Circular No. 111/1999/TT-BTC guiding the financial regime for the State Bank of Vietnam

CIRCULAR

Guidelines for implementing financial regulations concerning Vietnamese workers and experts going abroad for a limited period pursuant to Decree No. 152/1999/NĐ-CP dated September 20, 1999 of the Government.

State Bank of VietnamGranite, gabbro, decorative stone...

Pursuant to Decree No. 100/1998/NĐ-CP dated December 10, 1998 of the Government on the financial regime of the State Bank of Vietnam, after reaching consensus with the State Bank of Vietnam, the Ministry of Finance hereby guides implementation as follows:

I. GENERAL PROVISIONS

1. This Circular applies to the State Bank of Vietnam (hereinafter referred to as SBV), including: the Central SBV; provincial and centrally-administered city branches of the SBV; domestic and foreign representative offices; affiliated units of the SBV comprising: Banking Times, Banking Magazine, Credit Information Center, Publicity and Press Center, Management Board for International Credit Projects.

The Banking Academy and affiliated enterprises of the SBV are not within the scope of regulation of this Circular and shall implement financial management regimes according to general regulations of the State for public institutions and state-owned enterprises.

2. Financial revenues and expenditures of the SBV shall be implemented in accordance with the Law on State Budget and the Law on the State Bank of Vietnam. The SBV may use its revenues to cover its operational expenses. After setting aside funds according to the provisions of the Law on the State Bank of Vietnam, Decree No. 100/1998/NĐ-CP dated December 10, 1998 of the Government on the financial regime of the State Bank of Vietnam, and specific provisions of this Circular, the remaining amount shall be remitted to the State Budget.

3. The SBV is exempt from taxes on its banking business activities and services.

4. The Governor of the SBV is responsible before the Government for planning financial revenues and expenditures and implementing financial management regulations stipulated in Decree No. 100/1998/NĐ-CP dated December 10, 1998 of the Government on the financial regime of the State Bank of Vietnam and specific guidelines set forth in this Circular.

5. The Ministry of Finance performs state management functions over finance, managing the finances of the SBV through reviewing, consolidating plans, and inspecting and auditing financial revenue and expenditure activities of the SBV.

II. PROVISIONS ON CAPITAL, FUNDS AND ASSETS

1. The SBV is responsible for strictly managing, using rationally, for appropriate purposes, and ensuring safety for capital, funds, and state assets under its management, specifically:

1.1. Statutory Capital: The statutory capital of the SBV is 50,000 billion VND (fifty thousand billion VND) from state capital sources.

The SBV shall coordinate with the Ministry of Finance to determine the current state capital sources managed by the SBV that can be included in the statutory capital of the SBV. The shortfall between the current capital and the initial statutory capital level as prescribed shall be supplemented annually from the following sources:

- Capital for purchasing fixed assets, equipping technical and IT equipment, and securing vaults, recorded as annual expenses according to regulations.

- Capital for basic construction projects provided annually by the state.

Any changes to the statutory capital level shall be decided by the Prime Minister based on proposals from the Governor of the SBV and the Minister of Finance.

1.2. Capital for Basic Construction and Fixed Asset Purchases:

- Annual capital for basic construction and fixed asset purchases of the SBV shall be formed from the following sources:

+ Depreciation of fixed assets.

+ State-provided capital for basic construction according to the state plan.

+ A portion of annual expenses equal to 12% of the average value of fixed assets in the year.

+ Proceeds from the liquidation or sale of fixed assets after deducting liquidation or sale costs (if applicable).

+ Other lawful sources as prescribed by the state.

All construction and fixed asset procurement activities of the SBV must be carried out within the approved budget for basic construction in the year. Investment in basic construction and fixed asset purchases by the SBV must comply with state regulations on investment and construction management.

Unspent capital for basic construction in the year shall be combined into the capital for basic construction to be used in the following year.

