministry of Finance and the People’s Committee of Da Nang city for his outstanding achievements in finance and budgeting.



Orientation of implementing E-transaction system for public asset

Database of road asset management and solutions for other infrastructure assets

Over the past years, the Party, State and people of Vietnam have paid great attention to the development of the social and economic infrastructure system. However, the infrastructure system in Vietnam is still outdated, lack of consistency and interconnection, an obstacle of the development process. Therefore, the application of information technology to the management of infrastructure assets is very necessary.

According to the Law on Management and Use of Public Assets No. 15/2017 / QH14 passed by the National Assembly on June 21, 2017 and effective from January 1, infrastructure asset is divid