Circular No. 01/1997/TT-NH11 guiding "management of investment and construction projects" in the banking industry according to the Investment and Construction Management Charter issued together with Government Decree No. 42/CP dated July 16, 1996.

CIRCULAR

Guidelines for "managing investment and construction projects" in the banking sector

according to Charter on managing investment and construction issued together with

Decree 42/CP of the Government on July 16, 1996

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On July 16, 1996, the Government issued Decree No. 42/CP regarding the Charter on Managing Investment and Construction (hereinafter referred to as the Charter on Investment and Construction Management 42/CP) to replace the Charter on Managing Investment and Construction issued pursuant to Decree No. 177/CP dated October 20, 1994 of the Government. The Ministry of Construction, the Ministry of Planning and Investment, and the Ministry of Finance jointly issued Circular No. 04/TTLB on September 10, 1996, guiding the implementation of the Charter 42/CP.

Pursuant to Article 4 of the Decree and Article 59 of the Charter on Investment and Construction Management 42/CP, the State Bank of Vietnam provides additional guidance on certain main points (outside the content guided in the Circular of the joint ministries) to replace Directive No. 03/CT issued by the Governor of the State Bank of Vietnam on June 8, 1992, as follows:

I. SCOPE OF APPLICATION OF THE CHARTER 42/CP AND INVESTMENT FUNDS:

1. Scope of application of the Charter on Investment and Construction Management 42/CP for the banking sector:

All investment and construction projects of the banking sector (including the State Bank of Vietnam; state-owned commercial banks, the Vietnam Gold and Precious Stones Corporation established under Decision No. 90/TTg dated March 7, 1994 of the Prime Minister; companies, enterprises, investment centers and scientific research centers under the State Bank of Vietnam, information technology centers directly under the State Bank of Vietnam, credit organizations, financial companies, joint-stock banks (referred to as NH) are all subject to the Charter on Investment and Construction Management 42/CP dated July 16, 1996 and the circulars guiding the implementation of the charter by relevant ministries and sectors responsible for national management of basic construction work. However, for credit organizations, joint-stock banks, and financial companies that do not use state funds, the Central Bank only manages investment and construction projects concerning the objectives, scale of development of the unit in line with the socio-economic development strategy on each territory and linked to the planning and development plan of the industry already approved by the Governor.

2. State investment funds in the banking sector include:

- Funds provided by the State Bank of Vietnam.

- Investment funds formed from basic depreciation, profits after tax, self-raised capital of enterprises, borrowed capital; In addition, if permitted in writing by the Governor, there may be joint venture and associated capital, other types of capital calculated according to the Charter for state-owned banking enterprises where the capital of the banking enterprise is the main component.

II. REGARDING AUTHORITY TO DECIDE ON INVESTMENTS AND DELEGATION OF AUTHORITY TO DECIDE ON INVESTMENTS FOR PROJECTS USING STATE FUNDS

Based on the provisions of Article 7 of the Charter on Investment and Construction Management 42/CP, the State Bank of Vietnam stipulates the authority to decide on investments and delegation of authority to decide on investments for "investment and construction projects" using state funds within the banking system as follows:

1. The Governor of the State Bank of Vietnam has the authority:

a) To review and propose the Government to approve group A projects.

b) To decide on investment projects belonging to group B (from 7 billion dong upwards) throughout the banking sector and before making such decisions, must obtain the agreement of the Minister of Planning and Investment.

c) To decide on investment projects establishing joint ventures between domestic enterprises, with the main business objective being the industry, both for group B and group C projects.

2. The Board of Directors of state-owned commercial banks, the Vietnam Gold and Precious Stones Corporation are the investors of investment and construction projects belonging to groups A and B (from 7 billion dong upwards) and have the right to decide on group C projects using their own capital. State-owned commercial banks, the Vietnam Gold and Precious Stones Corporation on the local level are the direct investors managing group C projects funded by authorized authorities; they review and propose approval for group A and B projects.

3. The Director of the Administrative Bureau advises the Governor to review and propose the Government to approve group A projects and submit group B projects to the Governor for approval, and is delegated by the Governor of the State Bank of Vietnam to decide on group C projects (under 7 billion dong) within the State Bank of Vietnam system (including companies, enterprises, training and research centers under the State Bank of Vietnam, information technology centers...). Specifically, group C projects of the State Bank of Vietnam built at the Central Bank (including 49 Ly Thai To Street and 17 Ben Chuan Duong Street) are approved by the Governor.

