JOINT CIRCULAR No. 07/2002/TTLT-BTM-UBDTMN-BTC-BKHĐT GUIDING THE IMPLEMENTATION OF GOVERNMENT DECREE No. 02/2002/NĐ-CP dated January 3, 2002 AND GOVERNMENT DECREE No. 20/1998/NĐ-CP dated March 31, 1998 ON DEVELOPING TRADE IN MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC MINORITY REGIONS

III. REGARDING EXEMPTION AND REDUCTION OF ENTERPRISE INCOME TAX, INTEREST RATE REDUCTION FOR LOANS TO TRADERS IN MOUNTAINOUS, ISLAND, AND ETHNIC MINORITY AREAS

a) Cadres, civil servants, public officials, and workers as stipulated in Article 2 of Decree No. 178/2024/NĐ-CP dated December 31, 2024 (amended and supplemented by Decree No. 67/2025/NĐ-CP dated March 15, 2025) of the Government on policies and treatment for cadres, civil servants, public officials, workers, and armed forces personnel in the process of organizational restructuring of the political system, having a total mandatory social insurance contribution period of at least 15 years when working in heavy, hazardous, or dangerous jobs or extremely heavy, hazardous, or dangerous jobs listed by the agency under the Government responsible for labor administration, or working in areas with particularly difficult socio-economic conditions including time worked in places with regional allowances of coefficient 0.7 or higher before January 1, 2021, and reaching the retirement age as specified in Appendix II issued together with Decree No. 135/2020/NĐ-CP, ceasing work immediately due to direct impact from organizational restructuring and implementation of the two-level local government model;

The subjects eligible for exemption and reduction of enterprise income tax are traders belonging to various economic sectors engaged in commerce in mountainous, island, and ethnic minority areas, including:

- State-owned enterprises;

- Enterprises of political organizations, political-social organizations, social organizations, social-professional organizations, people's armed forces units, administrative and public service agencies;

- Foreign-invested enterprises operating under the Law on Foreign Investment in Vietnam;

- Individuals, household business owners, independent business groups, and other business entities;

- Enterprises operating in accordance with the Enterprise Law;

- Cooperatives, households, individuals who have registered for business and operate in accordance with Decree No. 02/2000/NĐ-CP dated February 3, 2000 of the Government on business registration.

These subjects are only eligible for exemption and reduction of enterprise income tax in accordance with the guidelines set forth in this Circular when:

- They register for business and operate in accordance with the industry they have registered for.

- They register for tax and declare taxes in accordance with the law.

- Maintain accounting books, record, and retain accounting books, invoices, certificates, and related documents to commercial activities in accordance with the law.

2. Application Areas.

Mountainous, island, and ethnic minority areas apply the provisions on tax exemption and reduction as specified in Section I of this Circular.

3. Content of Exemption and Reduction of Enterprise Income Tax.

Traders engaged in commerce in mountainous, island, and ethnic minority areas are exempted from and reduced in enterprise income tax as follows:

a. Level of Exemption and Reduction and Duration of Exemption and Reduction of Enterprise Income Tax.

a.1. For traders operating in Region III within mountainous, island, and ethnic minority areas.

- For those currently enjoying tax exemption and reduction under Decree 20/1998/NĐ-CP: continue to enjoy tax exemption and reduction of enterprise income tax for the duration and at the rate currently enjoyed.

- For those not currently enjoying tax exemption and reduction: Enjoy tax exemption of enterprise income tax for the first four years from the date of taxable income, and thereafter reduce 50% of the enterprise income tax payable for the next seven years, if employing an average of 20 or more workers annually, then further reduce 50% of the enterprise income tax payable for two additional years.

a.2. For traders operating in Zone II within mountainous areas, islands, and ethnic minority regions selling social policy goods and agricultural and forestry products eligible for transportation subsidies:

- For those currently enjoying tax exemption and reduction under Decree 20/1998/NĐ-CP: continue to enjoy tax exemption and reduction of enterprise income tax for the duration and at the rate currently enjoyed.

