Decree No. 117/2017/ND-CP on management and use of the State budget for certain foreign affairs activities

DECREE

Regulations on the management and use of state budget for certain foreign activities

for certain foreign activities

   _________________

On the basis of The Law on Archives dated November 11, 2011;

On the basis of The State Budget Law dated June 25, 2015;

On the basis of The Ordinance on Vietnam's Representative Agencies Abroad dated June 18, 2009;

At the proposal of the Minister of Finance;

The Government promulgates this Decree to regulate the management and use of the state budget for certain foreign activities.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree regulates the tasks of revenue collection and expenditure from the state budget for certain foreign activities; the preparation of budgets, implementation, settlement, and public disclosure of budgets for certain foreign activities in accordance with the provisions of the State Budget Law.

Foreign activities of high-level leaders of the Party and State are not within the scope of regulation of this Decree.

Article 2. Applicability

This Decree applies to ministries, ministerial-level agencies, government agencies, other central agencies (hereinafter referred to as ministries and central agencies), provinces, centrally governed cities (hereinafter referred to as localities), and organizations and individuals related to the management and use of the state budget in foreign activities.

Article 3. Explanation of Terms

Vietnamese agencies abroad as defined in this Decree include:

1. Vietnam's representative agencies abroad (hereinafter referred to as Vietnam's representative agencies abroad) are diplomatic missions, consular missions, and agencies at international organizations that officially represent the Vietnamese State in relations with countries, territories, and international organizations in accordance with the Ordinance on Vietnam's Representative Agencies Abroad.

2. Other Vietnamese agencies abroad not part of the organizational structure of Vietnam's representative agencies abroad under ministries and central agencies receiving funds from the state budget or retained income from the state budget according to current laws.

Article 4. Revenue and Expenditure from the State Budget in Foreign Activities

1. Revenue in foreign activities includes: Fees and charges in diplomatic activities; fees and charges related to the rights and obligations of citizens with foreign elements and other revenues as prescribed by law.

2. Expenditure for foreign activities includes: Investment development expenditure, recurrent expenditure, aid expenditure, and other expenditures as prescribed by law.

Expenditures for foreign activities shall be implemented in accordance with current regulations and consistent with the nature, content, and special characteristics of foreign affairs tasks.

Chapter II
TASKS OF EXPENDITURE FROM THE STATE BUDGET FOR FOREIGN ACTIVITIES

Article 5. Tasks of expenditure for foreign activities of the central budget

1. Regular Expenditure:

a) Expenditure for bilateral and multilateral state-level diplomatic activities.

b) Expenditure for negotiation work, participation, signing, and implementation of treaties, agreements on aid, loans, and international agreements.

c) Expenditure to ensure the operation of Vietnamese agencies abroad.

d) Expenditure for activities related to border and national territory work.

đ) Expenditure to protect the interests of the State, the legitimate rights and interests of Vietnamese citizens and legal entities abroad in accordance with Vietnamese and international law.

e) Expenditure to support community work, creating favorable conditions for overseas Vietnamese to stabilize their lives, integrate into the host country's society, maintain the cultural identity of the Vietnamese nation in accordance with the law; expenditure for managing Vietnamese labor working abroad.

g) Expenditure for Vietnam's diplomatic and international integration activities; promoting cooperation, exchanges, understanding, and enhancing friendship in various fields.

h) Expenditure for people-to-people foreign activities of central agencies of mass organizations whose operational costs are guaranteed by the state budget or supported according to the tasks assigned by the State.

i) Expenditure for foreign information dissemination activities and management of foreign press activities.

k) Expenditure for organizing events and activities to introduce, promote goods, services, and labor of Vietnam, promote investment, trade, science and technology, culture, sports, tourism, and foreign information activities abroad.

l) Expenditure for collecting and purchasing valuable economic information; activities to verify and investigate economic partners; activities to mobilize partners, customers, investors, transnational corporations, and large companies in foreign regions and localities to promote trade, investment, tourism, science and technology, and expand the export labor market.