1.3. The SBV is responsible for managing and using properly the funds issued into circulation, as approved by the Government, to implement monetary policy.

1.4. Deposits from credit organizations and the National Treasury.

1.5. Borrowed capital from international organizations, the government, and foreign credit institutions.

1.6. Other capital such as exchange rate differences, price differences due to revaluation of foreign currency, gold, and assets.

1.7. The SBV shall strictly manage the state's gold, foreign currency reserves, using them for monetary policy objectives and to ensure international payment capabilities. The gold and foreign currency reserve fund shall be replenished according to the Prime Minister's Decision. Quarterly, the SBV reports on the use of these funds to the Government and the Ministry of Finance.

1.8. The national monetary policy fund and risk reserve fund of the SBV are state capital assigned to the SBV for management and use. Annually, the SBV shall allocate 10% of the surplus from revenues and expenditures to supplement the national monetary policy fund. The national monetary policy fund shall be operated by the Governor of the SBV according to annual targets approved by the Government to serve the implementation of the national monetary policy. The risk reserve fund shall be established and used according to specific guidelines in this Circular.

1.9. Other capital and funds serving the operational activities of the SBV.

2. The SBV shall not invest capital or purchase shares in credit organizations or other enterprises.

3. The SBV shall conduct revaluation of asset values in the following cases:

- Inventory and revaluation of asset values according to decisions by competent state authorities.

- Transfer or sale of assets to organizations outside the SBV.

Asset inventory and revaluation shall be conducted in accordance with state regulations. Increases or decreases in asset values due to revaluation shall be recorded as increases or decreases in state capital.

4. Transfer, liquidation, or sale of SBV assets shall be carried out as follows:

4.1. The transfer of state assets at the SBV shall be carried out in accordance with Decree No. 14/1998/NĐ-CP dated March 6, 1998 of the Government on state asset management and other relevant regulations.

4.2. The purchase, liquidation, sale of motor vehicles, ships, means of transportation, machinery, and equipment for work needs shall be decided by the Governor of the State Bank of Vietnam. The State Bank must appraise the assets and organize auctions in accordance with the provisions of the Law.

4.3. The difference between the amount received from the liquidation and sale of assets and the costs of liquidation and sale (if any) shall be recorded in the sources of investment capital for construction and fixed asset purchases.

5. Losses of assets at the State Bank must be determined by the Loss Review Council established by the Governor of the State Bank. The Council shall prepare a record clearly stating the cause, extent of loss, and report to the Governor of the State Bank for consideration and decision on handling according to the following principles:

- If due to subjective reasons, the person responsible must bear the responsibility for compensation.

- If due to objective reasons, for assets that have been insured, the insurance organization shall compensate.

- Remaining losses (after deducting the compensation amount from the person responsible and the compensation from the insurance organization) shall be recorded as expenses.

- In cases of asset losses due to force majeure such as natural disasters, fires, enemy attacks..., before recording as expenses, the State Bank shall report in detail the extent of the loss and propose solutions for the Ministry of Finance to consider and resolve within its authority; if beyond its authority, the Ministry of Finance shall submit to the Prime Minister for consideration and decision.

All cases of asset losses and surpluses must clarify the causes, determine responsibilities, handle the losses, and be fully recorded and reported in the annual settlement.

6. The write-off of principal loans granted by the State Bank to customers shall be carried out in accordance with the Decision of the Prime Minister based on the proposal of the Ministry of Finance - State Bank of Vietnam.

7. The capital and state assets at the State Bank must be inventoried at the end of each year on December 31. Any discrepancies in physical inventory and value must be handled in accordance with the regulations of the State.

III. PROVISIONS ON MANAGEMENT OF INCOME AND EXPENSES

A. PRINCIPLES:

- The State Bank is responsible for accurately and timely recording all income and expenses in accordance with the laws on Accounting and Statistics and the Charter of State Accounting Organization. The State Bank records income and expenses on a cash basis (actual receipts and actual expenditures).

