Circular No. 06/2008/TT-BTC guiding the use of the Research and Training Fund of the Vietnam Oil and Gas Group's Parent Company - Vietnam Oil and Gas Corporation

CIRCULAR

Guidelines for the use of the Research and Training Fund of

the Parent Company - Vietnam Oil and Gas Corporation

Pursuant to Clause 4, Article 24, of the Financial Management Regulation of the Parent Company - Vietnam Oil and Gas Corporation issued together with Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government;

The Ministry of Finance hereby issues guidelines for the use of the Research and Training Fund (hereinafter referred to as the Fund) of the Parent Company - Vietnam Oil and Gas Corporation (hereinafter referred to as the Vietnam Oil and Gas Corporation), as follows:

I. GENERAL PROVISIONS ON THE MANAGEMENT AND USE OF THE FUND

1. The Research and Training Fund of the Parent Company - Vietnam Oil and Gas Corporation is formed from the revenue "commitment to training obligations" in oil and gas contracts. The Fund is used to maintain and develop the training of staff and scientific research of the Vietnam Oil and Gas Corporation.

2. Annually, based on oil and gas contracts containing clauses committing to directly use revenue from the "training obligation commitment" fund to train employees, the Fund is used to cover training activities according to commitments in the oil and gas contracts, the content and expenditure levels are applied in accordance with current state regulations, regulations of the Vietnam Oil and Gas Corporation, and the provisions of this Circular. The remaining balance of the Fund (after deducting the amount spent on training according to commitments in the oil and gas contracts) continues to be used to cover scientific research and training activities according to the financial plan of the Vietnam Oil and Gas Corporation approved by the Board of Directors of the Vietnam Oil and Gas Corporation.

3. The residual balance of the Research and Training Fund at the end of each year shall not exceed 1% of the registered capital of the Vietnam Oil and Gas Corporation. In cases where the residual balance exceeds 1% of the registered capital, the excess portion shall be transferred to the Development Investment Fund. The remaining portion of the Fund shall be carried over to the next year for continued use.

4. Annually or every five years, the Vietnam Oil and Gas Corporation develops short-term, medium-term, and long-term plans or strategies for training and scientific research based on the current financial capacity of the Fund. If the residual balance equals 1% of the registered capital but is insufficient to meet the training and scientific research needs of the Vietnam Oil and Gas Corporation, the Board of Directors of the Vietnam Oil and Gas Corporation shall prepare a supplementary plan for the Research and Training Fund from other funds of the Vietnam Oil and Gas Corporation or raise other legitimate sources of funding outside the state budget to report to the Prime Minister for consideration and decision-making, which can only be implemented after approval by the Prime Minister. The state budget does not support the Research and Training Fund of the Vietnam Oil and Gas Corporation.

5. The use of the Research and Training Fund of the Vietnam Oil and Gas Corporation must comply with current state regulations, the provisions of this Circular, and the regulations issued by the Vietnam Oil and Gas Corporation.

6. The Vietnam Oil and Gas Corporation is responsible for managing and using the Fund, ensuring its proper use in accordance with the objects and state regulations on the principle of economy and efficiency. In case of violation in the management and use of the Fund, penalties will be imposed according to the level of violation as stipulated by law.

7. The Fund is subject to inspection, audit, and examination by competent state management agencies in accordance with the law.

II. CONTENT OF EXPENDITURE FROM THE FUND

1. Expenditure for general management of the Fund (if applicable);

2. Training expenditure:

The Fund may be used to cover training activities for the staff of the Vietnam Oil and Gas Corporation, including those working at branches, representative offices, subsidiaries of the corporation; training human resources in science and technology for companies under the Vietnam Oil and Gas Corporation. The use of the Fund must comply with the annual plan approved by the Board of Directors of the corporation and be consistent with the training regulations and financial management regulations of the corporation.

The content of training expenditure includes:

2.1. Domestic training expenditure:

The contents of expenditure for the training and development of staff of the corporation include:

a) Payment for lecturers' fees (domestic and foreign); travel and accommodation expenses for lecturers.

b) Educational materials (textbooks and other materials, office supplies); living allowance for students during concentrated study periods.

c) Organization of classes:

- Renting conference halls, classrooms, equipment for learning purposes;

- Purchase of equipment for training purposes (if necessary);

- Purchase and compilation of teaching programs and textbooks; examination fees, invigilation, marking; translation of materials (if necessary);

- Electricity, water, office supply, service, parking fees;

- Organizing field trips and practical activities for students;

- Cultural and sports activities for students;

- Medical expenses for common medicines for students;

- Accommodation expenses for class managers of training institutions when organizing classes away from the main training institution.

- Other expenses (if any).

d) Supporting training activities outside the Vietnam Oil and Gas Corporation but serving the training work of the corporation.

2.2. Overseas training and professional development expenditure:

The Vietnam Oil and Gas Corporation establishes regulations for selecting cadres and expenditure standards for employees sent abroad for training and study in accordance with state regulations and the corporation's regulations.

The contents of expenditures include:

- Service fees paid to organizations providing training services domestically;

- Tuition fees and mandatory expenses payable to overseas training institutions or service providers;

- Translation and documentation fees;

- Health insurance costs during overseas study (if required by the host country);

- Costs for organizing classes: Surveying, negotiating, and developing training programs with overseas training institutions;

- Food, lodging, travel, airport departure taxes;

- Visa and passport processing fees.

3. Scientific research expenditure:

3.1. The contents of expenditure for scientific research activities include:

a) Expenditure for implementing scientific and technological projects of the Vietnam Oil and Gas Corporation;

b) Support the development of science and technology of the Vietnam Oil and Gas Corporation:

- Equip material and technical infrastructure for the scientific and technological activities of the Corporation;

- Purchase technology copyrights, usage rights, ownership rights to patents, utility models, industrial designs, etc., serving the scientific and technological activities of the Corporation;

- Pay salaries, hire experts, or contract with scientific and technological organizations to carry out the scientific and technological activities of the Corporation (excluding general management salaries of the Fund);

- Allocate funds for initiatives to improve techniques and rationalize production.

c) Allocate funds to support research activities outside the Vietnam Oil and Gas Corporation but serving the activities of the Corporation.

3.2. The Vietnam Oil and Gas Corporation shall not use the Fund's capital for other activities unrelated to the Corporation's scientific research.

3.3. Upon completion of research topics and projects, the Vietnam Oil and Gas Corporation must organize the acceptance and evaluation of the research results and settle the project implementation costs according to regulations.

III. BUDGET ALLOCATION FOR TRAINING AND RESEARCH ACTIVITIES

Referring to current State regulations on budget allocation for training and research, the Board of Directors of the Vietnam Oil and Gas Corporation shall establish and issue budget allocation standards for training and research activities applicable to the Corporation for implementation.

IV. ACCOUNTING WORK

The Vietnam Oil and Gas Corporation must organize accounting records for fund revenues and expenditures in accordance with legal provisions on accounting and accounting systems applicable to the Vietnam Oil and Gas Corporation.

V. IMPLEMENTATION

1. This Circular takes effect fifteen days from the date of publication in the Official Gazette.

2. In case of difficulties during implementation, the Vietnam Oil and Gas Corporation is requested to report to the Ministry of Finance for review and appropriate amendments./.