Joint Circular No. 06/1997/TTLB/BKH-BTC of the Ministry of Planning and Investment and the Ministry of Finance guiding Decision No. 531/TTG dated August 8, 1996 of the Prime Minister on managing national programs.

 

JOINT CIRCULAR

of the Ministry of Planning and Investment - Ministry of Finance number 06/1997/TTLB/BKH-BTC dated April 29, 1997 guiding Decision 531/ttg dated August 8, 1996 of the Prime Minister on managing national programs

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On August 8, 1996, the Prime Minister issued Decision No. 531/TTg on managing national programs (hereinafter referred to as CTQG). Pursuant to Article 19 of Decision No. 531/TTg, the Ministry of Planning and Investment and the Ministry of Finance guide the following main points:

Part 1:

GENERAL ISSUES

Based on the content of Decision No. 531/TTg, all target programs included in the list of National Programs approved by the National Assembly are within the scope of application of this Circular.
Target programs with the following characteristics do not belong to national programs:
Programs that are regular work activities of Ministries and sectors;
Programs fully funded under the investment construction mechanism and regularly arranged in the annual plan;
Specialized programs such as scientific research and technology development;
Programs purely economic-technical in nature, not linked to urgent socio-economic goals, lacking inter-sectoral coordination, and with unclear implementation timelines;
Programs and development areas recorded in the five-year plan report, having broad objectives covering multiple fields.

Part II:

NATIONAL PROGRAM PLANNING WORK

National program planning includes the following stages:

- Proposing programs and projects.

- Developing programs and projects.

- Reviewing and approving programs and projects.

- Implementing programs and projects.

- Monitoring and evaluating programs and projects.

I. PROPOSAL OF NATIONAL PROGRAMS:

Pursuant to Article 4 of Decision No. 531/TTg, Ministries, National Councils, General Departments (hereinafter collectively referred to as Ministries) base their proposals for the list of national programs of their respective sectors for each planning period on the criteria for national programs stipulated in Article 3 of Decision No. 531/TTg. This work is carried out during the guidance phase for annual plan development (April and May each year).

The main content of the proposal for national programs includes:

1. The necessity to address sectoral issues through national programs.

2. The general objectives of the program.

3. The proposed timeline for implementing the program.

4. The geographical area for implementing the program: nationwide or specific regions.

5. Preliminary determination of the total capital of the program by source.

6. Preliminary calculation of the impact subjects and effectiveness of the program.

7. International cooperation (if applicable).

8. Proposal for the management agency, coordinating agencies, and implementing agencies of the program and project.

The Ministry of Planning and Investment, in conjunction with the Ministry of Finance, will consolidate and select the list of national programs proposed by the Ministries and propose the management agency for the program to the Prime Minister for consideration and submission to the National Assembly for approval together with the annual and five-year plans. After approval by the National Assembly, the national program management agency (hereinafter referred to as the Program Management Ministry) will proactively develop the national program proposal, in collaboration with the Ministry of Planning and Investment, the Ministry of Finance, and related Ministries, sectors, and localities.

II. DEVELOPMENT OF NATIONAL PROGRAMS:

The development of national programs is conducted during the short-term and medium-term plan formulation phase, typically around July-August each year.

The content of the national program proposal according to Article 6 of Decision No. 531/TTg is detailed as follows:

1. Bases for developing national programs:

- Analysis and evaluation of the current situation in the field that the NTP will address.

- Analysis and evaluation of the current situation in the field addressed by the national program.

1.2. Comparison of indicators between regions, areas, and internationally to determine the urgency of the issues to be resolved.

1.3. Social issues that the Government of Vietnam has committed to internationally.

2. Objectives of the national program:

The objectives of the National Program must be within the framework of the national strategy for socio-economic development. The National Program may have one or several objectives, but these objectives must be clear, quantifiable, and easy to monitor and evaluate. Short-term and long-term objectives can be distinguished at the end of the National Program.

3. Duration of Implementation of the National Program:

Is the time required to achieve the program's objectives. This period must be limited, usually five years.

4. Scope of Activities:

The scope of activities of the entire program and each project is the limit of the direct impact of the program on which industry, field, region, or the whole country.

5. Necessary measures to ensure implementation of the program:

5.1. Financial Solutions:

- Measures concerning the funding of the National Program include determining methods to ensure the total amount of capital needed to achieve the program's objectives. The total capital is calculated based on the capital level of each project throughout the program period and annually. The total capital of the program must be allocated annually.

