Decree No. 14/2025/NĐ-CP amends and supplements certain articles of Decree No. 24/2016/NĐ-CP dated April 5, 2016, of the Government on the regime for managing state treasury funds.

DECREE
Amending and supplementing certain Articles of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the regime for managing state treasury funds

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Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law Amending and Supplementing Certain Provisions of the Law on Organization of the Government and the Law on Organization of Local Administration dated November 22, 2019;

Pursuant to the State Budget Law dated June 25, 2015;

Pursuant to the Public Debt Management Law dated November 23, 2017;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Law on Credit Institutions dated January 18, 2024;

Pursuant to the Law on Fees and Charges dated November 25, 2015;

Pursuant to the Foreign Exchange Ordinance dated December 13, 2005; the Ordinance amending and supplementing certain provisions of the Foreign Exchange Ordinance dated March 18, 2013;

At the proposal of the Minister of Finance;

The Government promulgates this Decree amending and supplementing certain Articles of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the regime for managing state treasury funds.

Article 1. Amending and supplementing certain Articles of Decree No. 24/2016/NĐ-CP dated April 5, 2016 of the Government on the regime for managing state treasury funds

1. Amending and supplementing some clauses of Article 3 as follows:

a) Amending and supplementing Clause 4 and Clause 5 as follows:

"4. Temporary idle state treasury funds are the excess between the total opening balance of state treasury funds and the forecasted revenue for the period compared with the total forecasted expenditure and the minimum required balance of state treasury funds for the period.

5. Temporary deficit state treasury funds are the shortfall between the total opening balance of state treasury funds and the forecasted revenue for the period compared with the total forecasted expenditure and the minimum required balance of state treasury funds for the period."

b) Amending and supplementing Clause 8 as follows:

"8. Treasury accounts of the State Treasury at banks include accounts opened at the State Bank of Vietnam and commercial banking systems."

c) Supplementing Clause 10 and Clause 11 after Clause 9 as follows:

"10. Advance state treasury funds of the state budget is the temporary use of idle state treasury funds of the central budget and provincial budgets to address temporary deficits of the central budget and provincial budgets.

11. Borrowing state treasury funds of the state budget is the temporary use of idle state treasury funds to cover budget deficits and repay maturing government debt of the central budget and provincial budgets."

2. Supplementing Clause 4 into Article 4 as follows:

"4. The use of temporary idle state treasury funds shall be conducted in Vietnamese currency."

3. Amending and supplementing Clause 2 of Article 5 as follows:

"2. The State Treasury shall develop quarterly state treasury management plans and submit them to the Ministry of Finance for approval no later than the 10th day of the first month of each quarter.

For annual state treasury management plans, the State Treasury shall develop and submit them to the Ministry of Finance for approval no later than January 10 of the year in which they are to be implemented."

4. To amend and supplement Article 7 as follows:

"Article 7. Using temporary idle state treasury funds

1. Temporary idle state treasury funds shall be used in the following priority order:

a) For advance and borrowing by the central budget.

b) For advance and borrowing by provincial budgets,

c) To repurchase government bonds.

d) To deposit with commercial banks for a fixed term.

The Minister of Finance shall determine specific limits for each use of temporary idle state treasury funds according to the above priority order in the state treasury management plan for the quarter.

2. Using temporary idle state treasury funds for advance and borrowing by the central budget:

a) State treasury funds may be used for advances to the central budget to address temporary deficits of the central budget; and for borrowing by the central budget to cover budget deficits and repay maturing government debt of the central budget.

b) The period for advances and borrowing of state treasury funds by the central budget shall not exceed 12 months, except in cases extended as provided in point c of this clause.

c) Advances of state treasury funds by the central budget must be repaid within the fiscal year. The Ministry of Finance shall decide on advances of state treasury funds to the central budget based on the availability of temporary idle state treasury funds at the time of decision.

Borrowings of state treasury funds by the central budget must be repaid on schedule. In case the central budget cannot allocate sufficient funds to repay borrowings of state treasury funds, such borrowings may be extended. Based on the annual state budget approved by the National Assembly and the annual public debt borrowing and repayment plan decided by the Prime Minister, the Ministry of Finance shall implement borrowings and extensions of state treasury fund borrowings for the central budget within the approved budget and plan and consistent with the availability of temporary idle state treasury funds.

d) The interest rate applicable to advances and borrowings of state treasury funds by the central budget is 0%/year.