- All revenues and expenditures must have invoices or vouchers as prescribed by the State.

- Foreign currency and gold transactions must be converted into Vietnamese Dong. Foreign currency transactions are converted into Vietnamese Dong at the average inter-bank foreign exchange rate published by the State Bank at the time of economic transactions to be recorded in income and expense accounts.

- Exchange rate differences arising during the period from the foreign exchange trading activities of the State Bank shall be recorded as income or expenses in the current year; Exchange rate differences from revaluation of foreign currency balances at the end of the period shall not be recorded as expenses or income but shall be recorded as increases or decreases in capital.

- Reduction, exemption, and refund of interest revenue of the State Bank shall be implemented according to the decisions of the competent authority and must be fully recorded in the financial settlement report.

B. CONTENT OF FINANCIAL INCOME AND EXPENSES

1. Income of the State Bank includes all revenues from its business operations, including:

- Income from credit operations: Interest on rediscounting; interest on loans; interest on deposits; guarantee fees;

- Income from open market operations: Including revenues from treasury bill buying and selling, certificate of deposit, State Bank bills, and other short-term negotiable instruments in the money market.

- Income from foreign exchange trading (foreign currencies and gold) as stipulated.

- Income from payment services, information, and cash reserves.

- Interest income from investments in international organizations.

- Income from currency destruction.

- Other banking service revenues;

- Revenues from fees and charges. Specifically, fees and charges under the State Budget shall be implemented in accordance with Decree No. 04/1999/NĐ-CP dated January 30, 1999, of the Government and guiding documents issued by the Ministry of Finance.

- Banking operation revenues: Excess reserve; penalties for breach of economic contracts; income from the liquidation of labor tools and easily damaged items; recovered debts previously written off; income from publishing magazines, documents, press...

- Other income.

2. Expenses of the State Bank include all expenditures incurred to maintain its business operations, recorded in the expense account and in accordance with this Circular, including:

2.1. Banking operations and service expenses:

2.1.1. Interest payments on deposits, interest payments on loans, expenses related to foreign exchange trading (foreign currencies and gold), and open market operations expenses.

2.1.2. Expenses for printing, minting, storage, transportation, delivery, issuance, recall, replacement, and destruction of currency and substitute payment instruments.

Includes:

- Printing and minting expenses for currency and substitute payment instruments.

- Storage, transportation, and destruction expenses for currency.

These expenses are implemented as follows:

a. Expenses for designing currency models, making prototype plates, and special expenses serving strategic national tasks shall be decided by the Governor of the State Bank.

b. The unit price of printed currency products shall be approved annually by the Joint Ministry of the State Bank - Ministry of Finance. Based on the approved unit price and signed printing contracts, the State Bank shall pay for the purchased products to the printing factory according to the product receipt vouchers for accounting purposes.

c. When the State Bank purchases paper for printing from domestic and foreign production units, payment shall be made based on signed contracts and valid vouchers. Paper purchasing expenses shall be recorded on the "Raw Material Inventory" account and gradually allocated to bank expenses each time the bank pays for printed currency products.

d. Currency protection expenses: Including expenses for:

- Allowances provided according to regulations for security guards, warehouse protection, escorting money, gold, precious stones, substitute payment instruments, fire prevention, and anti-intrusion...

- Expenses for counterfeit currency prevention work.

The annual budget for currency protection expenses shall be prepared and explained by the State Bank in its annual financial plan.

e. Transportation and loading/unloading expenses: Including expenses for:

- Fuel expenses for transportation vehicles.

- The transportation means rental expenses are settled according to the contract signed with the service provider.

