Circular No. 115/2011/TT-BTC guides the construction of plans for revenue collection, expenditure, and the use of a portion of foreign currency to be submitted to the State Budget to balance the foreign currency expenditure needs of the PetroVietnam Group. The document stipulates sources of revenue, expenditure requirements, methods of preparing reports, and responsibilities of related parties.
Scope of application
PetroVietnam Group
Key points
- PetroVietnam Group may use up to 50% of its foreign currency expenditure needs from the foreign currency to be submitted to the State Budget, with the remainder to be self-balanced.
- Foreign currency expenditure requirements include project investment, capital contribution, debt repayment, staff training, representative offices, and related fees.
- Sources of foreign currency revenue include interest from oil and gas operations, recovered costs from oil sales, compensation payments, capital contribution transfers, and other revenues.
- The Group must prepare annual plan reports before December 15th, quarterly reports before the last day of the quarter, and end-of-year reports before January 15th of the following year.
- The Ministry of Finance decides on the amount of foreign currency that the Group can use annually from the foreign currency revenue submitted to the State Budget.
🌐 Social impact of this document
- Positive impact: Helps PetroVietnam Group balance finances, ensuring effective investment and spending activities.
- Negative impact: May impose financial management burdens on the Group if not used effectively.
❓ Frequently asked questions
What is the maximum percentage of foreign currency expenditure needs that PetroVietnam Group can use from the foreign currency to be submitted to the State Budget?
PetroVietnam Group may use up to 50% of its foreign currency expenditure needs from the foreign currency to be submitted to the State Budget.
What does the foreign currency expenditure requirement of the Group include?
Foreign currency expenditure requirements include project investment, capital contribution, principal and interest repayment, staff training, overseas representative offices, and related fees.
How must PetroVietnam Group prepare the plan report?
The Group must prepare annual plan reports before December 15th, quarterly reports before the last day of the quarter, and end-of-year reports before January 15th of the following year.
How does the Ministry of Finance decide on the amount of foreign currency that the Group can use?
The Ministry of Finance decides specifically on the amount of foreign currency that PetroVietnam Group can use annually from the foreign currency revenue submitted to the State Budget after receiving a written agreement from the State Bank.
What must PetroVietnam Group manage and use the retained foreign currency for?
PetroVietnam Group must prepare and report foreign currency revenue and expenditure plans in accordance with regulations; manage and use the retained foreign currency for its intended purposes.
Full text
CIRCULAR
Guidelines for the preparation of plans for revenue, expenditure, and utilization of a portion of foreign currency to be remitted to the State Budget to balance the foreign currency expenditure needs of the Oil and Gas Group Corporation
to balance the foreign currency expenditure needs of the Vietnam Oil and Gas Group Parent Company
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Pursuant to the State Budget Law No. 01/2002/QH11 dated December 16, 2002;
Pursuant to Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government promulgating the Financial Regulations of the Oil and Gas Group Corporation;
Pursuant to Decree No. 44/2010/NĐ-CP dated April 20, 2010 of the Government amending and supplementing certain provisions of the Financial Regulations of the Oil and Gas Group Corporation issued together with Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government;
Pursuant to the Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;
The Ministry of Finance guides the preparation of plans for revenue, expenditure, and utilization of a portion of foreign currency to be remitted to the State Budget to balance the annual foreign currency expenditure needs of the Oil and Gas Group Corporation as stipulated in Clause 3, Article 1 of Decree No. 44/2010/NĐ-CP dated April 20, 2010 of the Government as follows:
Article 1. Scope and Applicability
1. This Circular guides the preparation and reporting of plans for revenue, expenditure, and utilization of a portion of foreign currency to be remitted to the State Budget to balance the annual foreign currency expenditure needs of the Oil and Gas Group Corporation.
2. This Circular does not apply to the foreign currency expenditure requirements of subsidiaries under the Oil and Gas Group Corporation; associated companies with the Oil and Gas Group Corporation and scientific enterprises, training organizations, and other organizations managed by the Oil and Gas Group Corporation.
Article 2. Annual foreign currency expenditure requirements of the Oil and Gas Group Corporation
1. Expenditure in foreign currency for investment in projects where the Oil and Gas Group Corporation is the main investor and directly implements or assigns to subsidiaries through service contracts.
2. Capital contribution in foreign currency to projects that the Oil and Gas Group Corporation directly manages or participates in capital contribution according to Petroleum/Consortium contracts.
3. Payment of principal, interest, and fees on foreign currency loans for investment in projects mentioned in Clauses 1 and 2 of this Article; payment of principal, interest, and fees on foreign currency loans previously borrowed by the Oil and Gas Group Corporation which are now due for repayment.
4. Training expenses for Oil and Gas Group Corporation staff abroad, payment for housing rent, salaries for dispatched staff abroad, and foreign travel expenses.