- Those not yet exempted or reduced from taxes: shall be exempted from corporate income tax for two years starting from when taxable income begins to be generated, and shall have their corporate income tax reduced by 50% for the next five years if they employ an average of twenty or more workers annually; if they continue to employ twenty or more workers annually, they will receive an additional two-year reduction of 50% on the corporate income tax payable.

a.3. For traders operating in Zone I directly selling social policy goods and traders directly engaged in business activities in both Zone I and Zone II within mountainous areas, islands, and ethnic minority regions when selling other goods (excluding those mentioned in sub-item a.2, Clause a, Subsection 3 of Section III of this Circular):

- For those currently enjoying tax exemption and reduction under Decree 20/1998/NĐ-CP: continue to enjoy tax exemption and reduction of enterprise income tax for the duration and at the rate currently enjoyed.

- Those not yet exempted or reduced from taxes: shall be exempted from corporate income tax for two years starting from when taxable income begins to be generated, and shall have their corporate income tax reduced by 50% for the next four years if they employ an average of twenty or more workers annually; if they continue to employ twenty or more workers annually, they will receive an additional two-year reduction of 50% on the corporate income tax payable.

To be exempted or reduced from taxes according to items a, b, and c of Point 3.1, Section 3, Part III of this Circular, traders must separately account for the revenue and taxable income from commercial activities occurring in mountainous areas, islands, and ethnic minority regions as the basis for the tax authority to determine and implement tax exemptions and reductions.

b. Authority, procedures, and formalities for granting tax exemptions and reductions on corporate income tax.

The exemption and reduction of taxes for traders as stipulated in Decree No. 02/2002/NĐ-CP and detailed in this Circular shall be carried out by the tax authority responsible for managing the tax payment of the trader at the time of annual tax settlement.

Quarterly, traders may temporarily declare and pay taxes at the reduced rates specified in Point 3, Section III of this Circular. At year-end, during the final settlement, the tax authority will officially review the tax declaration form and issue a tax notice specifying the amount of tax due, the amount of tax exempted, and the amount of tax reduced. If the tax paid temporarily throughout the year is less than the amount stated in the tax notice, the trader must pay the remaining tax due within the deadline specified in the notice; if the tax paid temporarily exceeds the amount stated in the notice, the excess will be deducted from the tax payable in the following year.

The tax authority can only implement tax exemptions and reductions according to the guidance provided in this Circular for traders who declare and pay corporate income tax to the tax authority directly managing the area where commercial activities occur in mountainous areas, islands, and ethnic minority regions.

In the same period, if a trader is simultaneously exempted or reduced from corporate income tax under Clause 1, Article 1 of Decree No. 02/2002/NĐ-CP and exempted or reduced from corporate income tax under the Corporate Income Tax Law and Decree No. 30/1998/NĐ-CP dated May 13, 1998 of the Government detailing the implementation of the Corporate Income Tax Law, the tax exemption and reduction will be implemented according to the provision with the highest level of exemption or reduction among these regulations.

4. Responsibilities of traders and tax authorities.

a. Traders operating in mountainous areas, islands, and ethnic minority regions subject to this Circular shall be responsible for:

- Presenting the business registration certificate and business license to the local tax management authority.

- Fully declaring revenue and taxable income according to the periodic schedule guided by the tax authority.

Traders violating the registration and declaration system for taxes; the bookkeeping and accounting records system will not be eligible for tax exemptions and reductions under this Circular and may face penalties according to the law based on the severity of the violation.

b. Tax authorities at all levels shall be responsible for:

- Guiding and inspecting traders in implementing this Circular.

- During regular tax payment inspections and final tax settlements, if tax evasion or false declarations are discovered, in addition to not implementing tax exemptions and reductions as stipulated in this Circular, the tax authority will be responsible for collecting the full amount of tax owed according to the law, assessing the severity of the violation, and imposing penalties according to the law on administrative violations in the tax sector.

