Public Hospitals Must Valuate Brands When Contributing Capital To Joint Ventures

The Ministry of Health sets forth regulations on the brand value of joint venture and associate capital contributors determined according to Vietnams valuation standards, the law on intellectual property and other relevant laws.

The Ministry of Health is collecting comments for the draft circular guiding some contents on borrowing investment capital; using public assets for joint ventures, associations, business activities, and services as required for public health facilities, expected to take effect from March 1, 2019.

According to a representative of the Department of Planning and Finance (Ministry of Health), the fields of joint venture and association of business and service activities on request without using the state budget include: medical examination and treatment and treatment room services upon request; high quality medical services and techniques; ancillary services such as drug supply, patient transportation services; ... the unit sets and decides the price according to the principle of calculating sufficient costs and accumulating for investment and development, but the price of joint venture services , the link must follow the price set by the competent authority; all revenues and expenses are aggregated into revenues and expenses and reflected in the entitys financial statements; must separately record and monitor revenue and expenses and establish an independent accounting base that applies the same financial mechanism as an enterprise when satisfying the requirements. The equipment participating in the joint venture or association must be 100% new and of the advanced generation.

Notably, the draft circular has separate regulations for joint-venture to set up testing machines, such as the winning unit supplying chemicals and testing materials is responsible for placing the machine that has been verified to meet the standards for testing to the user and must bear all the costs of maintenance, calibration, inspection, testing quality control according to regulations; The winning unit to supply chemicals and supplies commits not to require the minimum quantity of supplies and chemicals that the unit must use.

In addition, for the first time, the Ministry of Health has issued regulations on the brand value of joint venture and associate capital contributors determined according to Vietnams valuation standards, the law on intellectual property and relevant laws relate to.

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