Joint Circular No. 11/1998/TTLT/BTM-UBDTMN-BTC-BKHĐT guiding the implementation of Decree No. 20/1998/NĐ-CP.

JOINT CIRCULAR

Guidelines for Implementing Decree 20/1998/NĐ-CP

____________________________

Pursuant to Decree 20/1998/NĐ-CP dated March 31, 1998 of the Government on "Developing Trade in Mountainous Areas, Islands, and Ethnic Minority Regions," the Ministry of Trade and the Committee for Ethnic Minorities and Mountainous Areas - Finance - Planning and Investment provide guidance on certain aspects concerning: construction of markets and state-owned trading stores; price subsidies and freight subsidies; state enterprises engaged in trade in mountainous areas, islands, and ethnic minority regions; management of reserve funds for policy goods as follows:

I. SCOPE AND SUBJECTS REGULATED

1. The following areas fall within the scope of regulation of Decree 20/1998/NĐ-CP:

1.1. Mountainous areas: including highland provinces, provinces with mountainous districts, provinces with mountainous communes, as defined by Decision No. 21/UB-QĐ dated January 4, 1993, Decision No. 33/UB-QĐ dated June 4, 1993, Decision No. 08/UB-QĐ dated March 4, 1994, Decision No. 64/UB-QĐ dated August 26, 1995, and Decision No. 68/UB-QĐ dated September 6, 1997 recognizing communes, districts, and provinces as mountainous and highland areas.

1.2. Islands: as defined by the Committee for Ethnic Minorities and Mountainous Areas.

1.3. Ethnic minority regions: the Committee for Ethnic Minorities and Mountainous Areas provides guidance as follows:

1.4. Mountainous, island, and ethnic minority regions: Based on the level of development in each region, according to three zones (I, II, III) of mountainous, island, and ethnic minority regions as defined in Decision No. 42/UB-QĐ dated March 25, 1997 and Decision No. 21/1998/QĐ-UBDTMN dated February 25, 1998 regarding recognition of the three zones.

In cases where there is a change in the area and zone, it shall be applied in accordance with the provisions of the Committee for Ethnic Minorities and Mountainous Areas.

2. Eligibility:

2.1. Recipients of policies for selling subsidized goods: residents and those engaged in activities (including employees, officials, and military personnel) in the areas specified in Section I.1 of this Circular.

2.2. Recipients of policies for subsidizing consumption of products: traders operating in trade in the areas specified in Section I.1 of this Circular, consuming products listed in the product catalog.

2.3. Traders: Any business entity (individual or legal person) regardless of economic sector (state economy, cooperative economy, state capitalist economy, foreign-invested enterprises operating under the Law on Foreign Investment in Vietnam, individual economy, private capitalist economy) that has registered for business and engages in one or more commercial acts such as buying and selling goods, providing commercial services, and promoting commerce in the mountainous, island, and ethnic minority regions with the aim of profit are considered traders subject to the regulation of Decree 20/1998/NĐ-CP.

The following commercial activities of traders also fall within the scope of regulation of Decree 20/1998/NĐ-CP:

- Traders whose main office and business registration are not located in mountainous, island, and ethnic minority regions but conduct commercial activities in each zone (I, II, III) within these regions.

- Traders whose main office and business registration are located in one of the zones (I, II, III) but conduct commercial activities in other zones within the mountainous, island, and ethnic minority regions.

Traders are eligible for preferential policies if they have invoices, accounting books clearly showing their business results in each zone and have registered with relevant authorities (taxes, banks, land administration...).

II. CONSTRUCTION OF MARKETS AND STATE OR COOPERATIVE COMMERCIAL SERVICES AT THE CENTERS OF GROUPS OF VILLAGES IN EACH REGION

For Zone III: Markets and state-owned trading stores or cooperatives for trade and services under the program for building village cluster centers in mountainous and highland areas pursuant to Decision No. 35/TTg dated January 13, 1997 of the Prime Minister shall follow the procedures and sources of funding for construction as follows: - The primary source of investment is from the state budget (central budget, local budget, and international organizations' financial assistance). Additionally, encouragement is given to individuals and organizations voluntarily contributing capital for production and business expansion, increasing commodity exchange, and mobilizing public welfare labor as stipulated by law.