- The tax authority must clearly record the amount of tax due, the amount of tax exempted and reduced, the remaining tax due, and other indicators on tax collection receipts, tax declaration forms, tax ledgers, and tax accounting books. At year-end, provincial tax bureaus will compile comprehensive information on tax exemptions and reductions implemented according to this Circular and report to the Ministry of Finance (General Department of Taxation).

5. Regarding interest rates for loans under Clause 2, Article 1 of Decree 02/2002/NĐ-CP: it shall be implemented according to the guidelines of the State Bank of Vietnam and the Ministry of Finance.

IV. REGARDING TRAINING AND IMPROVEMENT OF PROFESSIONAL SKILLS FOR CIVIL SERVANTS AND MANAGERS OF STATE ENTERPRISES OPERATING IN MOUNTAINOUS AREAS

Annually, the Ministry of Trade will develop plans and budget estimates for training and improving professional skills for civil servants and managers of state enterprises operating in mountainous areas, islands, and ethnic minority regions within the Ministry's training budget, and implement them according to the allocated budget.

V. SUBSIDIES FOR THE SALE OF SOCIAL POLICY GOODS AND THE PURCHASE OF CERTAIN PRODUCTS PRODUCED IN MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC MINORITY REGIONS.

1. Selling social policy goods (essential goods subsidized for price and transportation costs) in mountainous areas, islands, and ethnic minority regions.

a. Recipients of price and transportation subsidies for certain goods sold in mountainous areas, islands, and ethnic minority regions:

These goods with subsidies are sold to all individuals residing in the areas specified in Item I, Clause 1 of this Circular, at sales points designated by the Provincial People's Committee.

All subsidized goods and freight-subsidized items must be strictly managed, with particular attention to the following items: plant seeds, aquatic animal breeds, iodized salt. The Provincial People's Committee shall specify the implementation methods and management measures to ensure that the goods reach the intended beneficiaries in sufficient quantity, of appropriate quality, at the correct time and location, and at the prescribed price.

b. The list of social policy goods sold in mountainous areas, islands, and ethnic minority regions shall be decided by the Ethnic Minorities Commission and Mountainous Areas for each period.

The Minister, Head of the Ethnic Minorities Commission and Mountainous Areas, based on requirements and policies to encourage economic and social development in mountainous areas, islands, and ethnic minority regions, shall consult relevant ministries, sectors, and provincial people's committees with such territories to decide on adjusting the list of subsidized goods and freight-subsidized items for each period accordingly.

c. The distance for freight subsidies, delivery points for subsidized goods, and the items eligible for price subsidies for goods sold in mountainous areas, islands, and ethnic minority regions shall be implemented according to the Appendix attached to this Circular.

In cases where it is necessary to adjust the regulations regarding the distance for freight subsidies, delivery points for subsidized goods, and the items eligible for price subsidies for each item, the Ministry of Commerce shall take the lead in re-evaluating and issuing guidance documents.

d. Method for determining the subsidized price and freight subsidy rate:

- The freight subsidy rate is calculated using the formula:

Freight subsidy rate for item A = ((freight rate for item A according to road category (i) x distance category (i)) + loading and unloading fees + bridge, road, ferry fees + standard transportation loss (if applicable).

Where:

+ Freight rate for motor vehicles: on central government-managed routes, refer to the freight rate for transporting goods by motor vehicle as stipulated in Decision No. 89/2000/QĐ-BVGCP dated November 13, 2000 of the Government Price Board; on local government-managed routes, refer to the regulations of the Provincial People's Committee.

+ Freight rate for primitive means of transport (ox carts, horse-drawn carriages, hand-carts, farm trucks...): calculated as follows:

. From 25,000 dong to 30,000 dong per ton/km for Lai Châu, Ha Giang, Cao Bang, Lao Cai, Son La provinces.

. From 20,000 dong to 25,000 dong per ton/km for Yen Bai, Tuyen Quang, Thanh Hoa, Nghe An, Quang Binh, Quang Tri, Thua Thien Hue, Quang Nam, Da Nang, Quang Ngai, Gia Lai, Kon Tum provinces.

