The State will for the first time invest in developing education, health, culture and sports infrastructure for non-public units taking out long-term leases as a solution to socialising these sectors. This will be piloted in Ha Noi and Dong Nai Province during the 2008-2010 period.
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Students attend gym class at Nguyen Trai, a semi-public school in Luong Son District, in the |
The Gov’t has committed to social improvement investments
The State will for the first time invest in developing education, health, culture and sports infrastructure for non-public units taking out long-term leases as a solution to socialising these sectors. This will be piloted in Ha Noi and
"Each of these localities plans to build one kindergarten with five classes, one secondary school with 20 classes, one general clinic seeing 100 patients per day and a hospital with 100 beds. All of these will be available for non-public units to rent for a long time," said Nguyen Tran
"I have put forward many times the idea that the State build schools for renting. All of us, the headmasters of private schools, have been looking forward to this decision. I am really happy to hear about this pilot project," said Van Nhu Cuong, the head master of Luong The Vinh, the first private school in
The latest survey made by the Ministry showed that non-public units in the sectors of education, health and culture earn profits that are just enough to pay for teachers’ and management officers’ salaries, material and technical bases’ renting bills, and the cost of equipment depreciation. There is nothing left for them to reinvest toward improving infrastructure.
"I have to rent two places for my school which are far different from each other. I have to spend VND1,5 billion(US$93 thousand) per year on renting these places. It is a large sum of money," Van Nhu Cuong said.
"Even when we are granted a piece of land to build school, we still experience a lot of difficulties to get enough money to set up
the infrastructure. My school is granted 13,000 sq. m but to build infrastructure, we need VND40 billion (US$2.5 million). Our problem now is raising enough money."
Most of the private schools, health clinics and sports centres of a small scale do not meet regulated criteria.
A non-public hospital is on average 1,000 – 1,500 sq. m in area, or 45-60 per cent of the regulated criteria, at an average price of VND500,000($31) per square metre per year.
The area of a classroom in private schools on average reaches 0.8 – 2.8 square meters per student, or 25-75 per cent against the regulated criteria, according to the statistics of the Construction Ministry. The renting price averages VND325,000 ($20) per sq. m per annum.
"My daughter’s private kindergarten offers quality teaching but its area is too small. Children have no space to learn physical education. They usually have to use the living quarter’s ground near the kindergarten," said Nguyen Van Ngu on
"If the State has the intention of building the schools for non-public units to rent, it will be wonderful. My children will have a more favourable condition in which to learn," Ngu said.
"We lack space for a library, laboratory, playground and even bicycle shed", said Tran Kim Thanh, a literature teacher of a private high school in Ba Dinh District.
"The quality of teaching and studying will certainly be improved when we are well-equipped," Thanh affirmed.
According to the Ministry’s survey, it is the shortcomings of infrastructure that affect the quality of services offered by non-public units in the aforementioned fields.
Projects in effect
Localities are responsible for choosing the locations of these projects in compliance with their own plans for education, health, culture and sports.
Non-public units active in such fields as education, health, culture and sports will be offered a favorable mechanism when leasing these projects.
Specifically, according to the Construction Ministry’s Project ratified by the Prime Minister, renting price only includes depreciation costs, permanent operation management, maintenance costs and interests on loans for construction calculated at the basic rate of three per cent per year. The price is adjusted every five years.
The projects’ renters have the chance to enjoy ownership transference based on the rule that the State grants the project’s ownership license for the renters after they accomplish the tasks of renters in a specified time period.
The Ministry said that non-public units which have no working space or with spaces smaller than the regulated criteria or units renting below regulated standards must show their financial capacity and demonstrate that they have never violated property and land management regulations.
The non-public units need to file the application enclosed with the license of establishment and operation or the operation plan ratified by relevant authorities. If each project is proposed to be rented by two or more non-public units, it will be made available for bidding.
In order to encourage all the economic sectors to take part in building these projects, the investors will enjoy preferential enterprise revenue taxes, import taxes and value added taxes, according to the ministry’s project.
"I am willing to apply for renting a school built by the State because it is very convenient for private schools like ours," confirmed Van Nhu Cuong.
In addition, "Ha Noi and
"We, of course, have more choices for entertainment and leisure when a state-owned cinema or theatre is changed into a private one. Their services will be better and worth paying money for," said Nguyen Thu Trang, a student at the
"The private equivalents will be more dynamic and active in doing business because they have to seek ways to compete with others to earn profits. It is much different from many state-owned entertainment centres, where services do not meet customers’ demand," Trang explained.
This new model contributes to accomplishing the goals of socialising education, health, culture and sports set by the State. That is, 80 per cent of children will be kept at non-public kindergartens, 40 per cent of students will be at private colleges and universities, and 10 per cent of sick beds and 80 per cent of culture-sports activities will be held in non-public units.
(Source: VNS)