- The Department of Trade bases its annual plan for constructing village cluster centers in Zone III (highland, border, and particularly difficult ethnic minority regions) of the province, coordinating with relevant departments to submit the plan to the Department of Planning and Investment for consolidation and submission to the People's Committee of the province.

- When each project for constructing village cluster centers is allocated an investment plan, the project leader is responsible for prioritizing the allocation of funds for constructing markets, state-owned trading stores, or cooperatives for trade and services in the first phase of each project, notifying the Department of Trade and relevant departments to coordinate implementation.

For Zone II: Markets and state-owned trading stores or cooperatives for trade and services not included in the program for constructing village cluster centers pursuant to Decision No. 35/TTg dated January 13, 1997 of the Prime Minister, the Chairman of the People's Committee of the province considers the following conditions to decide on investment from the local budget for construction at an appropriate scale:

- The market or store must be included in the overall planning scheme for constructing village cluster centers of the province approved. - There is an urgent need to form a market to stabilize the livelihoods, promote economic restructuring of the sub-region, develop commodity production to enhance commodity circulation and cultural life of people in communes within the sub-region, and between the sub-region and other regions.

- The Department of Trade, based on specific circumstances, coordinates with relevant sectors to prepare an annual plan and report to the People's Committee of the province for approval and inclusion in the investment budget. Based on the approved project, the Chairman of the People's Committee decides on the investor for constructing markets, state-owned trading stores, or cooperatives for trade and services.

For Zone I: Markets and state-owned trading stores in cities, towns, and provincial and district roads: In this area, transportation is relatively convenient, and social and economic development has reached a certain level, the investment source for construction should follow the principle of "State and business together."

The Department of Commerce, based on specific circumstances, coordinates with relevant sectors to develop an annual plan for reporting to the Provincial People's Committee for approval and budget allocation for investment. Based on the approved project, the Chairman of the People's Committee decides on the investor for constructing markets and state-owned commercial stores or trade service cooperatives.

3. For Zone I: Markets and commercial stores in cities, towns, and provincial and district interconnecting traffic routes: in this area, where there are relatively convenient transportation routes and economic and social development has reached a certain level, the investment capital for construction must follow the principle of "State and business operators jointly implementing."

- The State will support part of the budget for infrastructure construction of the market such as leveling the ground, electricity, water supply and drainage, sanitation systems...

- Business operators contribute capital to construct architectural works for sales locations such as kiosks, sales counters, market pavilions, and are entitled to use the business area within the market according to the joint capital contribution contract between the business operator and the market management authority.

- Mobilize medium or long-term credit funds with preferential interest rates (including the National Investment Support Fund).

- Encourage investment in the form of Build-Operate-Transfer (BOT) contracts pursuant to Circular No. 12/BKH-QLKT dated August 27, 1997 of the Ministry of Planning and Investment.

The Department of Commerce bases on the market development plan to develop projects for developing each type of market in this area, submit to the People's Committee of the province for consideration and decision.

4. The Department of Commerce performs specialized management functions over market activities according to Circular 15-TM/CSTTTN dated October 16, 1996 of the Ministry of Commerce. Administrative management of markets is carried out according to the provisions on分级管理市场的规定在目第二条通函第15/TM-CSTNTN号1996年10月16日商业部。

III. SUBSIDIES AND TRANSPORTATION COSTS FOR THE SALE OF SOCIAL POLICY COMMODITIES, PURCHASE OF CERTAIN PRODUCTS PRODUCED IN MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC GROUP REGIONS

1. The subjects specified in Item I.2.1 may purchase from the commune center cluster (for goods subsidized up to the commune center cluster) or at the county center (for goods subsidized for transportation up to the county center) as stipulated in Decree No. 20/1998/NĐ-CP dated March 31, 1998, at prices equivalent to those of similar goods sold in provincial town markets, meeting quality standards, prioritizing Region III and Region II with many difficulties. For provinces with only mountainous communes (provinces without mountainous counties), only price subsidies and transportation cost subsidies for iodized salt and crop seeds; transportation cost subsidies for goods: kerosene, student writing paper, medicine; transportation cost subsidies from the commune center cluster to the provincial town to purchase certain products produced in these communes (as specified in the Prime Minister's Government Directive).