. From 15,000 dong to 20,000 dong per ton/km for Bac Kan, Thai Nguyen, Quang Ninh, Hoa Binh, Lang Son, Dak Lak provinces.

. From 10,000 dong to 15,000 dong per ton/km for Vinh Phuc, Phu Tho, Bac Giang, Ha Tinh, Lam Dong, Binh Dinh, Phu Yen, Khanh Hoa, Ninh Thuan, Binh Thuan, Binh Phuoc provinces.

If the freight rates for primitive means of transport exceed the above prices, the Department of Finance and Prices shall report to the Provincial People's Committee for consideration and decision.

+ Freight rates for other means of transport (railway, inland waterways) shall be calculated based on the freight rates set by the competent authority. If there are no specified freight rates, they shall be calculated based on the actual reasonable freight rates for each type of transport.

- Bridge, road, and ferry fees; loading and unloading costs, and transportation losses (if any) shall be included in the freight subsidy rate. These fees and costs shall be implemented according to the regulations of the competent authority. In cases where there are no regulations, they shall be implemented based on actual reasonable conditions at the local level during the transportation period.

- The level of seed subsidy: is the difference between the cost price and the selling price to buyers at village centers:

Seed subsidy amount = Cost price - Selling price to villagers at village centers.

Wherein:

+ Cost price: is the purchase price of seeds at the source plus reasonable circulation costs minus the freight subsidy already included in the freight subsidy rate.

+ Selling price to villagers at village centers shall be determined by the Provincial People's Committee.

- Iodized salt subsidy includes labor costs for mixing iodized salt and polyethylene bag costs (excluding the value of bags provided as aid, if any), as stipulated by the Government Price Board.

e. Principles for determining retail prices or price ranges for subsidized goods and freight-subsidized items:

- For items for which the State has set prices, price ranges, or maximum retail prices, the Provincial People's Committee shall specify specific prices within the permitted limits.

- For items for which the State has not set prices, price ranges, or maximum retail prices, the Provincial People's Committee shall base its determination of unified retail prices or price ranges for subsidized goods and freight-subsidized items in areas benefiting from policies on the supply and demand situation, market prices, and purchasing power of the people. The prices or price ranges must be equivalent to the retail prices of similar items sold in cities and provincial capitals.

- Specifically for plant seeds, the Provincial People's Committee shall determine seed prices based on the supply and demand situation, purchasing power of ethnic groups, and considering the retail prices of seeds in adjacent regions of other provinces to set appropriate prices.

g. For particularly difficult areas (Zone III), if the people cannot afford to buy goods, the Chairman of the Provincial People's Committee shall base decisions on the allocated subsidy funds and provincial budget to provide free goods (excluding those already covered by Decisions 135/1998/QĐ-TTg dated July 31, 1998, 168/2001/QĐ-TTg dated October 30, 2001, and Circular No. 941/CP-KTTH dated October 19, 2001 of the Prime Minister) according to the principle:

- Eligible recipients for free goods: Only households classified as destitute or extremely poor in Zone III who truly lack money to purchase goods, as selected and recommended by the Commune People's Committee. Attention should be given to policy households and ensuring national unity, stabilizing living standards, and promoting production development.

- The cost price for goods provided free of charge shall not exceed the retail price of subsidized goods in the same area and period, as stipulated by the Provincial People's Committee.

2. Subsidies for transportation costs to consume certain products manufactured in particularly difficult communes in mountainous areas, islands, and ethnic minority regions.

a. Recipients of the policy to subsidize transportation costs for product consumption:

Producers in particularly difficult communes who sell products (listed for subsidized consumption) to traders (assigned to purchase products with subsidies) at purchasing points as prescribed by the Provincial People's Committee.

The purchasing locations, list of products, and purchase prices for subsidized consumption products are decided by the Provincial People's Committee.

