Decree No. 15/2025/ND-CP dated February 03, 2025 on management, use and operation of railway infrastructure asset

DECREE

ON MANAGEMENT, USE AND OPERATION OF RAILWAY INFRASTRUCTURE ASSET

Pursuant to the Law on Government dated June 19, 2015;

Pursuant to the Law on amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

Pursuant to the Law on Management and Use of Public property dated June 21, 2017;

Pursuant to the Law on amendments to Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management and Use of Public property, Law on Tax Administration, Law on Personal Income Tax, Law on National Reserves, and Law on Penalties for Administrative Violations dated November 29, 2024;

Pursuant to the Law on Railway dated June 16, 2017;

At the request of the Minister of Finance;

The Government issues a Decree on management, use, and operation of railway infrastructure asset.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree provides for the management, use, and operation of railway infrastructure asset invested and managed by the State, including:

a) National railway infrastructure asset.

b) Urban railway infrastructure asset.

2. This Decree shall not apply to:

a) Railway infrastructure asset at people's armed forces. The management, use, operation and reporting on railway infrastructure asset at people's armed forces shall comply with laws on management and use of public property at people's armed forces, laws on railway and other relevant laws.

b) Office of state authorities in railway station area. The management and use of this asset shall comply with laws on management and use of public property applicable to public property serving the management and operation of state authorities.

c) Railway infrastructure assets managed by other entities (other than those specified in Clause 3 of Article 2 hereof) in accordance with law and railway infrastructure asset invested and managed by the State but sold, transferred, and included in the enterprise value upon equitization. The management, use, and operation of railway infrastructure asset in this case shall comply with laws on railway and other relevant laws.

Article 2. Regulated entities

1. The agencies performing the tasks and powers of representing the owner and state management of railways include:

a) Ministry of Transport for national railways.

b) People's Committees of provinces and centrally affiliated cities (hereinafter referred to as provincial People's Committees) for urban railways.

2. Railway management authorities include:

a) Central railway management authority: an organization advising and assisting the Minister of Transport in state management and organizing the enforcement of laws on railway.

b) Urban railway management authority: an organization advising and assisting Provincial People's Committees in state management of urban railways.

3. Enterprises assigned to manage railway infrastructure asset (hereinafter referred to as the “railway infrastructure management enterprises”) include:

a) Wholly state-owned railway infrastructure enterprises assigned to operate national railway infrastructure asset (hereinafter referred to as “national railway infrastructure management enterprises”).

b) Wholly state-owned railway infrastructure enterprises/railway transport enterprises assigned to operate urban railway infrastructure asset (hereinafter referred to as “urban railway infrastructure management enterprises”).

4. Organizations and enterprises receiving lease or fixed-term transfers of rights to operate railway infrastructure asset in accordance herewith.

5. Other entities related to the management, use, and operation of railway infrastructure asset.

Article 3. Term interpretation

For the purposes hereof, the terms below shall be construed as follows:

1. Railway infrastructure asset is railway works, work items as prescribed by laws on railway and land associated with railway works.

2. Railway infrastructure asset associated with national security is assets under the list of important works associated with national security issued by competent authority/person in accordance with laws on protection of important works associated with national security.

3. Railway infrastructure asset associated with national defense is determined in accordance with laws on management and protection of national defense works and military zones.

4. Railway infrastructure management enterprises directly organizing the operation of railway infrastructure asset is a method of operating railway infrastructure asset, where the railway infrastructure management enterprise shall organize the operation of asset assigned to organizations and individuals for management through railway infrastructure asset services and other services in accordance with laws on railways and other relevant laws.

5. Lease of the right to operate railway infrastructure asset means the act of the State (through railway infrastructure management enterprises) transferring the right to operate railway infrastructure asset to other organizations under contract to receive a corresponding amount of money. The organization receiving the leased right to operate railway infrastructure asset shall provide railway infrastructure asset services and other services in accordance with laws on railways and other relevant laws.

6. Fixed-term transfer of the right to operate railway infrastructure asset is when the State (through railway infrastructure management enterprises) transfers the asset operation right to other enterprises for a fixed term linked to investment in upgrading, expanding existing railway infrastructure asset as per a project approved by the competent authority/person to receive a corresponding amount as per the contract. Enterprises receiving fixed-term transfer of the right to operate railway infrastructure asset shall provide railway infrastructure asset services and other services in accordance with laws on railways and other relevant laws.

Article 4. Rules for management, use, and operation of railway infrastructure asset

The management, use, and operation of railway infrastructure asset must comply with rules specified in the Law on management, use of public property, and the following rules:

1. Railway infrastructure asset is fully and promptly accounted for in kind and value; the regimes for asset depreciation calculation and construction maintenance are implemented in accordance with law.

2. The disposal and operation of railway infrastructure asset as prescribed herein shall be carried out for all or part of each railway infrastructure asset and shall not affect the normal operation of the railway system, railway development planning, and shall not violate the principles of unified and centralized management, ensuring smooth, orderly, safe, accurate and effective traffic and transport activities. The disposal, operation a part of each asset must ensure that it does not affect the management, use, and operation of the remaining of the asset.

3. The assignment, operation and disposal of waterway infrastructure asset that (i) are related to national defense, must obtain the opinion of the Ministry of National Defense; (ii) are related to national security, must obtain the opinion of the Ministry of Public Security; (iii) are not related to national defense and security, shall be determined by the Ministry of Transport, the provincial People's Committee, the railway management authority, and the railway infrastructure management enterprise in the application submitted to the competent authority/person for decision.

4. If the operation and disposal of railway infrastructure asset as prescribed herein affects other related infrastructure asset, opinions from the entity assigned to manage the related infrastructure asset must be obtained and solutions must be provided to clearly define responsibilities for rectification.

5. The management, use, and operation of railway infrastructure asset shall be supervised, inspected, and audited in accordance with applicable regulations; any violations of the law on the management, use, and operation of railway infrastructure asset shall be promptly and strictly handled in accordance with law.

6. The management and use of land attached to railway infrastructure asset shall comply with laws on land, the laws on railways, and other relevant laws. The transfer, sale, donation, capital contribution, and mortgage of rights to use land attached to railway infrastructure is not allowed. In case of repossession of land attached to railway infrastructure asset in accordance with laws on land, the repossession of land attached to asset, recompense, support, settlement and the handling of land and asset attached to land after repossession shall comply with laws on land not this Decree.

The use of land banks to create capital for railway infrastructure development shall be carried out in accordance with land laws.

Chapter II

ASSIGNMENT OF MANAGEMENT OF RAILWAY INFRASTRUCTURE ASSET

Section 1. ASSIGNMENT OF MANAGEMENT OF NATIONAL RAILWAY INFRASTRUCTURE ASSET

Article 5. Scope and forms of assignment of management of national railway infrastructure asset

1. All existing national railway infrastructure assets assigned to the national railway infrastructure management enterprise are assets that are not recorded as state capital at that enterprise.

Authority and procedures for assigning national railway infrastructure asset that is not recorded as state capital at that enterprise shall be carried out in accordance with Article 6 hereof.

2. For national railway infrastructure asset eligible for the established all-people ownership that are handled in the form of assignment or transfer to the national railway management enterprises, the authority and procedures for assignment and transfer of asset shall be implemented in accordance with the laws on disposal of asset eligible for the established all-people ownership; it is not required to re-perform the asset handover procedures as prescribed herein.

3. For national railway infrastructure assets that are the result of the implementation process of State-funded project:

a) For investment projects approved by a competent authority or person, if the beneficiary of the asset resulting from the project execution process is the national railway infrastructure management enterprise specified in Point a, Point b of Clause 1 of this Article, after completing the investment, construction, the developer, project owner, and project management board shall hand over the asset to the beneficiary; it is not required to re-perform the asset handover procedures as prescribed herein.

b) For investment projects approved by a competent authority or person, if the beneficiary of the asset resulting from the project execution process is not the national railway infrastructure management enterprise:

If the beneficiary is a state authority, public service provider, agency of the Communist Party of Vietnam, the Vietnam Fatherland Front or a socio-political organization, after the beneficiary receives the asset, the asset shall be transferred from the beneficiary to the Ministry of Transport to hand over the asset to the national railway infrastructure management authority; the transfer shall be carried out in accordance with Clause 4 of this Article;

If the beneficiary is not a state authority, public service provider, agency of the Communist Party of Vietnam, the Vietnam Fatherland Front or a socio-political organization, the beneficiary shall manage, use and operate the asset in accordance with the laws on railways and other relevant laws. If there is a need to transfer the asset to the Ministry of Transport to hand over it to the national railway infrastructure management enterprise, Clause 4 of this Article shall apply.

c) For the investment project approved by a competent authority or person, if the beneficiary of the asset resulting from the project execution process is not determined, the authority and procedures for handing over the asset to the managing enterprise or transferring national railway infrastructure asset the Ministry of Transport to hand over the asset to the national railway asset infrastructure enterprise shall be implemented in accordance with the regulations on disposal of asset of State-funded projects in the laws on management and use of public property; it is not required to re-perform the asset handover procedures as prescribed herein.

4. For cases of railway infrastructure assets managed by entities other than the national railway infrastructure management enterprise, where the managing entity wishes to transfer the asset to the Ministry of Transport to assign it to the national railway infrastructure management enterprise, the authority, procedures for transferring the asset shall be carried out in accordance with the relevant laws; it is not required to re-perform the asset handover procedures as prescribed herein.

In cases where relevant laws do not have regulations on the authority and procedures for asset transfer, authority and procedures specified in Clause 2 and Clause 3 of Article 23 hereof shall be carried out to decide and implement the asset transfer.

5. The assignment of national railway infrastructure assets that have been transferred to the Ministry of Transport as specified in points b and c of Clause 3, Clause 4 of this Article to hand over the asset to the national railway infrastructure management enterprise that is not recorded as state capital at that enterprise shall be carried out in accordance with Article 6 hereof.

6. For national railway infrastructure asset after being assigned to the national railway infrastructure management enterprise in accordance with Clause 1, Clause 5 of this Article, and the national railway infrastructure asset specified in Clause 2, point a, and point c of Clause 3 of this Article which is handed over, assigned, transferred to the national railway infrastructure management enterprise that is not recorded as state capital at that enterprise, if the national railway infrastructure management enterprise wants to be assigned the asset that is not recorded as state capital at that enterprise, pursuant to railway law, its ability to manage and operate its asset, the national railway infrastructure management enterprise shall prepare and submit a plan for supplementary investment in charter capital at the enterprise using the value of national railway infrastructure asset to the competent authority/person for approval in accordance with the regulations on the management and utilization of state capital invested in the enterprise’s manufacturing and business activities.

The plan for supplementary investment in charter capital at the enterprise must specify the list of national railway infrastructure asset assigned to the national railway infrastructure management enterprise that is recorded as state capital at that enterprise (switching from not being recorded to being recorded as state capital at that enterprise). The authority, procedures for changing from assignment of national railway infrastructure asset that is not recorded as state capital at that enterprise to assignment of asset that is recorded as state capital at that enterprise shall be in accordance with Article 7 hereof.

7. For (i) national railway infrastructure asset specified in Clause 2, point a, and point c of Clause 3 of this Article, which is handed over, assigned, transferred to the national railway infrastructure management enterprise that is recorded as state capital at that enterprise, (ii) national railway infrastructure asset that changes from not being recorded to being recorded as state capital at that enterprise as specified in Clause 6 of this Article, the management, use, and operation thereof shall be carried out in accordance with laws on the management and utilization of state capital invested in the enterprise’s manufacturing and business activities, railway laws, other relevant laws, and the following regulations:

a) The execution of rights and obligations of the enterprise related to railway infrastructure asset must ensure the state ownership of the railway infrastructure asset assigned to the infrastructure management enterprise.

b) The national railway infrastructure management enterprise is responsible for implementing reporting and accounting of railway infrastructure asset according to accounting laws and other relevant laws.

c) For works, work items within the railway infrastructure that is no longer needed for railway infrastructure purposes and which the national railway infrastructure management enterprise voluntarily returns the land attached to those works or work items to the state, the land appropriation, compensation, support upon land appropriation, and handling of land and asset attached to the land after appropriation shall be carried out in accordance with land laws.

d) The national railway infrastructure management enterprise is responsible for completing legal documentation regarding land, managing and using land attached to railway infrastructure in accordance with land laws, railway laws, and other relevant laws.

dd) The national railway infrastructure management enterprise does not have to manage, use, and operate railway asset in accordance with Chapter III, Chapter IV, and Chapter V hereof.

Article 6. Authority and procedures for assigning national railway infrastructure asset that is not recorded as state capital at the enterprise for cases specified in clause 1 and clause 5 of Article 5 hereof

1. The Minister of Transport shall decide to assign national railway infrastructure asset that is not recorded as state capital at the enterprise.

2. Based on the accounting records, the application for the transfer of national railway infrastructure asset to the Ministry of Transport, and the actual management situation, the Ministry of Transport shall direct the review, inventory of all national railway infrastructure asset managed or temporarily managed by agencies, organizations, units, and enterprises (including cases where the asset is invested through PPP and transferred to the state without establishing all-people ownership). Pursuant to the above basis, asset shall be classified as follows:

a) National railway infrastructure assets already assigned to the national railway infrastructure management enterprise by competent authorities/persons shall remain under the management of such enterprise according to this Decree.

b) National railway infrastructure assets currently managed by the national railway infrastructure management enterprise but there is no document on asset handover from the competent authority or person.

c) National railway infrastructure asset temporarily assigned to the national railway infrastructure management enterprise for management.

d) National railway infrastructure asset assigned or temporarily assigned to other entities (not the national railway infrastructure management enterprise) for management.

dd) National railway infrastructure asset transferred to the Ministry of Transport in accordance with point b, point c of Clause 3, Clause 4 of Article 5 hereof.

3. Based on the results of the review, inventory, and classification in accordance with Clause 2 of this Article, the national railway management authority shall prepare application for the assignment of national railway infrastructure asset specified in points b, c, d, and dd of Clause 2 of this Article to the national railway infrastructure management enterprise for reporting to the Ministry of Transport. The application includes:

a) Application from national railway infrastructure management authority for assigning asset to the national railway infrastructure management enterprise that is not recorded as state capital at that enterprise: 01 original copy;

b) Written opinions on the asset assignment from: Relevant agencies, units of the Ministry of Transport; the agency, organization, unit currently managing or temporarily managing the asset and their superior management authority (if any); national railway infrastructure management enterprise proposed for asset management: 01 original copy;

b) List of assets to be assigned (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value (if any); condition of the assets; name of the agency, organization, unit, enterprise currently managing or temporarily managing the asset) prepared by the national railway asset authority: 01 original copy;

d) Legal documents on the asset (Decision on asset assignment, transfer, Minutes of asset handover, receipt or other papers, documents proving the right to manage, use, temporarily manage the asset - if any): 01 duplicate copy.

dd) Other relevant documents (if any): 01 duplicate copy.

4. Within 30 days from the date of receiving the complete application specified in clause 3 of this Article, the Minister of Transport shall review and decide assigning national railway infrastructure asset or shall have a written response in case the request is not appropriate.

5. The decision on assignment of national railway infrastructure asset shall include:

Name of the railway infrastructure management enterprise.

b) List of assets to be handed over (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value (if any); condition of the assets; name of the agency, organization, unit, enterprise currently managing or temporarily managing the asset).

c) Form of handing over the asset: not being recorded as state capital at that enterprise.

d) Implementation responsibility.

6. Pursuant to the Decision on handing over national railway infrastructure asset of the competent authority or person:

a) The national railway infrastructure management enterprise shall manage, use, and operate the asset in accordance with the regulations hereof, the laws on railway, and other relevant laws for asset specified in Point b, Point c of Clause 2 of this Article; it is not required to hand over or receive asset as prescribed in Point b of this Clause.

b) Within 30 days from the issuance date of the Decision on asset handover of competent authority or person, the agency, organization, unit, or enterprise currently managing or temporarily managing the asset (Transferring Party) shall hand over the asset to the national railway infrastructure management enterprise (the Receiving Party) for the asset specified in Point d and Point dd, Clause 2 of this Article; the handover and receipt of the asset are documented in a Minute using Form 01 in the Appendix attached to this Decree. After receiving the asset, the national railway infrastructure management enterprise shall manage, use and operate the asset in accordance herewith, the laws on railway and other relevant laws.

7. The budget for organizing the review, inventory, classification and assignment of management of asset shall be allocated from the state budget in accordance with laws on the state budget, other sources as prescribed by law.

Article 7. The authority, procedures for changing from assignment of national railway infrastructure asset that is not recorded as state capital at the enterprise to assignment of asset that is recorded as state capital at the enterprise specified in clause 6 of Article 5 hereof

1. The Prime Minister shall decide to change the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise.

2. The national railway infrastructure management enterprise shall prepare and submit an application for changing the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at that enterprise to the Ministry of Transport. The application includes:

a) An application from the national railway infrastructure management enterprise for changing the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise (including a copy of the plan for supplementary investment in charter capital at the enterprise using the value of national railway infrastructure asset approved by the competent authority/person in accordance with regulations on the management and utilization of state capital invested in the enterprise’s manufacturing and business activities): 01 original copy;

b) Document from the state capital owner’s representative agency at the enterprise managing national railway infrastructure asset: 01 original copy;

b) List of assets to be assigned (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value according to the accounting book (if any); asset value determined as per the provisions in Clause 3 of this Article; condition of the assets): 01 original copy;

d) Legal documents on the asset (Decision on asset assignment, transfer, Minutes of asset handover, receipt or other papers, documents proving the right to manage, use the asset): 01 duplicate copy.

dd) Other relevant documents (if any): 01 duplicate copy.

3. Determination of the value of national railway infrastructure asset as the basis for determining the value of state capital invested in the national railway infrastructure management enterprise:

a) In cases where the asset is purchased, invested in, built, completed, and put into operation within 3 years up to the date of preparing the application for changing the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise, the national railway infrastructure management enterprise shall determine the value of national railway infrastructure asset as the basis for determining the value of state capital invested in the enterprise as the residual value of the asset on the accounting book. For asset not listed in the accounting book or listed asset that has not calculated the depreciation or has calculated depreciation but not conforming with applicable regulations, the national railway infrastructure management enterprise must re-assess the residual value up to the date of preparing the application in accordance with applicable regulations as the basis for determining the state capital invested in the enterprise.

b) Cases not covered by point a of this clause:

The national railway infrastructure management enterprise shall hire a valuation enterprise in accordance with laws for valuation of the national railway infrastructure asset with assignment form proposed to be changed from not being recorded to being recorded as state capital at the enterprise.

c) Pursuant (i) the asset list and the condition of the assets with assignment form proposed to be changed, and (ii) valuation results from the valuation enterprise, the national railway infrastructure management enterprise shall submit documents to the Ministry of Transport for a decision on the value of the national railway infrastructure asset as the basis for determining the value of state capital invested in the enterprise. The use of valuation certificates and valuation reports of valuation enterprises shall be carried out in accordance with laws on prices.

The cost of hiring the valuation enterprise shall be included in the expenses of the national railway infrastructure management enterprise in accordance with Article 20 hereof.

4. Within 30 days from the date of receiving the complete application as specified in Clause 2 of this Article, the Ministry of Transport shall prepare and submit an application to the Prime Minister for review and decision on changing the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise, or issue instructing documents in cases where the request is not appropriate. The application includes:

a) An application from the Ministry of Transport on changing the form of assigning national railway infrastructure asset handed over to managing enterprise in from not being recorded to being recorded as state capital at the enterprise, clearly stating the necessity for the change in the form of asset assignment; the asset list (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value according to the accounting book; asset value determined as per the provisions in Clause 3 of this Article; condition of the assets); attached with a draft Decision of the Prime Minister: 01 original copy;

b) The form of summary, explanation, and receipt of opinions from relevant agencies prepared by the Ministry of Transport (if any): 01 original copy;

c) Written opinions of relevant agencies (if any): 01 duplicate copy.

d) Documentation specified in Clause 2 of this Article: 01 duplicate copy.

5. The Decision on changing the form of assigning the asset from not being recorded to being recorded as state capital at the enterprise includes:

a) Name of the national railway infrastructure management enterprise that has asset subject to change in asset assignment form.

b) List of assets with assignment form proposed to be changed (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value according to the accounting book; condition of the assets).

Value of the asset included in state capital at the enterprise managing national railway asset shall be determined and decided in accordance with Clause 3 of this Article.

d) Implementation responsibility.

6. Pursuant to the Prime Minister's Decision on changing the form of assigning asset from not being recorded to being recorded as state capital at the enterprise, the national railway infrastructure management enterprise shall adjust the asset lists (including: Lists of assets assigned that are not and/or are recorded as state capital at the enterprise), account for asset in accordance with laws on accounting.

7. The management, use and operation of railway infrastructure asset with assignment form changed from not being recorded to being recorded as state capital at the enterprise shall be carried out in accordance with Clause 7 of Article 5 hereof.

Section 2. ASSIGNMENT OF MANAGEMENT OF URBAN RAILWAY INFRASTRUCTURE ASSET

Article 8. Scope and forms of assignment of management of urban railway infrastructure asset

1. All existing national railway infrastructure asset (except for urban railway infrastructure asset assigned to enterprises for management that is recorded as state capital at the enterprise) is assigned to the urban railway infrastructure management enterprise that is not recorded as state capital at that enterprise.