4. Provincial and municipal State Banks and subordinate units are investors of projects using their own capital and budgets allocated by the Central Bank; the Director of the Administrative Bureau and the Head of the Office of the State Bank of Vietnam in Ho Chi Minh City are investors of projects at the Central Bank.

III. REGARDING REVIEW AND APPROVAL OF TECHNICAL DESIGN AND TOTAL ESTIMATE

The review and approval of technical design and total estimate according to Article 27 of the Charter on Investment and Construction Management 42/CP in the banking sector are carried out as follows:

1. The Governor of the State Bank of Vietnam has the authority to approve technical designs and total estimates for projects and works belonging to groups A and B throughout the banking sector after they have been reviewed by specialized agencies for technical design and the Ministry of Construction for total estimate for group A projects (using the advisory machinery of the sector or hiring consulting units if necessary for group B). The Administrative Bureau is the advisory unit for the Governor in the management of basic construction in the banking sector.

2. The Board of Directors of state-owned commercial banks, the Vietnam Gold and Precious Stones Corporation have the authority to approve technical designs and total estimates and construction drawings + detailed estimates (if the project design is in two stages) for group C projects (under 7 billion dong) for subordinate units.

3. The Director of the Administrative Department shall be authorized by the Governor to approve the construction design drawings and detailed cost estimates for projects and works belonging to Group C and below, after obtaining the Governor's approval on the general policy for investment projects of the State Bank Branches, companies, enterprises, training centers and scientific research institutes under the State Bank, the Information Center under the State Bank, and the Central People's Credit Fund... However, for works belonging to Group C projects constructed at the Central Bank (including 49 Ly Thai To Street and 17 Ben Chuan Duong Street), the Governor shall approve the design and cost estimate.

IV. ON BIDDING AND DIRECT ASSIGNMENT:

The bidding and direct assignment procedures as stipulated in Article 30 of the Investment and Construction Management Law 42/CP and Article 43 of Chapter VI of the Government's Bidding Regulations issued on July 16, 1996, pursuant to Decree No. 43/CP, shall be implemented within the banking sector as follows:

1. General principles:

For investment projects using state capital (including the sources of capital specified in Part I, Point 2 of this Circular), the Project Owner must organize bidding according to the state bidding regulations, except for the following projects which shall be carried out through direct assignment:

a) Projects with national security characteristics: Works belonging to the national currency printing plant, state treasury, and the Banking Information Center.

b) Projects with a value less than 500 million dong.

2. Reviewing the bidding results:

a) For projects belonging to Group B: The Governor of the State Bank shall approve the bidding results based on the proposal of the project owner for Group B projects (from 7 billion dong upwards) for tender packages: selecting consultants valued from 500 million to 10 billion dong; procurement of materials and equipment or construction contracts valued from 10 billion to 50 billion dong, all larger tender packages must be approved by the Prime Minister before the bidding results can be finalized:

The Board of Directors of State-owned Commercial Banks and the Precious Metals Corporation shall be authorized by the Governor to approve the results of tender packages for selecting consultants valued under 500 million dong; procurement of materials and equipment or construction contracts valued under 10 billion dong for Group B projects.

For joint venture and business cooperation projects, the Board of Directors of State-owned Commercial Banks and the Precious Metals Corporation shall decide on the selection of contractors based on the agreement of the Ministry of Planning and Investment.

The Director of the Administrative Department shall be authorized by the Governor to approve the results of tender packages for selecting consultants valued under 500 million dong, and procurement of materials and equipment or construction contracts valued under 10 billion dong for Group B projects within the State Bank system.

b) For projects belonging to Group C: (as per the Investment and Construction Management Law 42/CP): the person authorized to make investment decisions and delegated to make such decisions (as provided in Part I, including Sections 1, 2, and 3 of this Circular) shall approve the results of all tender packages of the project.

V. ON AUDIT AND APPROVAL OF FINAL ACCOUNTS

The audit and approval of final accounts shall be carried out according to Articles 36 and 37 of the Investment and Construction Management Law 42/CP as follows:

Before approving the final accounts of completed projects within the banking system, an audit must be conducted. For Group B and C projects, the department responsible for managing basic construction within each system shall coordinate with relevant units to conduct an audit and provide written comments before submitting to the person authorized to make investment decisions for approval of the final accounts of completed projects.

