Joint Circular No. 04/1999/TTLT/BKH-BTC guiding the implementation of the Regulation on Management and Use of Aid from Foreign Non-Governmental Organizations

JOINT CIRCULAR

||| Guidelines for Implementing the Regulation on Management and Utilization of Assistance from Foreign Non-Governmental Organizations

||| (Annexed to Decision No. 28/1999/QĐ-TTg dated February 23, 1999 of the Government Prime Minister)

||| On February 23, 1999, the Government Prime Minister signed Decision No. 28/1999/QĐ-TTg promulgating the Regulation on Management and Utilization of Assistance from Foreign Non-Governmental Organizations (NGOs), hereinafter referred to as the NGO Assistance Regulation.

||| Pursuant to Article 3 of the Decision, the Ministry of Planning and Investment, in coordination with the Ministry of Finance, provides general guidance on certain key issues (excluding those specific guidance items for each sector according to the functions of relevant ministries) in implementing the NGO Assistance Regulation.

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||| The management of activities of foreign NGOs is regulated by Decision No. 339/TTg dated May 24, 1996 of the Government on the establishment of the Committee for Work with NGOs; and Decision No. 340/TTg dated May 24, 1996 of the Government on the issuance of the Regulation on Activities of Foreign NGOs in Vietnam.

||| 1.1- Content and Scope of Regulation:

||| The content of the NGO Assistance Regulation aims to regulate the management and utilization of assistance from foreign NGOs.

Chapter 1:

GENERAL PROVISIONS

||| Assistance from foreign NGOs includes grants that do not fall under Official Development Assistance (ODA) or those that belong to ODA but are provided through universities, research institutes... or implemented by foreign NGOs in Vietnam.

||| The scope of regulation of the NGO Assistance Regulation includes:

||| a) Foreign entities directly providing non-profit development or humanitarian assistance (hereinafter referred to as foreign entities) include:

||| - Foreign non-governmental organizations.

||| - Foreign corporate sponsors.

||| - Foreign universities, research institutes, centers, funds, and agencies.

||| - Associations and friendly societies established abroad.

||| - Individuals who are foreigners and Vietnamese residing abroad.

||| b) Recipients of NGO assistance (hereinafter referred to as receiving agencies):

||| - Ministries, agencies under ministries, and government agencies.

||| - Provinces and centrally-administered cities.

||| - Central associations and mass organizations established in accordance with Vietnamese law.

||| c) NGO assistance is non-reimbursable assistance provided in the following forms:

||| - Programs and projects: grants for implementing programs and projects with specific goals and activities detailed in program/project documentation as set out in Appendix I.

||| - Non-project assistance: grants in cash or in kind (goods, materials, machinery, equipment...) for economic development, humanitarian, emergency relief, scientific cooperation, training, cultural, sports...

||| Transfer of assets not falling within the above categories shall be considered as gifts and are not subject to the regulations of this Circular.

||| 1.2- Priority areas for utilizing NGO assistance include:

||| a) Health, population, family planning, maternal and child care;

||| b) Education and Training;

||| c) Social issues;

||| d) Rural and mountainous area development, poverty reduction, small-scale water supply and sanitation, small-scale credit...

||| e) Environmental protection;

||| f) Research and application of science and technology support;

||| g) Culture, sports...

||| h) Emergency relief.

||| 2- Preparation and Approval of Program and Project Contents and Non-Project Grants:

||| 2.1- For Programs and Projects:

Chapter 2:

RAISING, NEGOTIATING, APPROVING AND SIGNING

||| 2.1.1- Preparation:

||| - Based on the guidelines of the Ministry of Planning and Investment, the receiving agency (as mentioned in Section 1.1, Point b of this Circular) guides the implementing agency (program/project leader) to prepare program/project documentation in accordance with the content specified in Appendix 1 to request funding from the foreign entity.

||| - After the foreign entity issues a notification of financial commitment or consideration of funding for the program/project, the receiving agency completes the program/project dossier and sends it to the Ministry of Planning and Investment and simultaneously to related agencies (Ministry of Finance, Vietnam Association of Friendship Organizations and specialized government agencies related to the program/project content) for review or agreement approval. A valid program/project dossier includes:

||| a) Request for review or agreement approval from the receiving agency.

||| b) Program/Project Documentation - Programme/Project Document (in Vietnamese and English or in the language of the funding country). This is a document agreed upon by the receiving agency and the foreign entity.

||| c) Notification of financial commitment or consideration of funding for the program/project from the foreign entity.

||| d) Draft agreement to be signed between the receiving agency and the foreign entity (such as Memorandum of Understanding - MOU, or Agreement) after the program/project documentation has been approved by competent authorities.

||| e) Copy of the Permit issued by the Committee for Work with NGOs for foreign NGOs (according to Decision No. 340/TTg dated May 24, 1996 of the Government). In cases where there is no permit, the receiving agency must coordinate with the foreign entity to work with the Committee for Work with NGOs to understand and complete necessary procedures.

||| 2.1.2- Approval:

||| - For programs and projects within the approval authority of the Government Prime Minister (as stipulated in Article 5, Clause 1, Sub-clause a and b of the NGO Assistance Regulation):

||| Within ten days from the date when the Ministry of Planning and Investment and related agencies (Ministry of Finance, Vietnam Association of Friendship Organizations, and specialized government agencies) receive a complete and valid dossier, these agencies must provide formal written comments to the Ministry of Planning and Investment to organize the review. If the agencies do not provide written comments within the time limit, they will be deemed to agree with the contents of the program/project documents.