2. The commodities eligible for price and transportation cost subsidies for sale, the distance for transportation cost subsidies, the principle for determining retail prices, and unit prices for price and transportation cost subsidies shall be as prescribed in Articles 12, 14, and 16 of Decree No. 20/1998/NĐ-CP dated March 31, 1998 of the Government and the Circular guiding the implementation of Decree No. 20/1998/NĐ-CP of the Government Price Board.

3. Commodities eligible for transportation cost subsidies for purchasing products produced by ethnic groups in mountainous areas, islands, and regions inhabited by ethnic minorities: The People's Committee of the province directs relevant departments and agencies based on the principles prescribed in Clause 1, Article 24 of Decree No. 20/1998/NĐ-CP dated March 31, 1998 of the Government to select products to be submitted to the Ethnic Minorities Committee and the Ministry of Commerce for consolidation.

The Ethnic Minorities Committee and the Mountainous Areas Committee take the lead in coordinating with the Ministry of Commerce, the Ministry of Agriculture and Rural Development, and related ministries and agencies to consolidate reports from the People's Committees of the provinces and submit them for approval. The Prime Minister decides the list of products eligible for transportation cost subsidies during specific periods.

4. Standard supply levels for calculating subsidy and transportation cost expenses:

4.1. Iodized salt: 5 kg/person/year.

4.2. Kerosene: 3 liters/person/year.

4.3. Student writing paper (or notebooks): 1.5 kg/student/year (equivalent to 12 sheets of lined paper or the corresponding quantity of student notebooks).

4.4. Medicine: 10,000 VND/person/year. According to a specific list prescribed by the Ministry of Health.

4.5. Fertilizer: 100 kg/1 hectare of cultivated land/year, including organic microbial fertilizers produced locally.

4.6. Pesticides: 0.12 kg/hectare of cultivated land/year. According to a list prescribed by the Ministry of Agriculture and Rural Development.

The subsidy and transportation cost conversion rate for this commodity is estimated based on one type of high-yield, quality seed suitable for local soil and climate conditions, implemented in concentrated crop production zones (prioritizing Region III), including food crop seeds, industrial crop seeds (short or long term), fruit tree seeds, medicinal plant seeds.

+ The area using new seeds is 5% of the paddy field area.

+ Seed quota for 1 hectare: calculated based on pure rice = 160 kg/hectare.

+ Subsidy and transportation cost for 1 kg: according to the guidelines of the Government Price Board.

Provincial seed planting budget = (rice planting area x 5%) x 160 kg/hectare x subsidy and transportation cost unit price.

Annually, the People's Committee of the province bases on the local crop planting plan, allocated budget, and guidelines of the Government Price Board, decides specifically for each type of seed and informs the Ministry of Agriculture and Rural Development and the Ministry of Finance when implementing.

4.8. Coal (including coal from mines managed and exploited by local authorities): Annually, based on the budget capacity and requests of each locality, the Ethnic Minorities Committee and the Mountainous Areas Committee coordinate with relevant ministries and agencies to allocate quantities and budgets to localities. The Chairman of the People's Committee of the province decides specifically on usage targets (prioritizing construction material production needs, agricultural and forestry product processing, daily fuel replacement for residents...) based on the allocated quantities and budgets.

4.9. Publishing books: including

- Political and social books, laws, general economics.

- Books popularizing science and technology and enhancing knowledge.

- Traditional literature books of ethnic Vietnamese groups.

- Children's books (including books provided by the state without charge).

- Various types of books in minority languages.

- Cultural products serving the spiritual life of ethnic minorities in mountainous areas, islands, and regions inhabited by ethnic groups, including tapes, flags, slogans, portraits of leaders, folk paintings, and general calendars.

Annually, the Ministry of Culture and Information coordinates with the Ethnic Minorities Committee and the Mountainous Areas Committee and the Ministry of Finance to determine the number of publications above that meet the requirements of each locality and the state budget capacity.

