Decision No. 11/2014/QD-TTg On the organization and operation of the Vietnam Universal Service Fund for Telecommunications Services

Pursuant to …;

On the organization and operation of the Vietnam Universal Service Fund

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Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Law on Telecommunications dated November 23, 2009;

Based on Decree No. 132/2013/ND-CP dated October 16, 2013 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Information and Communications;

Pursuant to Decree No. 25/2011/NĐ-CP dated April 6, 2011, issued by the Government, detailing and guiding the implementation of certain provisions of the Law on Telecommunications;

At the proposal of the Minister of Information and Communications,

The Prime Minister issues this Decision on the organization and operation of the Vietnam Universal Service Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decision stipulates the organization and operation of the Vietnam Universal Service Fund (hereinafter referred to as the Fund), including: Legal status, functions, tasks, powers, organizational structure, sources of revenue, expenditure content, contribution principles, financial support of the Fund, and the responsibilities of agencies, organizations, enterprises related to the organization and operation of the Fund.

Article 2. Applicability

This Decision applies to the Vietnam Universal Service Fund, agencies, organizations, enterprises, and individuals related to the organization and operation of the Fund.

Chapter II

ORGANIZATION OF THE FUND

Article 3. Legal status of the Fund

1. The Vietnam Universal Service Fund is a state financial organization under the Ministry of Information and Communications, established to implement the State's policy of supporting the provision of universal telecommunications services nationwide.

2. The Fund has legal personality, its own seal, and a separate balance sheet. The Fund opens accounts at commercial banks and the State Treasury. The headquarters of the Fund is located in Hanoi city.

Article 4. Functions of the Fund

1. To perform the function of financial management to provide timely, effective, and purposeful funding for the implementation of the State's policies on providing universal telecommunications services.

2. To coordinate with units of the Ministry of Information and Communications to manage and coordinate the implementation of programs for providing universal telecommunications services.

Article 5. Tasks of the Fund

1. To receive contributions from telecommunications enterprises, grants, and donations from organizations and individuals both domestically and internationally, and other legitimate sources of capital.

2. To provide financial support through the allocation of funds to implement programs, projects, and plans for providing universal telecommunications services.

3. To organize the implementation of the contribution and financial support plan of the Fund effectively and according to schedule.

4. To manage the Fund's revenues, expenditures, and assets in accordance with the law.

5. To inspect and supervise the use of funds supported by the Fund.

6. To carry out financial management, accounting, auditing, and other regulations related to the activities of the Fund.

7. To comply with business, financial, accounting, auditing, and inspection reporting systems for the Fund as prescribed.

8. In cases where necessary, the Fund may entrust certain disbursement operations to the State Treasury in accordance with the law.

Article 6. Powers of the Fund

1. To propose to competent state agencies the issuance, amendment, and supplementation of mechanisms, policies, programs for providing universal telecommunications services, and the organization and operation of the Fund.

2. To request telecommunications enterprises to provide data and documents explaining issues related to their financial contribution obligations to the Fund. To request agencies, organizations, and enterprises to report on the use of funds allocated by the Fund for inspection and supervision as prescribed.

3. To directly engage with domestic and international organizations and individuals to solicit and accept funding for programs, projects, and plans for providing universal telecommunications services.

4. To propose to competent state management agencies:

a) To handle violations by telecommunications enterprises in fulfilling their financial contribution obligations to the Fund.

b) To suspend or recover funds already allocated when it is found that agencies, organizations, enterprises, or individuals receiving such funds have violated regulations on the use of Fund funds.

Article 7. Organizational Structure of the Fund

1. The Fund shall have a Director, Deputy Directors, a Chief Accountant, and an administrative staff. The Director, Deputy Directors, and Chief Accountant shall be appointed and relieved from their positions by the Minister of Information and Communications.

2. The powers, duties, and working relationships of the Director, Deputy Directors, Chief Accountant, and administrative units shall be specifically stipulated in the Charter on the organization and operation of the Fund issued by the Minister of Information and Communications.

