In practice, the demand for collaboration with schools to install ATMs and vending machines on campuses has attracted significant interest and investment from businesses, as this leverages the existing potential customer base within schools.
However, the use of premises in Public Schools —entities funded by the state—is not merely a standard business leasing transaction, it must comply with regulations on the management and use of public properties. Specifically, as follows:
See more: Subleasing Land in Industrial Zones for Factory Construction: What FDI Enterprises Need to Know
1. State Management of Public Schools
According to current laws:
- Public schools are institutions established, invested in, and operated by the State, which also acts as the representative of ownership (Article 47 The Law on Education 2019).
- Public Schools must manage financial incomes and expenditures, manage property use as regulated by the Law on State budget, Law on Management and use of public properties and other relevant regulations; also implement regulations on accounting, auditing, taxation and financial transparency in compliance with the law (Article 101 The Law on Education 2019).
2. Leasing or Lending Premises in Public Schools
a. In the case of Lending Premises
Public schools, if they are classified as public non-business units, are not permitted to lend or use public properties for personal purposes, regardless of whether a lending agreement exists or the duration of the loan (Article 54.2 of the Law on Management and Use of Public Properties 2017).
Violations of this provision may result in monetary fines from VND 50,000,000 to VND 60,000,000, along with corrective measures (Article 9 of Decree 63/2019/ND-CP).
b. Leasing Premises
Leasing premises for the installation of ATMs and vending machines in Public Schools falls under the category of using public properties for business or leasing purposes.
Accordingly, the leasing of premises must comply with the provisions of Articles 43, 44, and 46 of Decree 151/2017/ND-CP, which details certain aspects of the Law on Management and Use of Public Properties, and must meet the following mandatory conditions:
- Approval of a plan to use public properties for business or leasing purposes.
- Leasing through an auction process, except in cases where the lease term is less than 30 days per lease or the lease package value is under VND 50 million per lease.
- Lease prices must align with market rates for similar properties, and must be publicly disclosed.
Violations of these regulations may result in monetary fines from VND 15,000,000 to VND 20,000,000, along with corrective measures (Article 13 of Decree 63/2019/ND-CP).
The above outlines the legal provisions that organizations and individuals must consider when seeking to lease premises in Public Schools for the installation of ATMs or vending machines.
Disclaimers:
This article is for general information purposes only and is not intended to provide any legal advice for any particular case. The legal provisions referenced in the content are in effect at the time of publication but may have expired at the time you read the content. We therefore advise that you always consult a professional consultant before applying any content.
For issues related to the content or intellectual property rights of the article, please email cs@apolatlegal.vn.
Apolat Legal is a law firm in Vietnam with experience and capacity to provide consulting services related to Real Estate and contact our team of lawyers in Vietnam via email info@apolatlegal.com.
