Joint Circular No. 125/2009/TTLT-BTC-BCT stipulates the management and use of economic public expenditure funds for the Promotion of Industry Program.

 JOINT CIRCULAR

Regulations on the management and utilization of economic public funds

for the program to promote rural industry

 ________________

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 Program to Promote Rural Industry 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 Program to Promote Rural Industry 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 Program to Promote Rural Industry pursuant to Decision No. 136/2007/QĐ-TTg dated August 20, 2007 of the Prime Minister approving the National Program to Promote Rural Industry until 2012 (hereinafter referred to as the Program).

Article 2. Subjects eligible for state support in promoting rural industry funds

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

2. Service organizations for promoting rural industry, including: Promotion Centers, training and research institutions, enterprises involved in consulting, training, technology transfer, information provision, trade promotion, and other activities related to rural industrial production.

Article 3. Industries eligible for promoting rural industry funds

Organizations and individuals directly investing in industrial production at districts, towns, and communes shall be eligible for state-promoting rural industry funds 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 services;

5. Small hydropower plants, electricity generated from 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 clusters, points of small-scale industry, and traditional craft villages.

Article 4. Contents of expenditure for promoting rural industry activities

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

a) Expenditure for compiling curricula, textbooks, and organizing short-term (less than one year) vocational training courses primarily conducted locally, aimed at creating employment and improving skills for rural laborers;

b) Expenditure for training skilled workers and artisans in small-scale industries to form a teaching staff serving vocational training, skill transmission, and occupational development programs in rural areas.

2. Programs to enhance managerial capabilities

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

b) Expenditure for training staff of service organizations for promoting rural industry to have sufficient capability to participate in advisory and training activities of the program (training instructors);

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

d) Expenditure for organizing seminars and introducing experiences in management, production and business operations, new science and technology, and other topics related to industrial production for rural industrial establishments;

đ) Expenditure for organizing and supporting rural industrial establishments to participate in training courses, seminars, and surveys to learn production and business operation experiences both domestically and internationally;

e) Expenditure for consulting and supporting the preparation of project plans and business production plans to establish new enterprises.

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

a) Expenditure for investigating, surveying, and compiling lists of new technological and product demonstration models that need to be widely promoted; lists of technologies and scientific advancements requiring support for transfer;

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

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

4. Programs to develop outstanding rural industrial products

a) Expenditure for developing quality standards for rural industrial products reflecting traditional cultural characteristics and meeting consumer preferences both domestically and internationally;

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

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

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

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

5. Programs to develop advisory and information provision activities

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

b) Expenditure for the formation and development of industrial advisory activities, including: fixed advisory points; direct advisory services to rural industrial establishments; advisory services via the Internet and other mass media;

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

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

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

a) Expenditure to support rural industrial establishments in forming associations and trade guilds; satellite production linkages for auxiliary products; models linking traditional craft production bases with tourism enterprises;

b) Expenditure to support the formation of industrial enterprise clusters in the textile, footwear, machinery, and small-scale industries sectors;

c) Expenditure to support planning and investment 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 industrial promotion program

a) 工业促进相关文件的研究和向有权机关提出修改、补充或新制定的支出，以完善法律框架、机制和政策；

b) 加强监督检查和指导工业促进活动的支出，以提高从中央到地方的工业促进活动效果；

c) 为工业促进中心提供专业化的物质技术基础的支出，以便与有能力实施培训和技术咨询活动的机构、研究院所、学校和企业连接；

d) 编制培训大纲、教材并组织提升管理人员和组织实施工业促进活动能力的培训项目的支出；

e) 国际合作支持国内工业促进活动的支出。

Article 5. Sources of Funding for the Program

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

2. Local budgets ensure funding for industrial 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 are responsible for mobilizing other legitimate financial resources, integrating national target programs and other socio-economic development programs to effectively implement the program's objectives.