5. Expenses for representative offices of the Oil and Gas Group Corporation abroad.
6. Annual membership fees and fees for international forums and associations that the Oil and Gas Group Corporation participates in.
7. Consulting fees from foreign companies.
Article 3. Annual foreign currency revenue sources of the Oil and Gas Group Corporation
1. Revenue from petroleum contracts includes:
a) Interest from petroleum activities of the host country, revenue from reading and using petroleum documentation left behind as provided for in Clause 4, Article 18 of Decree No. 142/2007/NĐ-CP dated September 5, 2007 of the Government;
b) Recovery costs oil, post-tax profits from petroleum operations shared with the corporation as the contractor from domestic and international petroleum contracts;
c) Compensation from contractors for failing to meet minimum commitments, revenue from transferring equity contributions from petroleum contracts;
d) Other foreign currency revenues from petroleum contracts.
2. Foreign currency loan capital for investment in projects mentioned in Clauses 1 and 2 of Article 2 of this Circular.
3. Other foreign currency revenues of the Oil and Gas Group Corporation.
Article 4. Establishing and reporting plans for foreign currency revenue and expenditure and the need to use a portion of foreign currency that must be submitted to the State Budget to balance the foreign currency expenditure needs of the Vietnam Oil and Gas Group:
1. Annually, in cases where the Government does not have other regulations, if the amount of foreign currency revenue specified in Article 3 is insufficient to meet the foreign currency expenditure needs specified in Article 2 of this Circular, the Vietnam Oil and Gas Group may use a portion of the foreign currency that must be submitted to the State Budget to balance its foreign currency expenditure needs, but the maximum amount shall not exceed 50% of the foreign currency expenditure needs of the Group; the remaining shortfall must be balanced by the Vietnam Oil and Gas Group according to the prescribed regulations.
The Ministry of Finance decides specifically on the amount of foreign currency that the Vietnam Oil and Gas Group is allowed to use annually from the foreign currency revenue submitted to the State Budget after obtaining a written consensus from the State Bank.
2. The Vietnam Oil and Gas Group establishes and reports to the Ministry of Finance and the State Bank of Vietnam on the plan for foreign currency revenue and expenditure and the need to use a portion of the foreign currency that must be submitted to the State Budget annually and quarterly, which are sent to the Ministry of Finance and the State Bank of Vietnam, including:
- The annual plan report is established and sent before December 15 of the reporting year. The content of the report needs to evaluate the implementation situation of the reporting year, forecast the planning year, accompanied by specific figures and explanatory documents.
- The quarterly plan report is sent no later than the 25th day of the last month of the previous quarter. The content of the report needs to evaluate the implementation situation in the quarter, forecast the next quarter's plan, accompanied by specific figures and explanatory documents.
- At the end of the year, a report on the use of the remaining foreign currency must be submitted no later than January 15 of the following year.
3. Based on the ability to balance foreign currency in the State Budget and the foreign currency expenditure needs of the Vietnam Oil and Gas Group, the Ministry of Finance will consider, decide, and notify the Vietnam Oil and Gas Group about the ability to balance the use of a portion of the foreign currency that must be submitted to the State Budget annually, no later than January 30 each year and quarterly no later than the 10th day of the first month of the quarter.
The portion of foreign currency retained can only be used for investment in key projects approved by competent authorities.
4. The amounts of revenue submitted to the State Budget corresponding to the foreign currency retained for the Vietnam Oil and Gas Group to use as mentioned above shall be converted into Vietnamese dong at the average inter-bank exchange rate at the time of submission.
Article 5. Responsibilities of agencies
1. The Vietnam Oil and Gas Group is responsible for establishing and reporting plans for foreign currency revenue and expenditure and the need to use a portion of the foreign currency that must be submitted to the State Budget to balance the foreign currency expenditure needs of the Vietnam Oil and Gas Group as stipulated in Clause 3 of Article 4 of this Circular; implementing management and use of the retained foreign currency for the intended purpose.
2. The Ministry of Finance is responsible for notifying the Vietnam Oil and Gas Group of the amount it is allowed to use from the foreign currency that must be submitted to the State Budget annually and quarterly as stipulated in Clause 4 of Article 4 of this Circular; inspecting and supervising the use of the retained foreign currency by the Group.
During the implementation process, in case there are significant fluctuations in foreign currency revenues and expenditures of the State Budget and the Vietnam Oil and Gas Group, the Ministry of Finance will review and adjust the total amount of foreign currency that the Group is allowed to use throughout the year from the foreign currency that must be submitted to the State Budget.
Article 6. Implementation Organization
1. This Circular shall take effect 45 days from the date of signature.
2. During the implementation process, if there are any difficulties, the Vietnam Oil and Gas Group should promptly reflect them to the Ministry of Finance for resolution.
DEPUTY MINISTER
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