More than 1,000 state-owned cars liquidated

Localities, ministries and agencies in Vietnam have to date dispensed of 1,105 state-owned cars at an average price of just USD2,100 each, according to an official from the Ministry of Finance.

Localities, ministries and agencies in Vietnam have to date dispensed of 1,105 state-owned cars at an average price of just VND46 million (USD2,100) each, according to an official from the Ministry of Finance.

Speaking at a press conference in Hanoi on March 8, Head of the Ministry of Finance's Public Asset Management Department Tran Duc Thang, said the number of state-owned cars had reached up to 34,214 units by the end of 2016. Each car costs an average of VND320 million (USD 13,843) in insurance, fuel and maintenance fees as well as payment for drivers.

  

Ministries and agencies in Vietnam have to date dispensed of 1,105 state-owned cars

Thang added that among the liquidated cars, localities, ministries and agencies have collected the payment of VND35.15 billion from 761 cars, equal to VND46.2 million each.

Meanwhile, roughly 2,000 state-owned cars were identified as being redundant and needed to be liquidated, according to Ministry of Finance reports.

Earlier from October 1, 2016, six deputy ministers of finance were not allowed to use state-owned cars while travelling from home. Instead, six deputy ministers and department heads have their taxi fares subsidised.

This is a move by the Vietnamese Ministry of Finance to cut the use of state-owned cars to help cut public spending.

Speaking with local newspapers Finance Minister Dinh Tien Dung said that his ministry would propose to the government that the number of state-owned cars be cut by 30% to 50% by 2020. This is expected to help save VND2.3 trillion (USD102 million) every year.