3 conditions for purchasing cars for project

	Minister allowed to regularly use a car with a maximum purchase price of 1.1 VND billion
	Continue to suspend the procurement of public car in 2018
	Draft Decree on public cars: stipulates car for senior officers at VND 920 million

Illustrative photo. Source: Internet

According to the Ministry of Finance, the Law on Management and Use of Public Assets 2017 stipulates that one of the three conditions for being equipped with cars for project management is that agencies and units assigned to manage projects has no assets or insufficient assets compared to the standards and norms but the State does not allocate assets and they are not subject to hired or fixed expenditure for using cars.

In terms of cars used for the project management board, Government Decree No. 04/2019/ND-CP also stipulates that for non-refundable aid projects, the purchasing of the car for the operation of each project shall be implemented in accordance with signed agreements or approved projects by competent agencies.

When negotiating to sign documents of non-refundable aid projects, if the donor requires purchasing cars for project operation, in addition to complying with the regulations on procedures to sign, join and implement international treaties, agencies and units shall receive comment of financial agencies of the same level before submitting to competent agencies for approval of the project reception.

According to Ministry of Finance, the Ministry of Natural Resources and Environment needs to review the current number of cars according to the standards and norms in Decree No.04/2019/ND-CP to allocate cars. If the agencies and units assigned to manage projects still lack cars, but if the Ministry of Natural Resources and Environment does not have cars to allocate and these agencies are not subject to be hired and fixed expenditure for using cars, the Ministry shall ask the Prime Minister for a decision on the purchase of project cars.

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Before Decree No. 04/2019/ND-CP was issued, some ministries and agencies asked the Ministry of Finance about this issue. Currently, units have suspended purchasing, selling and transferring cars. If they need to buy cars urgently, they need to report to the Prime Minister for approval.

As Decree No. 04/2019/ND-CP has been issued, ministries, sectors and localities need to review the number of cars according to norms. If the review has been conducted but units donot have cars to allocate, they shall ask the Prime Minister for a decision. These regulations aim to closely control the use of public cars and strive to reduce the number of public cars by 30-50% by 2020.