Authority and procedures for assigning urban railway infrastructure asset that is not recorded as state capital at the enterprise shall be carried out in accordance with Article 9 hereof.

2. For urban railway infrastructure asset eligible for the established all-people ownership that is handled in the form of being assigned to an urban railway infrastructure management enterprise for management, the authority and procedures for handing over the asset shall comply with laws on handling asset eligible for the established all-people ownership; it is not required to re-perform the asset handover procedures as prescribed herein.

3. For urban railway infrastructure assets that are the result of the implementation process of State-funded projects:

a) For investment projects approved by a competent authority or person, if the beneficiary of the asset resulting from the project execution process is the urban railway infrastructure management enterprise specified in Point a, Point b of Clause 1 of this Article, after completing the investment, construction, and procurement, the project developer, project owner, and project management board shall hand over the asset to the beneficiary; it is not required to re-perform the asset handover procedures as prescribed herein.

b) For investment projects approved by a competent authority or person, if the beneficiary of the asset resulting from the project execution process is not the urban railway infrastructure management enterprise:

If the beneficiary is a state authority, public service provider, agency of the Communist Party of Vietnam, the Vietnam Fatherland Front or a socio-political organization, after the beneficiary receives the asset, the asset shall be transferred from the beneficiary to the Provincial People's Committee to hand over the asset to the urban railway infrastructure management authority; the transfer shall be carried out in accordance with Clause 4 of this Article;

If the beneficiary is not a state authority, public service provider, agency of the Communist Party of Vietnam, the Vietnam Fatherland Front or a socio-political organization, the beneficiary shall manage, use and operate the asset in accordance with the laws on railways and other relevant laws. If there is a need to transfer the asset to the provincial People's Committee to hand over the asset to the national railway infrastructure management enterprise, Clause 4 of this Article shall apply.

c) For the investment project approved by a competent authority or person, if the beneficiary of the asset resulting from the project execution process is not determined, the authority and procedures for handing over the asset to the managing enterprise or transferring national railway infrastructure asset the provincial People's Committee to hand over the asset to the national railway asset infrastructure enterprise shall be implemented in accordance with the regulations on disposal of asset of State-funded projects in the laws on management and use of public property; it is not required to re-perform the asset handover procedures as prescribed herein.

4. For cases of railway infrastructure assets managed by entities other than the urban railway infrastructure management enterprise, where the managing entity wishes to transfer the asset to the provincial People's Committee to hand over it to the urban railway infrastructure management enterprise, the authority, procedures for transferring the asset shall be carried out in accordance with the relevant laws; it is not required to re-perform the asset handover procedures as prescribed herein.

In cases where relevant laws do not have regulations on the authority and procedures for asset transfer, authority and procedures specified in Clause 2 and Clause 3 of Article 39 hereof shall be carried out to decide and implement the asset transfer.

5. The assignment of urban railway infrastructure assets that have been transferred to provincial People's Committee as specified in points b and c of Clause 3, Clause 4 of this Article to hand over the asset to the urban railway infrastructure management enterprise that is not recorded as state capital at that enterprise shall be carried out in accordance with Article 9 hereof.

6. For urban railway infrastructure asset after being assigned to the urban railway infrastructure management enterprise in accordance with Clause 1, Clause 5 of this Article, and the urban railway infrastructure asset specified in Clause 2, point a, and point c of Clause 3 of this Article which is handed over, assigned, transferred to the national railway infrastructure management enterprise that is not recorded as state capital at that enterprise, if the national railway infrastructure management enterprise wants to be assigned the asset that is not recorded as state capital at that enterprise, pursuant to railway law, its ability to manage and operate its asset, the national railway infrastructure management enterprise shall prepare and submit a plan for supplementary investment in charter capital at the enterprise using the value of national railway infrastructure asset to the competent authority/person for approval in accordance with the regulations on the management and utilization of state capital invested in the enterprise’s manufacturing and business activities.

The plan for supplementary investment in charter capital at the enterprise must specify the list of urban railway infrastructure asset assigned to the urban railway infrastructure management enterprise that is recorded as state capital at that enterprise (switching from not being recorded to being recorded as state capital at the enterprise). The authority, procedures for changing from assignment of urban railway infrastructure asset that is not recorded as state capital at the enterprise to assignment of asset that is recorded as state capital at the enterprise shall be in accordance with Article 10 hereof.

7. For (i) urban railway infrastructure assets specified in Clause 2, point a, and point c of Clause 3 of this Article, which are handed over, assigned, transferred to the national railway infrastructure management enterprise that is recorded as state capital at the enterprise, (ii) urban railway infrastructure assets that change from not being recorded to being recorded as state capital at that enterprise as specified in Clause 6 of this Article, the management, use, and operation thereof shall be carried out in accordance with clause 7 of Article 5 hereof.

Article 9. Authority and procedures for assigning urban railway infrastructure asset that is not recorded as state capital at the enterprise for cases specified in clause 1 and clause 5 of Article 8 hereof

1. The provincial People's Committee shall decide to assign their urban railway infrastructure asset that is not recorded as state capital at the enterprise.

2. Based on the accounting records, the application for asset transfer of asset to the provincial People's Committee, and the actual management situation, the provincial People's Committee shall direct the review, inventory of all urban railway infrastructure asset managed or temporarily managed by agencies, organizations, units, and enterprises (including cases where the asset is invested through PPP and transferred to the state without establishing all-people ownership). Pursuant to the above basis, asset shall be classified as follows:

a) Urban railway infrastructure asset already assigned to the national railway infrastructure management enterprise by competent authority/person remains under the management according to this Decree.

b) Urban railway infrastructure asset currently managed by the urban railway infrastructure management enterprise but there is no document on asset handover from the competent authority or person.

c) Urban railway infrastructure asset temporarily assigned to the urban railway infrastructure management enterprise for management.

d) Urban railway infrastructure asset assigned or temporarily assigned to other entities (not the urban railway infrastructure management enterprise) for management.

dd) Urban railway infrastructure asset transferred to the provincial People's Committee in accordance with point b, point c of Clause 3, Clause 4 of Article 8 hereof.

3. Based on the results of the review, inventory, and classification in accordance with Clause 2 of this Article, the urban railway management authority shall prepare application for the assignment of urban railway infrastructure asset specified in points b, c, d, and dd of Clause 2 of this Article to the urban railway infrastructure management enterprise for reporting to the provincial People's Committee. The application includes:

a) Application from urban railway infrastructure management authority for assigning asset to the urban railway infrastructure management enterprise that is not recorded as state capital at that enterprise: 01 original copy;

b) Written opinions on the asset assignment from: Relevant agencies, units of the provincial People's Committee; the agency, organization, unit currently managing or temporarily managing the asset and their superior management authority (if any); urban railway infrastructure management enterprise proposed for asset management: 01 original copy;

b) List of assets to be assigned (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets; name of the agency, organization, unit, enterprise currently managing or temporarily managing the asset) prepared by the urban railway asset authority: 01 original copy;

d) Legal documents on the asset (Decision on asset assignment, transfer, Minutes of asset handover, receipt or other papers, documents proving the right to manage, use, temporarily manage the asset - if any): 01 duplicate copy.

dd) Other relevant documents (if any): 01 duplicate copy.

4. Within 30 days from the date of receiving the complete application specified in clause 2 of this Article, the provincial People's Committee shall review and decide assigning urban railway infrastructure asset or shall have a written response in case the request is not appropriate.

5. The decision on assignment of urban railway infrastructure asset shall include:

a) Name of the urban railway infrastructure management enterprise.

b) List of assets to be assigned (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets; name of the agency, organization, unit, enterprise currently managing or temporarily managing the asset).

c) Form of handing over the asset: not being recorded as state capital at the enterprise.

d) Implementation responsibility.

6. Pursuant to the Decision on handing over urban railway infrastructure asset of the competent authority or person:

a) The urban railway infrastructure management enterprise shall manage, use, and operate the asset in accordance with the regulations hereof, the laws on railway, and other relevant laws for asset specified in Point b, Point c of Clause 2 of this Article; it is not required to hand over or receive asset as prescribed in Point b of this Clause.

b) Within 30 days from the issuance date of the Decision on asset handover of competent authority or person, the agency, organization, unit, or enterprise currently managing or temporarily managing (Transferring Party) shall hand over the asset to the urban railway infrastructure management enterprise (the Receiving Party) for the asset specified in Point d and Point dd of Clause 2 of this Article; the handover and receipt of the asset are documented in a Minute using Form 01 in the Appendix attached to this Decree. After receiving the asset, the urban railway infrastructure management enterprise shall manage, use and operate the asset in accordance herewith, the laws on railway and other relevant laws.

7. The budget for organizing the review, inventory, classification, and assignment of management of asset shall be allocated from the state budget in accordance with laws on the state budget, other sources as prescribed by law.

Article 10. The authority, procedures for changing from assignment of urban railway infrastructure asset that is not recorded as state capital at the enterprise to assignment of asset that is recorded as state capital at the enterprise as specified in clause 6 of Article 8 hereof

1. The provincial People's Committee shall decide to change the form of assigning urban railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise.

2. The urban infrastructure management enterprise shall prepare and submit an application for changing the form of assigning urban railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise to the provincial People's Committee. The application includes:

a) An application from the urban railway infrastructure management enterprise for changing the form of assigning urban railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise (including a copy of the plan for supplementary investment in charter capital at the enterprise using the value of urban railway infrastructure asset approved by the competent authority/person in accordance with regulations on the management and utilization of state capital invested in the enterprise’s manufacturing and business activities): 01 original copy;

b) List of assets to be assigned (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value according to the accounting book (if any); asset value determined as per the provisions in Clause 3 of this Article; condition of the assets): 01 original copy;

c) Legal documents on the asset (Decision on asset assignment, transfer, Minutes of asset handover, receipt or other papers, documents proving the right to manage, use the asset): 01 duplicate copy.

d) Other relevant documents (if any): 01 duplicate copy.

3. Determination of the value of urban railway infrastructure asset as the basis for determining the value of state capital portion invested in the urban railway infrastructure management enterprise:

a) In cases where the asset is purchased, invested in, built, completed, and put into operation within 3 years up to the date of preparing the application for changing the form of assigning urban railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise, the urban railway infrastructure management enterprise shall determine the value of urban railway infrastructure asset as the basis for determining the value of state capital portion invested in the enterprise as the residual value of the asset on the accounting book. For asset not listed in the accounting book or listed asset that has not calculated the depreciation or has calculated depreciation but not conforming with applicable regulations, the urban railway infrastructure management enterprise must re-determine the residual value up to the date of preparing the application in accordance with applicable regulations as the basis for determining the state capital portion invested in the enterprise.

b) Cases not covered by point a of this clause:

The urban railway infrastructure management enterprise shall hire a valuation enterprise in accordance with laws for valuation of the national railway infrastructure asset proposed to change the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise.

Pursuant (i) the asset list and the condition of the assets with assignment form proposed to be changed, and (ii) valuation results from the valuation enterprise, the urban railway infrastructure management enterprise shall submit documents to the provincial People's Committee for a decision on the value of the urban railway infrastructure asset as the basis for determining the value of state capital portion invested in the enterprise. The use of valuation certificates and valuation reports of valuation enterprises shall be carried out in accordance with laws on prices.

The cost of hiring the valuation enterprise is included in the expenses of the urban railway infrastructure management enterprise in accordance with Article 36 hereof.

4. Within 30 days from the date of receiving the complete application as specified in Clause 2 of this Article, the provincial People's Committee review and make decision on changing the form of assigning national railway infrastructure asset from not being recorded to being recorded as state capital at the enterprise, or provide written response in cases where the request is not appropriate.

5. The Decision on changing the form of assigning the asset from not being recorded to being recorded as state capital at the enterprise includes:

a) Name of the urban railway infrastructure management enterprise that has asset subject to change in asset assignment form.

b) List of assets with assignment form proposed to be changed (name of the assets, route; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value according to the accounting book; condition of the assets).

Value of the asset included in state capital at the enterprise managing urban railway asset shall be determined and decided in accordance with Clause 3 of this Article.

d) Implementation responsibility.

6. Pursuant to the provincial People's Committee's Decision on changing the form of assigning the asset from not being recorded to being recorded as state capital at the enterprise, the urban railway infrastructure management enterprise shall adjust the asset lists (including: Lists of asset assigned without and/or with calculation of the state capital at the enterprise), account for asset in accordance with laws on accounting.

7. The management, use and operation of urban railway infrastructure asset with assignment form changed from not being recorded to being recorded as state capital at the enterprise shall be carried out in accordance with Clause 7 of Article 5 hereof.

Chapter III

MANAGEMENT, USE, AND OPERATION OF THE NATIONAL RAILWAY INFRASTRUCTURE ASSET ASSIGNED TO RAILWAY INFRASTRUCTURE MANAGEMENT ENTERPRISES THAT IS NOT RECORDED AS STATE CAPITAL AT THESE ENTERPRISES

Section 1. DOSSIERS ON MANAGEMENT, ACCOUNTING OF NATIONAL RAILWAY INFRASTRUCTURE ASSET

Article 11. Dossiers on management of national railway infrastructure asset

1. The management dossier includes:

a) Records related to the formation and changes in railway infrastructure asset as prescribed herein and other relevant laws; legal records on land associated with railway infrastructure asset (if any) in cases where competent authorities and persons assign or lease land in accordance with laws on land (if any).

b) Declaration reports; reports on the management, use and operation of railway infrastructure asset as prescribed herein.

c) Data in the Database on railway infrastructure asset as prescribed herein.

2. The railway infrastructure management enterprise shall prepare, manage, and store dossiers on asset as prescribed for the dossiers prescribed in Clause 1 of this Article; make reports as prescribed herein.

The responsibility for preparing, managing, and storing records related to investment in the construction, expansion, upgrade, and renovation of railway infrastructure asset is executed in accordance with the construction laws, laws on railways, and other relevant laws.

Article 12. Accounting of national railway infrastructure asset

1. Railway infrastructure asset with independent structures or a system consisting of many separate assets linked together to perform one or several specific functions are an accounting subject.

2. The railway infrastructure management enterprise shall:

a) Open accounting books and conduct accounting of railway infrastructure asset in accordance with accounting laws and the provisions hereof.

b) Report on the increase, decrease, and depreciation of railway infrastructure asset in accordance with law.

3. The gross price and residual value of railway infrastructure asset are determined according to the following rules:

a) For railway infrastructure asset that has information on its gross price and residual value, the existing value shall be used to record in the accounting books.

b) For newly purchased or built railway infrastructure asset, the original cost for accounting purposes is the purchase value or the value of investment in construction as settled in accordance with law.

In cases where the purchase and investment value is finalized for multiple properties and asset items (not separately for each asset or item), the gross price of each asset or item is allocated according to appropriate criteria (quantity, detailed estimate, proportion according to the market value of the corresponding asset, etc.).

In cases where the financial statement has not been approved by the competent authority or person, the provisional gross price is used to record in the accounting books. The provisional gross price in this case shall be selected in the following order of priority: Final statement value for verification; amounts to be settled; value determined according to the A-B commissioning reports; total investment value or approved project estimate or most recently adjusted project estimate (in case the project estimate is adjusted); EPC contract value.

When using the provisional gross price to record in accounting books, if the value of the purchase or investment according to the review of the final statements, the final statement  proposal, according to the A-B commissioning reports, or according to the total project investment, project estimate, EPC contract value is used as the common value for multiple properties, asset items (not separated for each asset, asset item), the provisional gross price of each asset, asset item shall be allocated according to appropriate criteria (quantity, detailed estimate, proportion according to the market value of the corresponding asset, etc.).

In this case, when the competent authority or person approves the final statement, the asset management agency shall adjust the provisional gross price according to the approved finalized value to adjust the accounting books and perform asset accounting according to applicable regulations.

c) For railway infrastructure asset received by the infrastructure management authority according to the assignment decision or transfer decision of the competent authority or person, the gross price and residual value of the asset shall be determined based on the gross price and residual value recorded in the Minutes of handover and receipt of assigned or transferred asset.

For railway infrastructure asset currently being accounted for using provisional original cost, after the approved final statement, the Transferor shall inform the Transferee (with relevant approved final statement documentation) to adjust the Transferee's accounting records and perform accounting in accordance with applicable regulations.

d) The railway infrastructure asset without information to determine its value according to the provisions in Points a, b, and c of this Clause shall be handled as follows:

In case there is an equivalent railway infrastructure asset (in terms of scale, technical level and time of putting into use) and its gross price and residual value are listed in the accounting books, the value of the equivalent asset shall be used to determine its value;

In case there is no equivalent railway infrastructure asset or there is an equivalent railway infrastructure asset but the gross price and residual value of that asset have not been listed in the accounting books, the conventional price decided by the competent authority shall be used to determine the asset value;

In case there is no equivalent railway infrastructure asset or there is an equivalent railway infrastructure asset but the gross price and residual value of that asset have not been listed in the accounting books, and the conventional price cannot be applied, the railway infrastructure management authority shall hire a valuation enterprise for asset valuation in accordance with laws on prices. The use of valuation certificates shall be carried out in accordance with laws on prices. Pursuant the condition of the assets and the valuation results from the valuation enterprise, the railway infrastructure management enterprise shall decide the gross price and residual value for accounting purposes. The valuation cost is accounted for as part of the asset management and operation expenses of railway infrastructure asset.

dd) For railway infrastructure asset that is found to be in surplus during use, depending on their origin and time of putting into use, the value recorded in the accounting book is determined accordingly in accordance with points a, b, c, and d of this clause.

4. The gross price of railway infrastructure asset shall be adjusted in the following cases:

a) Re-assessing the value of railway infrastructure asset when conducting a comprehensive inventory as per the decision of the Prime Minister.

b) Upgrading, renovating, and expanding railway infrastructure asset by projects approved by competent authorities and persons.

c) Dismantling one or several parts of railway infrastructure asset (in case the value of the dismantled part is being accounted for in the original value of the asset), except for the case of dismantling for replacement during asset maintenance.

d) Installing one or several additional parts of railway infrastructure asset, except for the case of installing for replacement during asset maintenance.

dd) Losing a partial of the asset or being seriously damaged due to natural disasters, force majeure incidents or other unexpected impacts (except in cases where the asset is repaired according laws on railway maintenance or restored through insurance, compensation for damages by relevant organizations and individuals).

5. The value of railway infrastructure asset specified in this Article shall be used for accounting, declaration to upload information into the Database on railway infrastructure asset, and other purposes as prescribed by law.

6. Accounting and depreciation calculation for railway infrastructure asset are carried out according to the regulations of the Minister of Finance.

Section 2. MANAGEMENT AND MAINTENANCE OF NATIONAL RAILWAY INFRASTRUCTURE ASSET AND ASSET MANAGEMENT AND OPERATION DURING UPGRADES, RENOVATION, AND EXPANSION OF ASSET

Article 13. Management and maintenance of national railway infrastructure asset

1. The management and maintenance of national railway infrastructure asset shall be carried out in accordance with railway laws, laws on quality management, construction, and maintenance of construction works, and other relevant laws.

2. The budget for managing and maintaining national railway infrastructure asset shall be covered by the state budget.

3. Organization maintenance of national railway infrastructure asset:

a) Based on technical standards, technical regulations, economic-technical norms, maintenance unit prices, volume of work to be performed, national railway infrastructure maintenance management plan approved by competent authority/person and other bases (if any) in accordance with law, the national railway infrastructure management enterprise shall prepare a state budget expenditure estimate for the management and maintenance of national railway infrastructure, report to the agency representing the owner of national railway asset (the Ministry of Transport) which shall submit a consolidated report to the competent authority or person for approval in accordance with laws on state budget and other relevant laws.

Based on the competent authority’s decision to provide state budget estimate, the Ministry of Transport shall provide the state budget estimate for management and maintenance of national railway infrastructure, to the managing enterprise in accordance with laws on state budget and relevant laws.

The national railway infrastructure management enterprise shall conducts Auction, ordering of public products, services as per applicable regulations; Auction is carried out according to Auction laws; procurement is carried out as per the Government's regulations on assigning tasks, ordering, or Auction for providing public products, services using state budget.

b) The use and final statement of state budget expenditures for managing and maintaining national railway infrastructure asset shall comply with laws on state budget and other relevant laws.

4. During the management, maintenance of railway infrastructure asset, any materials repossessed shall be handled in accordance with the regulations on disposal of materials repossessed from asset liquidation specified herein.

5. In case of lease, fixed-term transfer of the right to operate national railway infrastructure asset, if the contract specifies the responsibility of the lessee and the transferee of the asset operation right in maintaining such asset, the lessee and the transferee shall perform maintenance in accordance with the law and the signed contract using their own funds.

Repossessed materials (if any) in such cases shall belong to the lessee, the transferee.

Article 14. Asset management, operation during implementation of State-funded projects for the upgrade, renovation, expansion of national railway infrastructure asset approved by competent authority/person

1. For existing railway infrastructure assets under State-funded asset projects for asset upgrade, renovation, and expansion approved by competent authorities/persons (including projects for construction, upgrade, renovation, and expansion of other asset but involving investment in existing railway infrastructure asset), the investment in asset upgrade, renovation, expansion shall be carried out in accordance with laws on state budget, laws on public investment, construction laws, laws on railway, and other relevant laws.

