CIRCULAR

Guidelines for the financial support mechanism for Defense Economic Zones

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Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 83/2010/QĐ-TTg dated December 15, 2010 of the Prime Minister on the financial mechanism and policies for Defense Economic Zones;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Minister of Finance issues this Circular to guide the financial support mechanism for Defense Economic Zones.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the level of support and the management and use of state budget funds for financial support for economic defense units and national security enterprises under the Ministry of National Defense assigned the task of building Defense Economic Zones, propaganda, mobilization of the masses, implementation of social policy work in Defense Economic Zones as stipulated in Article 5 of Decision No. 83/2010/QĐ-TTg dated December 15, 2010 of the Prime Minister on the issuance of the financial mechanism and policies for Defense Economic Zones, state-owned enterprises under the Ministry of National Defense performing cooperation construction projects in Laos (hereinafter referred to as the mission at location C).

Article 2. Applicability

1. Economic defense units constructing Defense Economic Zones shall be established by decision of the Minister of National Defense.

2. National defense and security enterprises under the Ministry of National Defense participate in activities to build Defense Economic Zones.

3. State-owned enterprises under the Ministry of National Defense performing the mission at location C (hereinafter referred to as enterprises performing the mission at location C).

PART II

SPECIFIC PROVISIONS

PART 1

FINANCIAL SUPPORT FOR NATIONAL DEFENSE AND SECURITY ENTERPRISES PARTICIPATING IN ACTIVITIES TO BUILD DEFENSE ECONOMIC ZONES AND ENTERPRISES PERFORMING THE MISSION AT LOCATION C

Article 3. Financial support for the construction of Defense Economic Zones

1. Support for funding for nursery and kindergarten operations managed directly by enterprises in areas where there are no schools according to the education system (confirmed by the provincial Department of Education and Training with Defense Economic Zones):

a) Initial investment costs for the construction of school facilities, purchase of desks, chairs, and teaching aids, with a maximum support level not exceeding 200,000,000 VND/classroom (for facilities that have not yet been equipped). For existing school facilities and teaching aids that need replacement due to damage, the maximum support level does not exceed 30,000,000 VND/classroom/year.

b) Funding to ensure salaries, social insurance, health insurance, and other benefits for teachers and caregivers according to current state regulations for the area where the unit is stationed (including teachers and caregivers working in production teams according to current state regulations in remote areas).

2. Support for medical expenses in areas requiring the maintenance of hospitals and clinics, specifically:

a) Investment and equipment costs for initial setup, with a maximum amount not exceeding 300,000,000 VND for a clinic with less than 10 beds; 400,000,000 VND for a clinic with 10 to less than 20 beds; and 500,000,000 VND for a clinic with 20 beds or more.

b) Regular operating expenses for currently functioning hospitals and clinics:

- Ensuring salaries based on rank, health insurance based on rank, and allowances for healthcare staff, based on actual expenditures of the previous year to determine the level of support for the following year (including healthcare staff working in production teams according to current state regulations in remote areas).

- Expenses for purchasing medicines for civilian treatment for units stationed in remote areas far from district-level medical centers, up to a maximum of 70,000,000 VND/year for clinics with less than 10 beds, 80,000,000 VND/year for clinics with 10 to less than 20 beds, and 100,000,000 VND/year for clinics and hospitals with 20 beds or more.

c) For newly established hospitals and clinics: regular operating expense support levels are based on the annual budget for regular operating expenses of the unit and approved by the competent authority.

d) Determining the level of regular operating expense support for hospitals and clinics may refer to and apply the regular operating expense levels of similar healthcare facilities of the same scale in the area where the unit is stationed.

The Ministry of National Defense approves the list of hospitals and clinics under state-owned enterprises eligible for this support.

3. Support for funding for social policy work and mass mobilization propaganda including: vocational training for ethnic laborers for a period not exceeding six months; poverty reduction, stable farming and settlement support, with a maximum support level not exceeding 300,000 VND/person/month.

4. Support for enterprises to pay social insurance and health insurance for employees during a seven-year period from the date of employment under a contract.

5. Enjoy other preferential financial mechanisms and policies according to current regulations for state-owned enterprises under the Ministry of National Defense operating in strategic areas combining economy with national defense and security.

