Circular No. 04/2008/TT-BQP guiding the implementation of Government Decree No. 132/2007/NĐ-CP dated August 8, 2007 on policies for streamlining the establishment in the Vietnam People's Army.

CIRCULAR

Guidelines for implementing Decree No. 132/2007/NĐ-CP dated August 8, 2007

of the Government on policies to streamline the establishment in the Vietnam People's Army

______________________________

Implementing Decree No. 132/2007/NĐ-CP dated August 8, 2007 of the Government on policies to streamline the establishment (hereinafter referred to as Decree No. 132/2007/NĐ-CP);

Pursuant to Circular No. 02/2007/TTLT-BNV-BTC dated September 24, 2007 of the Ministry of Home Affairs and the Ministry of Finance guiding the implementation of Decree No. 132/2007/NĐ-CP;

After receiving comments from the Ministry of Home Affairs in Circular No. 3579/BNV-TCBC dated December 13, 2007, the Ministry of Finance in Circular No. 17226/BTC-VI dated December 18, 2007, the Ministry of National Defense guides the implementation of policies to streamline the establishment in the Vietnam People's Army as follows:

I. SCOPE OF REGULATION, APPLICABLE OBJECTS

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

This Circular guides the implementation of policies to streamline the establishment for cadres, civil servants, public officials, defense workers receiving salaries from the state budget according to Decree No. 204/2004/NĐ-CP dated December 14, 2004 of the Government, contractual employees within the staffing quota assigned by the General Staff receiving salaries from the state budget who have fully participated in social insurance (hereinafter referred to as defense public officials) in agencies and units under the military; certain management positions that are not military personnel in state-owned companies under the military implementing shareholding, transfer, sale, merger, consolidation, dissolution, bankruptcy, or conversion into a limited liability company with one member according to the Enterprise Law 2005.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

a) Defense public officials who are redundant due to organizational restructuring pursuant to decisions of competent authorities and cannot be reassigned to other suitable jobs at their agencies or units.

b) Defense public officials who resign from leadership positions including elected or appointed officials, due to organizational restructuring or non-re-election but have not yet reached retirement age and cannot be reassigned to new job positions.

c) Defense public officials who do not meet the required standards for their current positions as stipulated by regulations but do not have other suitable job positions available for reassignment and cannot be retrained; defense public officials who are redundant due to unreasonable organizational structures in their agencies or units and cannot be reassigned to other jobs.

d) Defense public officials who fail to fulfill their duties for two consecutive recent years due to weak professional skills or poor health or lack of responsibility, organizational discipline, but have not reached the level requiring termination of employment.

Members of the Board of Directors, General Director, Deputy General Director, Director, Deputy Director, Chief Accountant, members of the Supervisory Board who are not military personnel in state-owned companies under the military implementing shareholding, transfer, sale, merger, consolidation, dissolution, bankruptcy, or conversion into a limited liability company with one member according to the Enterprise Law 2005. If these positions are decided by competent authorities to be members of the liquidation board, after the liquidation board is dissolved and they cannot be reassigned to other jobs, they will also be subject to policies to streamline the establishment as provided in this Circular.

3. Non-applicable objects

a) Currently undergoing treatment or convalescence at a hospital with confirmation from the Hospital Director.

b) Currently under disciplinary review or criminal investigation.

c) Women who are pregnant or nursing children under 12 months old.

4. Objects not applicable

a) Defense public officials who voluntarily leave their posts or go abroad for study, work, or vacation without authorization from competent authorities for more than 30 days.

b) Defense public officials who are not within the scope of streamlining the establishment but voluntarily apply for early retirement, resignation, or transfer to organizations not receiving regular salaries from the state budget due to personal needs.

c) Defense public officials who are dismissed for misconduct.

d) Defense workers employed in military enterprises, receiving salaries according to Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government.

