Circular No. 02/2006/TT-BKH guides the implementation of certain provisions under Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on some support policies and incentives for the development of cooperatives.

 

CIRCULAR

Guidelines for implementing certain provisions of Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on some support policies and incentives to promote the development of cooperatives

July 2005 of the Government on certain support policies and incentives for the development of cooperatives

promoting the development of cooperatives

Pursuant to Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on some support policies and incentives to promote the development of cooperatives;

Pursuant to Decree No. 61/2003/NĐ-CP dated June 6, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Planning and Investment.

The Ministry of Planning and Investment issues guidelines for implementing certain provisions of Decree No. 88/2005/NĐ-CP dated July 11, 2005 of the Government on some support policies and incentives to promote the development of cooperatives and sample documents used in supporting and encouraging the development of cooperatives (hereinafter referred to as Decree No. 88/2005/NĐ-CP) as follows:

I. GENERAL PROVISIONS

This Circular applies to units under the Ministry of Education and Training; departments of education and training, education and training divisions; preschool education institutions, general education institutions, regular education institutions, teacher training colleges, college of education, universities, universities, academies, other educational institutions, and related organizations and individuals (hereinafter referred to collectively as agencies and units).

The scope of regulation and the objects of application under this Circular are as provided for in Article 1, Article 2, Clause I of Article 3, and Article 4 of Decree No. 88/2005/NĐ-CP.

2. Explanation of terms

2.1. The implementation year is the year during which the State's support plan for cooperatives has been approved.

2.2. The previous year is the year preceding the implementation year of the State's support plan for cooperatives.

2.3. The planning year is the year following the implementation year of the State's support plan for cooperatives.

II. GUIDELINES FOR IMPLEMENTING ARTICLE 3 OF DECREE NO. 88/2005/NĐ-CP: SUPPORT AND INCENTIVES FOR THE ESTABLISHMENT OF COOPERATIVES

1. The content of support and incentives for the establishment of cooperatives includes:

1.1. Information and advisory knowledge about cooperatives.

1.2. Advisory services for drafting cooperative charters, completing procedures for establishment, business registration, and organizing cooperative activities.

2. Authority to decide and implement support

2.1. The People's Committee of districts, towns, cities directly under provinces (hereinafter referred to as the District People's Committee) is the authority to decide on support for cooperatives, coordinating with specialized state management agencies regarding cooperatives at the provincial level and the Provincial Cooperative Alliance to decide on support for cooperative founders (hereinafter referred to as founders) and cooperatives preparing to be established that require support.

2.2. The District People's Committee bases on the content of the support request from cooperatives to assign the Economic Planning Department or the Finance and Planning Department to organize and implement support activities (hereinafter referred to as the support implementing agency).

The support implementing agency is responsible for ensuring that the services specified in Point 1, Section II of this Circular are of high quality and meet the needs of the supported subjects.

3. Procedures for supporting and incentivizing the establishment of cooperatives.

3.1. A representative of a cooperative preparing to be established or a founder submits an application form confirmed by the People's Committee of communes, wards, towns (hereinafter referred to as the Commune People's Committee) where the cooperative intends to establish its headquarters to the District People's Committee according to Form HTHTX-01; Form HTHTX-01 is provided free of charge by the support implementing agency.

3.2. Within 15 working days, the support implementing agency is responsible for notifying the subject requesting support in writing about the time, location, method of organization, and contents of the support.

4. Methods of support

Based on the number of cooperatives preparing to be established and the specific needs of founders regarding the content of support requests, the support implementing agency organizes and implements support through appropriate methods based on ensuring efficiency and economy;

4.1. Direct advisory services for each cooperative preparing to be established or founder at suitable locations convenient for the supported subjects.

4.2. Organizing concentrated training sessions for groups of cooperatives or founders within the same industry, profession, or region.

4.2 Other appropriate organizational methods.

5. Support funding

5.1. The content of support funding includes remuneration for lecturers, travel and accommodation expenses for lecturers and experts providing information and knowledge about cooperatives, advisory services for drafting cooperative charters, advice on production and business plans and operational plans of cooperatives, advice on cooperative business registration; costs for purchasing or printing materials and legal documents on cooperatives; rental fees for conference halls (if necessary); office supplies and drinking water costs for training sessions; based on the effectiveness and actual needs of founders and cooperatives preparing to be established.