m) Expenditure for rewarding organizations, collectives, and individuals with outstanding achievements in performing state foreign affairs tasks of ministries and central agencies; expenditure for rewarding organizations, collectives, and individuals with outstanding achievements in performing people-to-people foreign affairs tasks of central agencies of mass organizations whose operational costs are guaranteed by the state budget or supported according to the tasks assigned by the State.

n) Expenditure for training and professional development of knowledge and foreign languages for officials, civil servants, and employees engaged in foreign affairs; expenditure for scientific research directly serving advisory and strategic policy forecasting work for the Party and State in foreign affairs.

o) Expenditure for leasing, purchasing, repairing assets, equipment, and transportation means both domestically and abroad to ensure security, safety, confidentiality, and foreign affairs requirements.

p) Expenditure for leasing, repairing, maintaining headquarters, housing, and modernizing material facilities both domestically and abroad to ensure security, safety, confidentiality, and foreign affairs requirements.

q) Expenditure for renovating and upgrading existing material facilities domestically and office buildings, foreign offices, and housing for staff of Vietnamese agencies abroad owned by Vietnam.

r) Expenditure to ensure the operation of administrative machinery serving foreign affairs work of ministries and central agencies.

s) Expenditure for other foreign affairs business activities assigned by the Party and State in accordance with the law.

2. Investment Development Expenditure:

a) Expenditure for construction projects related to national boundary markers.

b) Purchase, construction, renovation, and upgrading of material facilities domestically to serve foreign affairs work.

c) Purchase, construction, renovation, and upgrading of material facilities of Vietnamese agencies abroad.

d) Leasing real estate for long-term leases (over 30 years) to implement investment projects for constructing and renovating offices and residences of Vietnamese agencies abroad.

3. Expenditure on foreign aid pursuant to agreements and commitments with governments.

Article 6. Tasks for expenditure on external activities from local budgets

1. Regular Expenditure:

a) Expenditure on cooperation and exchange activities with foreign countries in politics, national defense, security, economy, culture, and society; serving cultural diplomacy tasks within the responsibilities of the locality.

b) Expenditure on negotiation, participation, signing, and implementation of international agreements within the authority of the locality as prescribed by laws on the conclusion and implementation of international agreements.

c) Expenditure on external activities related to border management and territorial administration tasks within the responsibilities of the locality.

d) Expenditure on people-to-people diplomatic activities of mass organizations at the locality that are guaranteed funding for their operations or supported according to state-assigned tasks.

đ) Expenditure on serving work with overseas Vietnamese; expenditure on protecting the legitimate rights and interests of Vietnamese citizens abroad in accordance with Vietnamese and international laws within the functions and responsibilities of the locality.

e) Expenditure on managing the activities of foreign organizations and individuals in the locality.

g) Expenditure on economic diplomacy work; managing, mobilizing, and receiving non-governmental foreign aid at the locality.

h) Expenditure on external information dissemination activities and managing the activities of foreign journalists' press in the locality.

i) Expenditure on activities serving the recommendation and awarding of state-level and provincial-level commendations to outstanding foreign individuals and organizations working in the locality recognized by the locality; activities serving the acceptance of awards from international organizations and foreign organizations.

k) Expenditure on rewarding organizations, groups, and individuals with outstanding achievements in implementing people-to-people diplomatic tasks of mass organizations in the locality that are guaranteed funding for their operations or supported according to state-assigned tasks.

l) Expenditure on training and enhancing professional knowledge and language skills for officials, civil servants, and employees engaged in external affairs work in the locality.

m) Expenditure on repairing, renovating, and upgrading existing facilities to serve external affairs work.

n) Expenditure on ensuring the operation of the machinery serving external affairs work of the locality.

o) Expenditure on other external affairs tasks as prescribed by law.

2. Investment development expenditure: Construction, renovation, and upgrading of facilities to serve external affairs work.

Chapter III
ESTABLISHING, IMPLEMENTING, SETTLING ACCOUNTS AND DISCLOSING THE STATE BUDGET FOR CERTAIN FOREIGN AFFAIRS ACTIVITIES

Article 7. Establishing, Implementing, Settling Accounts and Disclosing the State Budget for Foreign Affairs Activities

1. This Decree stipulates special contents in the preparation of budget estimates, implementation of budget estimates, accounting, and settlement of accounts for the state budget in foreign affairs activities.

