CIRCULAR

Guidelines for Establishing the Foreign Currency Plan for 1977.

The Prime Minister issued Directive No. 206-TTg on May 15, 1976 regarding the construction of the State plan for 1977.

Due to the expansion of trade relations  and forms of cooperation with foreign countries, the calculation of foreign currency revenue potential  as well as the demand for foreign currency expenditure has become increasingly important. Foreign currency balance is one  of the most urgent issues facing our State at present.

In compliance with Directive No. 206-TTg dated May 15, 1976 on the construction of the State plan for 1977, this circular provides guidelines for establishing the foreign currency plan for 1977.

1. It is requested that Ministries and sectors guide their departments to thoroughly implement the spirit of Decree No. 172-CP dated November 1, 1973 and Resolution No. 19CP dated January 29, 1976 of the Council of Ministers concerning matters related to foreign currency management, particularly regarding the "annual plan formulation... including both exports and imports" (Article 7 of Decree No. 172-CP)... "The financial revenue and expenditure project... financial revenue and expenditure and budget estimate projects (including the foreign currency revenue and expenditure plan if applicable) of the sector must be prepared simultaneously with the economic plan" (Clause 26 - Decree No. 172-CP)... "The State Planning Commission guides sectors and levels to implement the following legal decree indicators assigned additionally to enterprises... production volume of goods supplied for export" (Point 5, Section II, Resolution No. 19 - CP).

It is necessary to clearly recognize that the foreign currency plan is a component of the national economic plan and closely linked to the State budget plan; it is a tool for the State to unify the management of all foreign currency revenue and expenditure activities of Ministries, sectors, and units throughout the country.

Relevant departments need to fully mobilize democratic spirit during discussions and plan formulation; raise responsibility to ensure the positivity and stability of the plan, and pay utmost attention to the State's foreign currency balance requirements, based on which they should strive to exploit existing conditions of resources, land, goods, services... and allocate appropriate proportions for exports (tangible and intangible) to secure more foreign currencies.

Have clear directions, allocate investment ratios needed to promote activities (production, business, cooperation...) to contribute to rapidly increasing foreign currency revenues.

Carefully calculate each foreign currency expenditure item to ensure high efficiency. Utilize all potential goods and labor resources, carefully review foreign currency expenditures for non-trade activities and other labor activities (post office, aviation...) to make truly reasonable and economical expenditures, contributing to solving the State's international balance of payments issue effectively.

Base calculations on political tasks, 1977 inspection figures, economic and financial targets, current price and fee standards, and the unified foreign exchange rate table when formulating and consolidating plans.

2. To overcome previous shortcomings and gradually bring the work of formulating the foreign currency plan into a regular pattern, the Ministry of Finance will organize specialized conferences (foreign currency plan for foreign trade, foreign currency plan for non-trade activities...) to discuss with Ministries, sectors, and units the methods of formulating the 1977 foreign currency plan (specific schedules will be announced later).

The schedule for plan formulation was outlined in Directive No. 206-TTg dated May 15, 1976, specifically:

In June-August, basic units formulate the plan.

In July-August, Ministries consolidate and balance the sectoral plan.

By the end of August-September, the State Planning Commission (Ministry of Finance) submits the plan to the Standing Committee of the Council of Ministers.

In September-October, the State Planning Commission (Ministry of Finance) consolidates and balances the plan and submits it to the leadership body.

In November 1976, the Prime Minister officially assigns the plan to Ministries.

The above are the main points to focus on when formulating the 1977 foreign currency plan. During implementation, if there are any difficulties, please report to the Ministry of Finance.