Circular No. 04/2002/TT-BTC guiding the use of development investment capital from the state budget to purchase assets, materials, and equipment for constructing agency headquarters.

CIRCULAR
Guidelines for the use of development investment capital from the State budget to purchase assets, materials, and equipment for constructing office premises
purchase assets, materials, and equipment to build office premises

Implementing Directive No. 21/2001/CT-TTg dated September 11, 2001, of the Prime Minister on the use of the State budget to purchase assets, materials, and equipment for building office premises and administrative management work, the Ministry of Finance provides guidelines for using development investment capital from the State budget to purchase assets, materials, and equipment for building office premises as follows:

1. Object and scope of application: Administrative and public service units; political organizations, political-social organizations, social organizations, social-professional organizations, and state-owned enterprises when using basic construction investment funds provided by the State budget to purchase assets, materials, and equipment for office construction projects must purchase from domestic production sources.

2. Domestic production sources as stipulated in this Circular are goods produced, processed, or assembled within the territory of Vietnam by organizations and individuals belonging to all economic sectors, which have been specified in Decisions No. 214/1999/QĐ-BKH dated April 26, 1999 of the Minister of Planning and Investment on the issuance of a list of domestically produced machinery, equipment, and specialized transportation vehicles serving as the basis for implementing the Law on Value Added Tax; Decision No. 230/2000/QĐ-BKH dated May 4, 2000 on the issuance of a list of domestically produced raw materials and semi-finished products; Decision No. 462/2000/QĐ-BKH dated September 15, 2000 and Decision No. 227/2001/QĐ-BKH dated May 17, 2001 on the issuance of a list of domestically produced construction materials, and other documents specifying lists of domestically produced materials and equipment.

3. This Circular does not apply to the following cases of purchasing assets, materials, and equipment for office construction projects:

- Investment projects of Vietnamese representative offices abroad.

- Cases of purchasing imported assets, materials, and equipment for ODA projects as stipulated in agreements or arrangements signed with foreign countries.

- Investment projects that use types of materials and equipment that cannot be produced domestically.

- Investment projects that do not use basic construction investment funds from the State budget.

4. The procurement of assets, materials, and equipment for projects must comply with current regulations of the Investment Management Regulations, Tendering Regulations, and the following provisions:

- Have been allocated funding in the annual basic construction investment plan.

- Have a list approved in the project.

- The procurement plan for domestically produced assets, materials, and equipment (or those produced overseas) must be consistent with the approved investment decision and budget estimate.

- Payment for the procurement of domestically produced assets, materials, and equipment shall be carried out according to current regulations on payment for basic construction investment.

5. For projects that had not been approved by October 1, 2001, or had been approved but had not yet commenced procurement of materials, assets, and equipment, they must use domestically produced assets, materials, and equipment. In cases where detailed budgets have already been approved, including the use of imported materials, assets, and equipment, such budgets must be re-approved without exceeding the total approved budget.

6. Responsibilities of relevant agencies and units:

6.1. Project sponsors (or consulting organizations preparing feasibility studies) must survey, analyze, and select technical and technological options, calculate the use of domestically produced materials and equipment from the feasibility study stage, feasibility report, or investment report, and include these in the total budget estimate and detailed budget of the project.

If a project has been approved to purchase materials, assets, and equipment from domestic production sources but the sponsor still procures from overseas production sources (if applicable), the sponsor must compensate financially for the price difference, face administrative disciplinary action, or be held criminally responsible.

6.2. Agencies responsible for or participating in project appraisal must review the selection and use of domestically produced materials and equipment in investment projects.

6.3. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, chairpersons of central bodies of mass organizations, and chairpersons of state-owned corporations established by the Prime Minister, and chairpersons of provincial and centrally-administered city People's Councils are responsible for:

- Directing, guiding, inspecting, and urging subordinate agencies and units under their management to implement Directive No. 21/2001/CT-TTg dated September 11, 2001, of the Prime Minister on the use of the State budget to purchase assets, materials, and equipment for building office premises.

- Being responsible for implementing the Prime Minister's Directive when considering and deciding on investment projects within their authority and being accountable before the Government and the law for their decisions.

6.4. Responsibilities of financial agencies and the State Treasury:

Financial agencies and the State Treasury are responsible for checking and controlling State budget expenditures in accordance with the State Budget Law and the provisions of this Circular.

When detecting units purchasing assets, materials, and equipment produced overseas contrary to this Circular, the State Treasury has the right to refuse payment, recover previously disbursed investment funds, notify the sponsor in writing, and report to the competent ministry, locality, and the Ministry of Finance for handling.

7. Reporting system.

7.1. Ministries, ministerial-level agencies, government-affiliated agencies, central bodies of mass organizations, and state-owned corporations must compile and submit reports on the implementation of asset, material, and equipment procurement for office construction projects under their jurisdiction to the Ministry of Finance (Investment Department) before December 15 each year.

- The Departments of Finance and Prices of the provinces and centrally governed cities shall compile the situation regarding the procurement of assets, materials, and equipment for constructing office premises of projects under local management, and report to the People's Committees of the provinces and cities, which will then submit these reports to the Ministry of Finance (Investment Department) before December 15 each year.

- The Ministry of Finance shall compile the situation regarding the procurement of assets, materials, and equipment for constructing office premises (both central and local), report to the Prime Minister, and propose measures to manage and utilize state budget funds economically, effectively, and in accordance with their intended purposes.

7.2. Content of the Report:

Report on the use of domestic production assets, materials, and equipment for investment projects to construct working premises according to the attached table.

This Circular takes effect from October 1, 2001.

In the course of implementation, if there are difficulties or obstacles, it is requested that agencies and units promptly reflect these issues to the Ministry of Finance for study and resolution.