2. If the project developer is not a railway infrastructure management enterprise, based on the investment project approved by the competent authority/person:

a) Railway infrastructure management enterprises shall temporarily hand over railway infrastructure asset to the project developer during the upgrade, renovation, and expansion of the asset. The temporary handover of asset shall be recorded in a Minute of Handover using the Form 01A attached to this Decree.

b) During the temporary handover of railway infrastructure asset to the developer of the project for asset upgrade, renovation, and expansion, the railway infrastructure management enterprise shall be responsible for asset management and accounting, arranging patrols to detect railway traffic safety risks; the project developer shall ensure smooth and safe traffic during the implementation period, including management and maintenance of the asset within the scope of the project in cases where the approved project has a budget for management and maintenance; in this case, such budget shall not be allocated to the railway infrastructure management enterprise during the period of the temporary handover.

c) After the project is completed, commissioned, and put into use, the project developer shall hand back the asset and the additional value of the asset from project execution in accordance with law to the railway infrastructure management enterprise for management, use, and operation of asset in accordance herewith.

Section 3. OPERATION OF NATIONAL RAILWAY INFRASTRUCTURE ASSET

Article 15. Methods and proceeds from the operation of national railway infrastructure asset

1. Operation methods:

a) National railway infrastructure management enterprises shall directly organize the operation of asset in accordance with clause 4 of Article 3, Article 16 hereof.

b) Lease of the right to operate railway infrastructure asset in accordance with clause 5 of Article 3, Article 17 hereof.

c) Fixed-term transfer of the right to operate railway infrastructure asset in accordance with clause 6 of Article 3, Article 18 hereof.

2. Proceeds from the operation of railway infrastructure asset include:

a) Fees and charges as prescribed by the laws on fees and charges.

b) Proceeds from provision of railway infrastructure services or other service as prescribed by law.

c) Proceeds from lease, fixed-term transfer of the right to operate railway infrastructure asset.

d) Other proceeds (if any) as stipulated by the laws.

3. During the management, use, and operation of railway infrastructure asset, in cases of constructing, installing telecommunications works, water supply and drainage works on railway infrastructure asset, the construction and installation shall be carried out in accordance with the telecommunications law, construction law, law on railways and relevant laws; it is not required to prepare, approve an operation scheme, and carry out asset operation as regulated herein. The proceeds from allowing construction and installation of telecommunications works, water supply and drainage works on railway infrastructure asset shall be managed and used in accordance with Clause 1 of Article 20 hereof.

4. In cases of transferring the right to operate, manage national railway infrastructure assets under a Operation - Management Contract (O&M), during the contract execution period, the transfer of the right to operate, manage railway infrastructure asset shall be carried out in accordance with the PPP laws; it is not required to prepare, approve an operation scheme, and carry out asset operation as regulated herein.

Article 16. Operation of national railway infrastructure asset in cases where railway infrastructure management enterprises directly organize the operation

1. National railway infrastructure management enterprises shall directly organize the operation of railway infrastructure asset in the following cases:

a) Operation of national railway infrastructure asset associated with national defense and security.

b) Operation of national railway infrastructure asset not specified in Point a of this Clause that does not generate proceeds or generates proceeds but not from lease, fixed-term transfer of the asset operation right.

2. Before asset operation in the case specified in Point a, Clause 1 of this Article, an Asset Operation Scheme must be prepared and submitted to the competent authority or person for approval as prescribed in Clause 3 of this Article. For asset operation in the case specified in Point b of Clause 1 of this Article, it is not required to prepare and approve an Asset Operation Scheme.

3. The Scheme for operating railway infrastructure asset shall be prepared and approved in accordance with Point a of Clause 1 of this Article.

a) The Prime Minister shall approve the Scheme for operation of railway infrastructure asset associated with national defense and security.

b) The national railway infrastructure management enterprise shall prepare and submit an Asset Operation Scheme to the Ministry of Transport. The application includes:

An application form from the railway infrastructure management enterprise for approval of the Scheme: 01 original copy;

Scheme for operation of railway infrastructure asset prepared by the railway infrastructure management enterprise using the Form 02A specified in the Appendix attached hereto: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

c) Within 30 days from the date of receiving the complete application specified in Points b of this Clause, the Ministry of Transport shall collect opinions from relevant agencies and prepare and submit 01 application to the Prime Minister for review and approval of the Scheme. The application includes:

The application form from the Ministry of Transport for approval of the Asset Operation Scheme together with the draft Decision of the Prime Minister on the approval of the Scheme: 01 original copy;

The completed Scheme for operation of railway infrastructure asset prepared by the railway infrastructure management enterprise using the Form 02A specified in the Appendix attached hereto: 01 original copy;

The form of consolidation, explanation, and receipt of opinions from relevant agencies prepared by the Ministry of Transport: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

d) The Prime Minister shall review and approve Scheme for operation of railway infrastructure asset or shall provide instruction in case the Scheme is not appropriate.

dd) The main contents of the Decision on approval of the Asset Operation Scheme include:

Name of the national railway infrastructure management enterprise;

List of assets to be operated (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets);

Operation method: Railway infrastructure management enterprises shall directly organize asset operation;

Asset operation duration (if any);

Powers, responsibilities of the State railway regulatory authority, railway management authorities;

Rights and obligations of the railway infrastructure management enterprise;

Management and use of proceeds from asset operation;

Organization responsibility.

4. National railway infrastructure management enterprises shall directly organize asset operation through providing railway infrastructure asset-related services and other services to organizations and individuals:

a) Railway transport operation services.

b) Goods preservation, warehousing, and storage services.

c) Lounge services, official accommodation services.

d) Repair, maintenance, examination, and adjustment services for railway transport vehicles and devices.

dd) Services of operation of locations and sites of railway infrastructure.

e) Services of operation of railway signaling and telecommunications infrastructure.

g) Railway infrastructure operation services for tourism, cultural and sports activities.

h) Other railway infrastructure asset-related services as prescribed by law.

5. Determination of the prices of services specified in Clause 4 of this Article:

a) Services specified in clause 4 of this Article under the list of services with prices determined by the State shall comply with law on prices.

a) For services specified in clause 4 of this Article that are not under the list of services with prices determined by the State, the national railway infrastructure management enterprise shall consider and apply the principles, grounds, and methods for price determination prescribed by the State to price goods and services, submit them to the enterprise's Board of Directors for approval, and publicly implement them in accordance with law on prices.

6. The Board of Directors of the national railway infrastructure management enterprise shall issue regulations on provision of services specified in Clause 4 of this Article to implement them in a unified, public, transparent, effective manner, without causing loss, waste, or negativity.

7. National railway infrastructure management enterprises are allowed to repair, renovate, upgrade, and add functions to national railway infrastructure asset using the enterprise's capital in accordance with law for the purpose of better management and operation of asset without affecting the form of asset management assignment or the purpose the asset.

8. During the operation of national railway infrastructure asset, any materials repossessed shall be disposed of in accordance with the regulations on disposal of materials repossessed from asset liquidation specified herein.

Article 17. Lease of right to operate national railway infrastructure asset

1. The right to operate the nation railway infrastructure asset shall not be leased in the following cases:

a) National railway infrastructure asset associated with national defense and security.

b) National railway infrastructure asset associated with projects for investment in upgrades and expansion thereof approved by competent authorities and persons.

2. The lease term for the asset operation right shall be determined appropriately for each railway infrastructure asset or part thereof in accordance with the Scheme for lease of asset operation right approved by the competent authority/person as prescribed in Article 3 hereof.

3. The Ministry of Transport shall approve the Scheme for leasing the right to operate national railway infrastructure asset.

4. Preparation and approval of a Scheme for leasing the right to operate railway infrastructure asset:

a) The national railway infrastructure management enterprise shall prepare and submit a Scheme for lease of asset operation right to the Ministry of Transport. The application includes:

An application form from the railway infrastructure management enterprise for approval of the Scheme: 01 original copy;

Scheme for lease of asset operation right prepared by the railway infrastructure management enterprise using the Form 02B specified in the Appendix attached hereto: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

Within 30 days from the date of receiving the complete application specified in point a of this clause, the Minister of Transport shall review and approve Scheme for leasing the right to operate national railway infrastructure asset or shall have a written response in case the Scheme is not appropriate.

5. The main contents of the Decision on approval of the Scheme for leasing the asset operation right include:

a) Name of the railway infrastructure management enterprise.

b) List of assets to be leased out for operation (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets);

c) Lease term of asset operation right.

d) Method of lease of asset operation right: Auction.

dd) Conditions for organizations to participate in the auction for leasing the asset operation right.

e) Method of payment of rent of asset operation right (annual payment or one-time payment for the entire lease term).

g) The deadline for rent payment of asset operation right.

h) Management and use of proceeds from leasing the asset operation right.

i) Powers, responsibilities of the State railway regulatory authority, railway management authorities.

k) Rights and obligations of the railway infrastructure management enterprise.

l) Organization responsibility.

6. Pursuant to the Decision approving the Scheme for leasing the right to operate railway infrastructure asset of the competent authority/person:

a) The national railway infrastructure management enterprise shall determine the starting rent of the asset operation right in accordance with Article 19 hereof.

The starting rent of the asset operation right for auctioning is the total amount of rent of asset operation right as regulated in Article 19 hereof for the entire lease term.

b) The national railway infrastructure management enterprise shall organize the auction for leasing of the asset operation right in accordance with laws on asset auction; fully supervise the process of organizing the auction and performing rights, obligations of other individuals having asset auctioned in accordance with Law on Asset Auction.

c) In addition to the conditions stipulated in the laws on asset auctions (except for cases of leasing the right to operate national railway infrastructure asset that are technical infrastructure works (such as power lines, cables, pipelines), advertising billboards built, installed on the railway infrastructure, and railway safety corridors in accordance with the regulations of the laws on railways), organizations participating in the auction for leasing the asset operation right  must also meet the following conditions:

Have functions, tasks, or business lines according to the Decision of establishment, Decision on organization and operation, Decision regulating functions, tasks, powers and organizational structure or Business Registration Certificate, Enterprise Registration Certificate that are appropriate for managing and operating railway infrastructure asset in the list of leased operation rights;

Have the experience, capacity for management and operation of similar railway works for a minimum of 02 years up to the time of submitting applications for participating in the auction;

Have financial capacity demonstrated through minimum pre-tax revenue and profit target for the last 02 consecutive years according to the audited Financial statements (for enterprises) or according to the appraised, approved Final Statements (for public service providers) as regulated. The railway infrastructure management enterprise shall determine specific pre-tax revenue and profit targets to include in the Scheme for leasing the asset operation right, which shall then be submitted to the competent authority/person for approval.

7. Conclusion of the lease contract of the right to operate national railway infrastructure asset and attached appendix (if any). The lease contract of the right to operate railway infrastructure asset includes:

a) Information of the Lessor (national railway infrastructure management enterprise).

b) Information of the Lessee (successful bidder).

c) List of assets to be leased out for operation (name of the assets; route name; address; year of putting into use; basic parameters (quantity, length, area, volume, etc.); gross price, residual value; condition of the assets);

d) Lease term of asset operation right.

dd) Revenue from asset operation each year within the lease term in the starting price scheme for auction (hereinafter referred to as reconciliation revenue).

e) Rent.

g) Form and deadline for rent payment of asset operation right.

In the case of leasing the right to operate with annual rental payments, payment must be made once a year no later than March 31 of the following year. The Lessee shall, pursuant to clause 1 of Article 19 hereof, determine and pay annual rent; in cases where the financial statement has not been audited (for enterprises) or the budget statement has not been approved, appraised (for public service providers) at the time of annual rental payment as regulated, the Lessee shall make temporary payments based on the Lessee's final statement revenue; within 30 days from the date the financial statement is audited (for enterprises) or budge statement is approved, appraised (for public service providers) as regulated, the Lessee shall make additional payments (in case the temporary payment amount is less than the required amount), deducting any excess payment (in case the temporary payment amount is more than the required amount) from the next year's rental payment. If the term in the first and last year is not a full 12 months, the rent for the first and last year shall be calculated based on the number of months leased according to that year's contract; in the case of the end of the lease term without having the financial statement of the last year audited (for enterprises) or the Final Statement approved, appraised (for public service providers) as regulated, the payment amount for the last year shall be based on the actual revenue determined by the Lessee and the Lessor but not less than the corresponding rent of the year before the last year.

In the case of lump-sum payment of rent of the asset operation right for the entire lease period, rent payment may be made in up to 02 installments within 90 days from the date of signing the contract, where: the 1st installment which is at least 50% of the rent shall be paid within 30 days from the date of signing the contract; in case the rent is over VND 1.000 billion, payment may be made in up to 03 installments within 12 months from the date of signing the contract, where: the 1st installment, which is at least 40% of the rent, shall be paid within 60 days from the date of signing the contract, and the 2nd installment, which is at least 30% of the rent, within 120 days from the date of signing the contract

h) The deposit amount for contract performance security (in addition to the rent as per the contract): The Lessee shall deposit the amount into a blocked account at a credit institution. The deadline for depositing into the blocked account is 15 days from the date the contract is signed. The deposit period shall correspond with the lease term of asset operation right. The deposit amount shall be 5% of the total rent for the entire lease term based on the hammer price.

If at the end of the lease term of the asset operation right, the Lessee has not fulfilled obligations (such as paying the rent, breaching the contract related to returning the asset to the Lessor), the deposit amount shall be used to offset the unfulfilled obligations of the Lessee; any remaining amount shall be handled according to civil laws.

i) Responsibilities, technical requirements for leased railway infrastructure maintenance and other necessary contents related to maintenance.

k) Deadline for the Lessor to transfer the asset operation right to the Lessee; deadline for the Lessee to return the asset operation right to the Lessor.

l) Handling cases where the actual revenue from operation significantly fluctuates compared to the reconciliation revenue in the case of leasing the asset operation right with a lump-sum rent payment for the entire lease period:

Annually, if the actual revenue from operating the leased asset according to the audited Financial Statements (for enterprises) or the approved, appraised Final Statements (for public service providers) as regulated exceeds the reconciliation revenue by 125% or more, the Lessee must make an additional payment of 50% of the additional revenue above 125% into an escrow account as regulated in point a of clause 3 of Article 20 hereof; wherein, the reconciliation revenue is the revenue from asset operation of the corresponding year of the lease term in the starting price scheme for auction;

The Lessor and the Lessee shall rely on the audited Financial Statements (for enterprises) or the approved, appraised Final Statements (for public service providers) to determine the additional amount the Lessee must pay (if any) into the withholding account, based on which the Lessor shall inform the competent authority/person approving the Scheme for leasing the asset operation right, the escrow account holder as regulated in point a of clause 3 of Article 20 hereof, and the Lessee for monitoring, collecting, transferring, and managing the amount. The time limit for determination, notification, and deposit into the escrow account is within 30 days from the date of receiving the notification from the Lessor, with the latest deadline being October 31 of the following year related to the year of additional revenue occurrence; particularly, in the final year, the payment must be made before the contract is settled.

m) Conditions for contract termination.

n) Rights and obligations of the parties.

o) Handling of contract violations, resolution of contract disputes according to civil laws, and other related laws.

p) Handling of cases where State-funded projects for upgrades, renovations, or expansions of asset approved by the competent authority/person occur within the lease term.

The signed lease contract of the right to operate national railway infrastructure asset and the attached appendices (if any) are sent to the escrow account holder as regulated in point a of clause 3 of Article 20 hereof for monitoring and managing the proceeds from leasing the asset operation right.

8. Rights of the Lessee:

a) Organize asset operation in accordance with laws and the signed contract.

b) Determine the method, measures for asset operation ensuring compliance with laws on railway and the signed contract.

c) Receive legal protection of rights and interests by the State; file complaints, initiate lawsuits in accordance with law if lawful rights and interests are infringed upon.

d) Collect railway user charges, railway infrastructure asset service charges and other related proceeds related to service provision according to law and the signed contract.

dd) Repair, renovate, upgrade, and add functions to the leased asset using Lessee's funds to serve management, operation purposes, if approved by the competent authority as stipulated in clause 3 of this Article. After the contract ends (even in cases of early termination of contract), the Lessee must return the asset in its original condition, including any work items that are upgraded, renovated, or added functions (if any), to the Lessor without reimbursement.

e) Other rights as stipulated by law and the signed contract.

9. Obligations of the Lessee:

a) Protect the leased asset (including land attached to railway infrastructure asset); prevent encroachment or illegal use of asset and other violations as per regulations.

In case a construction incident occurs, the Lessee shall promptly notify the Lessor to take measures in accordance with laws on railways and relevant laws.

b) Use and operate the asset for the right purpose and tasks of the asset; do not change the use purpose, transfer, sell, donate, contribute capital, mortgage the asset or as security for performance of other civil obligations.

c) Perform maintenance of railway infrastructure asset in accordance with the signed contract and law.

d) Pay the rent of the asset operation right (including any additional payments as per point 1 of clause 7 of this Article) in full, on time as stipulated; in case of late payment, the Lessee must pay a contractual penalty equivalent to the late payment amount determined by tax administration laws.

dd) Annually, report the revenue from operating the leased asset along with the audited Financial Statements (for enterprises) or the approved, appraised Final Statements (for public service providers) as per regulations, to the Lessor.

e) Be put under inspection, supervision of the Lessor; resolve any arising issues with the Lessor (if any).

g) Return the asset at the end of the lease term and in cases as specified in Articles 14 and 15 hereof.

h) Periodically or unexpectedly, as per the contract requirements, inform the Lessor about the condition of the assets to ensure safe and smooth railway traffic operations.

i) Fulfill other obligations as per the signed contract and law.

10. The national railway management authority, the national railway asset enterprise, shall inspect and supervise the implementation of the Scheme for leasing the right to operate railway infrastructure asset approved by the competent authority/person on a regular basis, fulfill obligations and responsibilities in accordance with law; promptly handle violations, issues that arise under their jurisdiction, or report to the competent authority for resolution as per the law.

11. Proceeds from leasing the asset operation right are managed, used as per the regulations in clause 3 of Article 20 hereof.

12. Upon the expiration of the lease term for the right to operate railway infrastructure asset in accordance with the contract, the Lessee shall:

a) Transfer back the asset operation right to the Lessor at the end date of the contract's term or the end of any extended term, even if the contract finalization is not completed, or the asset is not returned to the Lessor.

b) Cooperate with the Lessor in conducting inventory, determining the condition of the assets; the inventory, determination of the condition of the assets must be documented.

c) Rectify any damages (if any) to the asset.

d) Cooperate with the Lessor in contract finalization as per regulations after rectifying any damages (if any) to the asset and completing the rent payment for the asset operation right for which the Lessee has provided written commitment that the asset is not under seizure or mortgage or used to fulfill other debt obligations.

dd) Return the asset to the Lessor.

e) Receive the specified deposit amount as per point h of clause 7 of this Article. If the Lessee has not completed the rent payment for the asset operation right at the end of the lease term, the deposit amount shall be used to offset the obligations of the Lessee, with any remaining amount handled as per civil laws.

13. Upon the expiration of the lease term for the right to operate railway infrastructure asset in accordance with the contract, the Lessor shall:

a) Receive, manage, use, and operate the asset as per the regulations hereof from the moment the Lessee transfers back the asset operation right as per clause 14 hereof.

b) Perform management, maintenance of railway infrastructure asset as per the regulations hereof from the moment the Lessee transfers back the asset operation right as per point a of this clause (excluding the time when the Lessee rectifies asset damages as per regulations).

14. In case of force majeure or if the State repossesses land attached to national railway infrastructure asset for national defense, security, and socio-economic development purposes in the public interest according to land laws before the lease term expires according to the contract, the parties shall terminate the contract prematurely. The Lessee shall be refunded the corresponding amount for the remaining time (if any) of the paid rent according to the contract and the deposit amount as specified in point h of clause 7 of this Article; the Lessee shall take charge and cooperate with the Lessor in determining and submitting the refundable portion for the Lessee (if any) to the competent authority/person as stipulated in Article 3 hereof for approval; the refund shall be allocated to the state budget recurrent expenditure estimate of the Lessor or the national railway infrastructure management enterprise for implementation; the refund procedure shall be carried out as per state budget laws. Other contents shall comply with the regulations of clause 13 of this Article.

15. Handling of contract breaches, resolution of contract disputes shall comply with signed contracts, civil laws and other related laws. For cases of early termination due to contract breaches, contract disputes, the management, use and operation of asset, the refund of the paid rent, deposit (if any) upon termination of the contract shall comply with the provisions in Clause 13 and Clause 14 of this Article.

16. For State-funded projects for upgrades, renovations, or expansions of asset approved by the competent authority/person within the lease term, the national railway infrastructure management enterprise shall implement regulations of state budget laws, public investment laws, railway laws, and related laws. The Lessee shall be refunded the corresponding amount for the rent paid according to the contract (or shall not have to pay annual rent) due to the absence of income during the asset upgrade, renovation, and expansion period, or extending the contract time corresponding to the time required to hand over the asset to the railway infrastructure management enterprise for the upgrades, renovations, or expansions. The Lessor shall take charge and cooperate with the Lessee in the determination of the refundable portion to the Lessee (if any) or the extension of the corresponding contract term and submit to the competent authority or person specified in Clause 3 of this Article for decision. The refund shall be allocated to the state budget recurrent expenditure estimate of the national railway infrastructure management enterprise for implementation; the refund procedure shall be carried out as per state budget laws. Other contents shall follow the regulations of clause 13 and clause 14 of this Article.

Article 18. Fixed-term transfer of right to operate national railway infrastructure asset

1. The right to operate national railway infrastructure asset that is associated with national defense and national security is not eligible to be transferred for a fixed term.