4.10. Periodically, based on consumer demand, budget capacity, and the need for technological progress in production, the Ethnic Minorities Committee and the Mountainous Areas Committee coordinate with relevant ministries and agencies to adjust supply quotas to suit current realities.

5. Plan formulation, target allocation, and adjustment of financial structure and coordination.

5.1. Planning and target allocation.

a. Basis for developing the subsidy and freight rate plan:

- The supply standard set out in Section III.4 of this Circular.

- Population living and operating in the defined area according to the data published by the General Statistics Office (or Provincial Statistics Sub-office) of the previous year and the actual annual average population growth rate of the province to calculate for the planning year.

- Agricultural land area, including: paddy fields, vegetable fields, short-term and long-term industrial crop fields based on the data published by the General Statistics Office (or Provincial or City Statistics Sub-office) of the previous year to calculate for the planning year.

- Freight subsidies for transporting products consumed by ethnic minorities in mountainous and island areas produced in these regions shall be based on the list of products decided by the Prime Minister, the freight subsidy rate and transport distance "from the center of the commune cluster to the nearest city or provincial capital in the plains" as stipulated in the Circular guiding the implementation of Decree No. 20/1998/NĐ-CP of the Government Price Board.

b. Developing the plan.

- Based on the factors specified in point a, Section 5.1 above, each year, the People's Committee of the province directs relevant sectors to develop the subsidy and freight rate plan to send to the Ethnic Minorities Commission, the Ministry of Planning and Investment, the Ministry of Finance, and the Ministry of Trade before August 1st.

- Based on the plans of the provinces, the Ethnic Minorities Commission takes the lead in coordinating with the Ministry of Trade and other ministries to determine the quantity of each product for each locality to serve as the basis for determining the subsidy and freight rate funding to be reported to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Government for submission to the National Assembly Standing Committee.

- Based on the state budget estimate assigned by the Government for the purpose of subsidies, the planned quantities of each product, and the subsidy and freight rate prices as prescribed by the Government Price Board, the Ethnic Minorities Commission coordinates with the Ministry of Finance and related ministries to allocate subsidy and freight rate funding for each product and each province (prioritizing areas with many difficulties).

- The Ministry of Planning and Investment announces the targets regarding the quantity and subsidy and freight rate funding for localities and ministries (if applicable) before December 31. The Ministry of Finance allocates funds through the "delegated fund" method according to the progress of implementation.

5.2. Allocation of Funding:

a. For iodized salt: It is consolidated within the national program to prevent disorders caused by iodine deficiency, with the Ministry of Health taking the lead in coordinating with the Ministry of Finance and related ministries to allocate funding and quantities to each province.

The funding for subsidizing the price and freight rate for iodized salt is entrusted to the national program to prevent disorders caused by iodine deficiency and implemented as follows:

- For the amount of iodized salt that the locality organizes production and consumption within its territory, the subsidy funding (iodine mixing cost, PE bag) and freight subsidy for transporting white salt from the purchase location (as per the regulations of the Ministry of Trade and the Government Price Board) to the iodized salt production factory and from the production site to the commune cluster is directly allocated to the People's Committee of the province through the delegated fund method.

- For the amount of iodized salt supplied by central enterprises to localities for sale to residents within their territories, the freight subsidy for transporting from the district center to the commune cluster center is directly allocated to the People's Committee of the province through the delegated fund method; the funding for mixing iodized salt (mixing cost, small PE bags for iodized salt packaging) and the freight subsidy for transporting to the district center is directly allocated to the central enterprise implementing this task.

b. Other items: Firewood oil, student writing paper, book distribution, medicine, fertilizer, pesticides, crop seeds, coal; and the funding for freight subsidies for consuming agricultural and forestry products is directly allocated to the People's Committee of the province through the delegated fund method.

5.3. Adjusting the structure, balancing subsidy and freight rate funding for sold goods.

a. Based on the total quantity and funding allocated to each item, the People's Committee of the province develops an implementation plan for each item, including the corresponding quantity, funding, and implementation schedule. First, ensure sufficient funding for subsidies for iodized salt, student writing paper, book distribution, and medicine according to the specified quantities; remaining funding may be adjusted among items or regions (I, II, III) in accordance with the actual needs of the locality.