- Funding sources for the program include:

a. State budget funds (including government loans and foreign aid).

b. Domestic credit.

c. Community fundraising (including labor contributions and in-kind donations).

These funding sources must clearly state the methods of mobilization, loan terms, repayment methods, and analyze their effectiveness.

5.2. Human Resource Solutions:

- Ensuring sufficient human resources to implement the National Program, including management and execution stages.

- Calculating management costs, training costs, and expenses for hiring foreign experts (if applicable).

5.3. Solutions regarding materials, raw materials, equipment, and machinery:

- Describing the selected technology's economic and technical characteristics, assessing suitability, advantages, and limitations;

- Sources of technology and equipment supply and reasons for selection;

- List of main equipment prices and procurement methods (domestic or international bidding...).

6. Effectiveness of the Program:

When developing and evaluating the implementation of the National Program, the Ministries managing the program must determine the results through indicators and indices related to economic and social benefits, beneficiaries from the program's outcomes, environmental issues, and improved management capacity.

7. Proposals and Recommendations for Mechanisms and Policies:

Specific policies applied to the program and the integration and international cooperation content of the program (if applicable).

7.1. Integration of Objectives and Activities of the Program:

Ministries managing the National Program are responsible for proposing the integration of overlapping objectives and activities with other National Programs (if applicable) and models and mechanisms for integration.

7.2. International Cooperation Issues of the Program (if applicable);

If there is cooperation with foreign countries for implementing the program, the Ministry managing the National Program must clearly specify the purpose, content, form of cooperation, and resources of participating parties (foreign side and the Vietnamese Government), as well as the time frame and issues requiring government approval.

7.3. Mechanisms and policies that need to be issued for the implementation of the Program.

8. Organizational Management Structure for Implementing the Program:

Determining the organizational structure and operational mechanism of the National Program includes:

8.1. The Steering Committee of the National Program under the Ministry managing the Program. This committee may be directly assigned to an existing unit within the Ministry, established as a lean committee, or shared among several programs within the Ministry (if applicable);

8.2. The system of organizations implementing the program (including relevant ministries, sectors, and localities);

8.3. The system of coordinating agencies for program management (if applicable);

8.4. Regulations governing the operations of the Steering Committee of the National Program.

9. Monitoring, Supervision, and Evaluation of the National Program:

9.1. Establishing a system of indicators reflecting the progress of the program and projects within it, including input and output indicators and indices on the impact of the program and projects.

9.2. Establishing a system for collecting and reporting information on the implementation of the program and projects. Plans for monitoring, supervision, and evaluation for both the program and individual projects, including timing, executing agencies, content of monitoring and evaluation, receiving agencies, and reporting schedules.

10. Projects within the National Program:

Based on Article 2 of Decision 531/TTg, projects within the National Program are developed to address specific objectives or groups of objectives of the program within a certain timeframe and geographical area.

For projects using public service funds from the state budget, the following basic contents must be included:

(1) Project name.

(2) Managing agency, implementing agency, coordinating agency.

(3) Main objectives and contents of the project:

- General situation, reasons, and necessity of the project.

- Specifying the specific objectives of the project in relation to the overall objectives of the National Program.

- Determining the project's main content and tasks.

(4) Implementation solutions for the project:

- Specific location options for implementing the project;

- Financial requirements, categorized by funding source and expenditure items;

- Recommendations on mechanisms and policies for implementing the project, including integration content and mechanisms (if applicable);

- Organizational management model and operational mechanism.

(5) Project implementation period: Start and end dates.

(6) Beneficiaries of the project, estimated economic and social benefits of the project.

(7) Plan for implementing major activities of the project annually.

III. REVIEW AND APPROVAL OF THE NATIONAL PROGRAM:

After completing the drafting of the National Program document, the Ministry managing the program sends it to the Ministry of Planning and Investment, the Ministry of Finance, and the Office of the Government for review before submitting it to the Prime Minister for consideration and decision-making prior to incorporating it into the annual socio-economic development plan and budget estimate.

1. Review documents for the National Program include:

- The request for review of the National Program from the managing ministry;

- The approved National Program document;

- Comments from relevant ministries, sectors, and localities;

- Other necessary related documents (if any).

The Ministry of Planning and Investment leads the coordination with the Ministry of Finance, relevant ministries, sectors, and localities to conduct the review of the National Program.

The Ministry of Planning and Investment is responsible for preparing the review report and draft decision on approval of the National Program to be submitted to the Prime Minister for consideration and decision.