II. BASIS FOR CALCULATING SUBSIDIES FOR STREAMLINED ESTABLISHMENT OBJECTS

1. Salary and allowances

a) The salary and allowances used as the basis for calculating subsidy benefits include the salary according to rank and grade, leadership position allowances, allowances for seniority beyond the ceiling, allowances for occupational seniority, and retained differential rates (if any), wherein:

- The salary according to rank and grade is the salary coefficient according to rank and grade multiplied by the minimum wage rate;

- Leadership position allowance is the leadership position coefficient (if any) multiplied by the minimum wage rate;

- Allowance for seniority beyond the ceiling is the percentage received (if any) multiplied by the final grade coefficient in the rank, multiplied by the minimum wage rate;

- Occupational seniority allowance is the percentage received (if any) multiplied by the total of the salary coefficient according to rank and grade, leadership position coefficient (if any), and the percentage (converted to coefficient) of seniority beyond the ceiling allowance (if any), multiplied by the minimum wage rate;

- Retained differential rate is the retained differential coefficient multiplied by the minimum wage rate;

- The salary coefficient and allowance coefficient before October 1, 2004, are calculated according to the salary coefficient and allowance coefficient prescribed in Decree No. 25/CP dated May 23, 1993, and Decree No. 26/CP dated May 23, 1993 of the Government, Resolutions of the Standing Committee of the National Assembly, Decisions of the Central Party Secretariat, and Decisions of the Prime Minister regarding salary systems, effective before October 1, 2004. From October 1, 2004 onwards, they are calculated according to the salary coefficient and allowance coefficient converted according to the provisions of Decree No. 204/2004/NĐ-CP dated December 14, 2004, and Decree No. 205/2004/NĐ-CP dated December 14, 2004 of the Government, Resolutions of the Standing Committee of the National Assembly, Decisions of the Central Party Secretariat, and Decisions of the Prime Minister regarding salary systems, effective from October 1, 2004;

- The general minimum wage for calculating benefits for the period before January 1, 2003 is 210,000 VND/month; the period from January 1, 2003 to September 30, 2005 is 290,000 VND/month; the period from October 1, 2005 to September 30, 2006 is 350,000 VND/month; the period from October 1, 2006 to December 31, 2007 is 450,000 VND/month; the period from January 1, 2008 to before the next adjustment of the minimum wage is 540,000 VND/month; subsequent periods shall be prescribed by the Government.

b) The monthly salary used as the basis for calculating the allowances stipulated in Clause 1, Point b, Clause 2, Clauses 3, Point c, Clause 4, Section III of this Circular is calculated based on the average monthly actual salary of the last five years (60 months) prior to the reduction in staff. For cases where less than five years of service have been completed, the average monthly actual salary of the entire period of service shall be calculated.

c) The current monthly salary is the salary of the month immediately preceding the date of the reduction in staff.

2. Period for receiving allowances

a) The number of years of service for calculating allowances is the number of years counted for social insurance contributions and benefits (as recorded in each person's social insurance book). If there are fractional months in the period of social insurance contributions, they will be calculated according to the principle: less than three months are not counted, from three months to six months inclusive are counted as half a year, and more than six months up to twelve months are counted as a full year.

b) In cases where defense civil servants commit crimes and are sentenced to suspended imprisonment or probation but continue to be assigned work by their agencies or units, the time spent working with social insurance contributions during the execution of the sentence shall also be counted as years of service for calculating allowances.

c) The date of commencement of monthly pension benefits for the subjects specified in Point c, Clause 1, Section III of this Circular shall be the month immediately following the month in which twenty years of social insurance contributions have been completed.