Other provisions regarding the establishment, implementation, accounting, settlement of accounts, and disclosure of the state budget of central agencies and localities not specified in this Decree shall be implemented in accordance with the Government's Decree detailing the implementation of certain articles of the Law on the State Budget.

2. For construction investment projects and procurement of assets, goods, and services to maintain the regular operations of Vietnamese agencies abroad, they shall be carried out in accordance with Vietnamese law and the law of the host country. In cases where there are different regulations on the same issue, the regulations of the host country's law shall apply.

Article 8. Preparation of the State Budget Estimate Annually

1. The State budget estimate must be prepared in accordance with the regulations, reporting forms, and timeframes stipulated by the competent authority and guidelines issued by the Ministry of Finance; it must fully reflect each revenue and expenditure item, including expenditures from retained revenues under the established system; explanations for the basis and calculation methods of each revenue and expenditure item must be provided. For expenditures involving state secrets, they shall be implemented in accordance with current laws on protecting state secrets.

2. Preparation of the State Budget Estimate Annually for Vietnamese Agencies Abroad

a) Based on the five-year financial plan, the three-year national financial and budgetary plan, the medium-term investment plan from the state budget; the Prime Minister's regulations on developing economic and social plans and the next year's state budget estimate; the Ministry of Finance's guidelines on preparing the next year's state budget estimate; the Ministry of Planning and Investment's guidelines on the next year's economic and social development plan and public investment plan; the implementation status of the previous year's budget; the audit results of the state budget estimate announced by the Ministry of Finance and requirements; specific tasks of the supervising agency including those of agencies with dispatched staff at overseas representative offices; the supervising agency of Vietnamese agencies abroad guides these agencies to prepare the next year's budget revenue and expenditure estimates.

Agencies with dispatched staff at overseas representative offices cooperate with the Ministry of Foreign Affairs in guiding overseas representative offices to prepare the next year's budget revenue and expenditure estimates for their specialized fields.

The annual state budget estimate of Vietnamese agencies abroad is prepared in Vietnamese dong converted to US dollars according to the planned exchange rate specified by the Ministry of Finance.

b) Based on the supervising agency's guidelines; specific tasks assigned; budget expenditure standards, norms, and criteria serving as the basis for building the estimate; fluctuations in local prices and the US dollar exchange rate against the local currency; the implementation status of previous years' budget estimates by various parts of Vietnamese agencies abroad, they prepare the next year's state budget revenue and expenditure estimates and submit them to the supervising agency for consolidation. The budget estimate must include detailed explanations for the basis of calculating each revenue and expenditure item.

c) The supervising agency reviews the state budget estimates prepared by subordinate Vietnamese agencies abroad, consolidates them, and prepares the next year's state budget estimate for submission to the Ministry of Finance and the Ministry of Planning and Investment (for development investment allocation) before July 20th annually for consolidation and submission to the competent authority.

Article 9. Allocation and Assignment of the State Budget Estimate

1. Allocation and Assignment of the State Budget Estimate for Vietnamese Agencies Abroad

After being assigned the state budget estimate by the Prime Minister, central ministries and agencies allocate and assign the state budget estimate to subordinate Vietnamese agencies abroad in US dollars converted to Vietnamese dong according to the planned exchange rate specified by the Ministry of Finance based on the following principles:

a) In accordance with the total amount and detailed items of the assigned state budget estimate by sector and revenue and expenditure tasks.

b) In accordance with the policy, standards, and norms for expenditures.

c) Ensuring sufficient funds for the tasks of Vietnamese agencies abroad, including the special tasks of agencies with dispatched staff at overseas representative offices.

The results of allocating and assigning the state budget estimate to Vietnamese agencies abroad are sent to the Ministry of Finance for review, and simultaneously to the State Treasury for implementation.