5.2. In the implementation year, based on the requirements for the content and quantity of support activities, the support implementing agency prepares a budget for support funding for establishing cooperatives, presenting it to the District People's Committee for approval and allocation of funds.

5.3. Funding for supporting the establishment of cooperatives is included in the annual public expenditure budget of the District People's Committee according to current regulations of the Ministry of Finance.

5.4. Cooperatives preparing to be established and founders requesting support do not have to pay any fees when receiving support.

III. GUIDELINES FOR IMPLEMENTING ARTICLE 4 OF DECREE NO. 88/2005/NĐ-CP: TRAINING AND REHABILITATION OF COOPERATIVE STAFF

1. Procedures, formalities, and timeline for compiling the training and rehabilitation plan for cooperative staff for the planning year.

1.1. Cooperatives submit their training and rehabilitation needs to the District People's Committee, simultaneously sending them to the Commune People's Committee where the cooperative's headquarters is located for information, using Form HTHTX-02, no later than March 15 of the implementation year; the District People's Committee compiles the needs of cooperatives using Form HTHTX-03 and sends it to the Department of Planning and Investment no later than May 15 of the implementation year.

1.2. The Department of Planning and Investment takes the lead in coordinating with relevant departments and the Provincial Cooperative Alliance to compile the training and rehabilitation needs of cooperative staff within the province using Form HTHTX-04, no later than June 15 of the implementation year, and submitting it to the Provincial People's Committee for approval.

1.3. The provincial People's Committee sends to the Ministry of Planning and Investment, the Ministry of Finance the plan for training and educating cooperative cadres at the provincial level according to form HTHTX-04, clearly stating the needs to be met by the training and education facilities directly managed by the locality and the needs proposed to the Ministry of Planning and Investment for overall balancing; the implementation funds shall be guaranteed by the local budget, ministries, and sectors, and the funds requested from the central budget for support, no later than July 15 of the implementation year.

2. Summarize the capacity to meet the demand for training and educating cooperative cadres of the locality, ministries, and sectors, and the Vietnam Cooperative Alliance for the planned year.

2.1. Training and education facilities for cooperative cadres under the provincial People's Committee, relevant ministries, and the Vietnam Cooperative Alliance.

a. Report on the results of training and education in the previous year according to form HTHTX-05 sent to the provincial People's Committee (through the lead agency being the Department of Planning and Investment), relevant ministries managing cooperatives, and the Vietnam Cooperative Alliance, no later than June 15 of the implementation year.

b. Report on the capacity to meet the training and education needs of the planned year according to form HTHTX-06 sent to the provincial People's Committee (through the lead agency being the Department of Planning and Investment), relevant ministries managing cooperatives, and the Vietnam Cooperative Alliance, no later than June 15 of the implementation year.

2.2. The provincial People's Committee, relevant ministries, and the Vietnam Cooperative Alliance compile and report on the results of training and education in the previous year for cooperative cadres from training and education facilities within their management scope according to form HTHTX-05, and report on the capacity to meet the training and education needs of the planned year for these facilities according to form HTHTX-07 sent to the Ministry of Planning and Investment, the Ministry of Finance, no later than July 15 of the implementation year.

2.3. Training and education facilities for cooperatives must ensure sufficient capacity in terms of infrastructure, teaching materials, faculty, and living conditions for trainees.

3. Summary of the demand and capacity for training and educating cooperative cadres for the planned year.

3.1 The Ministry of Planning and Investment compiles the plan for training and educating cooperative cadres, coordinates with the Ministry of Finance to allocate state budget resources for support and balance the training and education funding for cooperative cadres in the annual national socio-economic development plan, and submit it to the Government and the Prime Minister for approval.

3.2 Based on the Prime Minister's approval, the Ministry of Planning and Investment assigns training and education targets for cooperative cadres to relevant ministries, provincial People's Committees, and the Vietnam Cooperative Alliance.

3.3 Relevant ministries, provincial People's Committees, and the Vietnam Cooperative Alliance assign training and education targets for cooperative cadres to training and education facilities within their management scope to organize and implement.

4. Ensure funding.

4.1 Based on the training and education targets for cooperative cadres assigned by the Ministry of Planning and Investment and the budget balancing capacity of the locality, the provincial People's Committee proactively allocate the local budget to organize and implement.