The review period for the National Program shall not exceed 45 days from the date of receipt of complete and valid documents.

2. Key points of the review of the National Program focus on:

- Objectives of the program: reviewed and compared with the overall economic and social development tasks of the country;

- Implementation solutions of the program including resource solutions and financial balance capabilities;

- Duration of the program;

- Results and economic and social benefits of the program;

- Organization of program implementation;

When reviewing the program, the quantity, objectives, content of projects within the program, and the integration of the program (if applicable) will be examined and agreed upon.

3. Draft decision approving the National Target Program:

The main contents of the decision include:

- Determining the name and managing ministry of the program.

- Objectives and tasks of the program.

- Time frame and spatial scope for implementing the program, key milestones.

- Total budget and sources of funds raised, including the state budget investment in the program.

- Responsibilities of agencies coordinating to implement the program.

- Mechanisms and policies for implementing the program.

- Effectiveness of the program.

IV. AMENDMENT OF THE CONTENT OF THE PROGRAM:

Article 9 of Decision 531/TTg clearly stipulates the responsibilities of the Ministry of Planning and Investment, the Ministry of Finance, and the managing ministry of the National Target Program regarding the amendment of the content of the National Target Program.

This Circular further guides on some specific points as follows:

1. While drafting the annual or five-year plan, if the conditions for balance or the objectives of the program change, the managing ministry of the National Target Program must submit a written proposal to adjust the program to the Government, simultaneously sending it to the Ministry of Planning and Investment and the Ministry of Finance in July or August each year.

The content of the document adjusting the National Target Program is regulated in Article 9 of Decision 531/TTg.

2. The Ministry of Planning and Investment coordinates with the Ministry of Finance to review the document proposing adjustments to the program.

If the adjustment content changes the Law Indicators and alters the total budget estimate for the National Target Program assigned by the Prime Minister, the Ministry of Planning and Investment will take the lead in coordinating with the Ministry of Finance to compile and submit a document to the Prime Minister for consideration and decision.

The managing ministry of the National Target Program adjusts the objectives of activities for National Target Program projects implemented by ministries, sectors, and localities within the allocated state budget.

V- REPORTING SYSTEM FOR IMPLEMENTATION OF THE PROGRAM

- Ministries, sectors, and localities implementing the Program (implementing units) shall submit periodic reports (quarterly and annually) to the Steering Committee of the National Target Program regarding the implementation of objectives, funding for each specific activity, difficulties, issues requiring resolution or adjustment, etc., according to the prescribed form.

- The managing ministry of the National Target Program is responsible for compiling periodic reports (quarterly and annually) on the implementation of the National Target Program and submitting them to the Government Office, the Ministry of Planning and Investment, and the Ministry of Finance according to the prescribed form.

- The Ministry of Planning and Investment leads in coordinating with the Ministry of Finance to compile, evaluate the situation, propose solutions to the Prime Minister for handling difficulties, timely correcting deviations during the implementation process, ensuring that the final objectives of the National Target Program are not deviated from.

VI- INTEGRATING NATIONAL TARGET PROGRAMS:

Article 8 of Decision 531/TTg clearly stipulates the principles, content, and specific functions and responsibilities of agencies in integrating National Target Programs and is carried out through the following mechanism:

The integration of National Target Programs must be conducted by the Ministry of Planning and Investment, the Ministry of Finance, and the program management agencies right from the stage of proposal, construction, and review of the program before the Prime Minister makes a decision, based on which they guide localities to integrate programs on the same territory in accordance with the guidance of the Central Committee, specifically:

At the central level: The Ministry of Planning and Investment coordinates with the Ministry of Finance and the ministries managing the programs to integrate the overlapping objectives and activities of the programs, ensuring that work is done by the relevant sector and directing the activities of the National Target Programs towards prioritized areas.

At the provincial level: Based on the capital and objectives of the National Target Programs assigned by the Government, the Chairmen of Provincial People's Committees shall integrate similar activities on their territories, allocate objectives and capital according to the objectives of each program, and assign plans to districts, counties, departments to implement; organize the management of districts, counties, and specialized departments to implement the objectives of the National Target Programs on their territories.

At the district and county level: Districts and counties are primarily responsible for organizing the implementation of the activities of the National Target Programs on their territories. The National Target Programs must be concentrated under the People's Committee of the district or county as a comprehensive program for the entire county, but must comply with the objectives of each National Target Program. The county must identify which National Target Programs are operating in each commune as a basis for integrating programs and gradually forming a networked information system for managing National Target Programs from commune to county, province, and central level.

