Circular No. 14/1999/TT-BTC stipulates the financial management regime for the Vietnam Chamber of Commerce and Industry (VCCI)

CIRCULAR

ISSUED BY THE MINISTRY OF FINANCE NUMBER 14/1999/TT-BTC ON FEBRUARY 3, 1999 REGULATING THE FINANCIAL MANAGEMENT SYSTEM FOR
THE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY

Pursuant to Decision No. 310/TTg dated June 29, 1993 of the Prime Minister on the working relationship between state agencies and the Vietnam Chamber of Commerce and Industry;

Pursuant to Decision No. 315/TTg dated May 12, 1997 of the Prime Minister approving the amended Statutes of the Vietnam Chamber of Commerce and Industry;

Pursuant to Decision No. 601/TTg dated August 1, 1997 of the Prime Minister promulgating the Regulations on the organization and operation of the Taiwan Relations Commission;

After reaching consensus with the Vietnam Chamber of Commerce and Industry (hereinafter referred to as the Chamber), the Ministry of Finance hereby issues regulations on the financial management system for the Vietnam Chamber of Commerce and Industry as follows:

 

I - GENERAL PRINCIPLES:

1- The activities of the Chamber must be clearly defined and accounted for in two categories of activities:

- Trade promotion and investment activities aimed at implementing the policy of expanding and developing the national economy, or to fulfill tasks assigned by the State.

- Other business and service activities.

Trade promotion, investment activities, and activities fulfilling State-assigned tasks shall be exempt from tax obligations according to current regulations. The State budget will support funding for trade promotion and investment activities when revenue is insufficient to cover costs, and provide funding for activities related to State-assigned tasks (such as the Taiwan Relations Commission...).

For other business and service activities, the Chamber must ensure its own funding, comply with general regulations on business and service operations, maintain separate accounting records, and fulfill tax obligations as prescribed by law.

2- The Chamber shall implement accounting and financial systems according to the National Accounting and Statistics Ordinance and be subject to financial inspection and supervision by competent authorities under the Ministry of Finance.

II - SPECIFIC PROVISIONS ON THE FINANCIAL MANAGEMENT SYSTEM FOR THE CHAMBER

A - REGARDING TRADE PROMOTION AND INVESTMENT ACTIVITIES:

1- Trade promotion and investment activities include:

- Collecting and studying opinions from businesses to reflect, propose, and advise the State on legal and economic policies to improve the business environment in Vietnam.

- Organizing conferences, seminars, economic forums, and promotional events to introduce Vietnam's economic potential.

- Supporting business activities such as organizing trade fairs, exhibitions, showcasing and introducing Vietnamese products, and organizing surveys and market research both domestically and internationally for businesses; providing economic and trade information and consulting services to businesses.

- Activities of the Vietnam International Arbitration Center.

- Promoting the Party and State's policies through the provision of economic information publications and appropriate forms.

- Implementing cooperation projects and programs with domestic and international organizations to support investment and trade promotion for Vietnamese businesses.

- Organizing training courses for Vietnamese businesses in areas of management, business, and other relevant fields.

- Conducting other trade promotion and investment activities as assigned by the Government.

2- Funding for trade promotion and investment activities:

Trade promotion and investment activities are carried out using the following sources of funding:

- Membership fee income.

- Income from trade promotion and investment activities.

- Income from domestic and international organizational sponsorships.

- Income from gifts and donations from domestic and international organizations and individuals, and foreign aid approved by authorized agencies for acceptance and use.

- Financial support from the State budget for trade promotion and investment activities.

3- Expenditure for trade promotion and investment activities:

- Expenses for organizing conferences, seminars, and economic forums both domestically and internationally to enhance trade and investment promotion between Vietnam and other countries.

- Expenses for promoting and introducing Vietnam's economic potential both domestically and internationally.

- Expenses for collecting and summarizing opinions from domestic businesses and facilitating interactions between government agencies and business representatives to report to the Government for the formulation and implementation of economic policies.

- Expenses for disseminating and guiding businesses to implement laws and policies of the State and promoting trade relations between Vietnam and other countries.

- Expenses for membership fees and participation in activities of international organizations relevant to international integration as required by the State.

- Expenses for gathering, researching, and disseminating domestic, regional, and global economic information to serve businesses and report to the Government.

- Expenses for hosting foreign businesspeople and trade delegations visiting Vietnam to seek investment opportunities and promote trade.

- Expenses for organizing Vietnamese business delegations to study and survey foreign markets.