III. POLICIES FOR REDUCING STAFF

1. Policies for those retiring early

a) Those who fall within the scope of staff reduction and are aged between fifty-five and fifty-nine for men and fifty and fifty-four for women, and have at least twenty years of social insurance contributions, may retire monthly in accordance with the provisions of the Social Insurance Law without having their pension reduced due to early retirement. In addition to the right to receive monthly pensions under the Social Insurance Law, they are also entitled to additional allowances as follows:

- An allowance of three months' average actual monthly salary for each year (full twelve months) of early retirement compared to the provisions at Point a, Clause 1, Article 50 of the Social Insurance Law. In cases where the period of early retirement includes fractional months, the allowance is calculated as follows:

+ Fractional months up to six months inclusive entitle the individual to one month's average actual monthly salary;

+ Fractional months over six months up to twelve months entitle the individual to two months' average actual monthly salary.

actual

- An allowance of five months' average actual monthly salary for the first twenty years of employment with social insurance contributions;

Example 1: contributions =

Ms. Duong Thi Hoa, aged 52 years and 4 months, falls within the scope of staff reduction and has retired early (two years and eight months) from June 1, 2008, with twenty-one years and three months of employment with social insurance contributions (twenty years plus eleven years and three months), currently receiving a salary coefficient of 4.32 (rank 06.031, grade 7) from October 1, 2005. The average actual monthly salary for the last five years before retirement (from June 1, 2003 to June 1, 2008) is detailed as follows:

- From June 2003 to September 2004 (sixteen months) with a salary coefficient of 2.98 (rank 06.031, grade 6), the general minimum wage was 290,000 VND:

290,000 VND x 2.98 x 16 months = 13,827,200 VND

- From October 2004 to September 2005 (twelve months) with a salary coefficient of 3.99 (rank 06.031, grade 6), the general minimum wage was 290,000 VND:

290,000 VND x 3.99 x 12 months = 13,885,200 VND

- From October 2005 to September 2006 (twelve months) with a salary coefficient of 4.32 (rank 06.031, grade 7), the general minimum wage was 350,000 VND:

350,000 VND x 4.32 x 12 months = 18,144,000 VND

- From October 2006 to December 2007 (fifteen months) with a salary coefficient of 4.32 (rank 06.031, grade 7), the general minimum wage was 450,000 VND:

450,000 VND x 4.32 x 15 months = 29,160,000 VND

- From January 2008 to May 2008 (five months) with a salary coefficient of 4.32 (rank 06.031, grade 7), the general minimum wage was 540,000 VND:

540,000 VND x 4.32 x 5 months = 11,664,000 VND

The average actual monthly salary for the last five years is: (13,827,200 VND + 13,885,200 VND + 18,144,000 VND + 29,160,000 VND + 11,664,000 VND) / 60 months = 1,444,673 VND/month

Before retiring monthly, Ms. Duong Thi Hoa, in addition to the benefits provided by the Social Insurance Law, is entitled to allowances under the policy of reducing staff as follows:

- Allowance for early retirement:

(2 years x 3 months + 2 months) x 1,444,673 VND = 11,557,384 VND

- Allowance for the first twenty years of employment with social insurance contributions:

5 months x 1,444,673 VND = 7,223,365 VND

- Allowance for more than twenty years of employment with social insurance contributions:

11.5 years x 1/2 x 1,444,673 VND = 8,306,870 VND

The total amount of allowances that Ms. Hoa receives under the policy of reducing staff is:

11,557,384 VND + 7,223,365 VND + 8,306,870 VND = 27,087,619 VND

b) Those who fall within the scope of staff reduction as specified in Point d, Clause 2, Section I of this Circular, aged between fifty-five and sixty for men and fifty and fifty-five for women, and have at least twenty years of social insurance contributions, shall enjoy the same benefits and policies as those specified in Point a of this Clause.

c) Persons falling under the reduction of staff quota prescribed at points a and b of this clause, if they have contributed to social insurance for at least 19 years and 06 months but less than 20 years, the agency or unit shall contribute once to the pension and death benefit fund for the remaining months, with the contribution amount equal to the total contributions of the employee and the employer before the reduction of staff quota, in accordance with the regulations on social insurance laws, without being subject to a percentage deduction from the old-age pension, and shall enjoy benefits and policies as prescribed for persons under point a of this clause.