2. The specific transfer term of the right to exploit national railway infrastructure asset is determined in each transfer contract, suitable for each asset (or part of the asset) approved by the competent authority/person as specified in clause 3 of this Article in the Decision approving the Scheme for fixed-term transfer of the asset operation right.

3. The Ministry of Transport shall approve the Scheme for fixed-term transfer of the right to operate national railway infrastructure asset.

4. The Scheme for fixed-term transfer of the right to operate national railway infrastructure asset shall be prepared and approved in accordance with clause 4of Article 17 hereof. The Scheme for fixed-term transfer of the right to operate railway infrastructure asset shall be prepared using the Form 02C specified in the Appendix attached hereto.

5. The main contents of the Decision on approval of the Scheme for fixed-term transfer of the asset operation right include:

a) Name of the railway infrastructure management enterprise.

b) List of assets to be transferred (name of the assets; route name; address; year of putting into use; basic parameters (quantity, volume, length, area, etc.); gross price, residual value; condition of the assets);

c) Basic content of the Project for investment in upgrading and expanding the asset approved by the competent authority/person.

d) Transfer term.

dd) Method of fixed-term transfer of the asset operation right: Auction.

e) Conditions for enterprises participating in the auction for the fixed-term transfer of the asset operation right.

g) Method, deadline for payment of the fixed-term transfer of the asset operation right.

h) Powers, responsibilities of the State railway regulatory authority, railway management authority.

i) Powers, responsibilities of the railway infrastructure management enterprise.

k) Organization responsibility.

6. Pursuant to the Decision approving the Scheme for fixed-term transfer of the right to operate railway infrastructure asset of the competent authority/person:

a) The railway infrastructure management enterprise shall determine the starting price for the fixed-term transfer of the asset operation right in accordance with Article 19 hereof.

b) The railway infrastructure management enterprise shall organize the auctions for fixed-term transfer of the asset operation right in accordance with laws on asset auction; fully supervise the process of organizing the auction and performing rights, obligations of other individuals having asset auctioned in accordance with Law on Asset Auction.

c) Enterprises participating in the auction for fixed-term transfer of the asset operation right must meet the conditions specified in laws on asset auction and the following conditions:

Engage in a business line stated on the Business registration certificate, Certificate of Enterprise Registration that is suitable for managing and operating the railway infrastructure asset listed for the fixed-term transfer of the right to operate.

Have the experience, capacity for management and operation of similar railway works for a minimum of 02 years up to the time of submitting applications for participating in the auction;

Have financial capacity demonstrated through minimum pre-tax revenue and profit target for the last 02 consecutive years according to the audited according to the audited Financial statements of the enterprise as prescribed. The railway infrastructure management enterprise shall determine specific pre-tax revenue and profit targets to include in the Scheme for fixed-term transfer of the asset operation right, which shall be submitted to the competent authority for approval.

The minimum owner’s equity ratio of the enterprise must be at least 15% of the total investment of the investment project to upgrade, expand the railway infrastructure asset approved by the competent authority/person.

7. Conclusion of the fixed-term transfer contract of the right to operate railway infrastructure asset and attached appendix (if any). The fixed-term transfer contract of the right to operate railway infrastructure asset includes:

a) Information of the Transferor (national railway infrastructure management enterprise).

b) Information of the transferee (successful bidder).

c) List of assets to be transferred (name of the assets; route name; address; year of putting into use; basic parameters (quantity, volume, length, area, etc.); gross price, residual value; condition of the assets).

d) Transfer term.

dd) Revenue from asset operation in the starting price schemes for auction (hereinafter referred to as reconciliation revenue).

e) Contract value (according to hammer price).

g) Deadline for payment of the fixed-term transfer (transfer value) of the asset operation right:

The transfer price may be paid in up to 02 installments within 90 days from the date of signing the Contract, where: the 1^st installment, which is at least 50% of the price, shall be paid within 30 days from the date of signing the contract; in case the price is over VND 1.000 billion, payment may be made in up to 03 installments within 12 months from the date of signing the contract, where: the 1^st installment, which is at least 40% of the price, shall be paid within 60 days from the date of signing the contract, and the 2^nd installment, which is at least 30% of the price, within 120 days from the date of signing the contract.

h) The deposit amount for contract performance security (in addition to the rent as per the contract): The deposit amount is equal to 5% of the total transfer price that the transferee deposits into a blocked account at a credit institution. The deadline for depositing into the blocked account is 15 days from the date the contract is signed. The deposit period shall correspond with the lease term of asset operation right.

For cases of termination of the fixed-term transfer contract of the asset operation right where the Transferee has not fulfilled obligations (such as paying the transfer price, breaching the contract related to returning the asset to the Transferor), the deposit amount shall be used to offset the unfulfilled obligations of the Transferee mentioned above, and any remaining amount shall be handled according to civil laws.

i) Responsibility for investing in project for upgrading and expanding asset approved by the competent authority/person; responsibility and technical requirements for management and maintenance of transferred railway infrastructure and other necessary contents related to maintenance.

k) Deadline for the Transferor to transfer the asset operation right to the Transferee; deadline for the Transferee to return the asset operation right to the Transferor.

l) Handling cases where the actual revenue from operation significantly fluctuates compared to the reconciliation revenue:

Annually, if the actual revenue from operating the asset whose right to operate is transferred (of the Transferee in accordance with audited Financial Statements as prescribed) exceeds the reconciliation revenue by 125% or more, the Transferee must make an additional payment of 50% of the additional revenue above 125% into an escrow account as regulated in point a of clause 3 of Article 02 hereof; wherein, the reconciliation revenue is the revenue from asset operation of the corresponding year of the lease term in the starting price scheme for auction;

The Transferor and Transferee shall rely on the audited Financial Statements to determine the additional amount that the Transferee must pay (if any) into the temporary account, based on which the transferor shall inform the competent authority/person approving the Scheme for fixed-term transfer of the asset operation right as stipulated in Article 5 hereof, the temporary account holder as regulated in point a of Article 17 hereof, and the transferee for monitoring, collecting, transferring, and managing the amount. The time limit for determination, notification, and deposit into the escrow account is within 30 days from the date of receiving the notification from the Transferor, with the latest deadline being October 31 of the following year related to the year of additional revenue occurrence; particularly, in the final year, the payment must be made before the contract is settled.

m) Conditions for contract termination.

n) Rights and obligations of the parties.

o) Handling of contract violations, resolution of contract disputes according to civil laws, and other related laws.

The signed transfer contract of the right to operate national railway infrastructure asset and the attached appendices (if any) are sent to the escrow account holder as regulated in point a of clause 3 of Article 20 hereof for monitoring and managing the proceeds from transfer of the asset operation right.

8. Rights of the Transferee:

a) Organize asset operation in accordance with laws and the signed contract.

b) Determine the method, measures for asset operation ensuring compliance with laws on railway and the signed contract.

c) Receive legal protection of rights and interests by the State; file complaints, initiate lawsuits in accordance with law if lawful rights and interests are infringed upon.

d) Receive incentive policies, investment incentives in accordance with laws on investment and other relevant laws.

dd) Mortgage the (part of) asset invested by the Transferee and the asset operation right in the remaining time of term in accordance with civil laws and other relevant laws.

e) Collect railway user charges, railway infrastructure asset service charges and other railway infrastructure asset-related service charges according to law and the signed contract.

g) Other rights as stipulated by law and the signed contract.

9. Obligations of the Transferee:

a) Protect the asset transferred for a fixed term (including land attached to railway infrastructure asset); prevent encroachment or illegal use of asset and other violations in accordance with law.

In case a construction incident occurs, the Transferee shall promptly inform the Transferor to take measures in accordance with laws on railways and other relevant laws.

b) Use and operate the asset for the right purpose and tasks of the work; do not change the use purpose, transfer, sell, donate, contribute capital using the asset or use the asset transferred for a fixed term.

c) Invest in projects for upgrading and expanding asset approved by competent authorities and persons.

d) Perform the obligations prescribed in Points c, d, dd, e, g, h and i of Clause 9 of Article 17 hereof.

10. The national railway management authority, the national railway asset enterprise, shall inspect and supervise the implementation of the Scheme for fixed-term transfer of the right to operate railway infrastructure asset approved by the competent authority/person, fulfill obligations and responsibilities in accordance with law; promptly handle violations, issues that arise under their jurisdiction, or report to the competent authority for resolution as per the law.

11. Proceeds from fixed-term transfers of the right to operate railway infrastructure asset are managed, used as per the regulations in Article 20 hereof.

12. At the end of the term of the transfer of the asset operation right under the contract:

a) The Transferee shall implement the regulations of Clause 12, Article 17 hereof.

b) The Transferor shall implement the regulations of Clause 13 of Article 17 hereof.

13. In case of force majeure or if the State repossesses land attached to railway infrastructure asset for national defense, security, and socio-economic development purposes in the public interest according to land laws before the transfer term expires according to the contract, the parties shall terminate the contract prematurely.

Based on the progress of the project for upgrading and expanding asset approved by the competent authority, the actual completion of investment project for upgrading and expanding asset, and the remaining term of the transfer contract, the transferee shall be refunded the corresponding price for the remaining time (if any) as per the contract and the deposit amount as specified in point h of clause 9 of this Article; the Transferor shall take charge and cooperate with the Transferee in determining and submitting the refundable portion for the Transferee (if any) to the competent authority/person specified in clause 3 of this Article for approval; the refund shall be allocated to the state budget recurrent expenditure estimate of the Transferor for implementation; the refund procedure shall be carried out as per state budget laws. Other contents shall comply with the regulations of clause 12 of this Article.

14. Handling of contract breaches, resolution of contract disputes shall comply with signed contracts, civil laws and other related laws. For cases of early termination due to contract breaches, contract disputes, the termination procedures shall be carried out as stipulated in clause 12 of this Article.

Article 19. Rent, fixed-term transfer price of the right to operate national railway infrastructure asset

1. The rent, fixed-term transfer price of the right to operate national railway infrastructure asset, is the amount of money that the organization, enterprises renting the asset operation right, receiving the fixed-term transfer of the asset operation right, must pay to the national railway infrastructure management enterprise based on the hammer price to obtain the asset operation right as per the signed contract.

In the case of leasing the right to operate with annual rent payments, the rent for each year shall be determined as follows:

Where:

Actual revenue in year n of the Lessee shall be determined in accordance with the audited Financial statements (for enterprises) or according to the appraised, approved Final Statements (for public service providers) as regulated.

2. The starting price for auctioning the lease, the fixed-term transfer of the right to operate national railway infrastructure asset, is the lowest initial price. Authorities, persons with competent to approve the Scheme for lease, fixed-term transfer of the asset operation right are those with competent to approve the starting price for auctioning.

3. Grounds for determining the starting price for auctioning the lease of the right to operate national railway infrastructure asset include:

a) For railway transport operations (except for stations), the starting price for auctioning the lease of asset operation rights shall be determined based on the following factors: The average starting price for leasing national railway infrastructure asset is 8% based on railway transport business revenue, journey length; advantages of the operating route, and other factors affecting the capacity of asset operation during the lease term.

b) For stations, service facilities, warehouses, houses, workshops, and individual auxiliary works the starting price for auctioning the lease of asset operation rights shall be determined based on the following factors:

Rent of the asset operation right on the market of asset of the same type or with the same technical standards, quality, and usability at the specified time (if any);

Estimated revenue, estimated costs from asset operation during the lease term;

Valuation certificates and valuation report of the valuation enterprises as regulated by price laws or the price determination results of the Valuation Council as stipulated in clause 5 of Article. The use of valuation certificates and valuation reports shall be carried out in accordance with laws on prices.

4. Grounds for determining the starting price for auctioning the fixed-term transfer of the right to operate national railway infrastructure asset include:

a) Additional investment by project on upgrade, expansion of asset approved by the competent authority/person.

Wherein, the additional investment value is the part of the value that the enterprise receiving the fixed-term transfer of the asset operation right shall implement with its own funds according to the project approved by the competent authority/person.

b) Estimated revenue, estimated costs from asset operation during the transfer term.

c) Valuation certificates and valuation report of the valuation enterprises as regulated by price laws or the price determination results of the Valuation Council as stipulated in clause 5 of Article. The use of valuation certificates and valuation reports of valuation enterprises shall be carried out in accordance with laws on prices.

5. Determination of the starting price for auctioning the lease, fixed-term transfer of the right to operate national railway infrastructure asset:

a) The railway infrastructure management enterprise shall hire a valuation enterprise for the valuation of the leased, fixed-term transferred asset operation right. The valuation enterprise shall be hired in accordance with other relevant laws.

The Valuation Council for starting rent, starting fixed-term transfer price of the right to operate railway infrastructure asset shall be established in accordance with laws on prices and include: Legal representative of the national railway infrastructure management enterprise or authorized President; other members include: Representatives of relevant specialized departments of the national railway infrastructure management enterprise; representatives of relevant agencies and units affiliated to the Ministry of Transport assigned by the Ministry of Transport; representatives of other relevant agencies (if necessary).

b) Pursuant to clause 3, clause 4 of this Article, the national railway infrastructure management enterprise shall determine and submit the starting prices for auctioning the lease, fixed-term transfer of the right to operate national railway infrastructure asset to the Minister of Transport for approval. The application includes:

An application form from the national railway infrastructure management enterprise for approval of the starting price: 01 original copy;

Documents related to grounds for determining the starting price for auctioning the lease, fixed-term transfer of the asset operation right as stipulated in clause 3, clause 4 of this Article: 01 duplicate copy.

c) In the Decision approving the starting price for auctioning the lease, fixed-term transfer of the asset operation right, the estimated annual revenue must be determined in the starting price scheme to serve as reconciliation revenue in cases specified in point l of clause 7 of Article 17 and point l of clause 7 of Article 18 hereof..

6. If auctioning of the lease or fixed-term transfer of the asset operation right is unsuccessful, after two unsuccessful auctions, the national railway infrastructure management enterprise shall review the causes and propose solutions, report to the authority person with competence to approve the Scheme for lease or fixed-term transfer of the asset operation right for review and decision on whether to continue organizing the auction or change the current operation method to the method in which the infrastructure management enterprise shall directly organize the operation of national railway infrastructure asset.

In case of continuing organizing the auction for the lease or fixed-term transfer of the asset operation right, if the reason for the unsuccessful auction is determined to be due to the starting rent, the starting fixed-term transfer price of the asset operation right being high and no longer in line with the regulations on determining the starting price as stipulated in this Article, the starting price shall be re-determined in accordance with the provisions of clauses 2, 3, 4, and 5 of this Article.

Case of changing the current operation method to the method in which the national railway infrastructure management enterprise shall directly organize the operation of railway infrastructure asset shall comply with Article 16 hereof. Expenses incurred before switching to the method there railway infrastructure management enterprises shall directly organizing operation shall be paid using the funds allocated to the national railway management enterprise as stipulated in Clause 1, Clause 2 of Article 20 hereof.

7. Pursuant to regulations hereof, if there are difficulties or obstacles during the implementation that require specific guidance, the Ministry of Transport shall provide guidance on determining the starting price for auctioning the lease, fixed-term transfer of the right to operate national railway infrastructure asset.

Article 20. Management, use of proceeds from operation of national railway infrastructure asset

1. In case the national railway infrastructure management enterprise directly organizes the operation of railway infrastructure asset in accordance with Article 16 hereof and cases of allowing construction and installation of telecommunications works, water supply, and drainage works on national railway infrastructure asset:

a) Proceeds shall be managed and used in accordance with the laws on fees, charges, laws on state budget, and other relevant laws.

b) Proceeds from provision of services specified in clause 4 of Article 16 hereof (excluding services for which fees and charges are imposed), the national railway infrastructure management enterprise is allowed to use 80% of those to cover costs related to asset management and operation, railway infrastructure asset maintenance and development, fulfill financial obligations to the State in accordance with law and must account for them in the enterprise's revenue; the remaining portion (20%) shall be transferred to the state budget.

Quarterly, the national railway infrastructure management enterprise shall consolidate the proceeds from directly organizing the operation of railway infrastructure asset as prescribed in Article 16 hereof, determine and transfer the amount payable to the state budget no later than the 15th day of the first month of the following quarter.

The proceeds allowed to be used by the national railway infrastructure management enterprise shall be managed and used in accordance with the financial mechanism of the national railway infrastructure management enterprise.

c) The proceeds from allowing construction and installation of telecommunications works, water supply and drainage works on the national railway infrastructure asset specified in clause 3 of Article 15 hereof shall be managed and used in accordance with point b of this Clause.

2. If the national railway infrastructure management enterprise assigned to manage high-speed railway infrastructure asset that is not recorded as state capital at that enterprise, directly organize the operation thereof, the Ministry of Transport shall submit the percentage (%) of the proceeds from service provision that must be transferred to the state budget, and the percentage (%) of the proceeds allowed to be used by the national railway infrastructure management enterprise from service provision, to the Government for review and decision.

3. For cases of operation of national railway infrastructure asset in accordance with Article 17, Article 18 hereof:

c) Proceeds from the lease, fixed-term transfer of asset operation right shall be transferred into an escrow account at the State Treasury, with the agency, unit designated by the Ministry of Transport, being the account owner.

b) Expenditures:

costs related to the preparation, submission, approval of the Scheme for the lease, the fixed-term transfer of the asset operation right; inventory, survey, determination of the starting price, organization of the auction for lease, the fixed-term transfer of the asset operation right; conservation, protection of asset during the selection of the organization, enterprise for operation; management by the Lessor, transferor during the contract period; other relevant costs.

c) The cost estimate related to the operation of railway infrastructure asset shall be prepared by the infrastructure management authority, submitted to the Board of Directors of the national railway infrastructure management enterprise for approval after consulting the national railway management agency.

d) Expenditure levels:

For expenditures that have a system of economic - technical norms, regimes and policies issued by competent authorities, person or prescribed by law (tax, accounting, statistics and other relevant laws) and have prices prescribed by the State, those regulations shall apply;

For expenditures that do not have the above-mentioned grounds, the legal representative of the national railway infrastructure management enterprise shall approve and be accountable for their decision;

For costs related to many multiple products, tasks that cannot be separated (such as asset depreciation calculation; salaries, social insurance, health insurance, unemployment insurance, and trade union fees, management and operation costs, etc.), they must be aggregated and allocated according to appropriate criteria, in accordance with relevant laws for each product, task.

dd) Every 6 months (at the latest on June 30 and December 31), the escrow account holder shall transfer the remaining proceeds from the operation of railway infrastructure asset (after completing the payment of costs specified in points c, d of this clause to the national railway infrastructure management enterprise deducted from the withholding account) to the central government budget in accordance with laws on the state budget. After this deadline, if the national railway infrastructure management enterprise does not send a payment request dossier to the escrow account holder and does not have a document stating the reason for not completing the payment dossier, the escrow account holder shall transfer the proceeds to the state budget.

e) The proceeds transferred to the state budget is prioritized for allocation to the public investment plan, the state budget expenditure estimate for new construction, upgrading, renovation, expansion, and development of railway infrastructure asset according to the laws on the state budget, public investment, and other relevant laws.

Section 4. DISPOSAL OF MANAGEMENT OF NATIONAL RAILWAY INFRASTRUCTURE ASSET

Article 21. Forms of disposal of national railway infrastructure asset

1. Repossession.

2. Transfer.

3. Transfer to local management for management and disposal.

4. Liquidation.

5. Disposal of assets if they are lost or damaged.

6. Other forms as stipulated by law.

Article 22. Repossession of national railway infrastructure asset

1. The railway infrastructure asset shall be repossessed in the following cases:

a) When there are changes in planning, management hierarchy.

b) Assets that have been assigned but is no longer needed for use as railway infrastructure asset.

c) Asset assigned to the wrong entity.

d) Other cases as stipulated by the laws.

2. The Minister of Transport shall make decision to repossess their national railway infrastructure asset.

3. The repossessed railway infrastructure asset shall be disposed in the following forms:

a) Being transferred as specified in Article 23 hereof.

b) Being transferred to local management for management and disposal as specified in Article 24 hereof.

4. The procedures for repossession of railway infrastructure asset (except for cases specified in clause 5 of this Article):

a) The railway infrastructure management enterprise shall prepare and submit an application for asset repossession to the Ministry of Transport. The application includes:

An application form from the railway infrastructure management enterprise for asset repossession: 01 original copy;

b) List of assets to be repossessed (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for repossession; 01 original copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a off this clause 3, the Minister of Transport shall review and make decision on asset repossession.

c) The main contents of the Decision on repossession of national railway infrastructure asset include: Name of the national railway infrastructure management enterprise with repossessed asset; name of the authority assigned to execute the repossession decision (the railway management authorities specified in Point a, Clause 2, Article 2 hereof);list of assets to be repossessed (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for repossession; implementation responsibility.

d) Pursuant to the Decision on asset repossession of the Minister of Transport, the authority assigned to execute the repossession decision shall prepare and submit a plan for disposal of the withdrawn asset in forms specified in clause 3 of this Article to the competent authority/person for approval. Upon approval, the asset disposal shall be carried out according to the approved plan.

During the awaiting period for asset disposal, the enterprise that has asset repossessed is responsible for the preservation and protection of the asset as prescribed. The costs for management, preservation, and protection of the repossessed asset waiting to be disposed of shall be included in the expenses of the national railway infrastructure management enterprise in accordance with Article 20 hereof.

dd) The national railway infrastructure management enterprise shall perform asset reduction accounting in accordance with accounting laws; report asset changes as required hereby.