3. Using temporary idle state treasury funds for advance and borrowing by provincial budgets:

a) State treasury funds may be used for advances to provincial budgets to address temporary deficits of provincial budgets; and for borrowing by provincial budgets to cover budget deficits and repay maturing government debt of provincial budgets.

b) Provincial budgets that seek advances and borrowings of state treasury funds must meet the following conditions:

Meeting the conditions for advances and borrowings of provincial budgets as stipulated in Article 58 of the State Budget Law, Article 52 of the Public Debt Management Law, decrees guiding the State Budget Law and the Public Debt Management Law, and resolutions of the National Assembly related to pilot special mechanisms and policies for specific localities.

In the case of advances of state treasury funds, the proposed amount of advance must not exceed the remaining balance of the provincial budget expenditure forecast approved by the Provincial People's Council at the time of the request; and the request for advance of state treasury funds must be approved by the Provincial People's Council.

There should be no overdue advances or borrowings of state treasury funds (principal and interest) at the time of requesting advances or borrowings of state treasury funds.

Commitment to fully and timely repay advances and borrowings of state treasury funds; allowing the provincial State Treasury to proactively deduct from the provincial budget balance to recover overdue advances and borrowings of state treasury funds.

c) The provisional advances from the state treasury fund of the provincial local budget must be repaid within the fiscal year. The Ministry of Finance decides on granting provisional advances from the state treasury fund to the provincial local budget, in accordance with the temporary idle capacity of the state treasury fund at the time of considering and deciding to grant provisional advances to the provincial local budget.

The loans from the state treasury fund of the provincial local budget must be repaid on schedule within the fiscal year and cannot be extended. Based on the local budget estimate, the total annual loan amount approved by the National Assembly and the Provincial People's Council, the Ministry of Finance considers and decides on granting loans from the state treasury fund to the provincial local budget, in accordance with the temporary idle capacity of the state treasury fund at the time of considering and deciding to grant loans to the provincial local budget.

d) The interest rate applied to provisional advances and loans from the state treasury fund of the provincial local budget is 0%/year.

4. Using temporarily idle state treasury funds to buy and resell government bonds.

a) Government bonds accepted for transactions to buy and resell government bonds are government bonds denominated in Vietnamese dong issued by the State Treasury and listed on the Stock Exchange.

b) The terms for buying and reselling government bonds include 07 days, 14 days, 21 days, 01 month, 02 months, and 03 months.

c) Transactions to buy and resell government bonds are conducted based on the principle of competitive interest rates.

d) The Ministry of Finance determines the risk protection ratio and trading partners for buying and reselling government bonds from the state treasury fund from the list of members trading government bonds through the Vietnam Stock Exchange.

đ) Based on the state treasury fund management plan already approved by the Ministry of Finance as stipulated in Article 5 of this Decree, the State Treasury conducts transactions to buy and resell government bonds, ensuring principles of safety, transparency, and openness.

5. Using temporarily idle state treasury funds to deposit with commercial banks for a fixed term.

a) The state treasury funds can be deposited with commercial banks that have more than 50% state-owned capital and good quality, high safety levels according to the evaluation of the State Bank of Vietnam.

Based on the list of commercial banks with more than 50% state-owned capital and good quality, high safety levels provided by the State Bank of Vietnam, the Ministry of Finance decides which commercial banks will accept deposits from the temporarily idle state treasury funds, ensuring the safety of the state treasury funds.

b) The term for depositing state treasury funds with commercial banks includes 01 month, 02 months, and 03 months.

c) Depositing state treasury funds with commercial banks for a fixed term is conducted based on the principle of competitive interest rates.

d) Based on the state treasury fund management plan already approved by the Ministry of Finance as stipulated in Article 5 of this Decree, the State Treasury conducts transactions to deposit state treasury funds with commercial banks for a fixed term, ensuring principles of safety, transparency, and openness."