The contribution amount of the agency or unit for the above subjects into the pension and death benefit fund is specifically as follows:

- In cases where the reduction of staff quota is implemented from December 31, 2009 or earlier, the one-time contribution amount is 16% of the current monthly salary for the remaining months;

- In cases where the reduction of staff quota is implemented from January 1, 2010 to December 31, 2011, the one-time contribution amount is 18% of the current monthly salary for the remaining months.

Example 2: Mr. Hoang Thanh Long, aged 57 years and 7 months, falls under the reduction of staff quota since June 1, 2008, with a current salary coefficient of 3.66 (rank 01.003, grade 5), and has worked and contributed to social insurance for 19 years and 6 months.

According to the regulations, the agency or unit must make a one-time contribution to the pension and death benefit fund for the remaining 6 months to reach 20 years (from June 2008 to November 2008) to resolve the monthly old-age pension policy for Mr. Hoang Thanh Long as follows:

3.66 x 540,000 VND x 6 months x 16% = 1,897,344 VND

Mr. Hoang Thanh Long will enjoy the monthly old-age pension policy according to the reduction of staff quota policy starting from December 1, 2008, and prior to retirement, besides the benefits stipulated by the social insurance law, Mr. Long will also receive additional support according to the reduction of staff quota policy, calculated similarly to Ms. Hoa in Example 1 (the monthly salary for calculating early retirement allowance for Mr. Long is based on the average monthly salary received over the last five years from June 2003 to May 2008).

2. Policy for those transferring to work at organizations not regularly funded from the state budget

Persons falling under the reduction of staff quota who transfer to work at organizations not regularly funded from the state budget shall be entitled to the following allowances:

a) An allowance of three months' current salary.

b) An allowance of half a month's average actual salary for each year of service with social insurance contributions (at least 12 months), if there are fractional months of social insurance contributions, it shall be handled according to the principle stated at point a, clause 2, Section II of this Circular.

Example 3: Ms. Nguyen Thu Trang, aged 38, falls under the reduction of staff quota and transferred to work at an organization not regularly funded from the state budget from December 1, 2007, with 13 years and 7 months of service and social insurance contributions, a current salary coefficient of 2.22 (rank 06.035, grade 5) from June 1, 2007, with a retention coefficient difference of 0.98. The specific average monthly actual salary for the last five years (from December 1, 2002 to December 1, 2007) is as follows:

- From December 1, 2002 to December 31, 2002 (1 month) standard rank QNCN (salary coefficient 2.10), occupational seniority 8%, general minimum wage 210,000 VND:

210,000 VND x 2.10 x 1.08 x 1 month = 476,280 VND

- From January 2003 to September 2004 (21 months) standard rank QNCN (salary coefficient 2.10), occupational seniority 10%, general minimum wage 290,000 VND:

290,000 VND x 2.10 x 1.10 x 21 months = 14,067,900 VND

- From October 2004 to May 2005 (8 months) standard rank QNCN (salary coefficient 3.20), occupational seniority 11%, general minimum wage 290,000 VND:

290,000 VND x 3.20 x 1.11 x 8 months = 8,240,640 VND

- From June 2005 to September 2005 (4 months) salary coefficient 2.04 (rank 06.035, grade 4), retention coefficient difference 1.16, general minimum wage 290,000 VND:

290,000 VND x (2.04 + 1.16) x 4 months = 3,712,000 VND

- From October 2005 to September 2006 (12 months) salary coefficient 2.04 (rank 06.035, grade 4), retention coefficient difference 1.16, general minimum wage 350,000 VND:

350,000 VND x (2.04 + 1.16) x 12 months = 13,440,000 VND

- From October 2006 to May 2007 (8 months) salary coefficient 2.04 (rank 06.035, grade 4), retention coefficient difference 1.16, general minimum wage 450,000 VND:

450,000 VND x (2.04 + 1.16) x 8 months = 11,520,000 VND

- From June 2007 to November 2007 (6 months) salary coefficient 2.22 (rank 06.035, grade 5), retention coefficient difference 0.98, general minimum wage 450,000 VND:

450,000 VND x (2.22 + 0.98) x 6 months = 8,640,000 VND

540,000 VND x 4.32 x 5 months = 11,664,000 VND

(476,280 VND + 14,067,900 VND + 8,240,640 VND + 3,712,000 VND + 13,440,000 VND + 11,520,000 VND + 8,640,000 VND) / 60 months = 1,001,614 VND/month

Before transferring to work at an organization not regularly funded from the state budget, Ms. Nguyen Thu Trang was entitled to the following reduction of staff quota allowance:

- Three months' current salary allowance:

3 months x 450,000 VND x (2.22 + 0.98) = 4,320,000 VND

- Allowance according to years of service with social insurance contributions:

14 years x 1/2 x 1,001,614 VND = 7,011,298 VND

The total amount of allowance that Ms. Trang receives according to the reduction of staff quota policy is:

4,320,000 VND + 7,011,298 VND = 11,331,298 VND

3. Policy for those who immediately stop working

Persons falling under the reduction of staff quota who immediately stop working (excluding personnel eligible for early retirement according to the provisions at points a, b, and c, clause 1, Section III of this Circular), shall be entitled to the following allowances:

a) An allowance of three months' current salary to find new employment.

b) An allowance of 1.5 months' average actual salary for each year of service with social insurance contributions (at least 12 months), if there are fractional months of social insurance contributions, it shall be handled according to the principle stated at point a, clause 2, Section II of this Circular.

Example 4: Mr. Ngo Van Sinh, aged 46, falls under the reduction of staff quota and was immediately stopped working from December 1, 2007, with a current salary coefficient of 4.32 (rank 12.089, grade 7) from October 1, 2006, and has worked and contributed to social insurance for 21 years and 4 months. The specific average monthly actual salary for the last five years before stopping work (from December 1, 2002 to December 1, 2007) is as follows:

- From December 1, 2002 to December 31, 2002 (1 month) salary coefficient 2.74 (rank 12.089, grade 5), general minimum wage 210,000 VND:

210,000 VND x 2,74 x 1 month = 575,400 VND

- From January 2003 to September 2003 (9 months), salary coefficient 2,74 (rank 12.089, grade 5), general minimum wage was 290,000 VND:

290,000 VND x 2,74 x 9 months = 7,151,400 VND

- From October 2003 to September 2004 (12 months), salary coefficient 2,98 (rank 12.089, grade 6), general minimum wage was 290,000 VND:

290,000 VND x 2,98 x 12 months = 10,370,400 VND

- From October 2004 to September 2005 (12 months), salary coefficient 3,99 (rank 12.089, grade 6), general minimum wage was 290,000 VND:

- From October 2004 to September 2005 (twelve months) with a salary coefficient of 3.99 (rank 06.031, grade 6), the general minimum wage was 290,000 VND:

- From October 2005 to September 2006 (12 months), salary coefficient 3,99 (rank 12.089, grade 6), general minimum wage was 350,000 VND:

350,000 VND x 3,99 x 12 months = 16,758,000 VND

- From October 2006 to November 2007 (14 months), salary coefficient 4,32 (rank 12.089, grade 7), general minimum wage was 450,000 VND:

450,000 VND x 4,32 x 14 months = 27,216,000 VND

540,000 VND x 4.32 x 5 months = 11,664,000 VND

(575,400 VND + 7,151,400 VND + 10,370,400 VND + 13,885,200 VND + 16,758,000 VND + 27,216,000 VND) / 60 months = 1,265,940 VND/month

Mr. Ngo Van Sinh, before leaving his job, in addition to benefits under the laws on social insurance, also receives severance pay according to the policy on streamlining the workforce as follows:

- Three months' current salary allowance:

3 months x 450,000 VND x 4,32 = 5,832,000 VND

- Allowance according to years of service with social insurance contributions:

21.5 years x 1.5 months x 1,265,940 VND = 40,826,565 VND

The total amount of severance pay that Mr. Sinh receives according to the policy on streamlining the workforce is:

5,832,000 VND + 40,826,565 VND = 46,658,565 VND

4. Policy for those who leave their jobs after attending training

Those individuals who are subject to the policy on streamlining the workforce, under 45 years old, in good health, with a sense of responsibility and organizational discipline, and willing to attend vocational training to find new employment, shall enjoy the following benefits:

a) Receive the full current monthly salary, and the agency or unit shall contribute to social insurance and medical insurance during the period of vocational training, up to a maximum of six months.

b) Receive a financial subsidy (vocational training fee) equal to the cost of the vocational training course, up to a maximum of six months' current salary to pay to the vocational training institution.

c) After completing the vocational training, receive three months' current salary at the time of attending the training to find employment; receive half a month's current salary for each year of service with contributions to social insurance (at least 12 months); if there are fractional months of social insurance contributions, they shall be handled according to the principle stated in point a, clause 2, Section II of this Circular.

d) The period of vocational training shall be counted as continuous service but shall not be counted towards annual salary increments.

Example 5: Ms. Dinh Thi Dao, 27 years old, currently receiving a salary coefficient of 2,41 (rank 01.005, grade 3) from October 1, 2007, has four years and two months of service with contributions to social insurance, is subject to the policy on streamlining the workforce, and wishes to attend vocational training for six months starting December 1, 2007 (training fee is 5,200,000 VND). After completing the training, on June 1, 2008, Ms. Dao was allowed to leave her job. The average monthly salary before leaving work (from October 2003 to May 2008) is detailed as follows:

- From October 2003 to September 2004 (12 months), salary coefficient 1,70 (rank 01.005, grade 1), general minimum wage 290,000 VND:

290,000 VND x 1,70 x 12 months = 5,916,000 VND

- From October 2004 to September 2005 (12 months), salary coefficient 2,05 (rank 01.005, grade 1), general minimum wage 290,000 VND:

290,000 VND x 2,05 x 12 months = 7,134,000 VND

- From October 2005 to September 2006 (12 months), salary coefficient 2,23 (rank 01.005, grade 2), general minimum wage 350,000 VND:

350,000 VND x 2,23 x 12 months = 9,366,000 VND

- From October 2006 to September 2007 (12 months), salary coefficient 2,23 (rank 01.005, grade 2), general minimum wage 450,000 VND:

450,000 VND x 2,23 x 12 months = 12,042,000 VND

- From October 2007 to December 2007 (3 months), salary coefficient 2,41 (rank 01.005, grade 3), general minimum wage 450,000 VND:

450,000 VND x 2,41 x 3 months = 3,253,500 VND

- From January 2008 to May 2008 (5 months), salary coefficient 2,41 (rank 01.005, grade 3), general minimum wage 540,000 VND:

540,000 VND x 2,41 x 5 months = 6,507,000 VND

The average monthly salary before leaving work is:

(5,916,000 VND + 7,134,000 VND + 9,366,000 VND + 12,042,000 VND + 3,253,500 VND + 6,507,000 VND) / 56 months = 789,616 VND/month

Before leaving work, Ms. Dinh Thi Dao, in addition to benefits under the laws on social insurance, also enjoys the following benefits according to the policy on streamlining the workforce:

- Receiving six months' current salary during the period of vocational training:

1 month x 450,000 VND x 2,41 = 1,084,500 VND

5 months x 540,000 VND x 2,41 = 6,507,000 VND

- Subsidy of 5,200,000 VND to cover the vocational training fee paid to the vocational training institution

- After completing the vocational training course, Ms. Dao will receive the following:

+ Subsidy of three months' current salary to find employment:

3 months x 540,000 VND x 2,41 = 3,904,200 VND

+ Subsidy based on years of service with contributions to social insurance:

5 years x 1/2 x 789,616 VND = 1,974,040 VND

5. Policy for those who leave leadership positions due to organizational restructuring

Individuals who leave leadership positions due to organizational restructuring shall have their position allowances retained until the end of the term of appointment or election. In cases where the term of appointment or election is less than six months, the allowance shall be retained for six months. During the retention period, if appointed or elected to a new position, they shall cease to receive the allowance for the previous position and instead receive the allowance for the new position from the date the appointment or election decision takes effect.

IV. FINANCIAL RESOURCES

1. Financial resources to implement the policy on streamlining the workforce for the subjects specified in point a, b, c, d, clause 2, Section I of this Circular shall be guaranteed by the state budget.

2. Financial resources to implement the policy on streamlining the workforce for the subjects specified in point e, clause 2, Section I of this Circular shall be allocated from the Enterprise Restructuring Support Fund in accordance with Decree No. 110/2007/NĐ-CP dated June 26, 2007 of the Government on policies for redundant workers due to the restructuring of state-owned enterprises.

3. Based on the reduction in establishment decision for each subject, the financial agencies of the agencies and units shall be responsible for inspecting, reviewing, and implementing payment to the subjects in accordance with the guidance provided in this Circular. Every six months, the financial agencies of the agencies and units shall compile reports and budget estimates for implementing the reduction in establishment policy of their agencies and units, and submit them to the higher-level financial agencies up to the Department of Finance / Ministry of National Defense.

4. The revenue and expenditure of funds for implementing the reduction in establishment policy must be consolidated into the annual financial report of the agencies and units in accordance with the provisions of Decision No. 19/2006/QĐ-BTC dated March 30, 2006, issued by the Minister of Finance on the accounting system for administrative and public institutions, and Decision No. 15/2006/QĐ-BTC dated March 20, 2006, issued by the Minister of Finance on the accounting system for enterprises.

V. IMPLEMENTATION

1. Principles for Implementing Reduction in Establishment

a) Reduction in establishment shall be implemented based on the reorganization and improvement of organizational structures, and the reallocation of labor within agencies, units, and enterprises.

b) Reduction in establishment must be carried out openly and democratically in accordance with the provisions of the law.

c) Implementing reduction in establishment shall not significantly affect or disrupt the thoughts and lives of defense workers and civil servants. Payment of benefits under the reduction in establishment policy for the affected subjects must be timely, adequate, and accurate.

d) The preparation of lists of subjects for reduction in establishment and the budget estimates for subsidies for each subject must be accurate, honest, and clear.

2. Procedures and Documents

a) Every six months, agencies and units from the Brigade level and equivalent upward shall report to their direct superior agencies up to the Ministry of National Defense (through the Cadre Management Bureau for cadre management subjects, and the Military Affairs Bureau for military affairs management subjects) according to forms No. 1, 2, 3, 4, 5, and 6.

b) For subjects who are resolved according to the reduction in establishment policy, agencies and units shall submit documents to the Military Social Insurance Fund in accordance with Decision No. 815/QĐ-BHXH dated June 6, 2007, issued by the General Director of the Vietnam Social Security, and the procedures for documents for subjects implementing the reduction in establishment policy as stipulated by the Vietnam Social Security.

