State firms cap value of company cars

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The Ministry of Finance has issued a circular establishing a price ceiling on company cars for executives at state-owned firms in a bid to tighten control over spending on public vehicles.

Accordingly, starting March 1, chairpersons and general directors at state corporations will be permitted to purchase automobiles for no more than VND840 million (US$43,000) each.

Top executives are allowed to use these cars to travel from work to home and for official business.

Lesser executives are allowed to spend a maximum of VND720 million ($37,000) per vehicle. These executives are permitted to use cars for business trips only.

The circular also stipulates that the cars may only be replaced every ten years.

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