Part 3:

FINANCIAL MECHANISM OF NATIONAL TARGET PROGRAMS

I- PLANNING RESOURCES OF NATIONAL TARGET PROGRAMS:

1- Annually, following the guidelines for planning issued by the Ministry of Planning and Investment and the Ministry of Finance, ministries and localities implementing the National Target Programs must assess the implementation of the previous year's report, propose the needs for the next year's plan, and recommend changes to project objectives and program funding when they find that the project objectives are unsuitable and not aligned with the actual situation of the locality (if applicable), and submit these to the managing ministry of the National Target Program, the Ministry of Planning and Investment, and the Ministry of Finance.

2- Based on the five-year and annual objectives of the National Target Programs, the managing ministry of the National Target Program evaluates the implementation of the program in the previous year's report, compiles the proposed resource needs for the next year's plan for the program, including state budget funds (basic investment capital, public expenditure capital, government foreign loans and aid), domestic credit, funds raised from organizations and individuals, and submits them to the Ministry of Planning and Investment and the Ministry of Finance.

3- After receiving the needs from the managing ministry of the National Target Program and other ministries and localities, the Ministry of Planning and Investment takes the lead in coordinating with the Ministry of Finance to consolidate the tasks and objectives of the National Target Programs and propose resources to ensure the achievement of the National Target Program objectives during the planning period.

II- ALLOCATION OF FUNDS AND ASSIGNMENT OF PLANS TO NATIONAL TARGET PROGRAMS:

1- Allocation of funds:

- The Ministry of Finance takes the lead in coordinating with the Ministry of Planning and Investment to balance the state budget allocated for the National Target Programs in the total state budget estimate for the Government to consider and submit to the National Assembly for approval; after approval by the National Assembly, the Ministry of Finance announces the total funding for each national target program to the managing ministry of the National Target Program.

- The national program management agency shall coordinate with the Ministry of Finance and the Ministry of Planning and Investment to allocate the budget for the national program to relevant ministries, sectors, and localities; submit the consolidated budget to the Ministry of Finance and the Ministry of Planning and Investment for inclusion in the annual budget of each ministry, sector, and locality to be officially assigned by the Government.

2- Allocation of funding for the National Program:

- The Prime Minister assigns the total capital for implementing the National Programs directly to the ministries and localities responsible for implementation within their respective overall budgets according to the annual plan.

- After the Government assigns the revenue and expenditure tasks to each ministry, sector, and locality, the National Program Management Board of each ministry, sector, and locality shall cooperate with the same-level financial agencies to detail the allocation to subordinate units, report to the competent authority for decision-making, and assign to the units for implementation.

- Budgetary units have the responsibility to prepare detailed budgets according to the state budget classification, in accordance with regulations, objectives, and allocated spending levels, and submit them to the superior management agency and the same-level financial agency.

3- Mechanism for disbursement and management of National Program funds:

According to Article 13 of Decision 531/TTg, the portion of funds from the state budget for implementing the National Programs is allocated from the central government's investment budget for the National Programs. The funds for the National Programs must be disbursed, managed, and settled according to the provisions of the State Budget Law and accompanying guiding documents.

- The funds for implementing the National Programs, allocated from the central budget, are directly provided by the Ministry of Finance to ministries and sectors for projects under central management, and through the Provincial Department of Finance and Prices for projects under local management.

The disbursement, management, and settlement of funds for the National Programs shall be carried out according to Circular No. 09/TC-NSSN dated March 18, 1997 of the Ministry of Finance "Guidelines for Disbursement, Implementation, and Settlement of the State Budget" and specific guidelines issued by the Ministry of Finance.

- For National Programs that include both regular expenditures and construction-related expenditures, the construction-related expenditures in the National Programs require the budgetary units to complete all necessary procedures for investment and construction.

- The portion of funds sourced from credit for the National Programs: must comply with the credit regulations of the Government and related sectors.

- The portion of funds from aid for the National Programs (if any) must be implemented according to the ODA management regulations (Government Decree No. 20/CP on the management and use of ODA funds) and related documents.

- Procurement of equipment, materials, medicines, chemicals, etc., to serve the activities of the National Programs, must be conducted in accordance with the state pricing directives and current tendering regulations. For products produced by public institutions supplied to the National Programs, the determination of prices must have the opinion of equivalent price, planning, and finance departments.

