Joint Circular No. 125/2009/TTLT/BTC-BCT stipulates the management and use of economic public funds for the promotion of industry program.

JOINT CIRCULAR

Regulations on the management and utilization of economic public funds for the promotion of rural industry program

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 10, 2003 of the Government detailing and guiding the implementation of the State Budget Law;

Pursuant to Decree No. 134/2004/NĐ-CP dated June 9, 2004 of the Government on encouraging the development of rural industry;

Pursuant to Decision No. 136/2007/QĐ-TTg dated August 20, 2007 of the Prime Minister approving the National Promotion of Rural Industry Program until 2012;

The Ministry of Finance and the Ministry of Industry and Trade hereby stipulate the management and utilization of economic public funds for the Promotion of Rural Industry Program as follows:

Article 1. Scope of Regulation

This Circular stipulates the management and utilization of economic public funds for tasks and projects allocated direct funding from the Promotion of Rural Industry Program pursuant to Decision No. 136/2007/QĐ-TTg dated August 20 2007 of the Prime Minister approving the National Promotion of Rural Industry Program until 2012 (hereinafter referred to as the Program).

Article 2. Subjects eligible for state support for industrial promotion expenses

1. Organizations and individuals directly investing in industrial production at districts, towns, and villages (referred to as rural industrial establishments); including: small and medium enterprises established and operating under the Enterprise Law; cooperatives established and operating under the Cooperative Law; individual business households according to Decree No. 88/2006/NĐ-CP dated August 29, 2006 of the Government on business registration;

2. Organizations providing industrial promotion services, including: Industrial Promotion Centers, research and training institutions, enterprises engaged in consulting, training, technology transfer, information provision, trade promotion, and other activities related to rural industrial production.

Article 3. Industries eligible for industrial promotion expenses

Organizations and individuals directly investing in and producing industry at districts, towns, and villages are eligible for state industrial promotion expenses for the following industries:

1. Processing industry of agriculture, forestry, and fisheries;

2. Production of products using local raw materials, employing many workers;

3. Production of new products, substitutes for imported goods, export goods mainly using domestic raw materials;

4. Production of agricultural machinery parts, assembly, and repair;

5. Small hydropower plants, electricity using new or renewable energy sources with installed capacity below 10,000 kW to supply power to rural areas, remote regions;

6. Production, processing of components, semi-finished products, and services for complete product manufacturing establishments;

7. Investment in infrastructure construction for industrial clusters, small-scale industrial zones, and craft villages.

Article 4. Contents of industrial promotion expenditure

1. Vocational training, skill transmission, and occupational development programs

a) Expenditure on compiling curricula, textbooks, and organizing vocational training courses, skill transmission courses (mainly on-site), short-term (less than one year), linked to rural industrial establishments to create jobs and improve skills for rural laborers;

b) Expenditure on training excellent craftsmen, artisans in small-scale industrial production to form a teaching staff serving vocational training, skill transmission, and occupational development programs in rural areas.

2. Capacity building programs

a) Expenditure on compiling curricula, textbooks, and materials for starting up and managing rural industrial enterprises suitable for practical needs and training targets;

b) Expenditure on training staff of industrial promotion service organizations to have sufficient capacity to participate in advisory and training activities of the program (training instructors);

c) Expenditure on organizing training and seminar sessions on starting up and managing rural enterprises;

d) Expenditure on organizing seminars and introducing new management, production, and business experiences, scientific and technological advancements, and other topics related to industrial production for rural industrial establishments;

đ) Expenditure on organizing and supporting rural industrial establishments to participate in training sessions, seminars; studying and learning production and business experiences domestically and internationally;

e) Expenditure on consulting and supporting the preparation of project plans and business production plans to establish enterprises and newly established enterprises.