- Loading and unloading expenses at ports, stations, airports... are settled according to the contract signed with the service provider. Expenditure exceeding the loading and unloading rate for goods entering and leaving the warehouse as prescribed by the State Bank of Vietnam shall be approved by the Ministry of Finance.

e. Expenses for materials used in counting, sorting, and packaging money: the value of materials actually used during the year (wrapping materials, binding wires, adhesive...) shall be settled and settled according to the rate prescribed by the State Bank of Vietnam.

h. Expenses for money destruction: The rates for money destruction work such as allowances for staff participating in the destruction work, material costs for the destruction work... shall be decided by the Governor of the State Bank of Vietnam. However, the allowance for staff participating in the destruction of money must be approved by the Ministry of Finance.

2.1.3. Expenses for payment services and information.

2.2. Expenses for State Bank of Vietnam staff, civil servants, officials, contractual employees, and rewards and welfare.

Includes:

- Salaries and allowances for State Bank of Vietnam staff, civil servants, and officials shall be settled according to the prescribed system.

- Lunch expenses for State Bank of Vietnam staff, civil servants, and officials present for work during the year shall be decided by the Governor of the State Bank of Vietnam but the monthly expense per person shall not exceed the minimum wage stipulated by the State for civil servants. (For the year 1999, lunch expenses for State Bank of Vietnam staff, civil servants, and officials present for work during the year shall be 150,000 VND/person/month).

- Uniform expenses for State Bank of Vietnam staff, civil servants, and officials shall be settled according to the annual budget plan for each staff member, civil servant, and employee of the State Bank of Vietnam. The annual uniform expense rate shall be prescribed by the Ministry of Finance.

- Protective equipment expenses apply to individuals provided protective equipment according to the current state regulations.

- Regular and extraordinary rewards and welfare expenses for groups and individuals of State Bank of Vietnam staff, civil servants, and officials. The total annual expenditure for these two items shall equal the total actual salary fund implemented in the year. Reward expenditures include:

+ Rewards according to the state regulations.

+ Regular and extraordinary rewards according to the regulations of the Governor of the State Bank of Vietnam.

- Rewards for groups and individuals from sectors that have made outstanding contributions to the Bank: this expenditure annually shall not exceed half a month's actual salary of the State Bank of Vietnam. The target, form, and specific amount of rewards shall be decided by the Governor of the State Bank of Vietnam.

2.3. Contributions according to salary: social insurance, health insurance, trade union fees, and other contributions according to the prescribed system.

2.4. Support expenses for Party activities and mass organizations' activities according to state regulations (excluding expenses supporting trade unions at the industry level, local level, social organizations, and other agencies).

2.5. Hardship allowances and termination allowances: the target and expenditure levels shall be implemented according to state regulations.

2.6. Expenses for management and public service activities:

These expenses are implemented according to the principle:

- The level of expenditure for each type of expenditure is carried out according to the state-regulated regime;

- The total annual management and public service activity expenditure of the State Bank of Vietnam calculated based on the average number of staff, civil servants, and officials of the State Bank of Vietnam per year shall not exceed 16 million VND/person/year.

Public service activity expenses include:

a. Office supplies expenses.

b. Postal and communication expenses:

The provision of office phones at home and mobile phones for relevant personnel shall be carried out according to current State regulations.

The provision of telephones at the private residences of individuals according to the current state regulations for administrative and public service units. In cases where, due to the special nature of the State Bank of Vietnam's operations, additional telephones need to be installed for certain individuals beyond the state regulations to serve operational needs such as security for the warehouse, transporting money... then the State Bank of Vietnam must submit a written request to the Ministry of Finance and implement after approval by the Ministry of Finance.

c. Electricity, water, health, and office sanitation expenses.

d. Fuel expenses:

- Fuel purchase expenses for transportation serving staff, civil servants, and officials on business trips and leaders traveling according to state regulations.

e. Travel expenses:

Travel expenses for staff, civil servants, and officials on domestic and international business trips shall be settled according to the current regulations of the Ministry of Finance.

f. Reception and ceremonial expenses:

Including expenses for organizing conferences, receiving foreign and domestic guests; expenses for organizing meetings to celebrate major anniversaries.