Article 4. Financial support for activities in Zone C

Enterprises performing tasks in Zone C shall be supported according to the provisions of Article 3 of this Circular and other forms of support as follows:

1. Living expenses support for personnel within the establishment who travel abroad, as approved by the Ministry of National Defense.

2. Support for teaching Vietnamese to the Partner at a rate of 12,000,000 VND per person per year.

PART 2

FINANCIAL SUPPORT FOR NATIONAL DEFENSE ECONOMIC UNITS

(OPERATING UNDER THE UNIT BUDGET SYSTEM)

Article 5. Financial support for preschool education activities managed directly by National Defense Economic Units in areas without educational facilities (confirmed by the Department of Education and Training at the local level)

          1. Initial investment costs for building classrooms, purchasing desks, chairs, and teaching aids, with a maximum support level of 200,000,000 VND per class (for units not yet equipped). In cases where classrooms and teaching aids need replacement due to damage, the expenditure limit is 30,000,000 VND per class per year.

          2. Costs to ensure salaries, social insurance, health insurance, and other benefits for teachers and childcare workers, in accordance with current state regulations applicable to the area where the unit is stationed (including teachers and childcare workers working in production teams in remote and difficult regions as stipulated by current state regulations).

          Article 6. Financial support for hospitals and infirmaries directly managed by National Defense Economic Units listed in the establishment of the Ministry of National Defense

1. Investment and equipment costs for initial setup, with a maximum support level of 300,000,000 VND for infirmaries with fewer than 10 beds; 400,000,000 VND for infirmaries with 10 to fewer than 20 beds; and 500,000,000 VND for infirmaries with 20 beds or more.

For infirmaries and hospitals in areas with 20 beds or more, additional financial support will be provided for the purchase of one complete X-ray machine (14 inches) including film processing equipment, up to 400,000,000 VND per machine; one room for the X-ray machine according to the maximum standard of 400,000,000 VND; one ambulance vehicle according to actual expenditure but not exceeding 500,000,000 VND per vehicle; one ultrasound machine for infirmaries and hospitals equivalent to division level, according to actual expenditure but not exceeding 400,000,000 VND; one minor surgery set not exceeding 70,000,000 VND. The procurement of assets must comply with current state regulations.

The aforementioned investment funds will only be supported if the units have not been previously equipped.

2. Social policy implementation costs:

a) Medication costs for civilian patients treated at infirmaries located far from district-level medical centers, based on actual expenditure but not exceeding 70,000,000 VND per year for infirmaries with fewer than 10 beds, 80,000,000 VND per year for infirmaries with 10 to fewer than 20 beds, and 100,000,000 VND per year for infirmaries and hospitals with 20 beds or more.

b) Food allowance for civilian patients hospitalized in infirmaries and hospitals equivalent to the food allowance of infantry soldiers as specified by the Ministry of National Defense.

Article 7. Funding for propaganda and mobilization work

          1. For production teams with a minimum of 3 members (excluding those within the reinforcement team structure in the Central Highlands, Mekong Delta, Northwest, and Vietnam-Laos border provinces) shall be supported:

          a) Funding to purchase one motorcycle and one water filter (if necessary), with a maximum amount not exceeding 25,000,000 VND.

b) Funding to equip communal cultural houses at a support level of 30,000,000 VND per commune (village), confirmed by local authorities.

c) Funding for gasoline, diesel, repair, and maintenance of equipment and means of transportation at a quota of 400 liters/team/year for land-based economic defense units and 800 liters/team/year for marine and island economic units.

d) Funding for professional training and language learning for ethnic minorities at a rate of 1,000,000 VND/person/year.

e) Individuals tasked with propaganda and community engagement shall enjoy living allowances at a quota of 12,000,000 VND/person/year. When receiving this allowance, they shall not receive travel allowances if stationed at their assigned location.

g) Funding for repair and maintenance of equipment at a quota of 3,000,000 VND/team/year.

For the support items mentioned in points a and b, only provided when not already equipped. After a period of 5 to 7 years, re-equipment support will be considered (for motorcycle purchases, re-equipment will be considered after 3 years).

2. For enterprises directly under economic defense units, the support regime stipulated in Clause 1 of this Article shall apply.

3. For economic defense units operating on islands and seas established by the Prime Minister's decision, the support regime stipulated in Clause 1 of this Article shall apply (except for point a of Clause 1 of this Article).