3. Programs to support the establishment of technical demonstration models, technology transfer, and scientific and technological progress

a) Expenditure on investigating, surveying, and compiling lists of new technical demonstration models and new products that need to be promoted and replicated; lists of technologies and scientific and technological advancements that need to be supported for transfer;

b) Expenditure on supporting the establishment of demonstration models in small-scale industrial production fields to encourage modernization of traditional technology; repairing and manufacturing agricultural machinery, tools, and equipment for agriculture, forestry, fisheries, consumer machinery; processing agriculture, forestry, and fisheries products; processing raw materials, especially at small scales in scattered raw material areas to supply rural industrial processing and small-scale industrial establishments;

c) Expenditure on supporting the application of advanced machinery and equipment, modern technology in various stages of small-scale industrial production, environmental pollution treatment.

4. Programs to develop outstanding rural industrial products

a) Expenditure on developing quality standards for rural industrial products reflecting traditional cultural characteristics, meeting domestic and international consumer preferences;

b) Expenditure on developing and promulgating regulations for selecting outstanding rural industrial products corresponding to five levels: village, district, province, region, national;

c) Expenditure on organizing selection and issuing certificates for outstanding rural industrial products at village, district, provincial, regional, and national levels;

d) Expenditure on supporting rural industrial establishments with outstanding products to expand production, markets, improve technology, design, packaging... to produce higher-level products;

đ) Expenditure on supporting the organization of exhibitions for outstanding rural industrial products. Building and registering trademarks and promoting trade activities.

5. Programs to develop advisory and information provision activities

a) Expenditure on supporting advisory activities to promote rural industry in areas such as investment project planning; marketing; production management - financial accounting - human resources management; design of patterns and packaging; land; application of new technology - equipment related to rural industrial production;

b) Expenditure on forming and developing advisory activities to promote rural industry, including: fixed advisory points; direct advisory services for rural industrial establishments; advisory services via the internet and other mass media;

c) Expenditure on building an electronic database on rural industry, a network of advisory consultants promoting rural industry from central to local levels;

d) Expenditure on producing television programs, radio broadcasts, promotional publications, websites, and other forms of mass media communication;

6. Program to support joint ventures, linkages, economic cooperation, and development of industrial clusters and points

a) Expenditure on supporting rural industrial establishments in establishing associations and trade unions; satellite production linkages for auxiliary products; models linking traditional craft production bases with tourism enterprises;

b) Expenditure on forming industrial enterprise clusters in sectors such as textiles, footwear, machinery, and small-scale industries;

c) Expenditure on planning and investing in infrastructure construction for industrial clusters and points according to local industrial development plans in difficult areas where industrial development is slow;

7. Program to enhance management capacity and implementation of the promotion of rural industry program

a) Expenditure on researching and proposing to competent authorities to amend, supplement, or issue new relevant documents to perfect the legal framework, mechanisms, and policies on promoting rural industry activities;

b) Expenditure on strengthening inspection, supervision, guidance of promoting rural industry activities to improve their effectiveness at both central and local levels;

c) Expenditure on technical facilities for Industrial Promotion Centers towards professionalization, connecting with agencies, institutes, schools, and enterprises capable of conducting training and technical advisory activities at the grassroots level;

d) Expenditure on developing programs, curricula, materials, and organizing training to enhance management and implementation capacities for rural industry promotion activities for staff involved in such work;

đ) Expenditure on international cooperation to support domestic rural industry promotion activities;

Article 5. Sources of Funding for Implementing the Program

1. The Central Budget ensures funding for national rural industry promotion activities managed and implemented by the Ministry of Industry and Trade, and supplements targeted funding for local budgets according to approved programs, plans, and projects.

2. Local budgets ensure funding for rural industry promotion activities managed and implemented by provincial People's Committees.

3. In addition to the aforementioned sources of funding, the Ministry of Industry and Trade and provincial People's Committees have the responsibility to mobilize other legitimate financial resources, integrate projects under the National Target Programs and other socio-economic development programs to effectively implement the Program's objectives.

