Decision No. 138/2001/QD-BTC Issuing the Interim Regulation on the Self-Financing System for Operating Costs of the Management Board of Export Processing Zones and Industrial Parks of Ho Chi Minh City

Pursuant to …;

Issuing the Interim Regulation on the Self-Funding System for Operating Expenses of Management Boards of Industrial Zones and Industrial Parks in Ho Chi Minh Cityof Ho Chi Minh City

THE MINISTER OF FINANCE

Pursuant to Decree No. 15/CP dated March 2, 1993 of the Government stipulating the tasks, powers, and responsibilities for state management of Ministries and agencies at the ministerial level;

Pursuant to Decree No. 178/CP dated October 28, 1994 of the Government stipulating the functions, tasks, and organizational structure of the Ministry of Finance;

Pursuant to Circular No. 633/CV-KTTH dated July 12, 2001 of the Prime Minister allowing the continued implementation of the self-funding system for operating expenses of the Management Board of Industrial Zones and Export Processing Zones of Ho Chi Minh City;

At the proposal of the Director of the Financial Policy Department;

DECISION:

Article 1:

Issuing the "Interim Regulation on the Self-Funding System for Operating Expenses of Management Boards of Industrial Zones and Industrial Parks in Ho Chi Minh City" attached hereto.

Article 2:

This Decision shall take effect from January 1, 2002. The provisions in Decision No. 45/1999/QĐ-BTC dated May 6, 1999 of the Minister of Finance are hereby abolished.

For the year 2001, the revenue and expenditure activities of the Management Board of Industrial Zones and Industrial Parks in Ho Chi Minh City shall still be implemented according to the temporary regulations on the self-funding system for operating expenses of the Management Board of Industrial Zones and Industrial Parks in Ho Chi Minh City issued together with Decision No. 45/1999/QĐ-BTC dated May 6, 1999 of the Minister of Finance.

- The surplus or deficit of revenue and expenditure in 2001 shall be transferred to the account of the Support Fund for Industrial Zones and Industrial Parks in Ho Chi Minh City.

Article 3:

Heads of units under and directly subordinate to the Ministry of Finance, the Management Board of Industrial Zones and Industrial Parks in Ho Chi Minh City, and the Department of Finance and Price Control of Ho Chi Minh City are responsible for implementing this Decision.

INTERIM REGULATION

ON THE SELF-FUNDING SYSTEM FOR OPERATING EXPENSES OF MANAGEMENT BOARDS OF INDUSTRIAL ZONES AND INDUSTRIAL PARKS IN HO CHI MINH CITY

(Issued together with Decision No. 138/2001/QĐ-BTC dated December 19, 2001 of the Minister of Finance)

PART I
GENERAL PROVISIONS

Article 1:

Implementing the self-funding system for operating expenses at the Management Board of Industrial Zones and Industrial Parks in Ho Chi Minh City (hereinafter referred to as the Management Board or the Board) must ensure the following requirements:

- The application of the self-funding system for operating expenses does not affect the investment environment.

- Enhance flexibility in allocating and using operating expenses to improve the efficiency and quality of the Board's operations.

- Create conditions to strengthen the function of state management over industrial zones and export processing zones and implement administrative reform in the Board's operations.

Article 2:

1. The Management Board prepares budgets and final accounts for revenue and expenditure activities in accordance with the regulations of the State for budgetary units. All revenue and expenditure activities of the Management Board must be carried out through the Management Board's account opened at the State Treasury of Ho Chi Minh City.

2. Expenditure by the Management Board shall be conducted based on the principles of transparency, thriftiness, and effective service to the Board's operations to develop industrial zones and export processing zones within its jurisdiction.

3. The Management Board establishes a support fund for industrial zones and industrial parks in Ho Chi Minh City from the surplus between actual revenue and allocated expenditure budgets each year to serve the activities of industrial zones and industrial parks under its jurisdiction.

Article 3:

1. The currency used for revenue and expenditure activities of the Management Board is the Vietnamese Dong. If foreign currency transactions occur, they shall be converted into Vietnamese Dong based on the average inter-bank exchange rate between the Vietnamese Dong and the foreign currency published by the State Bank of Vietnam at the time of occurrence.

2. The fiscal year runs from January 1 to December 31 of the Gregorian calendar year.

PART II
MANAGEMENT AND USE OF REVENUE SOURCES OF THE MANAGEMENT BOARD

Article 4:

Revenue sources of the Management Board include:

1. Maintenance and repair fees for infrastructure facilities divided by the Tan Thuan Joint Venture Construction and Operation Company (hereinafter referred to as Tan Thuan Company) to the Management Board in accordance with the "Regulation on Collection and Use of Maintenance and Repair Fees for Infrastructure Facilities in the Tan Thuan Export Processing Zone" issued together with Decision No. 139/2001/QĐ-BTC dated December 19, 2001 of the Minister of Finance.