Chapter III

 ACTIVITIES OF THE FUND

Article 8. Principles of Operation of the Fund

1. The Fund operates without profit motive, transparency, efficiency, and in accordance with its objectives.

2. Ensure balance between revenue plans and expenditure plans, and align them with the disbursement progress for programs, projects, and initiatives providing public telecommunications services supported by the Fund.

3. Annually, the Fund may allocate a portion of contributions from telecommunications enterprises to cover investment in physical infrastructure, regular operations of the Fund, and management activities of the Public Telecommunications Service Program. The specific allocation rate shall follow the guidelines of the Ministry of Finance but shall not exceed 5% of the total revenue that telecommunications enterprises are obligated to contribute to the Fund according to regulations.

4. The financial regime of the Fund, including salaries, bonuses, and benefits, shall be implemented under the mechanism of self-financing public service units.

5. The Fund is exempted from corporate income tax and value-added tax in accordance with current tax laws.

6. The activities of the Fund shall be subject to audit, inspection, examination, and financial disclosure as prescribed by law.

Article 9. Sources of Revenue and Financial Contribution Principles of the Fund

1. Sources of Revenue of the Fund:

a) Contributions from telecommunications enterprises based on a percentage of revenue from telecommunications services listed in the Telecommunications Services Contribution List pursuant to the decision of

b) Grants and sponsorships from organizations and individuals both domestically and internationally.

c) Other lawful sources.

2. Financial Contribution Principles of the Fund:

a) Telecommunications enterprises participating in the provision of telecommunications services listed in the Telecommunications Services Contribution List pursuant to the decision of

b) The contribution rate to the Fund for services required to contribute revenue as specified in Point c Clause 2 of this Article shall not exceed 5% of the revenue from telecommunications services.

c) Based on state policies, the content and scope of the public telecommunications service program during each period,

d) The amount contributed to the Fund shall be recorded as business expenses of telecommunications enterprises.

Article 10. Content of Expenditure and Financial Support Principles of the Fund

1. The content of expenditure of the Fund includes:

a) Supporting the development of telecommunications infrastructure nationwide, prioritizing broadband multi-service infrastructure in rural areas, especially remote, mountainous, and particularly difficult regions, border areas, islands, and areas where telecommunications enterprises cannot operate effectively under market mechanisms.

b) Ensuring access to telecommunications services for all citizens through public telecommunications service points, particularly in remote, mountainous, and particularly difficult regions, border areas, islands, and places where it is difficult or impossible to deploy access networks due to high investment costs or low affordability of residents.

c) In each period, supporting poor households, near-poor households, social policy families, and other special policy beneficiaries across the country to access public telecommunications services through subsidized rates for telecommunications services provided by public telecommunications service providers or directly to users.

d) According to specific proposals and projects, supporting telecommunications equipment manufacturers to provide equipment to beneficiaries through bidding, ordering, and planning assignments.

đ) Supporting schools, hospitals, and grassroots authorities to connect with telecommunications infrastructure and broadband Internet to apply information technology in education, healthcare, and public administrative services.

e) Supporting the provision and use of telecommunications services in emergency situations, search and rescue operations, disaster prevention and response, and humanitarian assistance.

g) Supporting the implementation of the Digital Terrestrial Television Broadcasting Project.

h) Supporting the assurance of the safety of telecommunications infrastructure.

i) Other expenditure contents as decided by

2. Support Principles

a) Support must ensure the following orientation: - Balance between service supply capacity and service demand of the people, consistent with network development, terminal equipment deployment, application programs, and training for rapid exploitation of investment effectiveness; - Concentrated investment without dispersion, integrated with other infrastructures (transportation, energy, culture, education, health care, etc.) based on maximizing existing postal, telecommunications, and information technology infrastructure, while combining the implementation of telecommunications public service programs with other national programs at the local level.

b) Support shall be carried out based on: - Adequate, timely, and effective capital investment to accelerate network deployment, improve service quality, reduce investment and operational costs; - Not adversely affecting competition, avoiding unreasonable cross-subsidies between services due to subjective reasons of enterprises; - Clearly defining the scope and location of telecommunications infrastructure development to provide public telecommunications services, types, rates, and service quality for different beneficiary groups, consistent with state public telecommunications policies and Fund resources during each period; - Applying neutral technology principles in selecting technical solutions to best meet the service needs of beneficiaries and specific conditions of each area; - Ministries, sectors, and localities shall coordinate with the Ministry of Information and Communications in coordinating, inspecting, and supervising the Fund's financial support and the implementation of public telecommunications service programs.