5. The procedures for repossession of railway infrastructure asset upon request by authorities assigned to carry out inspection, assessment, and audit and impose penalties for administrative violations, or other state regulatory authorities:

a) At the request of authorities assigned to carry out inspection, assessment, and audit and impose penalties for administrative violations, or other state regulatory authorities, the Minister of Transport shall review and make decision on asset repossession.

b) The main content of the Decision on asset repossession, post- repossession disposal of asset, and the responsibilities of relevant agencies shall comply with points c, d, and dd of clause 4 of this Article.

Article 23. Transfer of national railway infrastructure asset

1. The railway infrastructure asset shall be transferred in the following cases:

a) When there are changes in the managing entities, management hierarchy, and asset classification as prescribed.

b) Assets that have been assigned but is no longer needed for use as railway infrastructure asset.

c) Other cases as stipulated by the laws.

2. Authority to make transfer decision:

a) The Minister of Finance shall make decision on the transfer of national railway infrastructure asset between ministries, central authorities, between central and local authorities.

b) The Minister of Transport shall make decision on the transfer of national railway infrastructure asset between agencies, units, enterprises within its management.

3. Procedures for transferring national railway infrastructure asset:

a) When there is asset that needs to be transferred, the railway infrastructure management enterprise shall prepare and submit an application for asset transfer to the competent authority/person as stipulated in point b of clause 2 of this Article. The application includes:

An application form from the railway infrastructure management enterprise for asset transfer: 01 original copy;

Application for receipt of the asset from the receiving agency, organization, unit, and their superior managing authority (if any) of that agency, organization, unit, railway infrastructure management enterprise, and state capital owner’s representative agency at such enterprise: 01 original copy;

If the asset is transferred due to changes in managing entity, management hierarchy, it is not mandatory to prepare an application for receipt of the asset from the receiving agency, organization, unit, or railway infrastructure management enterprise;

b) List of assets to be transferred (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for transfer: 01 original copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the Minister of Transport shall review and make decision on asset transfer under its jurisdiction or shall have a written response in case the request for asset transfer is not appropriate.

In cases where the asset transfer falls under the authority of the Minister of Finance, the Ministry of Transport shall prepare and submit an application to the Minister of Finance for review and decision on asset transfer or shall have a written response in case the request for asset transfer is not appropriate. The application includes:

An application form from the Ministry of Transport for asset transfer: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

An application specified in Point a of this Clause: 01 duplicate copy.

c) The main contents of the Decision on asset transfer include: Name of the railway infrastructure management enterprise that has asset transferred; name of the receiving agency, organization, unit, enterprise; list of assets to be transferred (name of the assets, route name, address, year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reason for transfer; implementation responsibility.

d) Within 30 days from the date of issuance of Decision on asset transfer of the competent authority, the transferring railway infrastructure management enterprise, and the receiving agency, organization, unit, enterprise shall:

Hand over and receive the asset; the handover and receipt must be documented in a Handover Report using Form 01 in the Appendix attached hereto. The enterprise that has asset transferred shall preserve and protect the asset until the handover is completed;

Carry out asset reduction and increase accounting as per accounting laws; report asset changes as required hereby.

dd) Reasonable costs directly related to the handover and receipt of asset shall be paid by the receiving agency, organization, unit, enterprise in accordance with applicable regulations.

e) There is no need to pay the asset value when transferring asset.

4. For national railway infrastructure asset subject to a repossession decision, which is then transferred, the authority assigned to execute the repossession decision shall prepare and submit a plan for disposed of the repossessed asset (enclosed with an application for receipt of asset from the agency, organization, unit, enterprise and their superior management agency (if any), owner’s representative agency of such enterprise; a list of assets as prescribed in Point a of Clause 3 of this Article; documents related to the asset) to the competent authority or person prescribed in Clause 2 of this Article for review and decision. The procedures, content of the decision on asset transfer, organization of decision implementation and other contents shall comply with points b, c, d, dd and e of Clause 3 of this Article; in which the agency assigned to organize the implementation of the Withdrawal Decision shall exercise the rights and responsibilities of the enterprise that has asset transferred.

Article 24. Transfer of national railway infrastructure asset to administrative divisions for management and disposal

1. National railway infrastructure asset shall be transferred to administrative divisions for management and disposal in the following cases:

a) Assets that have been assigned to the railway infrastructure management enterprise but is no longer needed for use as railway infrastructure asset.

b) Being removed from the railway infrastructure planning.

c) Other cases as stipulated by the laws.

2. The Minister of Transport shall make decision to transfer their national railway infrastructure asset to administrative divisions for management and disposal.

3. Disposal of railway infrastructure asset shall only be carried out in form of transfer of asset to administrative divisions for management and disposal in cases where the asset is no longer used for the purpose of being railway infrastructure asset.

4. Procedures for transfer of railway infrastructure asset to administrative divisions for management and disposal:

a) When there is railway infrastructure asset that needs to be transferred, the national railway infrastructure management enterprise shall prepare and submit an application for asset transfer to the Ministry of Transport. The application includes:

An application form from the national railway infrastructure management enterprise for asset transfer: 01 original copy;

Opinion of the Provincial People's Committee (the receiving entity): 01 original copy;

List of assets to be transferred (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets; reasons for being transferred to administrative divisions for management and disposal): 01 original copy;

Related documents regarding the reason for the asset transfer (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 15 days from the date of receiving the complete application specified in point a of this clause, the Minister of Transport shall review and decide asset transfer or shall have a written response in case the request is not appropriate.

c) The main contents of the Decision on asset transfer include: Name of the national railway infrastructure management enterprise that have asset transferred; name of the receiving agency (the People's Committee of the province where the asset is located); list of assets to be transferred (name of the assets, route name, address, year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reason for transfer; implementation responsibility.

d) Within 15 days from the issuance date of the Decision on asset transfer of the competent authority/person, the Provincial People's Committee shall decide to receive the asset and assign the task of receiving the transferred asset to the local authorities (Relevant authority of Provincial People's Committee, Land bank development organization, or the District-level People's Committee).

dd) Within 15 days from the issuance date of the Decision on receiving asset of the Provincial People's Committee, the national railway infrastructure management enterprise that has asset transferred (Transferring Party) shall take charge and cooperate with the agency assigned to receive the asset (Receiving Party) to organize the handover and receipt of the asset; the handover and receipt of the asset are documented in a Minute using Form 01 in the Appendix attached hereto. The Transferring Party shall perform asset reduction accounting as per accounting laws; report asset changes as prescribed herein.

e) The enterprise that has asset transferred shall preserve and protect the asset until the handover is completed;

In case the national railway infrastructure management enterprise fails to hand over or the local authority fails to receive the asset within the prescribed time limit, they shall be responsible for paying the costs of management, preservation, and protection of the asset during the delayed period and shall be responsible for compensation in case the asset is destroyed, lost, or damaged; the state budget shall not be used to pay for the costs incurred in this case.

g) The receiving agency shall open a separate logbook or accounts and calculate depreciation for the asset from the time of asset receipt until the completion of asset disposal as per the regulations of clause 6 of this Article.

Reasonable costs directly related to the handover and receipt of asset shall be paid by the receiving agency.

h) There is no need to pay the asset value when transferring asset to administrative divisions for management and disposal.

5. For railway infrastructure asset subject to a repossession decision, which is then transferred to administrative division for management and disposal, the authority assigned to implement the repossession decision shall prepare and submit a plan for disposal of the repossessed asset (enclosed with an application for receipt of asset from the Provincial People's; a list of assets as prescribed in Point a of Clause 4 of this Article) to the Minister of Transport for review and decision on transfer of asset to administrative divisions for management and disposal.

The procedures, content of the decision on asset transfer, implementation of other decisions and contents shall comply with points b, c, d, dd, e, g and h of Clause 4 of this Article; in which the agency assigned to organize the implementation of the Repossession Decision shall exercise the rights and responsibilities of the enterprise that has asset transferred.

6. After receiving the asset, the receiving agency shall refer to the dossiers of specific case to provide advice or propose to the agency responsible for consultation, and report to the competent authority or person to handle as prescribed by the law as follows:

a) In cases of transfer to an agency, organization, or unit for management and use, the process shall be carried out in accordance with the laws on the management and use of public property.

b) Cases of assigning to a local organization licensed for housing management and trade for management and operation shall comply with the Government's regulations on management, use, and operation of houses and land, which are public property not for residential purposes assigned to a local organization licensed for housing management and trade for management and operation.

c) Cases of disposal under residential housing and land policies shall comply with laws on housing and other related laws.

d) Cases of land allocation or leasing shall comply with laws on land and other relevant laws.

For asset attached to land, based on the actual situation and condition of the assets attached to land, the corresponding agency responsible for consultation prescribed in Point e of this Clause shall report to the authority or person with competence to allocate or lease land for review and decision on selling the asset attached to land to organizations or individuals assigned or leased out the land or the demolition or destruction of asset attached to land before organizing land allocation, land lease, or bidding for land-using projects.

For cases of selling the asset attached to land to organizations or individuals allocated or leased out the land, the corresponding agency responsible for consultation prescribed in Point e of this Clause shall decide the selling price of the work on the land to ensure that it is consistent with the actual residual value of the asset; the agency responsible for consultation prescribed in Point e of this Clause shall establish a Valuation Council in accordance with the law on prices or hire a valuation enterprise for valuation as a basis for deciding on the selling price of the work; the person assigned or leased out land shall be responsible for purchasing the asset attached to the land.

For cases of demolition or destruction of asset attached to land before allocating or leasing out the land, the corresponding agency responsible for consultation shall conduct demolition or destruction of asset; materials repossessed from demolition and destruction shall be disposed of in accordance with Clauses 5, 6, 7 and 8 of Article 25 hereof; persons allocated or leased out land shall refund the residual value of the asset attached to the land as listed in the accounting books at the time of demolition and destruction. The responsibility of the person allocated or leased out land to refund the residual value of the asset attached to the land must be clearly determined in the Land Use Rights Auction Arrangement and notified to organizations and individuals who want to be allocated or leased out land.

In case the local planning requires the division of land into many lots, the value of the work attached to the land shall be divided by each lot by its area in proportion to the total area of ​​all lots.

dd) Cases of transfer to a Land bank development organization for management and operation shall comply laws on land.

e) The financial authority shall provide advice to the corresponding People's Committee in cases of disposal specified in points a and b of this clause The construction authority shall provide advice to the corresponding People's Committee in cases of disposal specified in point c of this clause. The natural resources and environment authority shall provide advice to the corresponding People's Committee in cases of disposal specified in points d and dd of this clause.

g) The receiving agency shall open a separate logbook or accounts and calculate depreciation for the asset from the time of asset receipt until the completion of asset disposal.

Article 25. Liquidation of national railway infrastructure asset

1. The national railway infrastructure asset shall be liquidated in the following cases:

a) Asset is damaged beyond repair or the repair for use is not effective.

b) The old railway infrastructure asset is demolished to invest in building new asset or to ensure railway traffic, returning the premises as per the approved project by the competent authority/person.

c) The competent state authority adjusts the planning, making part, or the entire infrastructure asset unable to perform its designated functions.

d) Other cases as stipulated by the laws.

2. The Minister of Transport shall decide or grant power to decide the liquidation of national railway infrastructure asset.

3. The national railway infrastructure asset shall be liquidated through demolition and destruction of railway works, work items.

4. Procedures for liquidation of national railway infrastructure asset:

a) The national railway infrastructure management enterprise shall prepare and submit an application for asset liquidation to the competent authority/person as stipulated in clause 2 of this Article. The application includes:

An application form from the railway infrastructure management enterprise for asset liquidation: 01 original copy;

b) List of assets to be liquidated (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for liquidation: 01 original copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the competent authority or person specified in clause 2 of this Article shall review and decide asset liquidation or shall have a written response in case the request for asset liquidation is not appropriate.

c) The main contents of the Decision on asset liquidation include: Name of the railway infrastructure management enterprise that has asset liquidated; List of assets to be liquidated (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for liquidation; form of liquidation; implementation responsibility.

d) Pursuant to the Decision on asset liquidation of the competent authority or person, the railway infrastructure management enterprise shall organize the demolition and destruction of railway works, work items, and dispose of materials repossessed. The disposal of materials repossessed shall be carried out in accordance with the regulations specified in clauses 5, 6, 7, and 8 of this Article.

5. Forms of disposal of materials repossessed from the demolition of railway infrastructure:

a) Assigning repossessed materials that are still usable to the railway infrastructure management enterprise to use in maintenance.

b) Transferring repossessed materials that can still be used to other agencies, organizations, units, and enterprises for management and use.

c) Selling repossessed materials and supplies that are still usable.

d) Destroying materials that are no longer usable. The railway infrastructure management enterprise shall destroy materials that are no longer usable.

6. The repossessed materials shall be assigned to the railway asset management to use in management and maintenance in accordance with point a of clause 5 of this Article: If the railway infrastructure management enterprise has submitted an application to the competent authority or person specified in clause 2 of this Article for deciding the assignment of repossessed materials for putting into use, no management, maintenance fund shall be allocated for the portion of the value of materials used for management, maintenance. If the maintenance fund has already been allocated in the budget, it should be deducted from the management, maintenance budget estimate of that year corresponding to the value of the materials as per the budget estimate and the management, maintenance contract value.

7. The repossessed materials shall be transferred to agencies, organizations, units, and enterprises to manage and use in accordance with Point b of Clause 5 of this Article:

a) At the request of the railway infrastructure management enterprise, the request of the agencies, organizations, or units, and enterprises in need of receiving repossessed materials, the Minister of Transport shall make decisions on transferring them to agencies, organizations, units, and enterprises under its management; the Minister of Finance shall make decisions for transfers outside of the Ministry of Transport.

b) The application for transfer of repossessed materials includes:

An application form from the national railway infrastructure management enterprise for transfer of repossessed materials: 01 original copy;

Application for receipt of the repossessed material from the receiving agency, organization, unit, enterprise and their superior managing authority (if any) and owner’s representative agency of the enterprise: 01 original copy;

List of materials to be transferred (types, quantities, conditions; intended use after transfer): 01 original copy;

Other relevant documents related to the request for the transfer of withdrawn materials (if any): 01 duplicate copy.

c) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the Minister of Transport shall review and make a decision under its jurisdiction or shall have a written response in case the request for transfer of repossessed materials is not appropriate.

d) In cases where the asset transfer falls under the jurisdiction of the Minister of Finance, the Ministry of Transport shall request the Ministry of Finance to review and make a decision on asset transfer or shall have a written response in case the request for asset transfer is not appropriate.

dd) The main contents of the Decision on transfer of withdrawn materials include: Name of the agency assigned to manage the asset with materials to be transferred; name of the agency, organization, unit, enterprise receiving the materials; list of materials to be transferred (name, type, quantity, condition); intended use after the transfer; responsibilities for implementation.

e) Within 30 days from the date of the Transfer Decision of the competent authority/person, the railway infrastructure management enterprise and the receiving agency, organization, unit, enterprise shall organize the handover and receipt of the transferred materials; the handover and receipt shall be documented in a Minute using Form 01 in the Appendix attached hereto.

8. Sale of repossessed materials that are not needed in accordance with point c of clause 5 of this Article:

The legal representative of the railway infrastructure management enterprise shall decide the sale of repossessed materials. The sale of materials not needed is carried out in accordance with the regulations in Article 31 of Decree No. 151/2017/ND-CP dated December 26, 2017, of the Government detailing some articles of the Law on Management and Use of Public property (which is amended by Article 23 of Decree No. 114/2024/ND-CP dated September 15, 2024, of the Government amending articles of Decree No. 151/2017/ND-CP dated December 26, 2017, of the Government).

9. For cases of liquidation of old national railway infrastructure asset as stipulated in point b of clause 1 of this Article in projects approved by the competent authority/person that include regulations on asset liquidation, the asset liquidation shall be carried out according to the approved project; the national railway infrastructure management enterprise is not required to follow the asset liquidation procedures as stipulated in point 4 of this Article; the disposal of repossessed materials (if any) shall be carried out in accordance with clauses 5, 6, 7, and 8 of this Article, except when the value of the repossessed materials has already been deducted from the project package value.

10. After completing the asset liquidation, the national railway infrastructure management enterprise shall perform asset reduction accounting as prescribed by accounting laws, and report asset changes as stipulated herein.

Article 26. Disposal of national railway infrastructure assets if they are lost or damaged

1. National railway infrastructure asset is lost or damaged due to natural disasters, fires, or other causes.

2. The Minister of Transport shall decide or grant power to decide the disposal of national railway infrastructure asset specified in clause 1 of this Article.

3. Procedures for disposal of national railway infrastructure assets if they are lost or damaged:

a) Within 30 days from the date of discovering that the asset is lost or damaged, the railway infrastructure management enterprise shall determine the cause of the loss or damage and the responsibilities of the relevant collectives and individuals, prepare and submit an application for the disposal of the lost or damaged asset to the competent authority/person as specified in Clause 2 of this Article for review and decision. The application includes:

An application form from the railway infrastructure management enterprise for asset disposal: 01 original copy;

Report on determining the lost or damaged asset: 01 original copy;

b) List of lost or damaged asset (name of the assets; route name; address; year of putting into use; basic parameters (volume, area, length, etc.); gross price, residual value; condition of the assets before it was lost or damaged); 01 original copy;

Documentation proving the loss or damage of the asset: 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the competent authority or person specified in clause 2 of this Article shall decide the disposal of asset.

c) The main contents of the Decision on asset disposal include: Name of the enterprise with railway asset that is lost or damaged; list of lost, damaged asset (name of the assets, route name, address, year of putting into use, basic parameters (length, area, volume, etc.); gross price, residual value (if any); condition of the assets before it is lost or damaged); reason for the loss or damage of the asset; responsibilities for implementation.

4. Within 30 days from the date of issuance of Decision on asset disposal of the competent authority/person, the railway infrastructure management enterprise shall:

a) Carry out asset reduction and increase accounting as per accounting laws.

b) Report asset changes in accordance with this Decree.

c) Handling the responsibilities of the relevant organizations and individuals in accordance with law.

5. The state budget shall ensure funding for the restoration and repair of railway infrastructure asset to restore safe and smooth railway operations.

In cases where railway infrastructure asset is lost or damaged and is compensated by insurance companies or relevant organizations, individuals, the compensation shall be managed in accordance with clause 1 of Article 27 hereof. After deducting relevant costs (if any), the compensation shall be transferred to the state budget as per regulations and is prioritized to be allocated to the public investment plan, state budget expenditure estimate for investing in building replacement asset in accordance with laws on the state budget, public investment, and other relevant laws.

Article 27. Management, use of proceeds from disposal of national railway infrastructure asset

1. Proceeds from disposal of national railway infrastructure asset (including any compensation) shall be transferred into an escrow account at the State Treasury, with the agency, unit designated by the Ministry of Transport being the account owner.

2. Costs related to the disposal of national railway infrastructure asset include:

a) Inventory and measurement costs.

b) Costs of relocation, demolition, and destruction.

c) Cost of price determination and valuation.

d) Cost of organizing the sale of withdrawn materials.

dd) Costs of protecting and preserving asset while waiting processing.

e) Other reasonable related costs.

3. Expenditure levels:

a) For expenditures that have a system of economic - technical norms, regimes and policies issued by competent authorities, person or prescribed by law (tax, accounting, statistics and other relevant laws) and have prices prescribed by the State, those regulations shall apply;

b) Expenditures for asset disposal-related services shall comply with contracts signed between the infrastructure management enterprise and the service provider. The selection of the provider of asset disposal-related services shall comply with other relevant laws.

c) For expenditures beyond the scope stipulated in point a, point b of this clause, the legal representative of the enterprise assigned with asset disposal shall decide the expenditure amount, ensuring compliance with the current financial management policy of the State and take responsibility for their decisions.

4. Pursuant to the expenditures specified in clause 2 of this Article, the expenditure level specified in clause 3 of this Article, the railway infrastructure management enterprise shall prepare and submit a estimate for expenses related to asset disposal to the Head of the railway management authority for approval (the estimate approval time limit is 30 days from the date of submitting the estimate).

5. Within 30 days from the day the asset is being disposed of, the national railway infrastructure management enterprise must prepare and send an application to the escrow account holder for payment of the costs of the asset disposal or an extension of the payment deadline (stating the reason for the extension and the extended period, which should not exceed 30 days from the date of the application) or confirm in writing no expenses have arisen. The legal representative of the national railway infrastructure management enterprise is accountable to the law for any delays in submitting documents, the accuracy of the proposed payment. The application includes:

a) Payment application from the national railway infrastructure management enterprise for costs of asset disposal (clearly stating the proceeds from asset disposal, total disposal costs, information about the receiving account) enclosed with the approved expenditure estimate the specific list of expenditures: 01 original copy;

b) Decision on disposal of asset of the competent authority or person: 01 duplicate copy.

6. Within 30 days from the date of receiving the complete application, the holder of the escrow account shall grant funds to the railway infrastructure management enterprise to pay the costs related to the disposal of national railway infrastructure asset.

7. Every 6 months (by June 30 and December 31 at the latest), the escrow account holder shall transfer to the central government budget the proceeds from asset disposal:

a) The costs of which are paid or that has a document confirming no expenses have arisen from the railway infrastructure management enterprise.

b) Where the 30-day period has passed from the date the railway infrastructure management enterprise has transferred proceeds into the escrow account but holder has not received a payment application or deferral application from the railway infrastructure management enterprise.