Based on the above plan, the People's Committee of the province prepares a budget expenditure plan for subsidy and freight rate funding, divided by quarter, to report to the Ethnic Minorities Commission and the Ministry of Finance for monitoring and allocation of funding.

b. For particularly difficult areas (Region III), where people cannot afford to buy goods, the Chairman of the People's Committee of the province bases on the allocated subsidy and freight rate funding for the year and the provincial budget, considers and decides on providing free goods to one or more items: iodized salt, medicine, student writing paper, following the principle below:

- Target for free provision: Only consider providing to households classified as starving or extremely poor in Region III, who truly have no money to buy goods, selected and proposed by the People's Committee of the commune (not provided to all households in the commune at once), paying attention to policy households in the region.

- Ensuring ethnic unity, stabilizing livelihoods, promoting production development, and paying attention to the relationship between households receiving free goods and other households in the village, between neighboring villages, and between regions to create a spirit of enthusiasm and unity.

- The cost of goods provided free of charge must not exceed the retail price of subsidized goods of the same type in the same area at the same time.

- In the area considered for free provision, the People's Committee of the province prioritizes integrating socio-economic development projects (poverty alleviation, afforestation...) to gradually guide ethnic groups towards economic development so that they can afford to buy goods within one or two years.

6. Determining enterprises to carry out subsidized price and freight purchases and sales: aimed at addressing the current scattered and fragmented situation, in accordance with purchasing power and market capacity, and business scale at grassroots levels (districts, commune centers); the People's Committee of the province shall decide on applying bidding procedures or selecting enterprises meeting conditions regarding network, infrastructure, staff... to assign tasks for implementing subsidized price and freight purchases and sales (excluding medicine) to facilitate the public when buying or selling goods at reasonable prices and assured quality, thereby managing effectively and reducing circulation costs.

IV. STATE ENTERPRISES OPERATING IN MOUNTAINOUS AREAS, ISLANDS AND ETHNIC GROUP REGIONS

1. Expanding the state trade network in mountainous areas, islands and ethnic regions to have sufficient strength to direct and control the market for selling social policy goods, production materials and purchasing important products produced by ethnic groups, especially in highland, deep interior and remote areas with difficult transportation and particularly disadvantaged ethnic regions.

State trade must have stores in commune centers. Through this, organize appropriate forms to select and utilize cooperative trade service organizations, state economic organizations (factories, forestry farms...), schools, health stations, teacher teams and trusted individuals in villages, forming a network within communes and between communes and other regions.

Through agency, consignment trading activities, commercial advertising, trade exhibitions... build connections between state enterprises (at central, local and same territorial levels), among different economic sectors according to the spirit of mutual benefit to create a smooth flow system from production to consumption, between upland and lowland regions.

The Department of Trade shall take the lead, coordinate with the Department of Planning and Investment and relevant departments in the province to develop plans for developing the trade network (including markets, state trade stores, cooperative trade service organizations, non-state trade...) suitable to the socio-economic conditions in the area, linking trade activities with residential planning and production zones, gradually covering trade network "white spots". Based on these plans, the Department of Trade shall prepare annual plans and submit them to the People's Committee of the province for consideration and decision.

The Ministry of Trade shall coordinate with the Ministry of Planning and Investment and related ministries and agencies together with localities to organize surveys and research to summarize models of organizing trading enterprises operating in mountainous areas, islands and ethnic regions (county companies, provincial companies - county stores, regional companies...), guiding localities to reorganize state trading enterprises in their areas.

2. Public welfare state trading enterprises shall be determined according to the provisions of Clause 2, Article 2 of Decree No. 56/CP dated October 12, 1996 of the Government on "State Enterprises Operating in Public Welfare Sectors", and implemented according to Circular No. 1-BKH/DN dated January 29, 1997 of the Ministry of Planning and Investment, and Circular No. 6-TC/TCDN dated February 24, 1997 of the Ministry of Finance.

State trading enterprises operating in mountainous areas, islands and ethnic regions that meet the following conditions may convert to public welfare enterprises if there is a need:

- The enterprise mainly operates in Zone III in mountainous areas, islands and ethnic regions.