These expenses shall be implemented according to the current regulations of the Ministry of Finance within the approved annual financial plan.

g. Expenses for inspection and auditing of the State Bank of Vietnam according to the prescribed regulations.

h. Training, professional instruction, and scientific research expenses including:

- Expenses for organizing short-term training, enhancement, and professional instruction classes, computer, and language courses for State Bank of Vietnam staff, civil servants, and officials.

- Expenses for purchasing materials, printing, and translating materials for training, enhancement, and professional instruction, and research.

- Expenses for organizing scientific conferences.

- Research project expenses.

- Research and drafting legal documents.

- Implementing and applying banking science and technology.

- Education support expenses (this expenditure shall be implemented after approval by the Ministry of Finance).

- Other expenses as prescribed by the State Bank of Vietnam (if any).

Training, professional instruction, and scientific research expenses for the State Bank of Vietnam shall be based on the total approved annual financial plan. The training, professional instruction, scientific conference, and research plans shall be decided and approved by the Governor of the State Bank of Vietnam. Expenditures shall be carried out according to state regulations within the approved budget limits.

i. Expenses for innovation and technical improvement initiatives.

k. Expenses for literature, books, magazines, libraries, propaganda, and advertising including:

- Publishing expenses for magazines, newspapers, bulletins, and professional materials.

+ Royalty payments for authors according to general regulations.

+ Printing expenses settled according to the contract with the printing facility.

The publication plan for magazines, newspapers, bulletins, and banking professional materials must be approved by the Governor of the State Bank of Vietnam and included in the annual financial plan.

- Book and newspaper purchase expenses...

- Propaganda and advertising expenses. Advertising expenses shall be based on the advertising contract between the advertiser and the State Bank of Vietnam.

2.7. Expenses for assets at the State Bank of Vietnam include:

- 固定资产折旧

- Repair and maintenance expenses for assets.

- Small construction expenses.

- Purchase and supply expenses for labor tools.

- Asset rental expenses.

a. Depreciation of fixed assets:

- The depreciation of fixed assets of the State Bank of Vietnam shall be applied according to the regulations of the state for state-owned enterprises.

- Monthly, based on the value of fixed assets subject to depreciation and the prescribed depreciation rate, the State Bank of Vietnam shall accurately and fully record the amount of depreciation of fixed assets that must be recorded and account for it as bank expenses. The annual depreciation of fixed assets recorded by the State Bank of Vietnam shall be centrally managed at the Central State Bank.

b. Repair and maintenance costs for assets: this is the actual expenditure in the year for this purpose and shall not exceed 5% of the average value of fixed assets during the year. Costs for completed repair and maintenance work shall not be accounted for as an increase in asset value.

c. Small construction expenditures: small construction expenditures recorded as expenses may only be implemented for auxiliary works constructed to supplement main works currently in use such as fences, courtyards, gates, permanent offices, security houses, bathrooms, kitchens, parking garages, water tanks, wells, internal office roads, drainage channels, etc. For new projects, these auxiliary works cannot be separated from the main works but must be funded through basic construction investment funds. Small construction funds shall not be used to construct works funded by basic construction investment such as office buildings from level 4 upwards.

d. Expenditure on purchasing labor tools.

The total annual expenditure on purchasing labor tools of the State Bank of Vietnam calculated based on the average number of staff members of the State Bank of Vietnam in a year shall not exceed 2.2 million VND per person per year.

e. Lease expenses: this is the amount of expenditure for leasing assets based on the lease agreement between the lessor and the State Bank of Vietnam.

2.8. Expenditure on technical business development and banking technology: annually, the State Bank of Vietnam is allowed to spend and account for up to 12% of the average value of fixed assets in the year to supplement the capital for purchasing fixed assets, equipping technical and computer equipment, and ensuring safekeeping. This expenditure is managed and utilized according to the regulations of the State on basic construction investment.