8. In case there is no proceed from asset disposal or the proceeds from asset disposal is not enough to cover the costs, the railway infrastructure management enterprise shall cover for the remaining amount using the enterprise's revenue and account for it in the enterprise's reasonable and lawful expenses.

9. In cases where outsourcing costs must be paid when disposing of asset as prescribed before the holder of an escrow account grants funds, the national railway infrastructure management enterprise is allowed to advance from the permissible source of funding of the enterprise.

Section 5. USE OF NATIONAL RAILWAY INFRASTRUCTURE ASSET FOR PARTICIPATING IN PPP INVESTMENT PROJECTS AND MANAGEMENT AND USE OF PPP-INVESTED NATIONAL RAILWAY INFRASTRUCTURE ASSET

Article 28. Use of national railway infrastructure asset for participating in PPP investment projects and management and use of PPP-invested national railway infrastructure asset

1. The management, use, operation of national railway infrastructure in PPP form and the transfer of national railway infrastructure asset formed through PPP to the State shall be carried out in accordance with Articles 95 and 96 of the Law on Management and Use of Public property and PPP laws.

The management and use of national railway infrastructure in PPP form shall not affect railway system operations, railway development planning, and comply with laws on construction, the laws on railway, and other relevant laws.

2. Authority to decide use of the existing national railway infrastructure asset for participating in PPP investment projects:

a) The Prime Minister shall make decision on national railway infrastructure asset associated with national defense and security.

b) The Minister of Transport shall make decision on the national railway infrastructure asset not within the scope of point a of this clause.

3. Procedures for using the existing national railway infrastructure asset for participating in PPP investment projects:

a) When the national railway infrastructure management enterprise has a need to use national railway infrastructure asset to participate in PPP investment projects in accordance with law, they shall prepare and submit an application to the competent authority or person specified in Point b, Clause 2 of this Article. The application includes:

Application form from national railway infrastructure management enterprise for using national railway infrastructure asset participation in PPP investment projects: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

List of assets for participating in PPP investment projects using Form 01B in the Appendix attached to this Decree: 01 original copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the competent authority/person specified in points b, c of clause 2 of this Article shall review and decide the use of the asset for participating in PPP investment projects for cases under their jurisdiction or shall have a written response in case the request is not appropriate.

For cases that fall under the jurisdiction of the Prime Minister, the Ministry of Transport shall prepare and submit an application to the Prime Minister for review and decision on using the asset to participate in PPP projects or providing guidance in case the request is not appropriate. The application includes:

Application form from the Ministry of Transport for using the asset to participate in PPP projects attached with the draft Decision of the Prime Minister: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

An application specified in Point a of this Clause: 01 duplicate copy.

c) The main contents of the Decision on using the national railway infrastructure asset for participating in PPP investment projects include: Name of the national railway infrastructure management enterprise that have asset used for participating in PPP investment projects; name of the receiving investor; list of assets (name of the assets, route name, address, year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); implementation responsibility.

4. Pursuant to the Decision of the competent authority or person as specified in Article 2 on using existing national railway infrastructure asset for participating in PPP investment project approved by the competent authority or person and the signed contract, the national railway infrastructure management enterprise shall handover the asset to the investor executing the project. The handover of asset shall be recorded in a Minute of Handover using the Form 01 attached to this Decree.

5. The investor executing the PPP investment project is responsible for accounting, managing, using, and maintaining the railway infrastructure asset (including state-managed and invested assets that are used to participate in the project) to ensure quality and technical standards as per the laws on investment and construction until the asset is transferred to the competent state authority.

The national railway infrastructure management enterprise shall preserve, protect, and maintain works of the national railway infrastructure asset in accordance with law until the handover is completed; monitor and make report on part of the asset that is used for participating in PPP investment projects.

6. The authority with competence to conclude the project contract, national railway infrastructure management enterprise, shall monitor, inspect, and supervise the investor's compliance with clause 4, clause 5 of this Article until the investor transfers the asset to the competent state authority.

Chapter IV

MANAGEMENT, USE, AND OPERATION OF THE URBAN RAILWAY INFRASTRUCTURE ASSET ASSIGNED TO RAILWAY INFRASTRUCTURE MANAGEMENT ENTERPRISES THAT IS NOT RECORDED AS STATE CAPITAL AT THESE ENTERPRISES

Section 1. DOSSIERS ON MANAGEMENT, ACCOUNTING, DOSSIERS ON MANAGEMENT, MAINTENANCE, DOSSIERS ON MANAGEMENT, USE, OPERATION OF ASSET AND DURING UPGRADES, RENOVATION, AND EXPANSION OF URBAN RAILWAY INFRASTRUCTURE ASSET

Article 29. Dossiers on management, accounting of urban railway infrastructure asset

1. Dossiers on management of urban railway infrastructure asset, responsibility for preparation, management, storage of such dossiers shall comply with clauses 1, 2 of Article 11 hereof.

2. The determination of subjects to be listed in asset accounting book, responsibility of the urban railway infrastructure management enterprise in accounting and reporting urban railway infrastructure asset, the principles of determining the gross price, residual value, adjusting the gross price of urban railway infrastructure asset, and the use of the value of urban railway infrastructure asset shall comply with clauses 1, 2, 3, 4 and 5 of Article 12 hereof.

3. Accounting and depreciation calculation for railway infrastructure asset are carried out according to the regulations of the Minister of Finance.

Article 30. Management and maintenance of urban railway infrastructure asset

1. The management and maintenance of urban railway infrastructure asset shall be carried out in accordance with railway laws, laws on quality management, construction, and maintenance of construction works, and other relevant laws.

2. The budget for managing and maintaining urban railway infrastructure asset shall be covered by the state budget.

3. Organization maintenance of urban railway infrastructure asset:

a) Based on technical standards, technical regulations, economic-technical norms, maintenance unit prices, volume of work to be performed, urban railway infrastructure maintenance management plan approved by competent authority/person and other bases (if any) in accordance with law, the urban railway infrastructure management enterprise shall prepare a state budget expenditure estimate for the management and maintenance of urban railway infrastructure, report to the agency representing the owner of urban railway asset (the Provincial People's Committee) which shall submit a consolidated report to the competent authority or person for approval in accordance with laws on state budget and other relevant laws.

Based on the competent authority’s decision to provide state budget estimate, the Ministry of Transport shall provide the state budget estimate for management and maintenance of urban railway infrastructure, to the managing enterprise in accordance with laws on state budget and relevant laws.

The urban railway infrastructure management enterprise shall conducts bidding, ordering of public products, services as per applicable regulations; bidding is carried out according to bidding laws; the ordering is carried out as per the Government's regulations on assigning duties, ordering, or bidding for providing public products, services using state budget.

b) The use and final statement of state budget expenditures for managing and maintaining urban railway infrastructure asset shall comply with laws on state budget and other relevant laws.

4. During the management, maintenance of urban infrastructure asset, any materials repossessed shall be disposed of in accordance with the regulations on disposal of materials repossessed from asset liquidation specified herein.

5. In case of lease, fixed-term transfer of the right to operate urban railway infrastructure asset, if the contract specifies the responsibility of the lessee and the transferee of the asset operation right in maintaining such asset, the lessee and the transferee shall perform maintenance in accordance with the law and the signed contract using their own funds.

Any material repossessed in this case shall belong to the Lessee.

Article 31. Asset management, operation during implementation of State-funded projects for the upgrade, renovation, expansion of national railway infrastructure asset approved by competent authority/person

Investment in upgrading and expanding existing urban railway infrastructure asset and asset management, operation during implementation of State-funded projects for the upgrade, renovation, expansion of railway infrastructure asset approved by competent authority/person in cases where the project developer is not an urban railway infrastructure management enterprise shall comply with Article 14 hereof.

Section 2. OPERATION OF URBAN NATIONAL RAILWAY INFRASTRUCTURE ASSET

Article 32. Methods and proceeds from the operation of urban railway infrastructure asset

1. Operation methods:

a) Urban railway infrastructure management enterprises shall directly organize the asset operation in accordance with clause 4 of Article 3, Article 33 hereof.

b) Lease of right to operate railway infrastructure asset in accordance with clause 5 of Article 3 of Article 34 hereof.

2. Proceeds from the operation of railway infrastructure asset include:

a) Fees and charges as prescribed by the laws on fees and charges.

b) Proceeds from provision of railway infrastructure services or other service as prescribed by law.

c) Proceeds from lease of right to operate railway infrastructure asset.

d) Other proceeds (if any) as stipulated by the laws.

3. During the management, use, and operation of urban railway infrastructure asset, in cases of constructing, installing telecommunications works, water supply and drainage works on railway infrastructure asset, the construction and installation shall be carried out in accordance with the telecommunications law, construction law, law on railways and relevant laws; it is not required to prepare, approve an operation scheme, and carry out asset operation as regulated herein. The proceeds from allowing construction and installation of telecommunications works, water supply and drainage works on railway infrastructure asset shall be managed and used in accordance with Clause 1 of Article 36 hereof.

4. In cases of transferring the right to operate, manage urban railway infrastructure assets under a Operation - Management Contract (O&M), during the contract execution period, the transfer of the right to operate, manage urban railway infrastructure asset shall be carried out in accordance with the PPP laws; it is not required to prepare, approve an operation scheme, and carry out asset operation as regulated herein.

Article 33. Operation of urban railway infrastructure asset in cases where urban railway infrastructure management enterprises directly organize the operation

1. Urban railway infrastructure management authorities shall directly organize the asset operation in the following cases:

a) Operation of urban railway asset infrastructure asset associated with national defense and security.

b) Operation of urban railway infrastructure asset not specified in Point a of this Clause that does not generate proceeds or generate proceeds but not from lease, fixed-term transfer of the asset operation right.

2. Before operation of asset in the case specified in Point a, Clause 1 of this Article, a Asset Operation Scheme must be prepared and submitted to the competent authority or person for approval as prescribed in Clause 3 of this Article. For operation of asset in the case specified in Point b of Clause 1 of this Article, it is not required to prepare and approve an Asset Operation Scheme.

3. The Scheme for operating urban railway infrastructure asset shall be prepared and approved in accordance with Point a of Clause 1 of this Article:

a) The Prime Minister shall review and approve the Scheme for operation of railway infrastructure asset associated with national defense and security.

b) The urban railway infrastructure management enterprise shall prepare and submit an Asset Operation Scheme to the Provincial People's Committee. The application includes:

An application form from the urban railway infrastructure management enterprise for approval of the Scheme: 01 original copy;

Scheme for operation of railway infrastructure asset prepared by the railway infrastructure management enterprise using the Form 02A specified in the Appendix attached hereto: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

c) Within 30 days from the date of receiving the complete application specified in Points b of this Clause, the Provincial People's Committee shall collect opinions from relevant agencies and prepare and submit 01 application to the Prime Minister for review and approval of the Scheme. The application includes:

The application form from the Provincial People's Committee for approval of the Asset Operation Scheme together with the draft Decision of the Prime Minister on the approval of the Scheme: 01 original copy;

The completed Scheme for operation of railway infrastructure asset prepared by the railway infrastructure management enterprise using the Form 02A specified in the Appendix attached hereto: 01 original copy;

The form of summary, explanation, and receipt of opinions from relevant agencies (prepared by the Provincial People's Committee): 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

d) The Prime Minister shall review and approve Scheme for operation of railway infrastructure asset or shall provide instruction in case the Scheme is not appropriate.

dd) The main contents of the Decision on approval of the Asset Operation Scheme include:

a) Name of the urban railway infrastructure management enterprise.

List of assets to be operated (name of the assets; route name; address; year of putting into use; basic parameters (volume, area, length, etc.); gross price, residual value; condition of the assets);

Operation methods: Urban railway infrastructure management enterprises shall directly organize asset operation;

Asset operation duration (if any);

Powers, responsibilities of the State railway regulatory authority, urban railway management authorities;

Rights and obligations of the urban railway infrastructure management enterprise;

Management and use of proceeds from asset operation;

Organization responsibility.

4. Urban railway infrastructure management enterprises shall directly organize asset operation through providing railway infrastructure asset-related services and other services to organizations and individuals:

a) Services of operation of locations and sites of railway infrastructure.

b) Other railway infrastructure asset-related services as prescribed by law.

5. Determination of the prices of services specified in Clause 4 of this Article

a) Services specified in clause 4 of this Article under the list of services with prices determined by the State shall comply with law on prices.

a) For services specified in clause 4 of this Article that are not under the list of services with prices determined by the State, the urban railway infrastructure management enterprise shall consider and apply the principles, grounds, and methods for price determination prescribed by the State to price goods and services, submit them to the enterprise's Board of Directors for approval, and publicly implement them in accordance with law on prices.

6. The Board of Directors of the urban railway infrastructure management enterprise shall issue regulations on provision of services specified in Clause 4 of this Article to implement them in a unified, public, transparent, effective manner, without causing loss, waste, or negativity.

7. During the operation of urban railway infrastructure asset, any materials repossessed shall be handled in accordance with the regulations on disposal of materials repossessed from asset liquidation specified herein.

Article 34. Lease of right to operate urban railway infrastructure asset

1. The right to operate urban railway infrastructure asset that is associated with national defense and national security is not eligible to be leased.

2. The lease term for the asset operation right shall be determined appropriately for each urban railway infrastructure asset or part thereof in accordance with the Scheme for lease of asset operation right approved by the competent authority/person as prescribed in Article 3 of this Decree.

3. Provincial People's Committees shall approve Schemes for leasing the right to operate urban railway infrastructure asset.

4. Formulations and approval of a Scheme for leasing the right to operate urban railway infrastructure asset:

a) The urban railway infrastructure management enterprise shall prepare and submit a Scheme for lease of asset operation right to the Provincial People's Committee. The application includes:

An application form from the urban railway infrastructure management enterprise for approval of the Scheme: 01 original copy;

Scheme for lease of asset operation right prepared by the railway infrastructure management enterprise using the Form 02B specified in the Appendix attached hereto: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a of this clause, the provincial People's Committee shall review and approve the Scheme for leasing the right to operate urban railway infrastructure asset or shall have a written response in case the request is not appropriate.

5. The main contents of the Decision on approval of the Scheme for leasing the asset operation right specified in clause 5 of Article 17 hereof include:

6. Pursuant to Decision on approval of the Scheme for leasing the right to operate urban railway infrastructure asset of the Provincial People's Committee:

a) The urban railway infrastructure management enterprise shall determine the starting rent of the asset operation right in accordance with Article 35 hereof.

The starting rent of the asset operation right for auctioning is the total amount of rent of asset operation right as regulated in Article 35 hereof for the entire lease term.

b) The urban railway infrastructure management enterprise shall organize the auction for leasing of the asset operation right in accordance with laws on asset auction; fully supervise the process of organizing the auction and performing rights, obligations of other individuals having asset auctioned in accordance with Law on Asset Auction.

c) In addition to the conditions stipulated in the laws on asset auctions (except for cases of leasing the right to operate urban railway infrastructure asset that are technical infrastructure works (such as power lines, cables, pipelines), advertising billboards built, installed on the railway infrastructure, and railway safety corridors in accordance with the regulations of the laws on railways), organizations participating in the auction of the asset operation must also meet the following conditions:

Have functions, tasks, or business lines according to the Decision of establishment, Decision on organization and operation, Decision regulating functions, tasks, powers and organizational structure or Business Registration Certificate, Enterprise Registration Certificate that are appropriate for managing and operating railway infrastructure asset in the list of leased operation rights;

Have the experience, capacity for management and operation of similar railway works for a minimum of 02 years up to the time of submitting applications for participation in the auction;

Have financial capacity demonstrated through minimum pre-tax revenue and profit target for the last 02 consecutive years according to the audited Financial statements (for enterprises) or according to the appraised, approved Final Statements (for public service providers) as regulated. The urban railway infrastructure management enterprise shall determine specific pre-tax revenue and profit targets to include in the Scheme for leasing the asset operation right, which shall then be submitted to the competent authority/person for approval.

7. Conclusion of the lease contract of the right to operate urban railway infrastructure asset and attached appendix (if any). The lease contract of the right to operate railway infrastructure asset includes:

a) Information of the Lessor (urban railway infrastructure management enterprise).

b) Information of the Lessee (successful bidder).

c) List of assets to be leased out for operation (name of the assets; route name; address; year of putting into use; basic parameters (volume, area, length, etc.); gross price, residual value; condition of the assets);

d) Lease term of asset operation right.

dd) Revenue from asset operation in the starting price schemes (hereinafter referred to as reconciliation revenue).

e) Rent payable.

g) Form and deadline for rent payment of asset operation right. Where: deadline for rent payment of asset operation right shall comply the regulations specified in point g of clause 7 of Article 17 hereof.

h) The deposit amount for contract performance security (in addition to the rent as per the contract): The Lessee shall deposit the amount into a blocked account at a credit institution. The deadline for depositing into the blocked account is 15 days from the date the contract is signed. The deposit period shall correspond with the lease term of asset operation right. The deposit amount shall be 5% of the total rent for the entire lease term based on the hammer price.

If at the end of the lease term of the asset operation right, the Lessee has not fulfilled obligations (such as paying the rent, breaching the contract related to returning the asset to the Lessor), the deposit amount shall be used to offset the unfulfilled obligations of the Lessee, and any remaining amount shall be handled according to civil laws.

i) Responsibilities, technical requirements for leased urban railway infrastructure maintenance and other necessary contents related to maintenance.

k) Deadline for the Lessor to hand over the asset operation right to the Lessee; deadline for the Lessee to return the asset operation right to the Lessor.

l) Handling cases where the actual revenue from operation significantly fluctuates compared to the reconciliation revenue in the case of leasing the asset operation right with a one-time rent payment for the entire lease period:

Annually, if the actual revenue from operating the leased asset according to the audited Financial Statements (for enterprises) or the approved, appraised Final Statements (for public service providers) as regulated exceeds the reconciliation revenue by 125% or more, the Lessee must make an additional payment of 50% of the additional revenue above 125% into an escrow account as regulated in point a of clause 2 of Article 36 hereof; wherein, the reconciliation revenue is the revenue from asset operation of the corresponding year of the lease term in the starting price scheme for auction;

The Lessor and the Lessee shall rely on the audited Financial Statements (for enterprises) or the approved, appraised Final Statements (for public service providers) to determine the additional amount the Lessee must pay (if any) into the escrow account, based on which the Lessor shall inform the competent authority/person approving the Scheme for leasing the asset operation right, the withholding account holder as regulated in point a of clause 2 of Article 36 hereof, and the Lessee for monitoring, collecting, transferring, and managing the amount. The time limit for determination, notification, and deposit into the escrow account is within 30 days from the date of receiving the report from the Lessor, with the latest deadline being October 31 of the following year related to the year of additional revenue occurrence; particularly, in the final year, the payment must be made before the contract is settled.

m) Conditions for contract termination.

n) Rights and obligations of the parties.

o) Handling of contract breaches, resolution of contract disputes according to civil laws and other related laws.

p) Handling of cases where State-funded projects for upgrades, renovations, or expansions of asset approved by the competent authority/person occur within the lease term.

The signed lease contract of the right to operate urban railway infrastructure asset and the attached appendices (if any) are sent to the escrow account holder as regulated in point a of clause 2 of Article 36 hereof for monitoring and managing the proceeds from leasing the asset operation right.

8. The Lessor shall have rights specified in points a, b, c, d, dd and e of clause 8 of Article 17 hereof.

9. The Lessee shall have obligations specified in points a, b, c, d, dd, e, g, h and i of clause 9 of Article 17 hereof.

10. The urban railway management authority, the urban railway asset enterprise, shall inspect and supervise the implementation of the Scheme for leasing the right to operate railway infrastructure asset approved by the competent authority/person, fulfill obligations and responsibilities in accordance with law; promptly handle violations, issues that arise under their jurisdiction, or report to the competent authority for resolution as per the law.

11. Proceeds from leasing the asset operation right are managed, used as per the regulations in clause 2 of Article 36 hereof.

12. Upon the expiration of the lease term for the right to operate urban railway infrastructure asset in accordance with the contract, the Lessee shall:

a) Transfer back the asset operation right to the Lessor at the end date of the contract's term or the end of any extended term, even if the contract finalization is not completed, or the asset is not returned to the Lessor.

b) Cooperate with the Lessor in conducting inventory, determining the condition of the assets; the inventory, determination of the condition of the assets must be documented.

c) Rectify any damages (if any) to the asset.

d) Cooperate with the Lessor in contract finalization as per regulations after rectifying any damages (if any) to the asset and completing the rent payment for the asset operation right for which the Lessee has provided written commitment that the asset is not under seizure or mortgage or used to fulfill other debt obligations

dd) Return the asset to the Lessor.

e) Receive the specified deposit amount as per point h of clause 7 of this Article. If the Lessee has not completed the rent payment for the asset operation right at the end of the lease term, the deposit amount shall be used to offset the obligations of the Lessee, with any remaining amount handled as per civil laws.

13. Upon the expiration of the lease term for the right to operate urban railway infrastructure asset in accordance with the contract, the Lessor shall:

a) Receive, manage, use, and operate the asset as per the regulations of this Decree from the moment the Lessee transfers back the asset operation right as per point a of Article 12 hereof.

b) Perform management, maintenance of railway infrastructure asset as per the regulations hereof from the moment the Lessee transfers back the asset operation right as per point a of this clause (excluding the time when the Lessee rectifies asset damages as per regulations).