4.2 Funding for the training and education of cooperative cadres is implemented in accordance with the guidelines of the Ministry of Finance, the Ministry of Education and Training, and other current laws and regulations related thereto.

IV. GUIDELINES FOR IMPLEMENTING CLAUSE 2 ARTICLE 8 DECREE 88/2005/ND-CP: INVESTMENT INCENTIVES FOR COOPERATIVES

The subjects entitled to support as stipulated in Clause 2, Article 8, Decree 88/2005/ND-CP shall implement in accordance with the provisions of:

1. Decree No. 51/1999/ND-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) No. 03/1999/QH10.

2. Circular No. 02/1999/TT-BKH dated September 24, 1999 of the Ministry of Planning and Investment guiding the procedures and formalities for granting investment incentives under Decree No. 51/1999/ND-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) No. 03/1999/QH10.

3. Decree No. 35/2002/ND-CP dated March 29, 2002 of the Government amending and supplementing certain articles of Decree No. 51/1999/ND-CP dated July 8, 1999 of the Government detailing the implementation of the Law on Encouraging Domestic Investment (amended) No. 03/1999/QH10.

4. Decree No. 164/2003/ND-CP dated December 22, 2003 of the Government detailing the implementation of the Law on Corporate Income Tax.

5. Decree No. 106/2004/ND-CP dated April 1, 2004 of the Government on state credit for investment development.

6. Decree No. 181/2004/ND-CP dated October 29, 2004 of the Government on the implementation of the Land Law.

7. Decree No. 149/2005/ND-CP dated December 8, 2005 of the Government detailing the implementation of the Law on Export Duties and Import Duties.

8. Other current laws and regulations related thereto.

V. GUIDELINES FOR IMPLEMENTING SUB-PARAGRAPH B OF CLAUSE 1 ARTICLE 11 DECREE 88/2005/ND-CP: DEVELOPMENT OF INDUSTRIAL ZONES AND RURAL CRAFT VILLAGES TO PROMOTE PRODUCTION AND BUSINESS

Cooperatives engaged in providing basic technical infrastructure services for agricultural clusters and craft villages supplying services to cooperative members, production groups, households, industrial production enterprises, traditional industries, are entitled to the State support as prescribed in:

1. Points 1, 2, 3, 4, 5, 6, 7, and 8 of Section IV of this Circular.

2. Decision No. 07/2006/QD-TTg dated January 10, 2006 of the Prime Minister approving the Program for Socio-Economic Development of Particularly Difficult Rural Communes in the Ethnic Minority and Mountainous Areas for the Period 2006-2010.

3. Decision No. 132/2000/QD-TTg dated November 24, 2000 of the Prime Minister on some policies to encourage the development of rural crafts.

4. Paragraph b of Point 1 of Section II and Section IV of Article 1 of Decision No. 143/2001/QD-TTg dated August 27, 2001 of the Prime Minister approving the National Target Program on Poverty Reduction and Employment for the Period 2001-2005.

5. Points 2 and 3 of Section IV, Article 1 of Decision No. 64/2003/QĐ-TTg dated April 22, 2003 of the Government Chairman on approving the plan to thoroughly address serious environmental pollution sources.

6. Articles 11, 12, 13 and Clause 1 of Article 14 of Decree No. 134/2004/NĐ-CP dated June 9, 2004 of the Government on encouraging rural industrial development.

7. Sections 2 and 3 of Part II containing specific provisions of Circular No. 36/2005/TTLT-BTC-BCN dated May 16, 2005 of the Ministry of Finance and the Ministry of Industry guiding the management and use of state budget funds for promoting industry.

8. Point 2 of Section 1 and Subpoint a of Point 4 of Section II of Part II containing specific provisions of Circular No. 03/2005/TT-BTC dated June 23, 2005 of the Ministry of Industry guiding the implementation of certain contents of Decree No. 134/2004/NĐ-CP dated June 9, 2005 of the Government on encouraging rural industrial development.

9. Other current relevant laws and regulations.

VI. IMPLEMENTATION

1. The Ministries, ministerial-level agencies, People's Committees of provinces and centrally governed cities, and the Vietnam Union of Science and Technology Associations shall be responsible for organizing the implementation and monitoring the enforcement of this Circular.

2. This Circular shall take effect fifteen days from the date of its publication in the Official Gazette. Any difficulties encountered during implementation should be promptly reported to the Ministry of Planning and Investment for study and amendment.