2.9. Provision for risk reserves

- Annually, the State Bank of Vietnam is allowed to set aside a risk reserve from operational banking expenses equal to 10% of total income minus expenses not including the risk reserve expense.

- The risk reserve can be used according to the Decision of the Governor of the State Bank of Vietnam to offset losses from credit activities, payment services, and treasury operations during the course of operation due to external factors and the difference in losses after compensation by individuals or groups according to the provisions of the Law. For losses caused by internal factors: The degree of damage caused by each party must be determined to compel compensation (if caused by an individual) or deducted from the welfare and reward fund of the State Bank of Vietnam (if caused by a group).

Any unused portion of the risk reserve of the State Bank of Vietnam in a year can be carried over to the next year for continued use. In cases where the reserve is insufficient to cover losses, the State Bank of Vietnam and the Ministry of Finance will propose measures to address the shortfall to the Prime Minister.

2.10. Other expenditures include those arising during the course of operations and not covered by the above regulations, mainly including the following:

- Expenditures for the recovery of written-off debts.

- Losses after compensation from the sources specified in Point 5, Part II of this Circular.

- Expenditures for the preservation of records, vouchers, accounting books, and documents.

- Tax and fee payments (excluding taxes and fees when purchasing fixed assets that must be recorded as part of the asset's value according to state regulations).

- Insurance expenses for vehicles;

- Other expenditures arising in reality and supported by valid documentation.

3. Expenditures recorded in the State Bank of Vietnam's expenses must be legitimate and legal expenditures in accordance with established regulations. The State Bank of Vietnam shall not record the following items as expenses:

- Penalties payable to the state or customers due to material losses caused by the State Bank of Vietnam's subjective reasons during the execution of banking operations.

- Expenditures for basic construction investment, procurement, renovation, and upgrading of fixed assets funded by basic construction investment and procurement of fixed assets.

Expenditures for constructing, repairing, maintaining, and equipping welfare assets such as housing and rest houses for staff of the State Bank of Vietnam; expenditures for other welfare projects.

- Expenditures supporting localities, social organizations, and other agencies.

- Expenditures from other funding sources.

IV. DISTRIBUTION OF INCOME AND EXPENSE DIFFERENCES AND PAYMENT INTO THE STATE BUDGET

AND DEPOSIT INTO THE STATE BUDGET

1. The income and expense differences of the State Bank of Vietnam are determined at the end of the fiscal year and are calculated using the formula:

Income and Expense Difference = Income - (Reasonable and Legal Expenses + Risk Reserve Amount)

The income and expense differences of the State Bank of Vietnam are distributed in the following sequence:

- National Monetary Policy Implementation Fund: 10% of the income and expense difference.

- The remaining difference is paid into the State Budget.

2. The State Bank of Vietnam has the responsibility to fully and promptly pay the entire income and expense difference required to be paid annually according to the financial settlement report approved by the Governor of the State Bank of Vietnam and confirmed by the State Audit Agency.

Quarterly, the State Bank of Vietnam temporarily pays 60% of the actual income and expense difference of the quarter into the State Budget, the remainder will be paid into the State Budget after the annual financial settlement report has been approved by the Governor of the State Bank of Vietnam.

3. In the case where the State Bank of Vietnam incurs a loss (income is insufficient to cover expenses) due to performing its functions of state management over currency, credit, and banking, the Ministry of Finance will conduct an inspection and report to the Prime Minister for handling.

V. FINANCIAL PLANNING, FINANCIAL REPORTS, AND REGULATIONS ON ACCOUNTING, SETTLEMENT, AUDIT, AND FINANCIAL INSPECTION

1. The fiscal year of the State Bank of Vietnam begins on January 1st and ends on December 31st of the Gregorian calendar year.

2. Financial planning:

a. The State Bank of Vietnam prepares an annual financial plan in accordance with the guidelines of the Ministry of Finance. The State Bank of Vietnam's financial plan includes the following components:

- Income and expenditure plan (accompanied by detailed explanations on each income and expenditure item and specific budgeted spending levels expected for the planning year).