Transportation subsidy funds are provided to traders directly purchasing certain agricultural and forestry products or processed products from agricultural and forestry raw materials (collectively referred to as agricultural and forestry products) from organizations and individuals (collectively referred to as producers) in particularly difficult communes based on the results of purchases, according to the plan approved by the Provincial People's Committee.

b. List of products eligible for transportation cost subsidies for consumption is decided annually by the Provincial People's Committee within the framework of goods categories defined by the Committee for Ethnic Minorities and Mountainous Areas.

c. Maximum transport distance eligible for transportation cost subsidies for product consumption:

- For mountainous provinces, it is calculated from the center of commune clusters in Zone III to consumption points such as cities and towns in the nearest plains region.

- For provinces with mountainous areas, islands, and ethnic minority regions, it is calculated from the center of commune clusters in Zone III to district towns.

- If the actual consumption location falls within the subsidized transport distance range as stipulated, the transportation subsidy amount will be calculated based on the actual transport distance.

d. Method for determining the level of transportation cost subsidies for product consumption shall be carried out in accordance with the guidelines for transportation cost subsidies for policy goods sold in mountainous areas, islands, and ethnic minority regions (Section V, Clause 1, Point d of this Circular).

e. Principles for determining the minimum purchase price (floor price) of products eligible for transportation cost subsidies:

- Agricultural and forestry products must be included in the list of products decided by the Provincial People's Committee for subsidized consumption.

- Minimum purchase price (floor price) = selling price of the product in provincial capital cities and towns minus (-) reasonable circulation costs. Reasonable circulation costs do not include transportation costs, which have been supported.

The Department of Finance and Prices must regularly monitor and supervise market price fluctuations, implement measures to manage the purchase price of subsidized transportation products, prevent price suppression against producers, and advise the Provincial People's Committee to determine appropriate floor prices for each type of product.

When the market price of subsidized transportation products drops below the established floor price, causing disadvantage to both producers and traders assigned the task of organizing purchases, transportation, and sales, the Department of Finance and Prices, along with relevant departments, shall report to the Provincial People's Committee and propose solutions to address difficulties for producers and units responsible for product sales.

3. Funding for price and transportation cost subsidies for social policy goods and transportation cost subsidies for product consumption:

a. Central budget concentrates support for mountainous, island, and ethnic minority provinces facing significant difficulties, mainly in Zones II and III. For less difficult mountainous, island, and ethnic minority regions, the Provincial People's Committee decides on the implementation of policies and uses local budget resources.

The establishment, allocation, and assignment of budgets for price and transportation cost subsidies for policy goods and transportation cost subsidies for product consumption are carried out in accordance with the State Budget Law and guiding documents. Subsidy funding is drawn from the central budget and allocated to the Provincial People's Committees under the form of "delegated budget."

b. Implementation at the local level:

Based on the price and transportation cost subsidies provided by the central budget and supplemented by local budget sources, the Provincial People's Committee decides on plans and allocates funds for each category of goods in line with provincial realities, prioritizing essential goods and particularly difficult regions.

4. The Provincial People's Committee selects traders to carry out the purchase and sale of subsidized goods through tendering or designation of traders meeting network, infrastructure, staff conditions, etc., and assigns tasks to sell subsidized goods and purchase products eligible for subsidized consumption.

5. The Chairman of the Provincial People's Committee is responsible for directing the implementation and conducting regular inspections to ensure the implementation of price and transportation cost subsidy policies at each sales point in accordance with Government Decrees No. 02/2002/ND-CP and No. 20/1998/ND-CP, ensuring that ethnic minorities living in mountainous, island, and ethnic minority regions can purchase policy goods in the specified quantities, at regulated prices, and with guaranteed quality at designated locations, and selling products from difficult regions at reasonable prices. Strictly handle violations, especially fraudulent practices in reporting and settling subsidy payments; prevent wastage and loss of state budget funds, and bear responsibility before the Prime Minister for the results of implementation.