They shall be supported funding to purchase two high-speed boats/unit with a support level of 3 billion VND per boat. Maintenance funding at 30,000,000 VND per boat per year.

4. For higher-level units of the Team

  Travel allowances and fuel costs for conducting and directing general situation monitoring in areas assigned to the Teams shall be allocated annually according to the following quotas:

a) Brigade and Regiment levels and equivalent units: 15,000 liters of fuel per year

b) Division levels and equivalent units: 20,000 liters of fuel per year

5. Funding for meetings and gift-giving during festivals for village elders, heads, and policy beneficiaries, according to annual quotas:

a) Brigade and Regiment levels and equivalents: 70,000,000 VND per year

b) Division levels and equivalents: 100,000,000 VND per year

6. Support for purchasing materials and organizing technical guidance conferences on animal husbandry, agriculture, and processing for economic units at a rate of 60,000,000 VND per unit per year.

PART 3

BUDGET ESTIMATION, DISTRIBUTION, AND SETTLEMENT

SUPPORT FUNDS

Article 8. Budget Estimation

1. All support funds for national defense and security enterprises, economic defense units, and state-owned enterprises under the Ministry of National Defense performing tasks in area C must be allocated stably in the annual budget assigned to the Ministry of National Defense.

2. Based on assigned tasks, national defense and security enterprises, economic defense units, and state-owned enterprises under the Ministry of National Defense performing tasks in area C shall prepare detailed budgets for each specific item as stipulated in Sections 1 and 2 of Chapter II above, report to superior management agencies for review, and submit to the Ministry of National Defense for consolidation in the overall budget of the Ministry of National Defense.

3. The Ministry of National Defense shall base its review of unit budgets and consolidation of direct service enterprise budgets for national defense and security, economic defense units, and state-owned enterprises under the Ministry of National Defense performing tasks in area C on the fixed budget allocation, then send it to the Ministry of Finance for submission to the Government for reporting to the National Assembly for approval.

In cases of urgent new tasks arising, the Ministry of National Defense shall proactively adjust and reduce other non-urgent expenditure budgets to ensure funding for newly approved urgent tasks without exceeding the total stable annual budget allocation.

          Article 9. Allocation of Funds

Based on the notified budget estimate, the Ministry of National Defense shall proceed with allocation according to regulations.

Article 10. Finalizing the budget expenses

          1. At the end of the reporting year, the unit must prepare a final account report on the support funds along with the annual financial report (in cases where it is a defense and security enterprise or a state-owned enterprise under the Ministry of National Defense operating in area C), to be submitted to the Ministry of National Defense and the Ministry of Finance.

2. The Ministry of National Defense is responsible for checking the final accounts of the use of support funds to ensure compliance with state regulations and the provisions of this Circular. In cases of improper expenditure or exceeding the prescribed expenditure limit, the Ministry of National Defense has the right to deduct the improperly expended amount and the excess amount. Any person who orders improper expenditure must compensate and may face penalties according to the level of violation as stipulated by law.

Article 11. Responsibilities of the Ministry of National Defense

1. Specify the responsibilities of the competent agencies under the Ministry of National Defense in organizing implementation, supplementing funds for defense and security enterprises, enterprises operating in area C, and the Economic Corps of the National Defense, ensuring material conditions for units to effectively carry out social policy work and mass mobilization propaganda activities in the national defense economic zone.

2. Annually, the Ministry of National Defense shall take the lead in coordinating with the Ministry of Finance to conduct inspections and supervision of the allocation, management, and use of support funds as prescribed.

Article 12. Responsibilities of defense and security enterprises, enterprises operating in area C, and the Economic Corps of the National Defense

Properly use the state-supported funds for their intended purposes and achieve effectiveness; implement accounting, management, and utilization of assets provided according to current state regulations.

Chapter III

IMPLEMENTATION

Article 13. Effectiveness

1. This Circular takes effect from February 17, 2018, and applies to the 2018 fiscal year and thereafter. It abolishes Circular No. 97/2005/TT-BTC dated November 9, 2005, and Circular No. 126/2009/TT-BTC dated June 18, 2009, issued by the Ministry of Finance.

2. In cases where laws and regulations referred to in this Circular are amended, supplemented, or replaced, they shall be implemented according to those laws and regulations.

3. During the implementation process, if there are difficulties or obstacles, units are requested to report to the Ministry of Finance for research and supplementary guidance./.