- Basic construction and fixed asset acquisition plan (accompanied by detailed explanations on planned basic construction, fixed asset acquisitions, and balancing funding sources).

- Staffing - salary - income plan.

b. The State Bank of Vietnam shall submit to the Ministry of Finance its annual financial plan for the Ministry of Finance to review and consolidate for submission to the Government. Approval and notification of the financial plan for the State Bank of Vietnam to implement shall be carried out in accordance with the general regulations of the Government. The approved financial plan shall serve as the basis for the State Bank of Vietnam to implement and approve the annual financial settlement.

During the fiscal year, if unforeseen external changes require adjustments to the annual financial plan, the State Bank of Vietnam shall coordinate with the Ministry of Finance to submit to the Prime Minister for decision.

3. Accounting Entries

- The State Bank of Vietnam shall carry out accounting and auditing work in accordance with the provisions of the Law on the State Bank of Vietnam, accounting laws and regulations, and other current state regulations on accounting and auditing.

- The State Bank of Vietnam shall fulfill all the provisions of the accounting system applicable to the State Bank of Vietnam, including general legal provisions, accounting voucher systems, accounting account systems, accounting ledger systems, financial reporting systems...

4. Financial Reporting

- The State Bank of Vietnam shall complete the annual financial settlement and comply fully with the regulations on financial reporting regarding the preparation and submission to the Ministry of Finance in accordance with the Accounting and Statistics Laws and specific provisions set forth in this Circular.

- The financial report submitted to the Ministry of Finance includes:

a. Quarterly reports sent to the Ministry of Finance no later than twenty days after the end of each quarter, including:

- Report on the implementation of income and expense plans.

- Explanation of the situation regarding the implementation of income and expense plans.

- Report on the status of fluctuations in national gold, silver, and foreign currency reserves, the fund for implementing national monetary policy, and risk reserve funds.

b. Annual financial reports sent to the Ministry of Finance no later than forty-five days after the end of the fiscal year, including:

- The annual accounting balance sheet and asset summary table.

- Implementation of annual income and expense plans.

- Explanation of the situation regarding the implementation of annual income and expense plans and recommendations for financial handling.

- Report on the status of fluctuations in national gold, silver, and foreign currency reserves, the fund for implementing national monetary policy, and risk reserve funds.

The annual financial settlement report of the State Bank of Vietnam must be audited and confirmed by the National Audit Office. The audit results shall be reported to the Prime Minister and notified to the Ministry of Finance.

5. Financial Inspection:

The Ministry of Finance's financial inspection of the State Bank of Vietnam includes:

- Regular or surprise financial inspections.

- Special topic inspections based on financial management requirements.

- In cases where violations of financial discipline occur across multiple branches and subordinate units of the State Bank of Vietnam, and the data in the annual settlement report is not sufficiently reliable, the Ministry of Finance shall report to the Prime Minister and request the National Audit Office to re-examine and verify the settlement data for the year.

VI. IMPLEMENTATION

1. The State Bank of Vietnam is responsible for guiding basic units to organize the implementation of the financial system in accordance with the provisions of Government Decree No. 100/1998/NĐ-CP dated December 10, 1998, on the financial system of the State Bank of Vietnam, and the detailed guidance provided in this Circular.

The State Bank of Vietnam is responsible for sending internal circulars guiding this Circular to the Ministry of Finance for oversight. The State Bank of Vietnam shall not establish expenditure items that contravene Government Decree No. 100/1998/NĐ-CP dated December 10, 1998, on the Financial System of the State Bank of Vietnam, the specific guidance provided in this document, and other state regulations.

2. This Circular takes effect from January 1, 1999. During the implementation process, if there are any difficulties, the State Bank of Vietnam is requested to reflect them to the Ministry of Finance for research, consideration, and resolution.