Specifically:

- The Governor of the State Bank shall approve the final accounts of Group B projects across the entire industry after receiving the audit comments from the department responsible for managing basic construction under the State Bank, based on the results of the audit of the final accounts of the works.

- The Board of Directors of State-owned Commercial Banks and the Precious Metals Corporation shall approve the final accounts of Group C projects after receiving the audit comments from the department responsible for managing basic construction within their own systems (or hiring an audit of the final accounts for large-scale and technically complex projects).

- The Director of the Administrative Department, authorized by the Governor of the State Bank, shall approve the final accounts of Group C projects within the State Bank system after receiving the audit comments from the department responsible for managing basic construction (or hiring an audit of the final accounts for large-scale and technically complex projects).

VI. ON THE RESPONSIBILITY FOR STATE MANAGEMENT OF INVESTMENT CONSTRUCTION PROJECTS ACROSS THE ENTIRE INDUSTRY:

The responsibility for implementing state management of investment construction projects across the entire banking industry shall be carried out according to Article 6 of the Investment and Construction Management Law as follows:

1. Each year, branches of the State Bank and units directly under the State Bank system that have a need for basic construction must prepare a report requesting permission to construct and a plan for investment capital for basic construction, to be submitted to the Central State Bank before October 15th of each year for the next year's plan. State-owned Commercial Banks and the Precious Metals Corporation must prepare plans for investment in basic construction, register construction and annual capital usage for the entire system, and submit them to the State Bank for review and consideration at the above time.

The Administrative Department of the State Bank shall be responsible for compiling the overall investment plan for basic construction of the entire industry (divided by each system) to present to the Governor for review and approval of the list of works and total investment amount for Group B projects of the entire State Bank system (including State-owned Commercial Banks, the Precious Metals Corporation, and the State Bank). After the Governor's approval of the plan, the Administrative Department shall compile the files of Group B projects to present to the Governor for review regarding the development planning and economic and technical content of each project. Subsequently, it shall seek the unified opinion of the Ministry of Planning and Investment on the investment plan to serve as the basis for approving the project.

Units may only proceed with construction when they have been included in the list approved by the Governor in the annual plan. In cases of new requirements or changes, a written report must be submitted to the Governor of the State Bank requesting approval for adjustments, and only upon acceptance can implementation proceed.

2. All basic construction works, regardless of sources of funds, forms of investment, or approval authorities for investment, must have investment projects established by the units requesting construction. For Group B projects of state-owned commercial banks and State Precious Metals Jewelry Corporations, before submitting to the Governor for approval, they must obtain the opinion of the Governor of the State Bank of Vietnam in the locality. For Group C projects (with capital amounts of 2 billion dong or more) of state-owned commercial banks and State Precious Metals Jewelry Corporations in the locality, plans must be reported to the Governor of the State Bank of Vietnam for comments on the scale of development and content of the project according to the industry's planning guidelines.

3. The State Bank of Vietnam manages the capital for basic construction projects approved by the State Bank. Basic construction projects using self-owned capital of state-owned commercial banks and State Precious Metals Jewelry Corporations are managed and funded by the Board of Directors of the respective banks.

4. The Director of the Administrative Department, upon delegation from the Governor, is responsible for guiding, directing, and inspecting the investors under the State Bank system and the Boards of Directors of state-owned commercial banks and State Precious Metals Jewelry Corporations to comply with the Investment and Construction Management Charter No. 42/CP issued by the Government on July 16, 1996.

5. The Head of the Accounting and Finance Department is responsible for balancing annual investment capital for basic construction and guiding, inspecting, managing, and monitoring such investment capital according to state and industry regulations for projects under the management of the State Bank.

6. The Head of the State Bank's Audit Department is responsible for inspecting and supervising compliance with state and industry regulations regarding basic construction for projects managed and funded by the State Bank.

7. The Auditors of state-owned commercial banks and State Precious Metals Jewelry Corporations are responsible for regularly inspecting and supervising projects within their systems to ensure adherence to state and industry regulations on basic construction.

8. The Inspector General of the State Bank is responsible for inspecting basic construction projects throughout the industry where there are signs of abuse, embezzlement, or violations of the Investment and Construction Management Charter.

9. This Circular takes effect from the date of signature. Any previous guidance documents issued by the State Bank that conflict with this Circular shall no longer be effective.

During the implementation process, if any difficulties arise, units are requested to promptly report them to the Central State Bank for study and resolution.