2. Other revenues (if any).

Article 5:

1. The annual expenditure budget of the Management Board is prepared based on the following grounds:

- Revenue forecast;

- Tasks and emerging needs during the year;

- Budgetary expenditure standards according to existing policies of the State for specified expenditure items;

- For expenditure items where the State has not established expenditure standards, the Management Board shall establish its own standards based on the principles of effectiveness and thriftiness as a basis for budget preparation;

Specifically, for expenditure items related to salaries and allowances, contributions based on salaries shall be determined in accordance with Article 6 of this Regulation.

2. The expenditure budget of the Management Board is determined for the entire year, detailed by item, and must be within the scope of the annual revenue forecast.

3. The revenue and expenditure forecasts of the Management Board must be registered with the Department of Finance and Price Control of Ho Chi Minh City as a basis for implementation.

Article 6:

The salary and allowance expenditure budget, and contributions based on salaries, shall be implemented as follows:

1. For salary and allowance expenditure:

The salary and allowance expenditure of the Management Board is determined based on the basic salary fund of the Management Board multiplied by the adjustment factor for increasing the minimum wage.

The basic salary fund of the Management Board is determined based on the number of staff positions assigned by the competent state authority; the rank-based salary coefficient and allowances of officials and civil servants according to current regulations, and the national minimum wage.

The adjustment factor for increasing the minimum wage is set at 2.5 times.

2. For contributions based on salaries:

Contributions based on salaries such as social insurance, health insurance, and trade union fees are determined and paid based on the basic salary fund of the Management Board.

Article 7:

1. Within the scope of the approved expenditure budget and the allocation by the Department of Finance and Price Control of Ho Chi Minh City, the Management Board may proactively manage and adjust among expenditure items to effectively serve the Board's operations (except for procurement expenditures and major repairs of fixed assets).

In the event that the State changes policies related to expenditure items, the Management Board may adjust among such expenditure items in accordance with the new policies and regulations but shall not alter the total budgeted expenditures already registered and assigned.

2. The Management Board may proactively use the salary budget to pay salaries to officials, workers, and employees based on their productivity and work quality according to the general regulations of the Management Board.

The actual salary paid to employees shall not be lower than the basic wage determined according to the minimum wage, salary coefficient, and allowances as stipulated currently.

Article 8:

1. At the end of the fiscal year, the Management Board must settle accounts for revenue and expenditure activities within the year with the Department of Finance and Prices of Ho Chi Minh City.

2. All expenditures must be supported by full vouchers and invoices. Expenditures exceeding the budgeted funds for that expenditure item must be funded from the budgeted funds of other allocated expenditure items within the annual budget range.

3. The Management Board may use saved funds to establish incentive and welfare funds in accordance with current state regulations applicable to administrative and public service units with income. Any remaining funds after setting aside amounts for these two funds (if applicable) shall be transferred into the Support Fund for Export Processing Zones and Industrial Parks of Ho Chi Minh City.

Article 9:

1. The Support Fund for Export Processing Zones and Industrial Parks of Ho Chi Minh City shall be centrally managed in one account opened at the State Treasury of Ho Chi Minh City, with the Director of the Management Board as the account holder.

2. The Management Board is responsible for drafting the Regulations on the Management and Use of the Support Fund for Export Processing Zones and Industrial Parks of Ho Chi Minh City to submit to the People's Committee of Ho Chi Minh City for approval after obtaining the agreement of the Minister of Finance.

Article 10:

The Management Board shall implement financial transparency in revenue and expenditure activities in accordance with Article 2 of this Regulation and other state regulations on financial transparency for administrative agencies.

In necessary cases, the Management Board shall conduct an audit of revenue and expenditure activities after each fiscal year.

CHAPTER III
IMPLEMENTING PROVISIONS

Article 11:

The Department of Finance and Prices of Ho Chi Minh City shall be responsible for:

- Receiving and reviewing the revenue and expenditure budgets registered by the Management Board and issuing notifications assigning the revenue and expenditure budgets to the Management Board;

- Settling accounts for the implementation of the revenue and expenditure budgets;

- Supervising the Management Board's compliance with self-financing regulations.

Article 12:

The Management Board is responsible for establishing the Financial Regulations of the Board in accordance with the principle of frugal spending, ensuring transparency and democracy to implement these Regulations.

At the end of the fiscal year, the Management Board is responsible for reporting to the Ministry of Finance on the implementation of these Regulations.

Article 13:

During the implementation process, the Management Board and the Department of Finance and Prices of Ho Chi Minh City shall promptly identify any issues and propose solutions to the Ministry of Finance for supplementing and perfecting these Regulations.