c) Support method: - For supporting the development of telecommunications infrastructure and terminal equipment, it shall be carried out according to investment projects approved by competent state agencies through the selection of telecommunications enterprises and terminal equipment manufacturers via tendering, ordering, or assigning plans; - For supporting the provision of public telecommunications services, it shall be carried out according to production targets and standards approved by competent state agencies through the selection of telecommunications enterprises via tendering, ordering, assigning plans, or directly to service users.

Article 11. Reporting System

1. The Fund reports on its business activities in accordance with the regulations of the Ministry of Information and Communications.

2. The Fund reports on its financial and accounting matters in accordance with the regulations of the Ministry of Finance.

Chapter IV

IMPLEMENTATION

Article 12. Responsibilities of the Ministry of Information and Communications

1. Issuing the Charter regarding the organization and operation of the Fund.

2. Managing, inspecting, and supervising the operations of the Fund in accordance with the provisions of the law.

3. Establishing the List of telecommunications services, contribution levels to the Fund for each period.

4. Approving the Fund's revenue collection plan and financial support.

5. Approving the final account report of the Fund.

Article 13. Responsibilities of the Ministry of Finance

1. Directing the financial system and accounting work of the Fund.

2. Directing the specific contribution levels of the Fund as stipulated in Clause 3, Article 8 of this Decision to fund capital investment, regular operations of the Fund, and management of the Public Telecommunications Service Program.

3. Directing telecommunications enterprises to record, collect contributions to the Fund in accordance with the regulations.

4. Directing the Fund to return the registered capital of the Fund in accordance with the regulations.

5. Implementing financial inspections and audits of the Fund in accordance with the provisions of the law.

Article 14. Responsibilities of Ministries, sectors, and localities

1. Ministries, agencies at the level of ministries, and agencies under the Government shall manage the Fund in accordance with their functions, tasks, and authorities.

2. People's Committees of provinces and centrally governed cities shall be responsible for coordinating with the Ministry of Information and Communications and the Vietnam Universal Telecommunications Service Fund to participate in inspecting and supervising the use, settlement, and auditing of funds to effectively implement programs and projects providing public telecommunications services within their jurisdiction in accordance with schedules.

Article 15. Responsibilities of the Fund

Organizing the implementation of Fund management in accordance with this Decision and other relevant regulations.

Article 16. Responsibilities of telecommunications enterprises

1. Accurately determining and separately recording revenues from services required to contribute to the Fund in accordance with the guidelines of the Ministry of Finance. Fully and promptly fulfilling the obligation to pay contributions to the Fund as prescribed.

2. Providing complete, timely, and being responsible for the truthfulness and accuracy of the documents provided for the Fund to review and settle funding payments as prescribed.

3. Using the supported funds for the intended purposes and efficiently in accordance with the State's regulations.

4. Fully and promptly implementing reporting requirements as prescribed.

Chapter V

IMPLEMENTATION PROVISIONS

Article 17. Effective Date

1. This Decision takes effect from March 18, 2014.

2. This Decision replaces the organizational and operational provisions set forth in Decision No. 191/2004/QĐ-TTg dated November 8, 2004 of the Prime Minister on the establishment, organization, and operation of the Vietnam Universal Telecommunications Service Fund and Decision No. 186/2007/QĐ-TTg dated December 3, 2007 of the Prime Minister amending Decision No. 191/2004/QĐ-TTg on the establishment, organization, and operation of the Vietnam Universal Telecommunications Service Fund.

Article 18. Implementation Organization

The Minister of Information and Communications; the Minister of Finance; the Ministers, Heads of agencies at the level of ministries, Heads of agencies under the Government, and Chairmen of Provincial People's Committees and Municipal People's Committees under central governance are responsible for enforcing this Decision./.