5. Supplement Point c to Clause 1 of Article 8 as follows:

"c) Purchasing foreign currency from the commercial banking system to meet the spending needs of the state treasury fund in cases of shortage of foreign currency in the state treasury fund and when the Ministry of Finance cannot balance itself. In cases where sufficient foreign currency cannot be purchased from the commercial banking system, the Ministry of Finance requests the State Bank of Vietnam to sell the remaining foreign currency from the official foreign exchange reserves to the state treasury fund according to the coordination regulations between the Ministry of Finance and the State Bank of Vietnam."

6. Amend and supplement Clause 3 of Article 9 as follows:

"3. Risk prevention measures:

a) Setting limits on the use of temporarily idle state treasury funds for provisional advances and loans to the central government budget.

b) Setting total limits on the use of temporarily idle state treasury funds for provisional advances and loans to the provincial local budget.

c) Setting limits on the use of temporarily idle state treasury funds for buying and reselling government bonds.

d) Setting limits on the use of temporarily idle state treasury funds for depositing with commercial banks for a fixed term, ensuring it does not exceed 50% of the temporary idle capacity of the state treasury funds.

đ) Determining the minimum level of state treasury funds that the State Treasury must maintain in its settlement account to ensure payment capability and liquidity for the state budget and transaction units.

e) On a monthly basis, the State Treasury organizes evaluations of the forecasted state treasury situation; if the difference between forecasted and actual revenue and expenditure figures exceeds the threshold decided by the Ministry of Finance in the quarterly state treasury management plan, the State Treasury reports to the Ministry of Finance to adjust the limit on the use of temporarily idle state treasury funds as specified in Points a, b, c, and d of this clause."

2. The application file for investigation of emergency measures for textile products as prescribed in Article 63 of Decree No. 86/2025/NĐ-CP must also include the following specific additional contents:

"Article 10. Settlement Accounts

1. The settlement accounts of the State Treasury are opened and used as follows:

a) The settlement account of the State Treasury (Central) is opened at the State Bank of Vietnam and commercial banks (head offices) and is used to concentrate revenues, pay expenditures from the state treasury fund; implement transactions to manage account balances to ensure the payment capability of the entire State Treasury system; conduct transactions using temporarily idle state treasury funds or handle shortages in the state treasury funds.

b) The settlement accounts of State Treasury units (Provincial Treasury Departments, District Treasury Departments) are opened at commercial banks and are used to concentrate revenues, pay expenditures from the state treasury fund.

2. The entire balance on the settlement accounts of Treasury units at the time of temporarily suspending the transmission and receipt of payment documents for reconciliation of payment data between the Treasury and commercial banking systems shall be transferred to the settlement account of the Central Treasury at the State Bank of Vietnam (except for balances of foreign currencies for which the Treasury has not yet opened accounts at the State Bank of Vietnam). Any payments arising after the time of temporarily suspending the transmission and receipt of payment documents during working hours on the settlement accounts of Treasury units at commercial banking systems, and balances on the settlement accounts of Treasury units at commercial banking systems that cannot be transferred to the settlement account of the Central Treasury at the State Bank of Vietnam due to force majeure, shall be transferred to the settlement account of the Central Treasury at the State Bank of Vietnam on the following working day.

3. Pay interest on the balance of the Treasury's settlement accounts:

a) The opening balance of the Treasury's settlement account at the State Bank of Vietnam shall be paid interest at the rate prescribed by the Governor of the State Bank of Vietnam, which shall not be lower than the interest rate paid by the State Bank of Vietnam to credit organizations during the same period.

b) The closing balance of the Treasury's settlement account at commercial banks shall be paid interest at the rate agreed upon between the Treasury and commercial banks, in accordance with the provisions of the law.

8. Amend and supplement some points and clauses of Article 11 as follows:

a) Amend and supplement Point đ Clause 1 as follows:

"d) Public service units implementing the self-management system shall open deposit accounts at the Treasury in accordance with the provisions of the law on the financial autonomy mechanism of public service units."

b) Amend and supplement Clause 2 as follows:

"2. The establishment of accounts and payment of interest for entities opening accounts at the Treasury shall be carried out in accordance with the regulations of the Minister of Finance."