14. In case of force majeure or if the State repossesses land attached to urban railway infrastructure asset for national defense, security, and socio-economic development purposes in the public interest according to land laws before the lease term expires according to the contract, the parties shall terminate the contract prematurely. The Lessee shall be refunded the corresponding amount for the remaining time (if any) of the paid rent according to the contract and the deposit amount as specified in point h of clause 7 of this Article; the Lessee shall take charge and cooperate with the Lessor in determining and submitting the refundable portion for the Lessee (if any) to the Provincial People's Committee for approval; the refund shall be allocated to the state budget recurrent expenditure estimate of the urban railway infrastructure management enterprise for implementation; the refund procedure shall be carried out as per state budget laws. Other contents shall comply with the regulations of clause 13 of this Article.

15. Handling of contract breaches, resolution of contract disputes shall comply with signed contracts, civil laws and other related laws. For cases of early termination due to contract breaches, contract disputes, the management, use and operation of asset, the refund of the paid rent, deposit (if any) upon termination of the contract shall comply with the provisions in Clause 13 and Clause 14 of this Article.

16. For State-funded projects for upgrades, renovations, or expansions of asset approved by the competent authority/person within the lease term, the urban railway infrastructure management enterprise shall implement regulations of state budget laws, public investment laws, railway laws, and related laws. The Lessee shall be refunded the corresponding amount for the rent paid according to the contract (or shall not have to pay annual rent) due to the absence of income during the asset upgrade, renovation, and expansion period, or extending the contract time corresponding to the time required to hand over the asset to the railway infrastructure management enterprise for the upgrades, renovations, or expansions. The Lessor shall take charge and cooperate with the Lessee in the determination of the refundable portion to the Lessee (if any) or the extension of the corresponding contract term and submit to the authority or person with competence to approve Schemes for leasing asset operation right for decision. The refund shall be allocated to the state budget recurrent expenditure estimate of the railway infrastructure management enterprise for implementation; the refund procedure shall be carried out as per state budget laws. Other contents shall follow the regulations of clause 13 and clause 14 of this Article.

Article 35. Rent of right to operate urban railway infrastructure asset

1. The rent of the right to operate urban railway infrastructure asset is the amount of money that the organization, enterprises renting the asset operation right, must pay to the urban railway infrastructure management enterprise based on the hammer price to obtain the asset operation right as per the signed contract. In the case of leasing the right to operate with annual rent payments, the rent for each year shall be determined in accordance with clause 1 of Article 19 hereof.

2. The starting price for auctioning the lease of the right to operate urban railway infrastructure asset is the lowest initial price. Authorities, persons with competent to approve the Scheme for lease of the right to operate urban infrastructure asset are those with competent to approve the starting price for auctioning.

3. Grounds for determining the starting price for auctioning the lease of the right to operate urban railway infrastructure asset include:

a) Rent of the asset operation right on the market of asset of the same type or with the same technical standards, quality, and usability at the specified time (if any).

b) Estimated revenue, estimated costs from asset operation during the lease term.

c) Valuation certificates and valuation report of the valuation enterprises as regulated by price laws or the price determination results of the Valuation Council as stipulated in clause 4 of Article. The use of valuation certificates and valuation reports shall be carried out in accordance with laws on prices.

4. Determination of the starting price for auctioning the lease of the right to operate urban railway infrastructure asset:

a) The urban railway infrastructure management enterprise shall hire a valuation enterprise for the valuation of the leased, fixed-term transferred asset operation right. The valuation enterprise shall be hired in accordance with other relevant laws.

The Valuation Council for starting rent of the right to operate railway infrastructure asset shall be established in accordance with laws on prices and include: Legal representative of the urban railway infrastructure management enterprise or authorized President; other members include: Representatives of relevant specialized departments of the urban railway infrastructure management enterprise; representatives of relevant agencies and units affiliated to the Provincial People's Committee; representatives of other relevant agencies (if necessary).

b) Pursuant to clause 3of this Article, the urban railway infrastructure management enterprise shall determine and submit the starting prices for auctioning the lease of the asset operation right to the Provincial People's Committee for approval.

The application includes:

An application form from the urban railway infrastructure management enterprise for approval of the starting price: 01 original copy;

Documents related to grounds for determining the starting rent of asset operation right as stipulated in clause 3 of this Article: 01 duplicate copy.

c) In the Decision approving the starting price for auctioning the lease of the asset operation right, the estimated annual revenue must be determined in the starting price scheme to serve as reconciliation revenue in cases specified in point l of clause 7 of Article 34 hereof.

5. After 02 unsuccessful auctions for the lease of the asset operation right, the urban railway infrastructure management enterprise shall review the causes and propose solutions, report to Provincial People's Committee to review and make decision on whether to continue organizing the auction or change the current operation method to the method in which the infrastructure management authority shall directly organize the operation of urban railway infrastructure asset.

In case of continuing organizing the auction for the lease of the asset operation right, if the reason for the unsuccessful auction is determined to be due to the starting rent of the asset operation right being high and no longer in line with the regulations on determining the starting price as stipulated in this Article, the starting price shall be re-determined in accordance with the provisions of clauses 2, 3 and 4 of this Article.

Case of changing the current operation method to the method in which the urban railway infrastructure management enterprise shall directly organize the asset operation shall comply with Article 33 hereof. Expenses incurred before switching to the method there railway infrastructure management enterprises shall directly organizing operation shall be paid using the funds allocated to the urban railway management enterprise as stipulated in Clause 1 of Article 36 hereof.

6. Pursuant to regulations of this Decree, if there are any difficulties that arise, the Provincial People's Committee shall provide specific guidance on determining the starting price for the auction for the lease of the right to operate urban railway infrastructure asset.

Article 36. Management, use of proceeds from operation of urban railway infrastructure asset

1. In case the urban railway infrastructure management enterprise directly organizes the operation of railway infrastructure asset in accordance with Article 33 hereof and cases of allowing construction and installation of telecommunications works, water supply, and drainage works on urban railway infrastructure asset:

a) The proceeds shall be managed and used in accordance with the laws on fees, charges, laws on state budget, and other relevant laws.

b) For proceeds from provision of services specified in Clause 4 of Article 33 hereof, the Provincial People's Council shall review and make decision on the percentage (%) of the proceeds from service provision that must be transferred to the state budget, and the percentage (%) of the proceeds allowed to be used by the urban railway infrastructure management enterprise from service provision at the request of the Provincial People's Committee.

The urban railway infrastructure management enterprise shall manage the proceeds allowed to be used to cover costs related to asset management and operation, railway infrastructure asset maintenance and development, fulfill financial obligations to the State in accordance with law and must account for them in the enterprise's revenue.

Quarterly, the urban railway infrastructure management enterprise shall consolidate the proceeds from directly organizing the operation of railway infrastructure asset as prescribed in Article 33 hereof, determine and transfer the amount payable to the state budget no later than the 15th day of the first month of the following quarter.

The proceeds allowed to be used by the urban railway infrastructure management enterprise shall be managed and used in accordance with the financial mechanism of the urban railway infrastructure management enterprise.

c) The proceeds from allowing construction and installation of telecommunications works, water supply and drainage works on the urban railway infrastructure asset specified in clause 3 of Article 32 hereof shall be managed and used in accordance with point b of this Clause.

2. For cases of operation of urban railway infrastructure asset in accordance with Article 34 hereof:

a) Proceeds from the lease of the right to operate urban railway infrastructure asset shall be transferred into an escrow account at the State Treasury, with relevant authority designated by the Provincial People's Committee to be the account owner:

b) Expenditures:

costs related to the preparation, submission, approval of the Scheme for the lease of the right to operate urban railway infrastructure asset; inventory, determination of the starting price, organization of the auction for lease of the asset operation right; conservation, protection of asset during the selection of the organization for operation; management of the Lessor during the contract period; other relevant costs.

c) Cost estimates related to the operation of urban railway infrastructure asset shall be prepared by the urban railway infrastructure management enterprise and submitted to the provincial People's Committee for approval or grant of power for approval.

d) Expenditure levels:

For expenditures that have a system of economic - technical norms, regimes and policies issued by competent authorities, person or prescribed by law (tax, accounting, statistics and other relevant laws) and have prices prescribed by the State, those regulations shall apply;

For expenditures that do not have the above-mentioned grounds, the legal representative of the urban railway infrastructure management enterprise shall approve and be accountable for their decision;

For costs related to many multiple products, tasks that cannot be separated (such as asset depreciation; salaries, social insurance, health insurance, unemployment insurance, and trade union fees, management and operation costs, etc.), they must be consolidated and allocated according to appropriate criteria, in accordance with relevant laws for each product, task.

dd) Every 6 months (at the latest on June 30 and December 31), the escrow account holder shall transfer the remaining proceeds from the operation of urban infrastructure asset (after completing the payment of costs specified in points c, d of this clause to the urban railway infrastructure management enterprise deducted from the withholding account) to the central government budget in accordance with laws on the state budget. After this deadline, if the urban railway infrastructure management enterprise does not send a payment request dossier to the escrow account holder and does not have a document stating the reason for not completing the payment dossier, the escrow account holder shall transfer the proceeds to the state budget.

e) The proceeds transferred to the state budget are prioritized for allocation to the public investment plan, the state budget expenditure estimate for new construction, upgrading, renovation, expansion, and development of urban railway infrastructure asset according to the laws on the state budget, public investment, and other relevant laws.

Section 3. DISPOSAL OF URBAN RAILWAY INFRASTRUCTURE ASSET

Article 37. Forms of disposal of urban railway infrastructure asset

Urban railway infrastructure asset shall be disposed of in forms specified in clause 1, 2, 3, 4, 5, and 6 of Article 21 hereof.

Article 38. Repossession of urban railway infrastructure asset

1. The urban railway infrastructure asset shall be repossess in cases specified in points a, b, c, d, dd and e of clause 1 of Article 22 hereof.

2. The Provincial People's Committee shall make decisions to repossess urban railway infrastructure assets under its management.

3. Repossessed urban railway infrastructure asset shall be disposed of in forms specified in points a, b of clause 3 of Article 22 hereof.

4. The procedures for repossession of urban railway infrastructure asset (except for cases specified in clause 5 of this Article):

a) The urban railway infrastructure management enterprise shall prepare and submit an application for asset repossession to the Provincial People's Committee for approval.

The application for asset repossession in accordance with Point a of Clause 4 of Article 22 hereof includes:

b) Within 30 days from the date of receiving the complete application specified in point a of this clause 3, the Provincial People's Committee shall review and make decision on asset repossession.

c) The main contents of the Decision on repossession of national railway infrastructure asset include: Name of the urban railway infrastructure management enterprise with repossessed asset; name of the authority assigned to execute the repossession decision (the railway management authorities specified in Point b of Clause 3, Article 2 hereof);list of assets to be repossessed (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for repossession; implementation responsibility.

d) Pursuant to the Decision on asset repossession of the Provincial People's Committee, the authority assigned to execute the repossession decision shall prepare and submit a plan for disposal of the repossessed asset in forms specified in clause 3 of this Article to the competent authority/person for approval. Upon approval, the asset disposal shall be carried out according to the approved plan. During the awaiting period for asset disposal, the enterprise that has asset repossessed is responsible for the preservation and protection of the asset as prescribed.

During the awaiting period for asset disposal, the enterprise that has asset repossessed is responsible for the preservation and protection of the asset as prescribed.

dd) The urban railway infrastructure management enterprise shall perform asset reduction accounting in accordance with accounting laws; report asset changes as required hereby.

5. The procedures for repossession of urban railway infrastructure asset upon request by authorities assigned to carry out inspection, assessment, and audit and impose penalties for administrative violations, or other state regulatory authorities:

a) At the request of authorities assigned to carry out inspection, assessment, and audit and impose penalties for administrative violations, or other state regulatory authorities, the Provincial People's Committee shall review and make decision on asset repossession.

b) The main content of the Decision on asset repossession, post-repossession handling of asset, and the responsibilities of relevant agencies shall comply with points c, d, and dd of clause 4 of this Article.

Article 39. Transfer of urban railway infrastructure asset

1. The railway infrastructure asset shall be transferred in cases specified in points a, b, and c of clause 1 of Article 23 hereof.

2. Authority to make transfer decision:

a) The Minister of Finance shall decide the transfer of urban railway infrastructure asset between central and local authorities, between provinces, centrally affiliated cities.

b) The provincial People's Committees shall decide the transfer of urban railway infrastructure assets under regulations of point a of this clause between agencies, organizations, units within their management.

3. Procedures for transferring urban railway infrastructure asset:

a) When there is asset that needs to be transferred, the urban infrastructure management enterprise shall prepare and submit an application for asset transfer to the competent authority/person as stipulated in point b of clause 2 of this Article.

The application for asset transfer in accordance with Point a of Clause 3 of Article 23 hereof includes:

b) Within 30 days from the date of receiving the complete application specified in point a of this clause, the provincial People's Committee shall review and decide the transfer of asset or shall have a written response in case the request is not appropriate.

In cases where the asset transfer falls under the authority of the Minister of Finance, the Provincial People's Committee shall prepare and submit an application to the Minister of Finance for review and decision on asset transfer or shall have a written response in case the request for asset transfer is not appropriate. The application includes:

An application form from the provincial People's Committee for asset transfer: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

An application specified in Point a of this Clause: 01 duplicate copy.

c) The main contents of the Decision on asset transfer include: Name of the urban railway infrastructure management enterprise that have asset transferred; name of the receiving agency, organization, unit, enterprise; list of assets to be transferred (name of the assets, route name, address, year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reason for transfer; implementation responsibility.

d) Within 30 days from the date of issuance of Decision on asset transfer of the competent authority, the transferring urban railway infrastructure management enterprise, and the receiving agency, organization, unit, enterprise shall:

Hand over and receive the asset; the handover and receipt must be documented in a Handover Report using Form 01 in the Appendix attached hereto. The enterprise that has asset transferred shall preserve and protect the asset until the handover is completed;

Carry out asset reduction and increase accounting as per accounting laws; report asset changes as required hereby.

dd) Reasonable costs directly related to the handover and receipt of asset shall be paid by the receiving agency, organization, unit, enterprise in accordance with applicable regulations.

e) There is no need to pay the asset value when transferring asset.

4. For urban railway infrastructure asset subject to a repossession decision, which is then transferred, the authority assigned to implement the repossession decision shall prepare a plan for disposal of repossessed asset (enclosed with an application for receipt of asset from the agency, organization, unit, and the superior management agency (if any) and representative agency of the owner of that agency, organization, unit, or enterprise; a list of assets as prescribed in Point a of Clause 3 of this Article; documents related to the asset) to submit to the competent authority or person prescribed in Clause 2 of this Article for review and decision. The procedures, content of the decision on asset transfer, implementation of other decisions and contents shall comply with points b, c, d, dd and e of Clause 3 of this Article; in which the agency assigned to organize the implementation of the Repossession Decision shall exercise the rights and responsibilities of the enterprise that has asset transferred.

Article 40. Transfer of urban railway infrastructure asset to administrative divisions for management and disposal

1. The urban railway infrastructure asset shall be transferred to administrative divisions for management and disposal in cases specified in points a, b, and c of clause 1 of Article 24 hereof.

2. The Provincial People's Committee shall make decisions to transfer urban railway infrastructure assets under its management.

3. Disposal of urban railway infrastructure asset shall only be carried out in form of transfer of asset to administrative divisions for management and disposal in cases where the asset is no longer used for the purpose of being railway infrastructure asset.

4. Procedures for transfer of urban railway infrastructure asset to administrative divisions for management and disposal:

a) When there is asset that needs to be transferred, the urban infrastructure management enterprise shall prepare and submit an application for asset transfer to the provincial People's Committee for approval. The application includes:

An application form from the railway infrastructure management enterprise for asset transfer: 01 original copy;

b) List of assets to be transferred (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets; reasons for being transferred to administrative divisions for management and disposal): 01 original copy;

Related documents regarding the reason for the asset transfer (if any): 01 duplicate copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 15 days from the date of receiving the complete application specified in point a of this clause, the provincial People's Committee shall review and decide the transfer of asset or shall have a written response in case the request is not appropriate.

c) The main contents of the Decision on asset transfer include: Name of the urban railway infrastructure management enterprise that have asset transferred; name of the receiving agency (Relevant authority of Provincial People's Committee, Land bank development organization, or the District-level People's Committee); list of assets to be transferred (name of the assets, route name, address, year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reason for transfer; implementation responsibility.

d) Within 30 days from the issuance date of the Decision on asset transfer of the competent authority/person, the urban railway infrastructure management enterprise that has asset transferred (Transferring Party) shall take charge and cooperate with the agency receiving the asset (Receiving Party) to organize the handover and receipt of the asset; the handover and receipt of the asset are documented in a Minute using Form 01 in the Appendix attached hereto. The Transferring Party shall perform asset reduction accounting as per accounting laws; report asset changes as prescribed in this Decree.

dd) The enterprise that has asset transferred shall preserve and protect the asset until the handover is completed;

In case the urban railway infrastructure management enterprise fails to hand over or the local authority fails to receive the asset within the prescribed time limit, they shall be responsible for paying the costs of management, preservation, and protection of the asset during the delayed period and shall be responsible for compensation in case the asset is destroyed, lost, or damaged; the state budget shall not be used to cover the costs incurred in this case.

e) The receiving agency shall open a separate logbook or accounts and calculate depreciation for the asset from the time of asset receipt until the completion of asset disposal as per the regulations of clause 6 of this Article.

Reasonable costs directly related to the handover and receipt of asset shall be paid by the receiving agency.

g) There is no need to pay the asset value when transferring asset to administrative divisions for management and disposal.

5. For urban railway infrastructure asset subject to a repossession decision, which is then transferred to administrative division for management and disposal, the authority assigned to implement the repossession decision shall prepare and submit a plan for disposal of the repossessed asset (enclosed with an application prescribed in Point a of Clause 4 of this Article) to the Provincial People's Committee for review and decision on transfer of asset to administrative divisions for management and disposal.

The procedures, content of the decision on asset transfer, implementation of other decisions and contents shall comply with points b, c, d, dd, e and g of Clause 4 of this Article; in which the agency assigned to organize the implementation of the Repossession Decision shall exercise the rights and responsibilities of the enterprise that has asset transferred.

6. After receiving the asset, the receiving agency shall refer to the dossiers of specific case to provide advice or propose to the agency responsible for consultation, and report to the competent authority or person to handle as prescribed by clause 6 of Article 24 hereof.

Article 41. Liquidation of urban railway infrastructure asset

1. The urban railway infrastructure asset shall be liquidated in cases specified in points a, b, c and d of clause 1 of Article 25 hereof.

2. The Provincial People's Council shall decide or grant power to decide the liquidation of urban railway infrastructure asset.

3. The urban railway infrastructure asset shall be liquidated through demolition and destruction of railway works, work items.

4. Procedures for liquidation of urban railway infrastructure asset:

a) The urban railway infrastructure management enterprise shall prepare and submit an application for asset liquidation to the competent authority/person as stipulated in clause 2 of this Article.

The application for asset liquidation shall include documents as specified in Point a of Clause 4 of Article 25 hereof.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the competent authority or person specified in clause 2 of this Article shall review and decide asset liquidation or shall have a written response in case the request for asset liquidation is not appropriate.

c) The main contents of the Decision on asset liquidation include: Name of the urban railway infrastructure management enterprise that has asset liquidated; List of assets to be liquidated (name of the assets; route name; address; year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); reasons for liquidation; form of liquidation; implementation responsibility.

d) Pursuant to the Decision on asset liquidation of the competent authority or person, the urban railway infrastructure management enterprise shall organize the demolition and destruction of railway works, work items, and dispose of materials repossessed. The disposal of materials repossessed shall be carried out in accordance with the regulations specified in clauses 5, 6, 7, and 8 of this Article.

5. Material repossessed from demolition of urban railway infrastructure asset shall be disposed of in forms specified in points a, b, c and d of clause 5 of Article 25 hereof.

6. Assigning repossessed materials that are still usable to the railway infrastructure management enterprise to use in management and maintenance: If the urban railway infrastructure management enterprise has submitted an application to the competent authority or person specified in clause 2 of this Article for deciding assignment of repossessed materials for putting into use, no management, maintenance fund shall be allocated for the portion of the value of materials used for management, maintenance. If the maintenance fund has already been allocated in the budget, it should be deducted from the management, maintenance budget estimate of that year corresponding to the value of the materials as per the budget estimate and the management, maintenance contract value.

7. Transferring repossessed materials that can still be used to other agencies, organizations, units, and enterprises for management and use:

a) At the request of the urban railway infrastructure management enterprise, the request of the agencies, organizations, or units, and enterprises in need of receiving repossessed materials, the Provincial People's Committee shall make decisions for transferring them to agencies, organizations, units, and enterprises under its management; the Minister of Finance shall make decisions for transfers between local and central authorities, between provinces and centrally affiliated cities as prescribed.

b) The application for transfer of materials repossessed in accordance with Point b of Clause 7 of Article 25 hereof.

c) Within 30 days from the date of receiving the complete application specified in point b of this Clause, the Provincial People's Committee shall review and make a decision under its jurisdiction or shall have a written response in case the request for transfer of repossessed materials is not appropriate.

d) In cases where the asset transfer falls under the authority of the Minister of Finance, the Provincial People's Committee shall request the Ministry of Finance to review and make decision on asset transfer or provide a written response in case the request for asset transfer is not appropriate.

dd) The main contents of the Decision on transfer of repossessed materials include: Name of the agency assigned to manage the asset with materials to be transferred; name of the agency, organization, unit, enterprise receiving the materials; list of materials to be transferred (name, type, quantity, condition); intended use after the transfer; responsibilities for implementation.

e) Within 30 days from the date of the Transfer Decision of the competent authority/person, the urban railway infrastructure management enterprise and the receiving agency, organization, unit, enterprise shall organize the handover and receipt of the transferred materials; the handover and receipt shall be documented in a Minute using Form 01 in the Appendix attached hereto.