VI. STATE ENTERPRISES OPERATING COMMERCE IN MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC MINORITY REGIONS

1. Expand the state-owned enterprise network engaged in commerce in mountainous areas, islands, and ethnic minority regions to be capable of dominating the market for selling social policy goods, production materials, and purchasing certain important products produced by ethnic minorities, prioritizing particularly difficult communes. State-owned enterprises engaged in commerce must have stores at the center of commune clusters. Suitable forms should be adopted to utilize cooperative trade service enterprises, other state-owned enterprises (factories, forestry and farm enterprises...), schools, health stations, teachers, and trusted individuals in villages as agents or to entrust them with buying and selling goods. Establish connections between central state-owned enterprises and localities, among state-owned enterprises on the same territory, and among different economic sectors according to mutual benefit principles to create a system of efficient channels from production to consumption, linking mountainous areas, islands, ethnic minority regions with other regions.

The Department of Commerce shall take the lead and coordinate with the Department of Planning and Investment and relevant departments in the province to develop a plan for expanding the commercial network (including markets, state-owned enterprise stores, cooperative trade service enterprises, non-state-owned commerce...) and organize its implementation after approval. The plan must be consistent with the socio-economic conditions in the area, integrating commercial activities with residential planning and production zones, gradually covering areas without commercial networks.

2. Regarding state-owned enterprises engaged in public welfare in commerce: implement according to the provisions of laws on public welfare enterprises.

The Department of Commerce shall take the lead and coordinate with the Department of Planning and Investment to examine state-owned enterprises that meet the conditions and have the need to convert to public welfare enterprises, establish plans to submit to the Provincial People's Committee for decision, following the procedures and formalities for establishing public welfare enterprises.

3. Working capital of state-owned commercial enterprises in mountainous areas, islands, and ethnic minority regions.

a. The reasonable working capital needs of state-owned commercial enterprises in mountainous areas, islands, and ethnic minority regions are determined based on:

- The business production tasks of the enterprise and business results.

- The situation of working capital (including both self-owned capital and borrowed capital) of the enterprise in the last 2-3 years.

- Business conditions such as roads and transport distances, weather and climate affecting circulation processes, seasonal nature of production and consumption, conditions of payment services and banking credit, customs and production and consumption needs of the people, and other factors influencing the speed of working capital turnover.

- Requirements for essential goods reserves, especially those under social policy goods categories.

Enterprises prepare plans to request additional working capital, report to the Department of Commerce, the State Capital Management Agency at the enterprise (for places where the agency has been established) or the Department of Finance (for places without such an organization) to compile into the annual budget estimate, and submit to the Provincial People's Committee.

b. Supplementing working capital for state-owned enterprises engaged in commerce:

The procedure for planning working capital for state-owned enterprises engaged in commerce in mountainous areas, islands, and ethnic minority regions follows the process and guidelines for implementing the State Budget Law.

Sources for supplementing working capital for central state-owned enterprises are guaranteed by the central budget.

Sources for supplementing working capital for local state-owned enterprises are guaranteed by the local budget. The Chairman of the Provincial People's Committee decides to supplement working capital for enterprises according to the allocated budget.

VII. MANAGEMENT OF RESERVE FUNDS FOR SOCIAL POLICY GOODS IN MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC MINORITY REGIONS

1. Goods subsidized for price and transportation costs to be sold in mountainous areas, islands, and ethnic minority regions include:

(1) Salt: including regular salt (for iodine mixing) and finished iodized salt.

(2) Lighting oil.

Mainly reserve funds are used for Zone III. Depending on the specific circumstances of each locality, the provincial People's Committee may supplement essential goods that must be reserved in particularly difficult areas (Zone III).

2. State-owned commercial enterprises tasked with supplying the social policy goods specified in point 1 are provided sufficient reserve funds from the local budget. The amount of funds provided is sufficient to meet the demand for circulating social policy goods, equivalent to the consumption needs of the population in the served area over an average period of 2 to 3 months. Depending on the situation in each zone, the Provincial People's Committee stipulates the appropriate reserve period based on local realities.

3. The Provincial People's Committee specifies the quantity of goods and corresponding funds to be reserved for each type of goods and each zone (I, II, III), the timing of reserves, and the mobilization of reserve funds for social policy goods for business needs at suitable times.