- At least 70% of the enterprise's revenue comes from production activities or selling goods, consuming products produced in mountainous areas, islands and ethnic regions under state-subsidized price and freight policies.

The Department of Trade shall take the lead, coordinating with the Department of Planning and Investment to examine enterprises meeting the conditions, formulate plans and submit them to the People's Committee of the province for decision, following the procedures for establishing public welfare enterprises.

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

3.1. The Department of Trade shall take the lead, coordinating with the State Capital and Asset Management Bureau at Enterprises (hereinafter referred to as the Bureau QLV and TSNN), the Department of Finance to guide enterprises with headquarters and registered business in the area to determine the amount of working capital currently being used, including budget funds allocated, self-supplemented funds from the budget, bank loans and capital contributions from employees in the enterprise (if any), serving as a basis for finding solutions.

3.2. The reasonable working capital needs of state trading enterprises in mountainous areas, islands and ethnic regions are determined based on:

- Business tasks assigned to the enterprise in its establishment decision, reflected through business results (revenue) over the past 2 to 3 years.

- Actual working capital (including both owned and borrowed capital) used by the enterprise over the past 2 to 3 years.

- Specific business conditions such as road distance and transport distance, weather and climate affecting circulation processes, seasonal nature of production and consumption, banking payment and credit services conditions, people's production and consumption habits and other factors influencing the speed of working capital turnover.

- Requirements for essential goods reserves, especially those under social policy goods categories, according to the standards specified in Section V.2 of this Circular.

State trading enterprises shall prepare plans on reasonable working capital needs and report to the Department of Trade, the Bureau QLV and TSNN and the Department of Finance.

3.3. Based on the enterprise's reported plan, the Department of Trade shall take the lead, coordinating with the Bureau QLV and TSNN, the Department of Finance to review reasonable working capital needs and report to the Ministry of Finance, the Ministry of Trade for submission to the People's Committee of the province for consideration and supplementary allocation from the central government budget under the form of authorized expenditure for the "investment development expense" item (sub-item 2, Article 31 of the Budget Law) to ensure 50% of the reasonable working capital needs of the enterprise.

Annually, when preparing the budget estimate, the Department of Finance bases on the local government budget revenue capacity (including additional sources from the central government budget) and the working capital situation of enterprises to allocate the expenditure item "supporting working capital for state-owned enterprises" to be submitted to the Provincial People's Committee and reported to the Ministry of Finance.

3.4. Based on the reasonable working capital needs of state-owned trading enterprises operating in mountainous areas, islands, and ethnic minority regions as reported by the Provincial People's Committee, the Ministry of Finance will coordinate with the Ministry of Trade to compile and submit to the Prime Minister for supplementation from the central government budget to the local government budget the expenditure item "supporting working capital for state-owned enterprises engaged in trade activities in mountainous areas, islands, and ethnic minority regions." Upon approval by the Prime Minister, the Ministry of Finance will notify the Provincial People's Committee to implement through the form of "authorized funds."

V. MANAGEMENT OF POLICY COMMODITY RESERVES 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.

(3) Student notebooks.

(4) Medicines for treatment (specific list according to the regulations of the Ministry of Health).

Depending on the specific circumstances of each locality, the Provincial People's Committee may supplement essential commodities that must be reserved in particularly difficult areas (Zone III).

2. State-owned trading enterprises responsible for supplying policy commodities as stipulated in Point 1 shall be allocated sufficient budgetary reserves for local government commodity reserves. The amount of capital allocated (after deducting the working capital already supplemented) shall meet the circulation reserve requirement for policy commodities, equivalent to the consumption demand for such commodities of the population within the service area for an average period of 2 to 3 months. Depending on the situation in each region, the Provincial People's Committee shall specify the appropriate reserve period based on local conditions.

3. Enterprises allocated capital shall be responsible for using it to establish circulation reserves for policy commodities. The organization of circulation reserves must meet the requirements for each commodity, in each area, and at each time point. Enterprises can proactively organize circulation reserves in accordance with the specific conditions of each regional zone (I, II, III) and the characteristics of goods and consumption demands.

