LookAtVietnam – Each State agency, public non-business unit or State-owned enterprise is now allowed to buy only one car worth a maximum of VND800 million (US$44,400).

The newest regulation strictly prohibits the utilisation of public cars for personal purposes and details clearly the rules relating to car type, value and usage.

In an attempt to help curb inflation, in the 2008 decision the Prime Minister had mandated a freeze on the purchase of Government cars to halt the excessive amounts of public funds going towards the purchasing of Government vehicles, said Pham Dinh Cuong, director of the Public Assets Management Department under MoF.

Old quota

Originally, there was a regulation promulgated in May 2007, which had already set criteria, quotas, management and use of means of transport in State agencies, public non-business units and State-owned enterprises. If this had been properly implemented, the State could have saved up to VND2 trillion (US$111 million) every year, MoF had estimated.

The newest regulation strictly prohibits the utilisation of public cars for personal purposes and details clearly the rules relating to car type, value and usage. This applies to all government officials from district leaders up, chairmen of management boards, general directors of State-owned corporations and other entities appointed by the Prime Minister.

According to Cuong, the policy for the use of Government cars will become stricter.

“Besides the policy of reducing the number of government cars, we will popularise self transport,” Cuong said.

“In the past, a Government car was considered a symbol of power but at present, no one cares. In fact, using taxis and private cars is nicer,” he said.

Time to punish

However, as reported by the State Treasury, since the original regulation was promulgated two years ago, 73 cars were still purchased for a cost to the public of VND32 billion ($1.7 million).

The Treasury also requested MoF punish those in possession of more cars than allowed by regulation, with the biggest culprits being the Ministry of Agriculture and Rural Development and then the Ministry of Transport.

Economist Pham Chi Lan said it was pressing to prevent misuse of the public’s money for transport, but wonders how the regulation will be implemented.

“I understand all decisions are to save money for the State’s budget,” Lan said, “So everyone should leave their own benefit behind and think about common benefit”.

VietNamNet/Viet Nam News