Hanoi (VNA) - Following major administrative restructuring, thousands of government buildings and land sites have become vacant or underused, posing a serious challenge to public asset management, requiring decisive, transparent action to avoid the risk that this valuable resource is being wasted instead of driving local development.

As of July 1, a two-tier local government model started in 34 provinces and cities, streamlining administration but creating a surplus of public properties. If not promptly addressed, these assets could become a financial burden.

According to the Ministry of Finance (MoF), by the end of 2024, over 11,000 public buildings and land sites were poorly managed, many in disrepair or illegally occupied. The National Assembly Standing Committee reported that, of 38,000 public offices reviewed across 52 localities, 4,226 were identified as surplus.

Authorities have been directed to urgently review and formulate plans for these assets, in line with the Law on Management and Use of Public Assets. Many provinces and cities have made strong progress.

In Cao Bang province, 1,835 of 2,088 public assets remain in use, while 193 have been internally reallocated, mainly to education, health care, and public services. For the remaining 60 surplus properties, local officials propose auctioning those aligned with development plans and transferring others for managed use.

Similarly, in the former Hoa Binh province (now part of Phu Tho), a coordinated audit of buildings, land, and public vehicles is underway. Commune-level office spaces are being repurposed to optimise infrastructure and avoid unnecessary construction. As of June 2025, nearly 90% of surplus assets there have been addressed or are under review - many repurposed as administrative centres, nursery schools, or leased to generate local revenue.

However, in some areas, progress lags. Localities like Hai Phong are struggling with poor coordination, unclear asset ownership, and a lack of coordination with central agencies. In many cases, mismatches persist - areas with surplus properties often aren't those in need of facilities like schools or clinics.

Meanwhile, legal and administrative obstacles remain. These include overlapping regulations across the Land Law, State Budget Law, and Law on Management and Use of Public Assets; a shortage of specialised staff at the local level; and a reluctance to take responsibility for asset decisions.

Deputy Minister of Finance Bui Van Khang acknowledged the scale and complexity of the challenge, stressing that proper handling is essential to good governance and socio-economic development.

The ministry has called for detailed, legally sound asset management plans and stricter inspections to detect and correct delays or violations.

For assets reallocated but later found unsuitable, adjustments must be made to ensure effective public service delivery and working conditions for civil servants.

The MoF is also urging agencies to update and disseminate regulations at the commune level, and rely on existing decrees and decisions to determine norms and standards for the use of public assets, serving as the basis for investment, procurement, and management.

Nguyen Tan Thinh, Director of the MoF’s Department of Public Asset Management, emphasised that the top priority is ensuring the stable operation of local administrations. Asset sales are discouraged; instead, reallocation should prioritise education, healthcare, and culture, or transfers to local branches of central agencies.

The MoF will continue to support localities, helping resolve challenges and escalati꧋ng unresolved issues to higher authorities when necessary./ℱ.