The Ministry of Finance has proposed to Prime Minister Nguyễn Xuân Phúc measures to address loopholes in the legal framework related to offering state assets to Build-Transfer (BT) investors in exchange for infrastructure.

Although the Law on Management and Use of Public Assets which took effect in January this year mentions the exchange of State assets for BT project’s infrastructure, the law has not detailed A view of the HCM City-Long Thành-Dầu Giây Highway in District 2 in HCM City, which was built in the Build-Transfer (BT) model. The Ministry of Finance has called for measures to get rid of loopholes related to BT investors. 

It has now drafted a decree on using State assets, including land, headquarters, in exchange for BT infrastructure and collecting feedback from relevant public sectors. The decree is waiting for the Government’s approval.

Responding to press questions on the delay of the decree issuance, Nguyễn Tân Thịnh, deputy director of the Department of Public Asset Management under the Ministry of Finance said the decree relates to a wide range of laws including those on investment, land, especially the assessment of land use right value.

“The Government has taken careful steps in studying the decree before approving it,” he said.

While waiting for the approval, the finance ministry asked public agencies and local people’s committees to suspend the practice from January this year until the decree is approved.

Answering press queries on the number of BT projects affected by the state asset exchange suspension, Thịnh said there had been no official statistics so far.

At the monthly Government meeting in August, the Government requested ministries of planning, investment, finance, natural resources and environment, justice and other relevant sectors to review BT project implementation and make amendments to the policies, especially those related to selecting investors, land leasing to avoid waste to the State budget.

“BT” refers to the practice of exchanging land to investors who pledge to build infrastructure. The projects were introduced to Việt Nam in the early 1990s when localities across the country severely lack funds for developing infrastructure. — VNS