Article 6. Allocation of Industrial Promotion Expenditure Responsibilities

1. National Industrial Promotion Expenditure Responsibilities

a) National industrial promotion funds ensure expenditure for industrial promotion activities stipulated in Decree No. 134/2004/NĐ-CP of the Government and the contents of the National Industrial 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 industrial development in regions, sectors, and territories;

b) Other expenditures serving national industrial promotion activities

- Expenditure for compiling training manuals and materials to guide, train, and advise on industrial promotion;

- Expenditure for promoting industrial promotion work through mass media nationwide;

- Expenditure for developing national industrial promotion programs and phases;

- Expenditure for inspecting and supervising industrial promotion activities at localities and establishments;

- Expenditure for purchasing equipment and facilities to serve industrial promotion work;

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

- Counterpart capital for international cooperative projects on industrial promotion activities;

- Other expenses (if any).

2. Local Industrial Promotion Expenditure Responsibilities

a) Local industrial promotion funds ensure expenditure for industrial promotion activities according to the contents of the local industrial promotion program approved by the Provincial People's Committee in accordance with Decree No. 134/2004/NĐ-CP of the Government 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 industrial and small-scale industrial development;

b) Other expenditures serving local industrial promotion activities

- Expenditure for compiling training manuals and materials to guide, train, and advise on industrial promotion;

- Expenditure for promoting industrial promotion work within the locality;

- Expenditure for developing phased and annual industrial promotion programs and plans at the local level;

- Expenditure for inspecting, supervising, and certifying industrial promotion activities at establishments;

- Expenditure for purchasing equipment and facilities to serve industrial promotion work;

- Expenditure for rewards as decided by local People's Committees;

- Counterpart capital for international cooperative projects on industrial promotion activities;

- Other expenses (if any).

Article 7. Funding Levels

1. Some Common Expenditure Levels

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

a) Compilation of training programs, textbooks, and materials for the industrial 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 framework programs for higher education, college, and vocational training, and the compilation of course textbooks;

b) Vocational training, skill transmission, and skill development shall be conducted in accordance with Joint Circular No. 06/2006/TTLT-BTC-BLDTBXH dated January 19, 2006, issued by the Ministry of Finance and the Ministry of Labor, Invalids, and Social Affairs, guiding the implementation of policies to support short-term vocational training 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 become vocational instructors, they will be supported with food expenses during the training period and travel expenses according to public transportation ticket prices as stipulated in Circular Joint No. 102/2007/TTLT-BTC-BLDTBXH dated August 20, 2007, issued by the Ministry of Finance and the Ministry of Labor, Invalids and Social Affairs guiding the financial management mechanism for certain projects under the National Target Program on Poverty Reduction.

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

d) Conducting surveys, compiling lists of models for demonstrating new technologies and products that need to be promoted and replicated; 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, issued by 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 implemented in accordance with Circular No. 23/2007/TT-BTC dated March 21, 2007, issued by the Ministry of Finance detailing 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, issued by 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, issued by the Ministry of Finance.

e) Overseas surveys shall be carried out in accordance with Circular No. 91/2005/TT-BTC dated October 18, 2005, issued by the Ministry of Finance detailing 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, issued by 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 period 2008-2015.

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, issued by the Ministry of Finance guiding the management and use of funds for training and developing state civil servants.

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

2. Certain special expenditure levels

a) Supporting 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) Supporting costs for building demonstration models to promote new technologies and produce new products, including costs: constructing and purchasing machinery and equipment directly serving and decisively affecting new technology or new products; completing documentation on technological processes and production processes for technical demonstrations. The maximum support amount is 250 million VND per model.

Support levels for production bases of organizations and individuals currently operating effectively that need to be promoted and replicated for other organizations and individuals to learn from; including costs: completing documentation on technological processes and production processes for technical demonstrations. The maximum support amount is 70 million VND per model.

c) Supporting costs for transferring and applying modern machinery and advanced technology in industrial and small-scale industrial production stages, environmental treatment, including: modern machinery and equipment, providing technical documents and secrets; consulting on technology management, business management consulting, guiding the implementation of 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 establishing quality standards for rural industrial products 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 industrial products at commune, district, provincial, regional, and national levels. The maximum support amount is 10 million VND per time (at the commune level), 20 million VND per time (at the district level), 80 million VND per time (at the provincial level), 150 million VND per time (at the regional level), and 250 million VND per time (at the national level).