- For programs with sources of income and funds raised from the people, the Director of the National Program and the People's Committee of provinces and centrally-administered cities where the program is implemented may use these funds for work within the scope of the program, but they must report to the National Program Management Ministry, the Ministry of Finance, and the Ministry of Planning and Investment and settle accounts according to current regulations.

- The National Program Management Ministry shall coordinate with the Ministry of Finance to issue circulars guiding specific expenditure items consistent with the goals and tasks of the National Programs within the approved budget and announce annually.

- The National Program Management Ministry has the responsibility to manage, direct, and effectively utilize the investment funds for the National Programs and report quarterly and annually on the use of funds to the same-level financial agency for monitoring, disbursement, and inspection.

Part 4:

MANAGEMENT AND OPERATION OF NATIONAL PROGRAMS

1- National Program Steering Committee:

The National Program Steering Committee is established by the National Program Management Ministry to assist the Minister in managing and organizing the implementation of the program and will be dissolved upon completion of the program. The Chairperson of the National Program is a leader of the Ministry, and members include authorized representatives from planning, finance departments, and other relevant departments. The Steering Committee operates on a part-time basis and uses program management funds for oversight, monitoring, and evaluation activities.

The operational rules of the National Program Steering Committee are determined by the National Program Management Ministry based on compliance with the provisions of Decision 531/TTg and this joint circular.

For National Programs of special importance, if participation of members from ministries and localities in the Steering Committee is required, the composition and operational mechanism will be decided by the Prime Minister.

Duties and functions of the National Program Steering Committee:

- On behalf of the National Program Management Ministry, direct personnel arrangements and organize the implementation of the National Programs.

- Responsible for compiling periodic reports (quarterly, annual) on the implementation of the National Programs according to prescribed regulations (Section V - Reporting System for Implementing National Programs), explain unclear issues in the operation of the National Programs as required by the Government to promptly correct or report to the Prime Minister for handling.

- Coordinate with relevant ministries, sectors, and localities in evaluating and accepting the results of the National Program implementation, prepare a final report on completing the program to the Minister of the National Program Management Ministry to report to the Prime Minister.

2- Central agency assisting the Government in managing the National Programs:

The Ministry of Planning and Investment is the central agency assisting the Government in managing the National Programs, responsible for coordinating with the Ministry of Finance and the Government Office to compile the situation of National Program implementation and report to the Prime Minister quarterly and annually, identify difficulties and obstacles, and propose timely solutions to the Prime Minister.

3- Local National Program Steering Committee:

Article 18 of Decision 531/TTg provides that provinces and centrally governed cities shall establish Local Steering Committees for National Target Programs to assist the People's Committee of the province or city in planning, implementing, and managing National Target Programs within their respective jurisdictions.

The Local Steering Committee for National Target Programs has the following tasks:

- Advising the People's Committee of the province or city on integrating, allocating targets and funds of National Target Programs to districts, counties, and relevant departments to implement them.

- Implementing the organization and execution of National Target Program objectives within their jurisdiction.

- Submitting periodic quarterly and annual reports according to prescribed formats for each specific program, evaluating the overall situation of the implementation of National Target Programs in their locality to the National Target Program Management Board, the Ministry of Planning and Investment, and the Ministry of Finance.

- Assisting the People's Committee of the province or city in making recommendations to change or adjust project objectives if they find any points not truly suitable with the actual conditions of the locality, or identifying any inaccuracies in projects that may affect the objectives and effectiveness of National Target Programs, and submitting these to the Managing Ministries, the Ministry of Planning and Investment, and the Ministry of Finance.

The Department of Planning and Investment serves as the permanent office of the Local Steering Committee for National Target Programs, responsible for assisting the People's Committee of the centrally governed province or city based on actual circumstances and annual and five-year socio-economic development plans of their locality, coordinating with the Department of Finance and other specialized departments to provide opinions on the establishment of National Target Programs, allocation of targets and resources, as well as management mechanisms for National Target Programs with the Managing Ministries and the Ministry of Planning and Investment.

Part 5:

IMPLEMENTING PROVISIONS

This Joint Circular takes effect from the date of issuance.

National Programs not yet approved in writing by the Government and lacking the necessary procedures as stipulated in Decision 531/TTg must comply with the guidelines of this Circular immediately in the 1997 plan. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of Provincial People's Committees of centrally governed cities are responsible for implementing this Circular.

During implementation, if difficulties arise, ministries, sectors, and localities are requested to report them to the Joint Ministries for study and resolution.