9. Amend and supplement Clause 3 of Article 12 as follows:

"3. Revenue and expenditure from state treasury management activities specified in Clauses 1 and 2 of this Article shall be recorded and summarized in the business revenue and expenditure of the Treasury according to the Treasury's financial management mechanism.

Any excess difference between revenue and expenditure from state treasury management activities after meeting the expenditure items as prescribed by the Treasury's financial management mechanism shall be deposited into the state budget.

From the date of abolishing the special financial management mechanism of the Treasury pursuant to the Resolution of the National Assembly, revenue and expenditure from state treasury management activities shall be reflected and recorded in the accounts opened at the Treasury. After reconciling the revenue and expenditure of state treasury management activities accurately, any excess difference between revenue and expenditure from state treasury management activities shall be deposited into the state budget quarterly."

10. Amend and supplement some clauses of Article 13 as follows:

a) Amend and supplement Clause 1 as follows:

"1. The Minister of Finance shall stipulate procedures, technical standards, and detailed contents to implement state treasury management operations prescribed in Articles 6, 7, 8, 9, 10, and 11 of this Decree."

b) Amend and supplement Clause 3 as follows:

"3. Decide to temporarily use idle state treasury funds for advance payments and loans to the central government budget and provincial government budgets in accordance with Articles 7 and 9 of this Decree; allocate the central government budget to repay advance payments and loans from state treasury funds fully and on time."

c) Supplement Clause 6 to Article 13 as follows:

"6. Annually (before January 31 of the following year), the Ministry of Finance shall report to the Prime Minister the situation of using idle state treasury funds."

11. Amend and supplement Clause 3 of Article 14 as follows:

"3. Provide promptly to the Ministry of Finance a list of commercial banks with state capital and state enterprise capital exceeding 50% of their charter capital, which have been evaluated by the State Bank of Vietnam as having good quality and high safety levels."

12. Amend and supplement Clause 2 of Article 15 as follows:

"2. Provincial People's Committees responsible for advance payments and loans from state treasury funds shall use the advance payment and loan funds in accordance with this Decree and the regulations of the Minister of Finance on advance payments and loans from state treasury funds; repay advance payments and loans from state treasury funds fully and on time."

13. Supplement Clause 5 to Article 16 as follows:

"5. The Treasury may sell or retain government bonds (as collateral for the transaction of reselling government bonds) until full repayment of the principal and interest to recover state treasury funds in case the transaction partner of reselling government bonds fails to fulfill the obligation to pay money to the Treasury as agreed."

14. Amend and supplement Article 17 as follows:

a) Amend the name of Article 17 as follows:

"Article 17. Tasks and powers of commercial banks and transaction partners reselling government bonds with the Treasury."

b) Supplement Clause 3 to Article 17 as follows:

"3. Commercial banks and transaction partners reselling government bonds shall be responsible for paying (principal and interest) fully and on time the amount of state treasury funds deposited with a fixed term or resold government bonds to the Treasury in accordance with the agreement."

Article 2. Repeal and replace certain provisions of Government Decree No. 24/2016/NĐ-CP dated April 5, 2016 on the regime for managing state treasury funds

1. Replace the phrase "payment fee" with the phrase "payment service fee" in Point b Clause 1 and Point b Clause 2 of Article 12.

2. Repeal Clause 3 of Article 11.

Article 3. Transitional Provisions

1. The outstanding advance payments and state treasury loans of the state budget as of the date this Decree takes effect shall be subject to interest rates as prescribed in this Decree from the date it takes effect.

2. Advance payments and state treasury loans of the state budget approved before the date this Decree takes effect but withdrawn after the Decree takes effect shall be subject to interest rates as prescribed in this Decree.

3. The State Treasury shall review and close all payment accounts opened at the State Bank branches in provinces and cities (if any) within three months from the date this Decree takes effect. Procedures for closing accounts shall comply with regulations of the State Bank of Vietnam.

Article 4. Implementation provisions

1. This Decree takes effect from March 10, 2025.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of provincial and municipal People's Committees directly under the central government are responsible for implementing this Decree.