- Rent expenses for office space and operational costs for representatives of the Chamber both domestically and internationally.

- Expenses for scientific research and organizing training courses for domestic businesses to enhance knowledge in management and business.

- Expenses for publishing magazines and other economic information publications.

- Salaries and operational expenses for staff engaged in trade promotion and investment activities within the Chamber.

- Expenses for purchasing technical equipment to support trade promotion and investment activities.

- Expenses for other trade promotion and investment activities as required by the Government.

4- Operational funding for the Taiwan Relations Commission.

Pursuant to the Prime Minister's Decision, the operating funds of the Specialized Committee for relations with Taiwan shall be guaranteed by the State budget (in essence, it is a part of a state agency in relation to Taiwan).

a- Sources of Revenue:

The operating funds of the Specialized Committee for relations with Taiwan include the following sources of revenue:

- Revenue from international organizations' funding for the Committee.

- Revenue from the annual State budget allocation.

b- Operating Expenses:

The expenses of the Committee include:

- Payment of salaries and social insurance for Committee office staff.

- Allowances for members who concurrently serve on the Committee.

- Rent payment for the Committee's office premises.

- Purchase costs for working equipment for the Committee's office.

- Other expenses serving the Committee's activities such as electricity, water, telephone, office supplies, etc.

- Expenses for incoming and outgoing delegations serving the Committee's activities as assigned by the Government.

- Other expenses as prescribed by the Government.

5- Financial Management Method:

Annually, the Chamber of Commerce prepares a financial budget for revenue and expenditure to serve trade promotion and investment activities, and the operating funds of the Specialized Committee for relations with Taiwan, which is submitted to the Ministry of Finance for consolidation and presentation to the Government for decision. The establishment, implementation, and settlement of financial matters related to trade promotion and investment activities, and the operating funds of the Specialized Committee for relations with Taiwan (with detailed explanations of revenue and expenditure), must be carried out strictly in accordance with Circular No. 103/1998/TT-BTC dated July 18, 1998, issued by the Ministry of Finance.

- The Chamber of Commerce must maintain separate accounting records for these activities and submit periodic quarterly and annual financial settlement reports (reflecting all revenue and expenditure items mentioned in Points 2, 3, and 4 of Part II of this Circular) to the Ministry of Finance according to current regulations.

- In cases where it is necessary to expand trade promotion and investment activities or enhance technical facilities of the Chamber of Commerce to meet assigned Government tasks, the Chamber of Commerce must prepare a project for submission to the Government for consideration to support funding and other conditions from the State budget.

B - FOR BUSINESS SERVICE ACTIVITIES.

1- Types of business service activities include:

- Office rental, car rental.

- Air ticket sales agency services for domestic and foreign airlines.

- Trade and import-export business operations.

- Issuing certificates of origin for Vietnam's export consignments.

- Consulting services for domestic and foreign economic organizations.

- Revenue from intellectual property representation, industrial services, and technology transfer.

- Services supporting domestic and international trade fairs, exhibitions, and commercial advertising.

- Other types of business service activities.

2- Sources of Capital:

The capital serving the aforementioned service activities includes the entire fixed capital, circulating capital, and other sources of capital allocated by the State to the Chamber of Commerce.

Additionally, when necessary, the Chamber of Commerce may borrow from banks or raise funds from other sources to serve its business service activities.

The Chamber of Commerce is responsible for preserving and developing the capital allocated by the State. The use, management, transfer, and liquidation of assets must comply with current financial regulations.

3- Financial System and Operation Methods

- The Chamber of Commerce must bear full responsibility for the financial results of various business and service activities.

- All business and service activities must be separately accounted for, fully reflecting revenues and expenses in accounting books and vouchers according to prescribed regulations.

- For business service and trade activities, the financial management system and accounting practices shall follow those applicable to state-owned enterprises.

- The Chamber of Commerce is responsible for fulfilling tax obligations as stipulated by law for the business and service activities listed in Point 1, Section B, Part II of this Circular. The post-tax profits shall be allocated to enterprise funds according to regulations applicable to state-owned enterprises.

III - IMPLEMENTATION PROVISIONS

This Circular replaces Circular No. 549 TC/TCTN dated March 12, 1994, issued by the Ministry of Finance regarding the temporary financial management system for the Vietnam Chamber of Commerce and Industry and shall take effect fifteen days after the date of issuance.

During implementation, if there are difficulties or obstacles, they should be reported to the Ministry of Finance for study and resolution.