JOINT CIRCULAR No. 10-TT/LB ON THE DELEGATION OF FINANCIAL MANAGEMENT FOR PLANNED POPULATION CONTROL WORKS, SOCIAL DISEASE PREVENTION, DISEASE PREVENTION, FLOOD AND STORM MITIGATION, AND WAR CASUALTY RESCUE AT LOCAL LEVELS

CIRCULAR OF THE JOINT MINISTRIES

Regarding the delegation of financial management for planned childbirth work, social disease prevention, epidemic control, flood and storm prevention, and emergency medical care at local levelsplanned childbirth, preventing social diseases, preventing and combating epidemics, flood and storm control, and emergency medical care for combat injuries in the locality authorities

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Up until now, to ensure medicines and equipment for planned childbirth work, social disease prevention, epidemic control, flood and storm prevention, and emergency medical care at local levels, apart from local funds, the central budget has also provided funds to the Ministry of Health through leading institutes and specialties to purchase medicines and equipment, which are then directly supplied to local specialized clinics free of charge for the people, bypassing provincial health departments.

The medicines and equipment transferred from the central level to localities are not reflected in the local budgets, thus causing many loopholes in management, resulting in wastage and embezzlement.

To strengthen the responsibility of localities in managing funds for medicines and equipment serving the aforementioned tasks, the Joint Ministry of Health and Finance hereby stipulates the delegation of management of funds, medicines, and equipment for planned childbirth work, social disease prevention, epidemic control, flood and storm prevention, and emergency medical care at local levels as follows.

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. Starting from 1984 onwards, funds for planned childbirth work, social disease prevention, epidemic control, flood and storm prevention, and emergency medical care at local levels will be budgeted, allocated, and managed by local budgets.

For the year 1983, funds for purchasing medicines and equipment for the aforementioned tasks will still be covered by the central budget.

2. Leading institutes and specialties under the Ministry of Health will continue their role in directing and guiding specialized stations but will no longer directly supply medicines and equipment to these stations as before.

3. As for medicines and equipment donated by international organizations, leading institutes and specialties will still place orders according to current regulations but will not directly receive such donations.

The Vietnam Pharmaceutical Enterprises Association and the General Department of Materials and Basic Construction have the responsibility to receive and distribute medicines and equipment to localities. Specifically, vaccines for epidemic prevention will still be managed and distributed to localities by the Institute of Hygiene and Epidemiology and the Nha Trang Vaccine Institute.

4. The prices at which the aforementioned medicines and equipment are sold to localities shall be based on the internal wholesale prices set by the State.

II. MANAGEMENT MEASURES

1. Each year, provincial health departments will base their budget estimates for expenditures on planned childbirth work, social disease prevention, epidemic control, and flood and storm prevention on local targets, including forecasts for medicines and equipment, and submit them to the People's Committees of provinces, centrally-administered cities, and municipalities for approval, while simultaneously sending them to provincial finance departments for consolidation and inclusion in the local budget for health services.

2. Provincial finance departments will allocate funds according to the approved budget estimates to provincial health departments quarterly to implement the progress of the aforementioned tasks.

3. Quarterly, provincial health departments must report on the implementation of targets and settlement of expenditures according to current regulations regarding planned childbirth work, social disease prevention, epidemic control, flood and storm prevention, and emergency medical care to provincial finance departments for review and allocation of funds for the next quarter.

4. Leading institutes and specialties will compile the needs for medicines and equipment across the sector and send them to the Vietnam Pharmaceutical Enterprises Association and the General Department of Materials and Basic Construction as a basis for planning imports or domestic production to meet the needs of specialized medicines and equipment.

5. The Vietnam Pharmaceutical Enterprises Association and the General Department of Materials and Basic Construction need to grasp the requirements for medicines and equipment used for the aforementioned tasks, direct central enterprises, first-level companies, and distribution systems in localities to ensure the needs of each specialty, without allowing shortages due to commercial considerations that could affect the implementation of these tasks.

6. For vaccines for epidemic prevention, provincial health departments will base their plans to purchase various types of vaccines from the Institute of Hygiene and Epidemiology and the Nha Trang Vaccine Institute on the local demand for vaccination, following the prices set by the Ministry of Health.

7. Medicines and equipment for planned childbirth work and social disease prevention will be managed and sold normally by the distribution system like other types of medicines and equipment.

8. Medicines and equipment for epidemic prevention should be stockpiled in predetermined quantities for use when necessary. Provincial health departments will forecast capital for stockpiling for these tasks, submit them to the People's Committees of provinces, centrally-administered cities, and municipalities for approval, and send them to provincial finance departments for consolidation and inclusion in the local budget.

9. In case of large-scale epidemics exceeding local capacity or major storms, floods, or wars, upon request of the People's Committees of provinces, centrally-administered cities, and municipalities, the Ministry of Health will provide additional medicines and equipment to localities to promptly address the consequences of war, floods, or epidemics. In this case, provincial health departments must settle the full amount of medicines and equipment provided by the supplying units.

III. IMPLEMENTATION

1. From the second quarter of 1983 onwards, based on the distribution plan for medicines and equipment announced by the Ministry of Health to localities, the Ministry of Finance will allocate funds to centrally-administered provinces, cities, and municipalities, treating it as a loan from the central budget to the local budget. Provincial finance departments will allocate funds to provincial health departments that have purchased medicines and equipment for the aforementioned tasks and settle them in the provincial, city, or municipal budget according to the current State budget classification.

2. The leading institutes and departments shall inspect and hand over medicines and equipment serving planned childbirth, social disease prevention, epidemic control... to first-tier pharmaceutical companies, medical equipment and chemical testing companies for management. The inventory procedures and handover to the Ministry of Health shall be regulated by the Ministry of Health.

3. Orders of foreign aid signed by the leading institutes and departments with international organizations that are currently in effect and items from these orders that have arrived but have not yet been received by the leading institutes and departments shall all be handed over to the company under the Vietnam Pharmaceutical Enterprise Association, the Material Supply and Basic Construction Bureau for monitoring and receipt.

4. The existing medicines and equipment (including aid supplies) managed by the leading institutes and departments shall all be handed over to the distribution system. This handover must be completed by the second quarter of 1983.

5. Processing contracts and orders signed by the leading institutes and departments with state-owned economic organizations or other economic sectors that are currently in effect shall also be handed over to first-tier companies to continue implementation under the current economic contract regime.

6. Medicines, equipment, materials, and assets provided by the leading institutes and departments of the Ministry of Health to specialized stations in the past to implement planned childbirth, social disease prevention, epidemic control, flood, storm, and war casualty rescue operations shall all be handed over to local management. Health departments must strictly organize inventories, prepare reports to send to the Ministry of Health, leading institutes and departments, and the finance department at the same level.

7. First-tier pharmaceutical companies, medical equipment and chemical testing companies, and second-tier companies (or provincial, city, and centrally-administered special zone pharmaceutical enterprises) have the responsibility to review working capital quotas according to the current working capital allocation system.

This Circular takes effect from April 1, 1983. Any difficulties encountered during implementation should be reported to the relevant ministries for study and resolution.