Article 6. Allocation of Tasks for Rural Industry Promotion Expenditures

1. Tasks for National Rural Industry Promotion Expenditures

a) National rural industry promotion funds ensure expenditure for rural industry promotion activities stipulated in Government Decree No. 134/2004/NĐ-CP and the contents of the National Rural Industry Promotion Program up to 2012 as specified in Decision No. 136/2007/QĐ-TTg of the Prime Minister, managed and implemented by the Ministry of Industry and Trade for activities and products with national or regional significance, consistent with strategies and plans for regional, sectoral, and territorial industrial development;

b) Other expenditures serving national rural industry promotion activities

- Expenditure on compiling teaching materials and guides for training and consulting on rural industry promotion;

- Expenditure on publicizing rural industry promotion activities through mass media nationwide;

- Expenditure on developing national rural industry promotion programs and plans for each phase;

- Expenditure on inspecting and supervising rural industry promotion activities at localities and establishments;

- Expenditure on purchasing equipment and facilities to serve rural industry promotion activities;

- Expenditure on rewards as decided by the Minister of Industry and Trade;

- Counterpart capital for international cooperative projects on rural industry promotion activities;

- Other expenses (if any).

2. Tasks for Local Rural Industry Promotion Expenditures

a) Local rural industry promotion funds ensure expenditure for rural industry promotion activities according to the contents of the local rural industry promotion program approved by the Provincial People's Committee in accordance with Government Decree No. 134/2004/NĐ-CP and Decision No. 136/2007/QĐ-TTg of the Prime Minister, implemented by localities for activities and products with significance within the province or region, consistent with strategies and plans for the development of industry and small-scale industry;

b) Other expenditures serving local rural industry promotion activities

- Expenditure on compiling teaching materials and guides for training and consulting on rural industry promotion;

- Expenditure on publicizing rural industry promotion activities within the locality;

- Expenditure on developing local rural industry promotion programs and annual plans;

- Expenditure on inspecting, supervising, and certifying rural industry promotion activities at establishments;

- Expenditure on purchasing equipment and facilities to serve rural industry promotion activities;

- Expenditure on rewards as decided by local People's Committees at various levels;

- Counterpart capital for international cooperative projects on rural industry promotion activities;

- Other expenses (if any).

Article 7. Funding Levels

1. Some Common Expenditure Levels

Expenditure for implementing rural industry promotion activities shall be carried out in accordance with current regulations, specifically as follows:

a) Compiling programs, curricula, and training materials for the rural industry promotion program shall be conducted in accordance with Circular No. 87/2001/TT-BTC dated October 30, 2001, issued by the Ministry of Finance, guiding the content and expenditure levels for developing curriculum frameworks for higher education, college, and vocational high school programs and compiling course textbooks;

b) Vocational training, skill transmission, and skill development shall be conducted in accordance with Joint Circular No. 06/2006/TTLT-BTC-BLĐTBXH dated January 19, 2006, issued by the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs, guiding the implementation of short-term vocational training support policies for rural labor.

For training poor people and ethnic minorities to participate in learning new trades; training skilled workers and artisans in small-scale industries to improve their skills to become vocational instructors, they will be supported with food expenses during the training period and travel expenses according to public transportation ticket prices under Circular Joint No. 102/2007/TTLT-BTC-BLDTBXH dated August 20, 2007 of the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs guiding financial management mechanisms for certain projects under the National Target Program on Poverty Reduction.

c) To develop legal regulations, mechanisms, and policies on promoting small-scale industries in accordance with Circular No. 100/2006/TT-BTC dated October 23, 2006 of the Ministry of Finance guiding the management and use of state budget funds to ensure the work of developing legal regulations.

d) To conduct surveys, compile lists of models for demonstrating new technologies and products that need to be promoted; lists of technologies and scientific advancements that require support for transfer, and systems of cost standards for promoting small-scale industries in accordance with Circular No. 120/2007/TT-BTC dated October 15, 2007 of the Ministry of Finance guiding the management, use, and settlement of funds for conducting surveys from state budget sources.

