Decision No. 1291/1998/QĐ-BTM issues the Management and Utilization Regulations for Export Incentive Fund to reward enterprises with outstanding achievements in export activities. The fund is allocated from the state budget and managed by the Ministry of Trade.
Scope of application
Enterprises engaged in the production and business of export goods under various economic sectors, including state-owned enterprises, joint-stock companies, cooperatives, limited liability companies, private enterprises, and foreign-invested enterprises.
Key points
- An enterprise is eligible for rewards if it exports new products or expands markets with a 20% increase in turnover compared to the previous year, achieves international quality medals, or exports processed products using a large amount of domestic raw materials.
- The level of reward ranges from VND 150 million to VND 300 million depending on the standards achieved, and the enterprise may distribute the award among its collective units or individuals.
- The Export Incentive Fund is allocated from the state budget, equivalent to 5% of total revenue from fees collected in the previous year.
- Enterprises must submit an application file including a report of achievements and confirmation from the direct supervisory authority for consideration of rewards.
- The Reward Examination Council established by the Ministry of Trade will review and recommend rewards for each enterprise.
🌐 Social impact of this document
- Positive impact: Encourages enterprises to strengthen their export activities and improve product quality.
- Negative impact: Costs from the state budget may create financial pressure.
❓ Frequently asked questions
From which source is the Export Incentive Fund allocated?
The Export Incentive Fund is allocated from the state budget, equivalent to 5% of total revenue from fees collected in the previous year.
What is the maximum level of reward?
The maximum level of reward does not exceed VND 300 million for one case.
Which enterprises are eligible for rewards?
Enterprises under various economic sectors, including state-owned enterprises, joint-stock companies, cooperatives, limited liability companies, private enterprises, and foreign-invested enterprises.
What does the application file for rewards include?
The application file for rewards includes an export achievement report according to each standard and confirmation from the direct supervisory authority.
Full text
Pursuant to …;
OF THE MINISTRY OF TRADE NO. 1291/1998-QĐ-BTM
DATE OCTOBER 28, 1998 REGARDING THE ISSUANCE OF REGULATIONS
ON MANAGEMENT AND USE OF THE EXPORT AWARD FUND
____________________
THE MINISTER OF TRADE
- Pursuant to Decree No. 95/CP dated December 4, 1993 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Trade;
- Pursuant to Decision No. 764/QĐ-TTg dated August 24, 1998 of the Prime Minister on establishing the Export Award Fund;
After reaching consensus with the Ministry of Finance,
Pursuant to …;
Article 1.- The Regulations on Management and Use of the Export Award Fund attached hereto are hereby issued.
Article 2.- The competent agencies of the Ministry of Trade and related Ministries and Sectors, and export production and business enterprises shall be responsible for implementing this Decision.
Article 3.- These Regulations shall take effect for rewarding achievements in export activities from 1998.
REGULATIONS
MANAGEMENT AND USE OF THE EXPORT AWARD FUND
(Attached to Decision No. 1291/1998/QĐ-BTM
dated October 28, 1998 of the Minister of Trade)
PART I
GENERAL PROVISIONS
Article 1.- The Export Award Fund was established pursuant to Decision No. 764/QĐ-TTg dated August 24, 1998 of the Prime Minister to reward, encourage, and motivate enterprises with outstanding achievements and high efficiency in export activities.
Article 2.- The Export Award Fund is funded from the State budget within the annual expenditure plan, equivalent to 5% of the total revenue from the following fees collected in the previous year:
- Allocation (sale or auction) of export quotas for textile and garment products;
- Issuance of certificates for representative offices or branches of foreign economic organizations in Vietnam;
- Issuance of certificates of origin for goods.
In addition to the aforementioned revenues, the Export Award Fund may also receive financial support from domestic and foreign organizations and individuals (if any).
Article 3.- The Export Award Fund shall be deposited into a separate account at the National Treasury, and the Minister of Trade shall directly manage the Fund, examine, and decide on rewards for enterprises according to these Regulations.