8. Selling recovered materials and supplies that are not needed. Comply with regulations in Clause 8 of Article 25 hereof.

9. For cases of liquidation of old urban railway infrastructure asset to invest in construction of new railway infrastructure asset or to ensure traffic, return of premises by projects approved by the competent authority/person that include regulations on asset liquidation, the asset liquidation shall be carried out according to the approved project; the urban railway infrastructure management enterprise is not required to follow the asset liquidation procedures as stipulated in point 4 of this Article; the disposal of recovered materials (if any) shall be carried out in accordance with clauses 5, 6, 7, and 8 of this Article, except when the value of the repossessed materials has already been deducted from the project package value.

10. After completing the asset liquidation, the urban railway infrastructure management enterprise shall perform asset reduction accounting as prescribed by accounting laws, and report asset changes as stipulated herein.

Article 42. Disposal of urban railway infrastructure assets if they are lost or damaged

1. Urban railway infrastructure asset is lost or damaged due to natural disasters, fires, or other causes.

2. The Provincial People's Council shall decide or grant power to decide the disposal of urban railway infrastructure asset specified in clause 1 of this Article.

3. Procedures for disposal of urban railway infrastructure assets if they are lost or damaged:

a) Within 30 days from the date of discovering that the asset is lost or damaged, the urban railway infrastructure management enterprise shall determine the cause of the loss or damage and the responsibilities of the relevant collectives and individuals, prepare and submit an application for the disposal of the lost or damaged asset to the competent authority/person as specified in Clause 2 of this Article for review and decision.

The application for disposal of lost, damaged asset shall include documents as specified in Point a of Clause 3 of Article 26 hereof.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the competent authority or person specified in clause 2 of this Article shall decide the disposal of assets if they are lost or damaged.

c) The main contents of the Decision on asset disposal specified in clause 3 of Article 26 hereof include:

4. Within 30 days from the date of issuance of Decision on asset disposal of the competent authority/person, the urban railway infrastructure management enterprise shall implement regulations specified in points a, b, and c of clause 4 of Article 26 hereof.

5. The state budget shall ensure funding for the restoration and repair of railway infrastructure asset to restore safe and smooth railway operations.

In cases where urban railway infrastructure asset is lost or damaged and is compensated by insurance companies or relevant organizations, individuals, the compensation shall be managed in accordance with clause 1 of Article 43 hereof. After deducting relevant costs (if any), the compensation shall be transferred to the state budget as per regulations and is prioritized to be allocated to the public investment plan, state budget expenditure estimate for investing in building replacement asset in accordance with laws on the state budget, public investment, and other relevant laws.

Article 43. Management, use of proceeds from disposal of urban railway infrastructure asset

1. Proceeds from disposal of urban railway infrastructure asset (including any compensation) shall be transferred into an escrow account at the State Treasury, with the relevant authority designated by the Provincial People's Committee to be the account owner.

2. Costs related to disposal of urban railway infrastructure asset shall include those specified in points a, b, c, d, dd and e of clause 2 of Article 27 hereof.

3. Expenditure levels: Comply with regulations in point a, b, and c of Clause 3 of Article 27 hereof.

4. Pursuant to the expenditures specified in clause 2 of this Article, the expenditure level specified in clause 3 of this Article, the urban railway infrastructure management enterprise shall prepare and submit a estimate for expenses related to asset disposal to escrow account holder specified in clause 1 of this Article for approval (the estimate approval time limit is 30 days from the date of submitting the estimate).

5. Within 30 days from the day the asset is being disposed of, the urban railway infrastructure management enterprise must prepare and send an application to the escrow account holder for payment of the costs of the asset disposal or an extension of the payment deadline (stating the reason for the extension and the extended period, which should not exceed 30 days from the date of the application) or confirm in writing no expenses have arisen. The legal representative of the urban railway infrastructure management enterprise is accountable to the law for any delays in submitting documents, the accuracy of the proposed payment. The application includes:

a) Payment application from the urban railway infrastructure management enterprise for costs of asset disposal (clearly stating the proceeds from asset disposal, total disposal costs, information about the receiving account) enclosed with the approved expenditure estimate the specific list of expenditures: 01 original copy;

b) Decision on disposal of asset of the competent authority or person: 01 duplicate copy.

c) Proofs of expenditures: Approved expenditure estimate; contracts for valuation, auction and demolishment; invoices (if any): 01 duplicate copy.

6. Within 30 days from the date of receiving the complete application, the holder of the escrow account shall be responsible for giving money to the urban railway infrastructure management enterprise to pay the costs related to the disposal of railway infrastructure asset.

7. Every 6 months (by June 30 and December 31 at the latest), the escrow account holder shall transfer to the local government budget the proceeds from asset disposal:

a) The costs of which are paid or that has a document confirming no expenses have arisen from the urban railway infrastructure management enterprise.

b) Where the 30-day period has passed from the date the urban railway infrastructure management enterprise has transferred proceeds into the escrow account but holder has not received a payment application or deferral application from the urban railway infrastructure management enterprise.

8. In case there is no proceed from asset disposal or the proceeds from asset disposal is not enough to cover the costs, the urban railway infrastructure management enterprise shall cover for the remaining amount using the enterprise's revenue and account for it in the enterprise's reasonable and lawful expenses.

9. In cases where outsourcing costs must be paid when disposing of asset according to regulations before the holder of an escrow account grants funds, the urban railway asset management  enterprise is allowed to advance from the permissible source of funding of the enterprise.

Section 4. USE OF URBAN RAILWAY INFRASTRUCTURE ASSET FOR PARTICIPATING IN PPP INVESTMENT PROJECTS AND MANAGEMENT AND USE OF PPP-INVESTED URBAN RAILWAY INFRASTRUCTURE ASSET

Section 44. Use of urban railway infrastructure asset for participating in PPP investment projects and management and use of PPP-invested urban railway infrastructure asset

1. The management, use, operation of urban railway infrastructure in PPP form and the transfer of asset formed through PPP to the State shall be carried out in accordance with Articles 95 and 96 of the Law on Management and Use of Public property and PPP laws

The management and use of urban railway infrastructure in PPP form shall not affect railway system operations, railway development planning, and comply with laws on construction, the laws on railway, and other relevant laws.

2. Authority to decide use of the existing urban railway infrastructure asset to participate in PPP investment projects:

a) The Prime Minister shall make decision on urban railway infrastructure asset associated with national defense and security.

b) The provincial People's Committees shall decide urban railway infrastructure asset not specified in point a of this clause.

3. Procedures for using the existing urban railway infrastructure asset for participating in PPP investment projects:

a) When the urban railway infrastructure management enterprise has a need to use national railway infrastructure asset to participate in PPP investment projects in accordance with law, they shall prepare and submit an application to the competent authority or person specified in Point b, Clause 2 of this Article. The application includes:

Application form from urban railway infrastructure management enterprise for using national railway infrastructure asset to participate in PPP investment projects: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

List of assets for participation in PPP investment projects using Form 01B in the Appendix attached to this Decree: 01 original copy;

Other relevant documents (if any): 01 duplicate copy.

b) Within 30 days from the date of receiving the complete application specified in point a of this Clause, the competent authority/person specified in points b, c of clause 2 of this Article shall review and decide the use of the asset for participating in PPP investment projects for cases under their jurisdiction or shall have a written response in case the request is not appropriate.

For cases that fall under the jurisdiction of the Prime Minister, the Provincial People's Committee shall prepare and submit an application to the Prime Minister for review and decision on using the asset to participate in PPP projects or providing guidance in case the request is not appropriate. The application includes:

Application form from the provincial People's Committee for using the asset to participate in PPP investment projects attached with the draft Decision of the Prime Minister: 01 original copy;

Opinions of relevant agencies (if any): 01 duplicate copy;

An application specified in Point a of this Clause: 01 duplicate copy.

c) The main contents of the Decision on using the urban railway infrastructure asset for participation in PPP investment projects include: Name of the urban railway infrastructure management enterprise that have asset used for participation in PPP investment projects; name of the receiving investor; list of assets (name of the assets, route name, address, year of putting into use; basic parameters (length, area, volume, etc.); gross price, residual value; condition of the assets); implementation responsibility.

4. Pursuant to the Decision of the competent authority or person as specified in Article 2 on using existing urban railway infrastructure asset for participation in PPP investment project, the PPP investment project approved by the competent authority or person and the signed contract, the urban railway infrastructure management enterprise shall handover the asset to the investor executing the project. The handover of asset shall be recorded in a Minute of Handover using the Form 01 attached to this Decree.

The urban railway infrastructure management enterprise shall preserve, protect, and maintain works of the urban railway infrastructure asset in accordance with law until the handover is completed; monitor and make report on part of the asset that is used for participating in PPP investment projects.

5. The investor executing the PPP investment project is responsible for accounting, managing, using, and maintaining the urban railway infrastructure asset (including state-managed and invested assets that are used to participate in the project) to ensure quality and technical standards as per the laws on investment and construction until the asset is transferred to the competent state authority.

The urban railway infrastructure management enterprise shall monitor and make report on the portion of asset used to participate in the project while handing it over to the investor for project execution.

6. The authority with competence to conclude the project contract, urban railway infrastructure management enterprise, shall monitor, inspect, and supervise the investor's compliance with clause 4, clause 5 of this Article until the investor transfers the asset to the competent state authority.

Chapter V

REPORTING ON AND DATABASE OF RAILWAY INFRASTRUCTURE ASSET

Article 45. Reporting on railway infrastructure asset

1. Railway infrastructure asset must be declared and updated in the Database of railway infrastructure asset for unified management.

2. Forms of declaration:

a) First-time declaration shall apply to:

Existing railway infrastructure asset at the time this Decree comes into effect;

Railway infrastructure asset arising from the effective date of this Decree.

b) Additional declarations in case there is a change in information about infrastructure management authority or asset after the first-time declaration.

3. The railway infrastructure management enterprise shall make a declaration on the railway infrastructure asset, which shall be updated on the railway infrastructure asset database.

The deadline for submitting a declaration is 30 days from the date the asset is put into use (for asset formed through purchases or new construction), from the date of asset reception according to the decision of the competent authority or person (for transferred asset), or asset disposal according to the decision of the competent authority or person, or when there is a change in information of the railway infrastructure asset or information about the declared asset.

4. Annually, the railway infrastructure management enterprise shall report on the management, use, and operation of railway infrastructure asset and submit ad hoc reports upon request of the competent state authority. The closing date for annual reporting data is the end of the fiscal year.

5. The report on the management, use, and operation of railway infrastructure asset shall include:

a) Report on the asset operation prescribed in this Decree.

b) Consolidated report on the management, use and operation of asset.

6. The deadline for submitting annual reports on the management, use and operation of railway infrastructure asset:

a) The national railway infrastructure management enterprise shall prepare and send the report to the Ministry of Transport; the urban railway infrastructure management enterprise shall prepare and send the report to the provincial People's Committee. Deadline for submitting reports is before February 28 every year.

b) The Ministry of Transport, the Provincial People's Committee shall send final report on management, use, and operation of railway infrastructure assets under their management to the Ministry of Finance before March 15.

c) The Ministry of Finance shall send final report on management, use, and operation of railway infrastructure asset nationwide to the Government for reporting to the National Assembly as required.

7. Reports on railway infrastructure asset shall be prepared in written or electronic form. Depending on the receiving agency's practical conditions as regulated in point b, point c of Clause 6 of this Article, reports can be sent to the receiving agency through methods such as:

a) In person.

b) Via post.

c) Via Fax.

d) Via Email.

dd) Via Specialized reporting information software system.

e) Via other forms as stipulated by the laws.

8. The report form on the management, use, and operation of railway infrastructure asset shall be issued by the Minister of Finance.

Article 46. Railway infrastructure asset database

1. Railway infrastructure asset database is a part of the national database on public property, built and uniformly managed nationwide; the information in the Railway infrastructure asset database holds legal value similar to paper records.

2. The development and management of the Railway infrastructure asset database must satisfy the following requirements:

a) Aligning with the architecture framework of Vietnam's e-Government, complying with national database technical standards, IT technical standards, information security and safety standards, and economic-technical norms.

b) Ensuring compatibility, integration capabilities, connection with the National public property database; information sharing and the ability to expand data fields in system design and application software.

3. The Ministry of Transport (for national railway infrastructure asset), Provincial People's Committees (for urban infrastructure asset) shall instruct the railway management authorities, railway infrastructure management enterprises under their management and relevant agencies to declare, input, and approve railway infrastructure asset data into the database according to applicable regulations.

Chapter VI

IMPLEMENTATION

Article 47. Responsibilities for implementation

1. Responsibilities of the Ministry of Transport:

a) Execute tasks and powers of the owner's representative for national railway infrastructure asset in accordance with law on railways and other relevant laws.

b) Assign the national railway management authority to take charge and cooperate with agencies and units of the Ministry of Transport in giving opinions on the asset assignment, operation of national railway infrastructure asset (approval of the Operation schemes, approval of starting price for auction, lease, transfer of asset operation rights), and disposal of national railway infrastructure asset before the Minister of Transport make decisions and approve in accordance with its jurisdiction or the Ministry of Transport requests the competent authority or person to decide and approve in accordance herewith.

c) During the process of transferring national railway infrastructure asset, the Ministry of Transport shall direct relevant agencies, organizations, enterprises to manage and use asset within the legal framework of laws on management of public property, railway laws, and other relevant laws to ensure smooth and safe national railway operations.

d) Direct, review, classify, document, and account for asset in accordance with this Decree and related laws.

d) Direct the national railway infrastructure management enterprise to periodically review and assess the implementation of the percentage (%) prescribed in Point b of Clause 1 of Article 20 hereof every 3 years, starting from 2025, and report to the Ministry of Transport; in case the percentage (%) needs to be adjusted, the Ministry of Transport shall report to the Government for appropriate amendments.

e) Direct and inspect the management, use, and operation of national railway infrastructure assets under its management specified in this Decree and other related laws; address violations in asset management, use, and operation within jurisdiction or report to the relevant competent authorities or persons for action.

g) Direct data entry, normalization for national railway infrastructure assets under its management; report on the management, use, and operation of such asset in accordance with this Decree and at the request of competent authorities or persons.

h) Cooperate with the Ministry of Finance and relevant agencies in developing national railway infrastructure asset database for integration into the national public property database.

i) Carry out other tasks and powers specified in Decree and relevant laws.

2. Responsibilities of the Ministry of Finance:

a) Provide guidance on accounting of railway infrastructure asset.

b) Specify depreciation calculation for railway infrastructure asset, and provide guidance on declaration and reporting on railway infrastructure asset.

c) Take charge and cooperate with the Ministry of Transport, Provincial People's Committees in developing railway infrastructure asset database.

d) Provide guidance to Ministry of Transport, Provincial People's Committees on integrating railway infrastructure asset database into the national public property database.

dd) Carry out other tasks and powers specified in Decree and relevant laws.

3. Responsibilities of Provincial People's Committees:

a) Execute tasks and powers of the owner's representative for urban railway infrastructure asset in accordance with law on railways and other relevant laws.

b) Assign the urban railway management authority to take charge and cooperate with relevant agencies and units in giving opinions on the asset assignment, operation of urban railway infrastructure asset (approval of the Operation schemes, approval of starting price for auction, lease, transfer of asset operation rights), and disposal of urban railway infrastructure asset before the Provincial People's Committee make decisions and approve in accordance with its jurisdiction or the Provincial People's Committee requests the competent authority or person to decide and approve in accordance herewith.

c) During the process of transferring urban infrastructure asset, the Provincial People's Committee shall direct relevant agencies, organizations, units, enterprises to manage and use such asset within the legal framework of laws on management of public property, railway laws, and other relevant laws to ensure smooth and safe urban railway operations.

d) Direct, review, classify, document, and account for asset in accordance with this Decree and related laws.

dd) Direct urban railway infrastructure management enterprises to periodically every 3 years from the year the Provincial People's Council issues the percentage (%) of the proceeds from service provision that must be transferred to the state budget, and the percentage (%) of the proceeds allowed to be used by the urban railway infrastructure management enterprise from service provision specified in clause 1 of Article 36 hereof; review and assess the implementation situation according to this percentage, and report to the provincial People's Committee. Based on the implementation results, in case it is necessary to adjust the percentage (%), the Provincial People's Committee shall report to the People's Council at the same level to decide appropriate adjustment.

e) Direct and inspect the management, use, and operation of urban railway infrastructure assets under their management specified in this Decree and other related laws; address violations in asset management, use, and operation within jurisdiction or report to the relevant competent authorities or persons for action.

g) Direct data entry, normalization for urban infrastructure assets under local management; report on the management, use, and operation of such asset in accordance with this Decree and at the request of competent authorities or persons.

h) Cooperate with the Ministry of Finance and relevant agencies in developing urban railway infrastructure asset database for integration into the national public property database.

i) Carry out other tasks and powers specified in Decree and relevant laws.

4. Ministries, central agencies, and provincial People's Committees, within their jurisdiction, shall take charge and cooperate with the Ministry of Transport in managing, using, and operating national railway infrastructure asset in accordance with this Decree and other relevant laws.

5. Other relevant agencies, enterprises, and entities may submit electronic applications if they have digital signatures when performing the procedures specified in this Decree. In case the procedures prescribed herein include multiple steps, the original copies as prescribed for each procedure shall be kept at the authority with competent to decide and approve or the authority of the person competent to decide and approve; other agencies shall keep duplicate copies.

Article 48. Transitional regulations

1. For national railway infrastructure asset specified in Clause 1 of Article 5 hereof and urban railway infrastructure asset specified in Clause 1 of Article 8 hereof, the Ministry of Transport or the Provincial People's Committee shall direct the review, statistics, and assignment of management of asset to the railway infrastructure management enterprise under their management as stipulated herein within 12 months from the effective date of this Decree.

2. For the disposal of materials repossessed from projects under national railway infrastructure projects approved by the Prime Minister and put into use in the management and maintenance of national railway infrastructure, no management, maintenance fund shall be allocated for the portion of the value of materials put into used The disposal of remaining materials repossessed shall be carried out in accordance with Article 25 hereof.

The national railway infrastructure management enterprise shall review and consolidate the entire volume and value of repossessed materials put into use in the management and maintenance of national railway infrastructure and the remaining repossessed materials from investment projects implemented before the effective date of this Decree for disposal in accordance with Clause and Article 25 hereof.

3. Lease contracts, fixed-term transfer contract for right to operate national railway infrastructure asset that are concluded by the competent authority/person in accordance with law before the effective date of this Decree shall continue to be implemented in accordance with the applicable regulations until the end of the term of the signed contract.

4. The proceeds from the operation of national railway infrastructure asset (including those that have been transferred or have not been transferred into the escrow account) before the effective date of this Decree but not yet processed shall be managed and used according to the provisions hereof.

5. For urban railway infrastructure asset assigned by competent agencies and persons to urban railway infrastructure management enterprises that is/is not recorded as state capital at these enterprises, the urban railway infrastructure management enterprise shall manage, use, and operate the asset in accordance with relevant laws; it is not required to redo the procedures for handing over asset in accordance with this Decree.

6. The Provincial People's Council shall issue the percentage (%) of the proceeds from service provision that must be transferred to the state budget, and the percentage (%) of the proceeds allowed to be used by the urban railway infrastructure management enterprise from service provision in accordance with clause 1 of Article 36 hereof.

During the period when regulations on the percentage (%) of the proceeds from service provision that must be transferred to the state budget have not been issued, the percentage (%) of the proceeds allowed to be used by the urban railway infrastructure management enterprise from service provision shall be the percentage prescribed in Clause 1 of Article 20 hereof, but not exceeding 24 months from the date of arising proceeds from the operation of urban railway infrastructure asset in the form of directly organizing the asset operation.

7. In case of transferring existing railway infrastructure asset to a railway infrastructure management enterprise where asset value has not been listed in the accounting books, after the transfer, based on the origin of the asset and related documents, the railway infrastructure management enterprise shall take charge and cooperate with the agency, organization, unit, or enterprise currently managing or temporarily managing (the Transferring Party) to determine the gross price and residual value according to Clause 3 and Clause 4 of Article 12 hereof.

8. For railway infrastructure asset subject to disposal decisions of the competent authority/person before the effective date of this Decree, the disposal shall continue to be carried out based on decisions made; any pending tasks related to asset disposal (including management and use of proceeds from the disposal of railway infrastructure asset) must comply with this Decree by the effective date of this Decree.

Article 49. Effect

1. This Decree comes into effect from the date, which it is signed.

2. This Decree shall replace Decree No. 46/2018/ND-CP dated March 14, 2018 of the Government of the management, use, and operation of national railway infrastructure asset.

3. The regulations of legislative documents that amend or replace the documents cited in this Decree shall apply.

4. Ministers, Heads of ministerial agencies, Heads of Government agencies, Presidents of People's Committees of provinces and centrally affiliated cities and Heads of relevant agencies, organizations, units, legal representatives of enterprises are responsible for implementing this Decree.