đ) Conferences, seminars, and training sessions shall be conducted in accordance with Circular No. 23/2007/TT-BTC dated March 21, 2007 of the Ministry of Finance stipulating the working expense system and expenditure regulations for organizing conferences for state agencies and public service units; Circular No. 127/2007/TT-BTC dated October 31, 2007 of the Ministry of Finance amending and supplementing Circular No. 23/2007/TT-BTC dated March 21, 2007 and Circular No. 57/2007/TT-BTC dated June 11, 2007 of the Ministry of Finance.

e) Overseas surveys shall be conducted in accordance with Circular No. 91/2005/TT-BTC dated October 18, 2005 of the Ministry of Finance stipulating the working expense system for civil servants going on short-term missions abroad.

g) Organizing competitions related to promoting small-scale industries in accordance with Circular No. 101/2009/TT-BTC dated May 20, 2009 of the Ministry of Finance guiding the management, use, and settlement of funds to ensure the implementation of projects and programs under the "Supporting Youth Vocational Training and Employment Program for the 2008-2015 Period" initiative.

h) Training and professional development courses for instructors and industrial promotion officers; entrepreneurship and business management training courses shall be conducted in accordance with Circular No. 51/2008/TT-BTC dated June 16, 2008 of the Ministry of Finance guiding the management and use of funds for training and professional development of civil servants.

i) Building electronic data on rural industry in accordance with Circular No. 137/2007/TT-BTC dated November 28, 2007 of the Ministry of Finance guiding the level of expenditure for creating electronic information.

2. Certain special expenditure levels

a) Support costs for establishing enterprises in difficult and extremely difficult areas as prescribed by law, including: researching and perfecting feasible business plans; enterprise establishment projects and costs related to registering the establishment of enterprises. The maximum support amount does not exceed 5 million VND per enterprise.

b) Support costs for building demonstration models to promote new technology and produce new products, including costs: construction and purchase of machinery and equipment directly serving and decisively affecting new technology or new products; completion of documentation on technological processes, production processes, serving the demonstration of technology. The maximum support amount is 250 million VND per model.

Support levels for production bases of organizations and individuals currently operating effectively and needing to be promoted and expanded for other organizations and individuals to learn from; including costs: completion of documentation on technological processes, production processes, serving the demonstration of technology. The maximum support amount is 70 million VND per model.

c) Support costs for transferring and applying modern machinery and advanced technology into industrial and small-scale industrial production stages, environmental treatment, including: modern machinery and equipment, provision of technical documents and secrets; consulting on technology management, business management consulting, guidance on implementing transferred technological processes; training and upgrading the skills of staff and workers to master and operate transferred technology; hiring experts; purchasing research materials for the transfer process; purchasing raw materials for trial production. The maximum support amount is 50% of the value of transferred machinery and technology but not exceeding 100 million VND per base.

d) Costs for developing rural industry product quality standards reflecting traditional cultural characteristics and meeting consumer preferences both domestically and internationally. The maximum expenditure amount does not exceed 15 million VND per product standard or group of products.

đ) Costs for organizing and issuing certificates for outstanding rural industry products at commune, district, provincial, regional, and national levels. The maximum support amount is 10 million VND per time (at commune level), 20 million VND per time (at district level), 80 million VND per time (at provincial level), 150 million VND per time (at regional level), and 250 million VND per time (at national level).

e) Support costs for organizing domestic trade fairs and exhibitions of outstanding rural industry products at provincial, regional, and national levels. The maximum support amount is 50% of the exhibition booth rental fees based on auction prices or, if auction conditions are not met, according to the price approved by the competent authority. For trade fairs and exhibitions held in mountainous regions, Central Highlands, and highland areas, the maximum support amount is 80% of the exhibition booth rental fees.

In cases where rural industrial establishments participate in domestic trade fairs and exhibitions to introduce other products, the support amount is 50% of the booth rental area fee.

g) Support costs for building and registering trademarks for rural industry products. The support amount is 50% of the costs, but the maximum amount does not exceed 35 million VND per trademark.

h) Expenses for supporting rural industrial bases to hire consulting services in areas such as investment project development; marketing; production management, finance, accounting, human resources; design of samples and packaging; land; application of new technology and equipment related to rural industrial production. The support level is 50% of the consulting service costs, but not exceeding 30 million VND per base;

i) Expenses for establishing advisory points for promoting rural industries under conditions set forth by the Ministry of Industry and Trade, including costs for purchasing materials, equipment, and tools serving the activities of these advisory points. The maximum support level does not exceed 50 million VND per base;