PART II
OBJECTS, CRITERIA FOR REWARD CONSIDERATION
AND AMOUNT OF AWARDS
Article 4.- Enterprises belonging to various economic sectors established in accordance with the law, including state-owned enterprises, joint-stock companies, cooperatives, limited liability companies, and private businesses that achieve outstanding export results and high efficiency meeting the criteria set forth in Article 5 below shall all be eligible for rewards under these Regulations.
Foreign-invested enterprises that achieve particularly outstanding export results may also be considered for rewards.
Article 5.- Criteria for Reward Consideration:
Enterprises specified in Article 4 that export goods and meet any of the criteria set forth below shall be eligible for rewards. If an enterprise meets multiple criteria simultaneously, each criterion will be considered separately for rewards, but the total amount of rewards shall not exceed 300 million Vietnamese dong:
5.1- Exporting a product (or a type of product) manufactured in Vietnam for the first time to foreign markets, and/or exporting to new export markets with effective results (exporting to recover capital and make profit) with a value of at least 100,000 USD annually.
5.2- Expanding existing export markets or opening new markets with effective results, where the annual export value increases by more than 20% compared to the previous year for products listed in the annual export promotion catalogues issued by the Ministry of Trade.
5.3- Exporting high-quality products that have won medals at international exhibitions or fairs held abroad or received quality certification or confirmation by international organizations.
5.4- Exporting processed or manufactured products using domestic raw materials accounting for 60% or more of the value, or products produced employing significant domestic labor, such as handicrafts, processed agricultural, forestry, fishery, and aquatic products (such as chili sauce, dried and smoked products, ready-to-eat food...), clothing (excluding quota-controlled exports), with an annual export value of at least 10 million USD for these types of products, and at least 5 million USD for handicrafts.
5.5- Exporting products outside quotas or targets assigned, achieving an annual export value of at least 50 million USD.
Article 6.- Forms and Amounts of Rewards:
In addition to commendations awarded by the Ministry of Trade (in cases of particularly outstanding achievements, the Minister of Trade may recommend the Prime Minister to award commendations), enterprises meeting the criteria set forth in Article 5 shall also receive monetary rewards from the Export Award Fund as follows:
6.1- Enterprises meeting the criteria set forth in Point 5.1 (Article 5) shall be rewarded with 1% of their export turnover calculated in Vietnamese dong based on the exchange rate at the time of evaluation, but not exceeding 150 million Vietnamese dong per case.
6.2- Enterprises meeting the criteria set forth in Points 5.2, 5.4, and 5.5 (Article 5) shall be ranked according to each criterion, and the top ten enterprises for each criterion shall be selected for rewards ranging from 50 to 100 million Vietnamese dong per enterprise per criterion; other enterprises shall receive lower incentive rewards. The specific amounts of rewards each year shall be proposed by the Reward Examination Council and decided by the Minister of Trade based on the Fund's capacity.
6.3- Enterprises meeting the criteria set forth in Point 5.3 (Article 5) shall be rewarded with 20 million Vietnamese dong for each medal or certificate confirming the quality of goods received.
Article 7.- Enterprises receiving rewards must transfer the reward money into their unit's award fund and use it to develop business operations and/or distribute the reward among collectives and individuals within and outside the unit (including collectives and individuals in Vietnam's representative offices and trade missions abroad) who have contributed to the collective achievement. In cases where the collectives and individuals mentioned above have made particularly outstanding contributions, the enterprise may request the Ministry of Trade to consider additional rewards to appropriately recognize their efforts.
CHAPTER III
PROCEDURES FOR REWARD CONSIDERATION
Article 8.- Based on the criteria stipulated in these Regulations, enterprises applying for rewards shall submit to the Ministry of Trade a dossier consisting of the following documents:
1. Reports on export achievements according to each criterion, certified by the direct management authority.
2. Depending on the requirements for each criterion, enterprises must also submit additional documents and statistics on the achievements obtained.
(According to the model provided by the Ministry of Trade).
Article 9.- To assist the Minister of Commerce in deciding on awards, there shall be an Award Review Board consisting of:
- The Deputy Minister of Commerce, Chairperson of the Board;
- An officer at the Directorate level from the Import-Export Department of the Ministry of Commerce, Permanent Member;
- A representative from the Ministry of Finance at the Directorate level, Member;
- An officer at the Directorate level from the Planning and Statistics Department of the Ministry of Commerce, Member;
- An officer at the Directorate level from the Financial Accounting Department of the Ministry of Commerce, Member.