e) Supporting costs for organizing domestic trade fairs and exhibitions of outstanding rural industrial 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 approved price 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 bases participate in domestic trade fairs and exhibitions to introduce other products, the support amount is 50% of the exhibition booth rental area fee.

g) Supporting costs for building and registering trademarks for rural industrial 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 the following areas: investment project preparation; 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 operations 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; preparing proposals for building 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 building 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 developing television programs, radio broadcasts, promotional publications, websites, and other forms of mass media communication. The expenses will be carried out according to contracts with propaganda agencies and mass media organizations;

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

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 industrial enterprise clusters, but not exceeding 150 million VND per cluster;

o) Expenses for supporting detailed planning; investment in constructing infrastructure 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 cluster or point; the maximum support level for investment in constructing infrastructure does not exceed 3 billion VND per cluster or point;

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

Specific support levels for central budget tasks for promoting rural industries are decided by the Minister of Industry and Trade, while specific support levels for local budget tasks for promoting rural industries are decided by the Chairman of the People's Committee of provinces and centrally-administered cities, but not exceeding the above-mentioned support levels.

Article 8. Conditions for Receiving Financial Support under the Program

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

1. The content is consistent with the content of the Promotional Industry Program.

2. There is a Decision approving the promotional industry task (including projects) issued by the competent authority (the Ministry of Industry and Trade for the National Promotional Industry Program; the People's Committee of the province for the Provincial Promotional Industry Program).

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 the promotional industry tasks that they have not received any funding from the state budget for the same content supported by the Promotional Industry Program.

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

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

The establishment, execution, and settlement of Program budgets 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 approved national promotional industry tasks of the Program, the actual implementation of tasks, and the annual report budget, the Ministry of Industry and Trade prepares a detailed budget estimate for the implementation of the National Promotional Industry Program for the planning year, which is consistent with the assigned objectives and tasks, and sends it to the Ministry of Finance. Based on the central government budget balancing capacity, the Ministry of Finance considers and consolidates 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 implements detailed budget allocation for the implementation of the National Promotional Industry Program according to units and contents specified in Clause 1, Article 6 of this Circular and sends it to the Ministry of Finance for review as the basis for allocating the budget to the implementing units.

b) For local industry promotion funds

- For promotional industry funds from local government budgets:

 + Annually, based on the approved provincial promotional industry tasks of the Program, the actual implementation of tasks, and the annual report budget, the Department of Industry and Trade prepares a detailed budget estimate for the implementation of the Provincial Promotional Industry Program for the planning year, which is consistent with the assigned objectives and tasks, and sends it to the Department of Finance. Based on the local government budget balancing capacity, the Department of Finance considers and consolidates 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 implements detailed budget allocation for the implementation of the Provincial Promotional Industry Program according to units and contents specified in Clause 2, Article 6 of this Circular and sends it to the Department of Finance for review as the basis for allocating the budget to the implementing units.

- For financial support with specific goals 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 prepares a budget estimate for the portion of funds requested from the central government budget to support the implementation of the Program, and sends it to the Ministry of Industry and Trade for consolidation together with the annual budget preparation time sent to the Ministry of Finance.

+ Based on the central government budget capacity, the Ministry of Finance collaborates with the Ministry of Industry and Trade to consider the budget estimate for the implementation of the national promotional industry, including the supplementary support amount for local government budgets to implement promotional industry work; consolidate and prepare the budget revenue and expenditure plan, 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 implements control and payment for each task of the Program according to the management, issuance, and payment system for budget expenditures through the State Treasury of the Ministry of Finance; current expenditure regulations, and the provisions of this Circular.

3. Accounting and Finalization Work

a) Units directly using the Program's budget are responsible for accounting and settling the budget for implementing promotional industry tasks under code 070 item 102 "promotional industry activities," according to the corresponding chapter of the State Budget Manual;

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

c) Units directly using the Program's budget must settle the budget used in the year with the Ministry of Industry and Trade (for central economic affairs budget) and the Department of Industry and Trade (for local economic affairs budget and the portion of budgetary support with specific goals 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 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 of 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./.