k) Expenses for supporting the establishment of networks of cooperative promoters for promoting rural industries, including: surveying and mobilizing personnel to join the network; developing plans to establish the network; drafting operational regulations for the network; organizing meetings to launch the network; training and educating cooperative promoters. The support level is 50% of the costs for establishing the network of cooperative promoters, but not exceeding 40 million VND for provincial-level advisory networks and 150 million VND for national-level advisory networks;

l) Expenses for building television programs, radio programs, promotional publications, websites, and other forms of mass media communication. The expenses shall be carried out according to contracts with propaganda agencies and mass media agencies;

m) Expenses for supporting the establishment of associations and industry guilds; linking at provincial, regional, and national levels. The support level is 30% of the establishment costs, but not exceeding 50 million VND for provincial-level associations or linkages, 70 million VND for regional-level associations or linkages, and 100 million VND for national-level associations or linkages;

n) Expenses for supporting the formation of clusters of industrial enterprises in the textile, footwear, machinery, and small-scale handicraft industries. The support level is 50% of the costs for forming the industrial enterprise clusters, but not exceeding 150 million VND for one cluster;

o) Expenses for supporting detailed planning; supporting investment in infrastructure construction for industrial clusters and points according to local industrial development plans, including: land leveling, internal transportation roads, water supply and drainage systems, wastewater treatment in difficult and particularly difficult areas (as specified in Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government detailing and guiding the implementation of certain provisions of the Investment Law); industrial areas with slow development approved by competent authorities. The maximum support level for detailed planning does not exceed 350 million VND per industrial cluster or point; the maximum support level for infrastructure construction investment does not exceed 3 billion VND per industrial cluster or point;

p) Expenses for supporting 100% of airfare costs for rural industrial bases to visit and study abroad. The number of people supported is determined by the competent authority's approval decision;

Specific support levels for the budgetary promotion of rural industries at the central level are decided by the Minister of Industry and Trade, while specific support levels for the budgetary promotion of rural industries at the local level are decided by the Chairman of the People's Committee of provinces and centrally-administered cities, but not exceeding the support levels prescribed above.

Article 8. Conditions for Receiving Financial Support under the Program

Organizations and individuals receiving financial support from the Program to Promote Industry must meet the following conditions:

1. The content must be consistent with the content of the Program to Promote Industry.

2. There must be a Decision approving the industrial promotion task (including proposals) issued by the competent authority (the Ministry of Industry and Trade for the National Program to Promote Industry; the People's Committee of the province for the Provincial Program to Promote Industry).

3. Organizations and individuals have invested capital or committed to invest sufficient funds to implement the project approved by the competent authority (after deducting the amount supported by the state budget).

4. A commitment from organizations and individuals implementing industrial promotion tasks that they have not received any funding from the state budget for the same expenditure item supported by the Program to Promote Industry.

5. Specific support conditions for each program shall be implemented in accordance with the guidelines of the Ministry of Industry and Trade.

Article 9. Establishment, Execution, and Settlement of Program Funds

The establishment, execution, and settlement of Program funds shall be carried out in accordance with the provisions of the State Budget Law, guiding documents for the implementation of the State Budget Law issued by the Ministry of Finance, and the provisions of this Circular as follows:

1. Budget preparation and allocation

a) For national industry promotion funds

- Annually, based on the national industrial promotion tasks of the Program that have been approved, the situation of task implementation, and the annual report budget, the Ministry of Industry and Trade will prepare a detailed budget estimate for the implementation of the National Program to Promote Industry for the planning year, which is consistent with the assigned objectives and tasks, and submit it to the Ministry of Finance. Based on the central government budget balancing capacity, the Ministry of Finance will consider and consolidate it into the central government budget allocation plan to be submitted to the Government for submission to the National Assembly for consideration and decision.

- Based on the allocated budget, the Ministry of Industry and Trade will detail the allocation of funds for the implementation of the National Program to Promote Industry according to units and contents specified in Clause 1, Article 6 of this Circular and submit it to the Ministry of Finance for review as the basis for allocating budgets to the implementing units.

b) For local industry promotion funds

- For the portion of funds for promoting industry from local government budgets:

+ Annually, based on the provincial industrial promotion tasks of the Program that have been approved, the situation of task implementation, and the annual report budget, the Department of Industry and Trade will prepare a detailed budget estimate for the implementation of the Provincial Program to Promote Industry for the planning year, which is consistent with the assigned objectives and tasks, and submit it to the Department of Finance. Based on the local government budget balancing capacity, the Department of Finance will consider and consolidate it into the local government budget allocation plan to be submitted to the Provincial People's Committee for submission to the Provincial People's Council for consideration and decision.