Article 10.- Based on the enterprise's report recommending award consideration, the Award Review Board is responsible for checking and comparing with customs statistical data to review and recommend the Minister of Commerce to decide on awards for each enterprise meeting the prescribed standards.
Article 11.- The award review process will be conducted in the second quarter of each year. Specifically, the review for export quality achievements as stipulated in Point 5.4 (Article 5) will be carried out after receiving the enterprise's report recommending award consideration.
Article 12.- Decisions on awards by the Minister of Commerce will be publicly announced in the Commerce Newspaper.
PART IV
MANAGEMENT OF THE EXPORT AWARD FUND
Article 13.- Annually, in January, the state budget allocates 50% of the estimated expenditure for the Export Award Fund; in the second quarter, the remaining amount is allocated to make up 5% of the actual revenue of the previous year from the sources specified in Article 2. Any unused portion of the previous year's Award Fund can be retained for continued use in the following year.
Article 14.- The State Treasury where the account for the Export Award Fund is opened shall transfer funds from this account into the enterprise's account according to the transfer order of the account holder accompanied by the Minister of Commerce's Decision on awarding.
PART I
IMPLEMENTING PROVISIONS
Article 15.- This Regulation takes effect fifteen days after its issuance and applies to the awarding of export achievements starting from 1998.
Amendments and supplements to this Regulation shall be decided by the Minister of Commerce after consulting with the Ministry of Finance.
Model No. 1
STATISTICS ON EXPORT ACHIEVEMENTS BASED ON STANDARD 5.1
(Article 5, Regulation issued together with Decision No. 1291/1998/QĐ-BTM dated October 28, 1998 of the Ministry of Commerce)
New products and markets exported for the first time
|
Export achievements in the year... |
Note on payment status 1 |
FOB Value (USD) |
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Quantity |
A. New products sold for the first time in the world market (product name): |
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- Market A |
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1 |
- Market B |
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2 |
- Market C |
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3 |
B. New markets for selling Vietnamese products for the first time (market): |
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- Product A |
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1 |
- Product B |
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2 |
(Detail each market and product exported to each market) |
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..., Date...month...year 199... |
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Confirmation by the managing authority |
1. Payment method, through which bank, whether payment has been made. Head of the unit (Signature and stamp) |
STATISTICS ON EXPORT ACHIEVEMENTS BASED ON STANDARD 5.2
Form No. 2
(Article 5, Regulation issued together with Decision
No. 1291/1998/QĐ-BTM dated October 28, 1998 of the Ministry of Commerce)
Exported products and markets
|
Serial Number |
Export achievements |
Previous year |
Previous year |
+ Market A |
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Quantity |
A. New products sold for the first time in the world market (product name): |
Quantity |
A. New products sold for the first time in the world market (product name): |
payment |
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1 |
Goods Name |
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+ Market B |
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STATISTICS ON EXPORT ACHIEVEMENTS BASED ON STANDARDS 5.4 AND 5.5 |
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............... |
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Confirmation by the managing authority |
1. Payment method, through which bank, whether payment has been made. Head of the unit (Signature and stamp) |
Model No. 3
Exported products
No. 1291/1998/QĐ-BTM dated October 28, 1998 of the Ministry of Commerce)
Exported products and markets
|
Export achievements in the reporting year |
Note on payment status |
A. Processed products using many domestic raw materials (Product name): |
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Quantity |
A. New products sold for the first time in the world market (product name): |
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B. Products exported in production attracting many workers |
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1 |
+ Market B |
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2 |
STATISTICS ON EXPORT ACHIEVEMENTS BASED ON STANDARDS 5.4 AND 5.5 |
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3 |
+ ........... |
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(Product name): C. Products exported outside quotas or beyond assigned targets |
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1 |
- Market B |
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2 |
- Market C |
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..., Date...month...year 199... |
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1 |
- Market B |
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2 |
- Market C |
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Confirmation by the managing authority |
..., on the...day of the...month of the year 199... Head of the unit (Signature and stamp) |
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