2. For specialized activities specifically allocated in the budgets of agencies with dispatched staff at overseas representative offices, which are carried out by overseas representative offices

a) The specialized activities allocated in the budgets of agencies with dispatched staff at overseas representative offices, carried out by overseas representative offices, are those specified in point k, Clause 1, Article 5 of this Decree decided by the Prime Minister and the activity specified in point 1, Clause 1, Article 5 of this Decree.

b) Agencies with dispatched staff at overseas representative offices base their activities on the allocated budget and tasks to be implemented according to the specialized activities specified in point a, Clause 2, of this Article in each location. They issue written notifications requesting overseas representative offices to coordinate in arranging dispatched staff to carry out the tasks. Based on the content of the work and current expenditure standards and norms, the leading agency approves the detailed content and budget for implementing the activities and transfers the funds for the activities into the account of the overseas representative office.

Article 10. Collection and Submission of State Budget at Vietnamese Representative Offices Abroad

Vietnamese representative offices abroad shall organize the management and implementation of fee and charge collection, and other collections as prescribed; record all amounts collected from fees, charges, and other collections required to be submitted to the state budget into the Temporary Holding Fund for the State Budget at Vietnamese Representative Offices Abroad. Periodically, monthly, quarterly, and annually, Vietnamese representative offices abroad shall report the balance of the Temporary Holding Fund for the State Budget to the Ministry of Foreign Affairs for consolidation and submission to the Ministry of Finance.

The management and utilization of the Temporary Holding Fund for the State Budget at Vietnamese Representative Offices Abroad shall be guided by the Ministry of Finance.

Article 11. Allocation of State Budget Expenditure Funds for Vietnamese Agencies Abroad

Based on the approved budget expenditure estimates for each Vietnamese agency abroad and the balance of the Temporary Holding Fund for the State Budget at Vietnamese Representative Offices Abroad, the supervisory agency shall transfer funds to ensure that each Vietnamese agency abroad has sufficient funds according to the budget estimate in US dollars at the accounting exchange rate specified by the Ministry of Finance at the time of allocation.

Article 12. Management and Utilization of Regular Operating Funds of Vietnamese Agencies Abroad

1. The head of Vietnamese agencies abroad shall be responsible for managing and utilizing the budget according to the assigned estimates, ensuring efficiency, economy, compliance with policies, regulations, standards, and budgetary expenditure quotas.

2. Vietnamese agencies abroad must use non-cash payment methods when making payments to beneficiaries, except in the following cases:

a) In countries where the payment account system is not well developed, and service providers do not have bank accounts.

b) Cash payments are allowed for certain expenses as stipulated by the Ministry of Finance.

3. The supervisory agency of Vietnamese agencies abroad shall conduct expenditure control based on the documentation sent back by Vietnamese agencies abroad to ensure compliance with regulations.

Article 13. Establishment, Management, Payment, and Settlement of Investment Construction Projects of Vietnamese Agencies Abroad

1. The establishment and allocation of medium-term and annual public investment plans for overseas construction projects shall be carried out in accordance with laws on public investment and guiding documents.

2. The management of construction investments for overseas construction projects shall be conducted in accordance with the laws of the host country and Vietnamese laws. In case of differing provisions, the laws of the host country shall prevail.

3. Advance funding and payment for overseas investment projects shall be made in accordance with signed contracts, consistent with the laws of the host country and Vietnamese laws.

4. The selection of contractors for overseas construction projects shall be carried out in accordance with the laws of the host country where the project is located. Based on the specific nature of each tender package, the investment decision-maker may determine the appropriate contractor selection method.

5. Annual budget cycle capital settlement and completion project settlement.

6. Payment and settlement of investment capital for construction projects of Vietnamese agencies abroad shall be implemented in accordance with the guidance of the Ministry of Finance.

Article 14. Management and use of retained revenue from fees

The amount of fees in the diplomatic field shall be partially retained to offset operational costs for providing services and collecting fees as prescribed; expenses for regular maintenance, major repairs of assets, equipment renewal, and information technology modernization; training and professional development expenses; and supplementary income for officials, civil servants, employees, and workers.

The Ministry of Finance shall specify the proportion of retained fee revenue, expenditure structure, and the level of supplementary income for officials, civil servants, employees, and workers.

Article 15. Opening transaction accounts and using state budget for Vietnamese agencies abroad

The head of Vietnamese agencies abroad shall be responsible for examining and deciding on selecting reputable banks in the host country to open accounts for Vietnamese agencies abroad to serve their operations and ensure the safety of funds and deposits.

