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VietNamNews

Public car decree may save $71m

Update: July, 08/2014 - 09:07

HA NOI (VNS) — The State budget will save about VND1.5 trillion (US$71.4 million) a year if a draft decree on cutting back car purchases by Government agencies is approved.

This was announced yesterday by the head of the Ministry of Finance's Public Property Management Department, Tran Duc Thang.

Thang said the topic was a hot one. The Government had encouraged authorised agencies to slash the number of new cars it buys to avoid waste and remarkably increase of cars with blue registration numbers.

Last year, the ministry ordered authorities nationwide not to buy any more cars with public funds.

The request proved effective. Figures from the department showed that in 2012, nearly 2,400 cars were purchased at a cost of more than VND2.7 trillion ($128.5 million).

Thang said this number fell to 1,500 in 2013, but this was still considered excessive compared to other countries in the region.

He said the ministry would submit the decree to the Government for approval.

He said the regulation would initially be applied in large cities such as Ha Noi, HCM City and Da Nang.

Last July, Ha Noi traffic police began checking on violations involving public cars, the first of its kind in the city. — VNS

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