By 2020: State vehicles will have been reduced by 30% - 50%

	The Ministry of Industry and Trade proposes to increase the quota for State vehicles
	Allocating administrative expenditure for State vehicles
	Who has the right to liquidate official State vehicles?

Initially, Vietnam has more than 3,100 State vehicles to be removed to reduce costs for State budget.

Delegates of An Giang, Ba Ria -Vung Tau, Da Nang, Tien Giang and Nghe An expressed their sympathy for the policy on funding packages for State vehicles of some senior leaders under current regulations. With positive results from this policy, delegates suggested that the Government should implement this policy soon to ensure State budget to be saved.

In this regard, the Ministry of Finance said: In accordance with Government's Resolution No. 01 / NQ-CP on major tasks and solutions to direct and promote the socio-economic development plan and State budget estimates for 2016; Government’s Resolution No. 76 / NQ-CP of the Government's regular meeting in August 2016, the Prime Minister’s Decision No. 32/2015 / QD-TTg stipulating standards, norms, mechanism of management and use of State vehicles in State agencies, non-business agencies, limited liability companies in which the State holds 100% of their charter capital and the direction of the Prime Minister in the Directive No. 31 / CT-TTg on enhancing the management and improvement of the efficiency of the use of public assets, the Ministry of Finance has applied funding packages for Deputy Ministers or lower, which has rearranged cars and driving teams of Ministries.

Also, the Ministry of Finance is finalizing the Decision on amendment and supplementation of Decision No. 32 so that by 2020, State vehicles provided to Ministries and localities would have been reduced by 30% -50%.

In particular, it is expected to amend the regulations on funding package for for some groups of titles (Deputy Ministers and equivalent, some of the positions using State cars for general tasks), except mountainous areas, islands and areas with special difficulties.

Speaking to the press about the above issue in early March 2017, Mr. Tran Duc Thang, the Director of the Department of Public Property Administration (under the Ministry of Finance) said: Since the implementation of Decision No. 32, the number of State vehicles serving public tasks has decreased drastically. The handling of redundant vehicles through various forms of transfer such as sales or liquidation shall be strictly implemented.

According to Mr. Thang, by the end of 31st December 2016, the total number of vehicles on the State database had been 34,214 units, including 864 units for senior leaders, 17,047 units for public tasks and 16,330 units for special-purpose vehicles.

According to statistics of the Ministry of Finance, since the implementation of Decision No. 32, there have been 1,105 State vehicles to be liquidated. In addition, there have been 2,041 State vehicles to be classified as redundant vehicles for liquidation in the coming time by Ministry of Finance. Thus, initially, Vietnam has more than 3,100 State vehicles to be removed to reduce costs for State budget.

The regulation on funding packages for State vehicles has been applied by some Ministries and localities (such as the Ministry of Finance, the Office of Government, the Ministry of Transport and Hanoi). Initial results have shown that the regulation on funding packages for State vehicles help save State budget, which has been highly appreciately by the society.

In order to solve problems arising in nearly two years of implementation of Decision No. 32, the Ministry of Finance is drafting a decision to consult Ministries and localities before submitting it to the Government.

In the draft, the Ministry of Finance plans to impose a compulsory funding package for Deputy Ministers or below from home to workplace.

Another outstanding change is that the Ministry of Finance has proposed to apply voluntary funding package for State vehicles on business trips within the province or city or State vehicles for titiles with labour coefficient from 0.7 to less than 1.25 and other titles in economic groups and State-owned enterprises.

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There have been two options to determine the level of funding package as follows: the cost of using State vehicles with a payment of 6.5 million per month or the fixed price based on the actual distance from home to workplace.