Article 16. Accounting and settlement of state budget for Vietnamese agencies abroad

1. Transfer of budget sources from one year to the next

Any remaining operating funds of Vietnamese agencies abroad that have been allocated by the supervising agency up to December 31st must be returned to the state budget by deducting from the corresponding expenditure fields in the next year's budget estimate of the agency; except in cases where the transfer to the following year is allowed according to Clause 3, Article 64 of the State Budget Law.

2. At the end of the fiscal year, Vietnamese agencies abroad shall close their accounting books and submit annual settlement reports to the supervising agency; the supervising agency shall review and approve the annual settlement report of Vietnamese agencies abroad and notify the results to each Vietnamese agency abroad; consolidate and submit annual settlement reports within their jurisdiction to the Ministry of Finance and the National Audit Office before October 1st of the following year.

3. For activities carried out by Vietnamese representative agencies abroad as stipulated in Point a, Clause 2, Article 9 of this Decree, Vietnamese representative agencies abroad shall organize separate accounting and tracking of the special funds transferred by agencies with seconded staff to carry out assigned tasks (not included in the general operating funds of Vietnamese representative agencies abroad), while being responsible for managing and using these funds for the intended purposes and activities as assigned by the agencies with seconded staff at Vietnamese representative agencies abroad. After completing the work, Vietnamese representative agencies abroad shall collect all expense vouchers and send them back to the agencies with seconded staff at Vietnamese representative agencies abroad for consolidation and settlement with the state budget according to the law. Vietnamese representative agencies abroad shall be responsible for the legality of the settlement vouchers.

In cases where specialized funds transferred by agencies with seconded staff to Vietnamese representative agencies abroad remain unused at the end of the year and cannot be carried over to the next year according to regulations, the agencies with seconded staff shall recover and return the funds to the state budget according to the regulations.

Chapter IV
IMPLEMENTATION

Article 17. Implementation Organization

1. The Prime Minister:

To stipulate the management regulations for basic construction investment projects of Vietnamese agencies abroad as specified in Clause 2, Article 7 and Clauses 1, 2, 3, and 4, Article 13 of this Decree.

2. Ministry of Finance:

a) To guide the implementation of the provisions of Articles 8, 9, 10, 11, 12, Clause 6, Article 13, and Article 14 of this Decree.

b) To take the lead and coordinate with relevant ministries and agencies to ensure sufficient funding for annual foreign affairs activities.

3. The Ministry of Planning and Investment:

a) To take the lead and coordinate with the Ministry of Finance and other relevant agencies to present to the competent authority for allocation of medium-term and annual public investment plans for construction projects serving foreign affairs activities.

b) To coordinate with the Ministry of Foreign Affairs to present to the Prime Minister the management regulations for basic construction investment projects of Vietnamese agencies abroad as specified in Clause 2, Article 7 and Clauses 1, 2, 3, and 4, Article 13 of this Decree.

4. The Ministry of Foreign Affairs:

a) To take the lead and coordinate with relevant ministries and agencies to present to the Prime Minister the management regulations for basic construction investment projects of Vietnamese agencies abroad as specified in Clause 2, Article 7 and Clauses 1, 2, 3, and 4, Article 13 of this Decree.

b) To implement the provisions of this Decree according to its assigned functions and tasks.

5. Ministers, heads of ministerial-level agencies, central agencies under the Government, and heads of Vietnamese agencies abroad, and Chairpersons of provincial People's Committees directly under the Central Government shall be responsible for implementing this Decree.

Article 18. Transitional Provisions

For the settlement of the state budget for the years 2015 and 2016, the provisions of the State Budget Law No. 01/2002/QH11 and Decree No. 60/2003/NĐ-CP dated June 16, 2003 of the Government detailing and guiding the implementation of certain provisions of the State Budget Law shall apply.

Article 19. Effective Date

1. This Decree takes effect from December 10, 2017 and applies from the 2017 fiscal year.

2. Abolish Decree No. 107/2011/NĐ-CP dated November 24, 2011 of the Government detailing Point c, Clause 2, Article 15 of the Ordinance on Vietnamese Representative Agencies Abroad.