3. Responsibilities of Agencies and Units

a) Heads of agencies and units (from the Brigade level and equivalent up to units directly subordinate to the Ministry of National Defense)

Shall be responsible for organizing the dissemination and implementation of the reduction in establishment policy as prescribed in Decree No. 132/2007/NĐ-CP and the guidance of this Circular to defense workers and civil servants under their management. Direct subordinate agencies and units to implement the reduction in establishment policy in accordance with the principles set forth in Clause 1, Section V of this Circular and follow the following procedures:

- Based on the organization and establishment of the agency or unit and the annual manpower plan directive issued by the General Staff, conduct a review of functions and tasks, clearly identify organizations within the agency or unit that need to be improved;

- Improve the organizations within the agency or unit to be appropriate; determine the structure, quantity, and professional standards for each position; classify and arrange defense workers and civil servants; develop a reduction in establishment plan every six months;

- Develop a proposal for reduction in establishment in their own agency or unit and report it to superiors for approval; units directly subordinate to the Ministry shall be approved by the Chief of the General Staff;

- Prepare a list and budget estimate for subsidies for each subject for reduction in establishment every six months and report it to superiors for approval, at the time of May and November each year;

- Pay benefits and policies to subjects for reduction in establishment and complete financial settlement in accordance with regulations;

- Inspect, supervise, and urge the implementation;

- Compile and report the results of implementation.

Heads of agencies and units and individuals are responsible for implementing the reduction in establishment policy of their units. If they resolve incorrectly the subjects or the benefits and policies for reduction in establishment, in addition to disciplinary action or criminal liability, they must also compensate for the funds already paid in accordance with the law.

b) Military Affairs Bureau / General Staff

- Direct and guide agencies and units to implement; develop proposals for reduction in establishment; prepare lists of subjects for reduction in establishment and budget estimates for resolving benefits for subjects every six months;

- Review and consolidate to report to the Head of the Ministry for approval of proposals, lists of subjects, and budget estimates for implementing the reduction in establishment policy, every six months, and send to the Ministry of Home Affairs, Ministry of Finance;

- Announce the results, direct agencies and units to organize timely and adequate payments of benefits to subjects and complete financial settlement in accordance with regulations; send lists of defense workers and civil servants subject to reduction in establishment to the Department of Finance, Cadre Bureau, Policy Bureau, and Military Social Insurance Fund for monitoring and urging implementation;

- At the beginning of December each year, compile and evaluate the implementation of reduction in establishment in the Ministry of National Defense, and send to the Ministry of Home Affairs for compilation and reporting to the Prime Minister.

c) Cadre Bureau / Political Commissariat

Direct and guide agencies and units to implement the reduction in establishment policy as prescribed in this Circular. According to the cadre management hierarchy, they are responsible for reviewing, preparing lists of defense workers and civil servants under cadre management, and budget estimates, and sending them to the Military Affairs Bureau / General Staff for consolidation and reporting to the Head of the Ministry; implement reductions in manpower according to the cadre management hierarchy.

d) Department of Finance / Ministry of National Defense

Based on the policies and regulations stipulated in Decree No. 132/2007/NĐ-CP, Joint Circular No. 02/2007/TTLT-BNV-BTC dated September 24, 2007, issued by the Ministry of Home Affairs and the Ministry of Finance, and this Circular guiding revenue and expenditure, proceed to review budget estimates of agencies, units, and enterprises, and compile reports in accordance with regulations. Organize timely allocation of funds and settle accounts with the state.

e) Policy Bureau / Political Commissariat

Chair and coordinate with competent agencies of the Ministry of National Defense (the Personnel Department, the Cadre Department, the Finance Department) to urge and inspect the implementation of the policy on streamlining the establishment in agencies and units in accordance with the provisions of Decree No. 132/2007/NĐ-CP and this Circular.

The Military Social Insurance shall be responsible for guiding the collection of social insurance for individuals who are still lacking up to a maximum of six months according to Point c, Clause 1, Section III of this Circular; and handling social insurance benefits and policies for defense civil servants within the scope entitled to the streamlining policy under Decree No. 132/2007/NĐ-CP and relevant laws on social insurance.

4. Effective date

This Circular shall take effect fifteen days from the date of publication in the Official Gazette and shall remain effective until December 31, 2011.

In case of difficulties during the implementation process, agencies and units shall report to the Ministry of National Defense (through the Policy Department) for consideration and resolution./.