- For programs and projects within the approval authority of the Prime Minister as specified in Article 5, Clause 1, Paragraphs a and b of the PCPNN Aid Regulation:

Within ten days from the date on which the Ministry of Planning and Investment and relevant agencies (the Ministry of Finance, the Vietnam Association of Friendship Organizations, and the specialized government management agency) receive complete and valid documentation, these agencies must submit their formal written opinions to the Ministry of Planning and Investment for review. Beyond this period, if the agencies do not provide written comments, it shall be deemed that they agree with the contents of the program and project documents.

Within ten days after receiving comments from relevant agencies, depending on the nature of each program and project, the Ministry of Planning and Investment shall organize an assessment or compile and submit to the Prime Minister for consideration. The agencies participating in the assessment include the Government Office, the Ministry of Finance, the Vietnam Association of Friendship Organizations, and other relevant ministries, sectors, and localities invited by the Ministry of Planning and Investment based on specific programs and projects.

The results of the assessment will be reflected in the minutes of the assessment. At the latest five days after the assessment date (if the program and project do not require revision), the Ministry of Planning and Investment shall submit to the Prime Minister for consideration and approval.

In cases where the program and project require revision, the agency receiving assistance shall be responsible for coordinating with the foreign party to make revisions according to the conclusions recorded in the minutes of the assessment. For issues requiring revision that are not accepted by the foreign party, the agency receiving assistance must provide a written explanation to the Ministry of Planning and Investment for review and report to the Prime Minister for decision.

After the Prime Minister approves the program and project, the agency receiving assistance shall notify the foreign party about the approval result to proceed with signing and implementing the program and project.

Within fifteen days after signing, the agency receiving assistance shall send to the Ministry of Planning and Investment and relevant agencies all signed documents.

- For programs and projects within the approval authority of the Minister and Chairmen of Provincial People's Committees under the central government, Heads of Ministries at the level of ministerial departments, and governmental agencies and organizations (as stipulated in Article 5, Clause 2, Sub-clause a of the PCPNN Aid Regulation):

Within fifteen days from the date of receipt of complete and valid program and project files, the Ministry of Planning and Investment shall issue a written agreement sent to the competent authority as a basis for examination and approval. In cases where the proposed equipment, materials, transportation means... fall under restricted import categories, the Ministry of Planning and Investment shall seek written opinions from the Ministry of Finance and related ministries and sectors (if deemed necessary) before issuing the agreement. In cases where there are differing opinions among relevant agencies, the approving authority must report to the Prime Minister for guidance.

Within fifteen days after approving the program and project, the agency receiving assistance shall notify the foreign party about the approval decision to complete subsequent necessary procedures, while sending the original approval decision and all signed documents to the Ministry of Planning and Investment, the Ministry of Finance, the Government Office, the Ministry of Foreign Affairs, and the Vietnam Association of Friendship Organizations.

2.2- For non-project aid:

2.2.1- Preparation:

- The agency receiving assistance shall send to the Ministry of Finance and simultaneously to relevant agencies (Ministry of Planning and Investment, Vietnam Association of Friendship Organizations, and specialized management agencies of the government related to the content of the aid) a complete set of documents including:

a) A request for permission to receive the aid.

b) A notification from the foreign party committing to funding, accompanied by a list of goods (materials, equipment, transportation means...) agreed upon regarding quality, quantity, type, value, and beneficiaries; or a commitment to providing financial support (money), accompanied by items to be implemented using such funds. In cases where aid is jointly provided to multiple units, a distribution plan for each unit regarding quantity and value based on written requests from each receiving unit must be included.

c) A budget and determination of counterpart funds from domestic resources to implement the receipt of committed aid to beneficiaries (if applicable).

d) A copy of the Permit issued by the Committee for Non-Governmental Organizations Work for PCPNN organizations (according to Decision No. 340/TTg dated May 24, 1996 of the Government). If there is no Permit, the agency receiving assistance must coordinate with the foreign party to work with the Committee for Non-Governmental Organizations Work to understand and complete necessary procedures.

2.2.2- Approval:

- For aid within the approval authority of the Prime Minister as stipulated in Article 5, Clause 1, Sub-clause c of the PCPNN Aid Regulation:

Within ten days from the date when the Ministry of Finance and relevant government agencies receive complete and valid documents, these agencies must provide formal written opinions to the Ministry of Finance. If these agencies do not provide written opinions within this period, it is considered as agreement.

Within ten days after receiving opinions from relevant agencies, the Ministry of Finance shall compile and submit to the Prime Minister for consideration and decision.