4. Enterprises provided with funds have the responsibility to use the funds for reserving and circulating social policy goods. Organizing reserves and circulation must meet requirements for each type of goods, in each area, and at each time. Enterprises can proactively organize reserves and circulation in accordance with the specific conditions of each regional zone (I, II, III) and the characteristics of the goods and consumption needs.

During periods such as the rainy season, floods, Tet, festivals, and in areas with particularly difficult transportation, actual requirements demand higher levels of goods reserves than the average reserve level, enterprises have the responsibility to mobilize other sources of funds for reserves. Outside these periods and areas, enterprises may temporarily use part of the reserve funds for other goods trading and must promptly return them to ensure reserves for social policy goods, ensuring adequate supply to meet the needs of the people.

5. Reserve funds for social policy goods are managed like working capital and preserved according to financial management and business accounting regulations for state-owned enterprises.

Every six months, enterprises that have been granted reserve capital must report to the Department of Finance and the Department of Trade on the situation regarding the use of policy reserve capital. The Department of Finance will compile these reports and submit them to the Provincial People's Committee and the Ministry of Finance.

VIII. IMPLEMENTATION

1. The Committee for Ethnic Minorities Affairs shall take the lead, coordinate with relevant ministries and agencies, and provincial people's committees in organizing the implementation of price subsidies and transport subsidies policies, monitoring their results, and reporting to the Prime Minister.

Continuously monitor, guide, and organize inspections and supervision of the implementation of price subsidies and transport subsidies policies by localities, ministries and agencies, and enterprises using subsidy funds. Timely identify and address difficulties and obstacles, and propose solutions to the Government to ensure the effective and goal-oriented implementation of these policies according to established management regulations.

2. The Ministry of Trade shall take the lead in monitoring and reporting on the implementation of policies encouraging and providing preferential treatment to traders; coordinate with the Committee for Ethnic Minorities Affairs, relevant ministries and agencies, and provincial people's committees in addressing difficulties and obstacles in implementing transport and price subsidy policies; guide localities in implementing measures to expand markets and develop commodity circulation in mountainous areas, islands, and ethnic minority regions.

3. The Ministry of Planning and Investment, the Ministry of Finance, the State Price Control Board, and related agencies shall cooperate with the Committee for Ethnic Minorities Affairs and the Ministry of Trade in monitoring the implementation and resolving difficulties in organizing the implementation of policies stipulated in Decree No. 20/1998/NĐ-CP and Decree No. 02/2002/NĐ-CP of the Government.

4. Provincial People's Committees shall be responsible for directing, organizing, monitoring, and inspecting the implementation of policies within their jurisdictions. Promptly identify and resolve difficulties and obstacles during the implementation process and make recommendations to the Government and relevant ministries and agencies for appropriate solutions.

5. This Circular replaces the following consolidated documents:

- Joint Circular No. 11/1998/TTLT/BTM-UBDTMN-BTC-BKHĐT dated July 31, 1998, issued by the Ministry of Trade, the Committee for Ethnic Minorities and Mountainous Areas, the Ministry of Finance, and the Ministry of Planning and Investment guiding the implementation of Decree No. 20/1998/NĐ-CP;

- Circular No. 112/1998/TT-BTC dated August 4, 1998, issued by the Ministry of Finance guiding the implementation of tax exemptions and reductions as provided for in Article 9 of Decree No. 20/1998/NĐ-CP dated March 31, 1998, of the Government on developing trade in mountainous areas, islands, and ethnic minority regions;

- Circular No. 06/1998/TT-BVGCP dated August 22, 1998, issued by the State Price Control Board guiding the principles for determining subsidized prices and transport subsidies, and retail prices for policy goods receiving subsidies in mountainous, island, and ethnic minority regions; and it becomes effective upon the effectiveness of Decree No. 02/2002/NĐ-CP dated January 3, 2002, of the Government.

During the implementation process, if there are difficulties or obstacles, please promptly reflect them to the relevant ministries, agencies, provincial people's committees, and enterprises so that the joint ministries can study and provide supplementary guidance.