During periods such as flood season, Tet holiday, festivals, and areas with particularly difficult transportation, the actual demand requires higher levels of commodity reserves than the average reserve level. Enterprises have the responsibility to mobilize other sources of capital (credit capital or self-owned working capital) for reserves. Outside these periods and areas, enterprises may temporarily use part of the reserve capital for other commodity trading and must promptly return it to ensure policy commodity reserves, guaranteeing adequate supply to meet the people's needs.

4. The Provincial People's Committee shall specify the quantity of commodities and corresponding capital for each commodity reserve in each region (I, II, III), the reserve period, and the mobilization of policy commodity reserve capital for business needs during suitable periods.

5. Enterprises allocated capital shall be exempted from revenue generated from the use of capital for policy commodity reserves in mountainous areas.

6. Policy commodity reserve capital shall be managed like working capital and preserved according to the financial management and business accounting regulations for state-owned enterprises issued under Government Decree No. 59/CP dated October 3, 1996, and Circular No. 75/TC/TCDN dated November 12, 1996 of the Ministry of Finance.

Every six months, enterprises allocated reserve capital must report to the General Department of Administration and Statistics and the Department of Commerce on the use of policy commodity reserve capital. The General Department of Administration and Statistics will compile and report to the Provincial People's Committee and the Ministry of Finance.

VI. IMPLEMENTATION

1. The Ethnic Minorities and Mountainous Areas Commission shall take the lead in organizing coordination between relevant ministries and provincial people's committees in implementing annual price subsidy and freight subsidy policies, reporting results to the Prime Minister. Continuously monitor, guide, and organize supervision of the implementation of price subsidy and freight subsidy transport policies by localities, ministries, and enterprises using funding. Timely identify and resolve difficulties and report recommendations to the government for necessary measures to ensure policy implementation in accordance with objectives and current management regulations, truly enhancing the effectiveness of the policy in stabilizing people's lives and markets, promoting economic structure transformation, and developing commodity production.

2. The Ministry of Planning and Investment and the Ministry of Finance shall allocate from the central government budget in their annual plans: the subsidy fund for price and freight subsidies according to the objectives of Government Decree No. 20/1998/NĐ-CP dated March 31, 1998, and the expenditure item "supporting working capital for state-owned enterprises engaged in trade in mountainous areas, islands, and ethnic minority regions," to be submitted to the Government for approval. Based on the approved indicators, the plan of the Ethnic Minorities and Mountainous Areas Commission and relevant ministries and departments (after consensus), they shall notify and guide the Provincial People's Committees to implement; coordinate with the Ethnic Minorities and Mountainous Areas Commission, relevant ministries and departments, and provincial people's committees to continuously monitor and organize supervision of the implementation of policies for developing trade in mountainous areas, islands, and ethnic minority regions in accordance with objectives and current management regulations.

3. The Ministry of Trade shall guide localities in utilizing various economic components to participate in trade activities to expand markets, organize commodity exchanges among regions; ensuring that people in these areas can purchase essential goods for production and daily life more conveniently without having to travel too far or pay excessively high prices compared to downstream areas. Coordinate with the Ethnic Minorities and Mountainous Areas Commission, relevant ministries and departments, and provincial people's committees to monitor and resolve difficulties and obstacles in the implementation of freight subsidy and price subsidy policies and policies for traders operating in this region.

4. Provincial People's Committees shall be responsible for directing, organizing the implementation, and periodically or urgently inspecting the implementation of policies for mountainous, island, and ethnic minority areas' trade development; ensuring that residents living and operating within the area truly benefit from such policies, thereby promoting economic and social development. Timely identifying and addressing difficulties and obstacles during the implementation process, and proposing solutions to the Government and relevant ministries and agencies.

5. This Circular takes effect concurrently with the effectiveness of Decree No. 20/1998/NĐ-CP dated March 31, 1998. Specifically, Sections III.4 and III.5.2 of this Circular take effect from January 1, 1999. All Inter-Ministerial Circulars or Circulars issued by the Ministry of Trade, Ministry of Finance, Ministry of Planning and Investment, and the Committee for Ethnic Minorities and Mountainous Areas that conflict with this Circular are hereby abolished.

During implementation, if there are any difficulties or obstacles, they should be promptly reported to the relevant ministries for research and supplementary guidance.