For forms of aid in kind but agreed by the foreign party to be sold in Vietnam and converted into other goods, the Ministry of Finance shall seek opinions from relevant agencies for submission to the Prime Minister for consideration and decision.

After the Prime Minister approves the aid, the agency receiving assistance shall notify the foreign party about the approval result to sign and implement the aid.

- For aid within the approval authority of the Minister and Chairmen of Provincial People's Committees under the central government, Heads of Ministries at the level of ministerial departments, and governmental agencies and organizations (as stipulated in Article 5, Clause 2, Sub-clause b of the PCPNN Aid Regulation):

Within fifteen days from the date of receipt of complete and valid documents, the Ministry of Finance shall issue a written agreement for the competent authority mentioned above to approve and organize the receipt. In cases where aid includes items under restricted import categories (cars, motorcycles, used goods and equipment...), the Ministry of Finance shall seek written opinions from the Ministry of Planning and Investment and related ministries and sectors (if deemed necessary) before issuing the agreement. In cases where there are differing opinions among relevant agencies, the approving authority must report to the Prime Minister for decision.

Within fifteen days from the date of approval of the foreign-funded grant, the Grant Receiving Agency shall notify the Foreign Party of the approval decision and simultaneously send the original approval decision to the Ministry of Finance and proceed with procedures to confirm the grant.

2.3. For grants in the form of sending voluntary experts, the Grant Receiving Agency must submit a document to the Government Office, the Ministry of Planning and Investment, the Ministry of Finance, the Vietnam Association for International Friendship, and relevant agencies for their comments before receiving the grant.

2.4. For emergency grants:

When there is a need for emergency grants, localities must immediately report information related to the extent of damage caused by disasters to the Ministry of Foreign Affairs and the Vietnam Association for International Friendship as a basis for submitting to the Prime Minister for decision.

Within seven days from the date of receipt of the commitment notification of emergency grants from the Foreign Party, the Grant Receiving Agency shall issue a document to the Ministry of Finance requesting permission to receive the grant.

Within ten days from the date the Grant Receiving Agency sends the document, the Ministry of Finance shall present to the Prime Minister for consideration and approval of the emergency grant. In cases where the emergency grant needs to be provided to multiple units but does not have specific addresses, the Ministry of Finance shall propose a distribution and management plan for the grant to be presented to the Prime Minister for consideration and approval.

After the Prime Minister's approval, the Ministry of Finance shall guide the Grant Receiving Agency to implement the approved plan.

For emergency grants implemented in the form of programs or projects aimed at recovery and development, the approval procedures as stipulated in Point 2.1 of this Circular shall be followed.

Chapter 3:

IMPLEMENTATION OF GRANTS FROM PCPNN ORGANIZATIONS

1. The implementation of programs, projects, and grants funded by the Foreign Party can only be carried out after obtaining approval from the competent authority.

Materials, goods, machinery, equipment, etc., belonging to programs, projects, or non-project grants imported into Vietnam without prior approval from the competent authorities shall be considered illegal and subject to current laws.

Any funds or direct transfers from the Foreign Party to the implementing agency (program/project leader) must complete the grant confirmation procedure at the Ministry of Finance before use.

2. Adjustment and supplementary increase in capital for programs and projects:

When there is a request to adjust or supplement capital, or change the objectives and contents of programs and projects approved by the Prime Minister, the Grant Receiving Agency must submit a document with detailed explanations to the Ministry of Planning and Investment and simultaneously send it to the Ministry of Finance, the Vietnam Association for International Friendship, and other relevant government management agencies. If, within fifteen days from the date the Grant Receiving Agency submits the document, the agencies do not provide written comments to the Ministry of Planning and Investment, it will be deemed as agreement, and the Ministry of Planning and Investment will consolidate and submit to the Prime Minister for consideration and decision.

Adjustments and supplements that do not change the objectives and contents of the program or project already approved by the competent authority (without causing the total amount of foreign grants after adjustment and supplementation to exceed the limit specified in Article 5 Clause 1 of the PCPNN Grant Regulation) shall be decided by the approving authority after the Grant Receiving Agency submits a document and obtains the agreement of the Ministry of Planning and Investment.

In case the relevant agencies still have differing opinions, the approving authority shall report to the Prime Minister for decision.

3. Financial management of PCPNN grant sources shall be carried out according to Circular No. 22/1999/TT-BTC dated February 26, 1999, issued by the Ministry of Finance.

4. Reporting requirements for the implementation of grants from PCPNN organizations shall be carried out according to Article 18 of the PCPNN Grant Regulation with Appendices 2 and 3 attached to this Circular.

5. During the implementation of programs and projects, if issues arise that may significantly impact the implementation of the project or disagreements occur between the donor and the Vietnamese side, the Grant Receiving Agency must submit a report to the Ministry of Foreign Affairs, the Ministry of Planning and Investment, the Ministry of Finance, and the Vietnam Association for International Friendship for review and coordination to resolve.

This Circular takes effect fifteen days from the date of signature. During the implementation process, if there are any difficulties, ministries, localities, and related units must promptly reflect them to the Ministry of Planning and Investment and the Ministry of Finance to continue supplementing and perfecting this guiding Circular.