+ Based on the allocated budget, the Department of Industry and Trade will detail the allocation of funds for the implementation of the Provincial Program to Promote Industry according to units and contents specified in Clause 2, Article 6 of this Circular and submit it to the Department of Finance for review as the basis for allocating budgets to the implementing units.

- For the portion of targeted support funds from the central government budget to the local government budget:

+ Based on the approved Program at the local level for each period and the local government budget capacity, the Provincial People's Committee will prepare a budget estimate for the portion of funds requested from the central government budget to support the implementation of the Program, and submit it to the Ministry of Industry and Trade for consideration and consolidation together with the annual budget preparation time to the Ministry of Finance.

+ Based on the central government budget capacity, the Ministry of Finance will coordinate with the Ministry of Industry and Trade to consider the budget estimate for the implementation of the national program to promote industry, including the additional targeted support amount for local governments to implement industrial promotion work; consolidate and prepare the budget revenue and expenditure estimates, the central government budget allocation plan to be submitted to the Government for submission to the National Assembly for consideration and decision.

2. Implementation of the Budget Estimate

a) Based on the state budget expenditure estimates assigned by the competent authority, the implementing units shall withdraw their budgets at the State Treasury where transactions take place.

b) The State Treasury shall control and make payments for each task of the Program in accordance with the management, disbursement, and payment regulations for state budget expenditures through the State Treasury issued by the Ministry of Finance; current expenditure regulations, and the provisions of this Circular.

3. Accounting and Finalization Work

a) Units directly using Program funds are responsible for accounting and settling the funds used to implement industrial promotion tasks under category 070 subcategory 102 "industrial promotion activities," according to the corresponding chapter of the State Budget Manual;

b) For Program tasks implemented by units through contracts with the main organizing agencies, the supporting documents for settlement and finalization are kept at the main organizing agency, including: the task implementation contract along with the detailed budget approved by the competent authority; the acceptance certificate; the contract termination document; the authorization to pay or payment voucher, and other related documents as prescribed by the Ministry of Industry and Trade. The expense documents of units directly implementing the industrial promotion tasks are kept at the unit;

c) Units directly using Program funds must settle the funds used in the year with the Ministry of Industry and Trade (for central economic affairs funds) and the Department of Industry and Trade (for local economic affairs funds and the portion of targeted support funds from the central government budget to the local government budget). The annual settlement reports of the Ministry of Industry and Trade and the Department of Industry and Trade are sent to the same-level finance department for review. The procedures for preparing, forms, submission deadlines, and examination of the settlement reports are carried out in accordance with current regulations.

Article 10. Inspection and Supervision

The Ministry of Industry and Trade and the Department of Industry and Trade are responsible for coordinating with the same-level finance departments to conduct regular and spot checks; monitor and evaluate the implementation of tasks and objectives of the projects, ensuring the management and use of Program funds for their intended purposes, economically, and effectively.

Article 11. Reporting Information

1. Quarterly, units assigned to implement the tasks of the Handicraft Promotion Program shall be responsible for reporting on the implementation situation according to the guidance of the Ministry of Industry and Trade.

2. Annually, the Ministry of Industry and Trade shall compile the implementation situation of the Handicraft Promotion Program and report it to the Prime Minister, simultaneously sending it to the Ministry of Finance.

Article 12. Implementation Organization

1. This Circular shall take effect 45 days from the date of signature and replace Circular Jointly Issued No. 36/2005/TTLT-BTC-BCN dated May 16, 2005, jointly issued by the Ministry of Finance and the Ministry of Industry guiding the management and use of economic public funds for handicraft promotion activities.

2. During the implementation process, if there are any difficulties, units are requested to reflect them to the Ministry of Finance and the Ministry of Industry and Trade for appropriate amendments./.