Joint Circular No. 1421-TT/LB stipulates the management of state capital and bank loans for central book distribution offices, branch offices, and provincial book distribution rooms after decentralization to provincial committees for leadership.

CIRCULAR

Regulations on the management of state capital and bank loans for the Central Book Distribution Office, branch offices, and book distribution rooms of provinces after being transferred to the leadership of provincial People's Committees.

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MINISTER OF CULTURE-MINISTER OF FINANCE-DIRECTOR OF THE NATIONAL BANK OF VIETNAM

Pursuant to the Party and Government's policy on decentralizing economic and cultural sectors to localities, the Ministry of Culture has decentralized branch offices and book distribution rooms to the leadership of provincial and municipal People's Committees.

The handover of branch offices and book distribution rooms to provincial and municipal People's Committees has been completed. The Joint Ministry of Culture-Finance-National Bank issues this circular to regulate the management of state capital and bank loans for branch offices and book distribution rooms after decentralization to local People's Committees.

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. After decentralization, branch offices and book distribution rooms of provinces and cities are business units under the local Cultural Departments. The Cultural Departments are responsible before the local People's Committee for directing branch offices and book distribution rooms in all aspects. Specifically, regarding business operations, the Cultural Departments will approve and submit business and financial indicators of branch offices and book distribution rooms to the provincial People's Committee for decision-making, while also directing the implementation of these indicators. Financial Departments have the responsibility to participate in reviewing financial plans of branch offices and book distribution rooms. National Bank branches have the responsibility to provide credit advice and monitor the implementation of business and financial plans. The Central Book Distribution Office has the responsibility to direct on the issuance and technical aspects of distribution.

2. The Central Book Distribution Office is an independent accounting unit, conducting business relations with branch offices and book distribution rooms based on supply and payment terms as stipulated by the Ministry of Culture, under the strict supervision of the banking authority through credit work.

Branch offices and book distribution rooms of provinces are business units that conduct independent accounting, receiving state capital and having legal person status in managing capital, transacting, signing contracts with other business units, borrowing from banks, organizing business activities according to approved plans, and enjoying enterprise bonuses upon completion of plans.

Except for the following regions: Thai Meo Autonomous Region, Bac Can, Ha Giang, Lao Cai, Vinh Linh Area, due to the requirements of book distribution work and current management capabilities, they cannot yet become independent accounting units, fully funded by the state for business operations, but must strive to quickly achieve independent accounting status.

II. CAPITAL ISSUES FOR BOOK DISTRIBUTION AGENCIES

Previously, the Central Book Distribution Office managed some state capital including fixed assets and circulating capital provided and part of circulating capital borrowed from the bank for nationwide business operations. Now, after decentralization, the Central Book Distribution Office has transferred a portion of that capital to local branch offices and book distribution rooms. Due to the lack of capital allocation principles for the distribution sector, in the plan for circulating capital quotas for branch offices and book distribution rooms, some provinces need to borrow from the bank, some do not need to borrow, some borrow more, and some borrow less.

The Joint Ministry now stipulates as follows:

1. Although book distribution operates within the goods circulation field, considering its specific characteristics, the state temporarily provides 100% non-goods capital and 50% of the quota for goods reserve capital, while the remaining 50% of goods reserve capital will be loaned by the bank. For the five provinces mentioned above, the state temporarily provides 100% circulating capital.

Regarding stagnant goods, currently it has not been specifically determined. The Ministry of Culture has studied and made a decision. In the meantime, the bank temporarily treats them as circulating goods and participates in lending 50% of the total goods capital quota.

2. The interest rate on bank loans is set at 0.4% per month.

3. The Central Book Distribution Office, branch offices, and book distribution rooms of provinces will base their calculations on the financial revenue and expenditure plans they have established to determine the 50% of goods capital provided by the state and the 50% loaned from the bank. If the circulating capital transferred by the Central Book Distribution Office exceeds 50% compared to the state-provided circulating capital quota according to the plan, then the branch offices and book distribution rooms of provinces must borrow from the bank to repay the excess amount to the Central Book Distribution Office to pay into the state budget.

4. The Central Book Distribution Office will withdraw all fixed assets and necessary circulating capital to be transferred to branch offices and book distribution rooms of provinces from its own assets for the Ministry of Finance to record in the local budget.

III. PRINCIPLES AND TYPES OF BANK LOANS

1. Based on the current situation of the book distribution sector, the bank stipulates four types of loans as follows:

- Loans for goods circulation according to plan.

- Loans for temporary needs.

- Loans for major repairs.

- Loans for payment documents in transit (specifically for the Central Book Distribution Office).

2. The bank provides loans to book distribution agencies under special accounts, meaning the bank handles all payments for planned purchases and collects all sales proceeds after deducting circulation expenses, taxes, depreciation for the state, and interest if applicable.

3. Loan procedures and documents for book distribution agencies will follow those applied to general trading organizations.

IV. PAYMENT OF BOOKS BETWEEN THE CENTRAL BOOK DISTRIBUTION AGENCY AND PROVINCES

1. To eliminate commercial credit among economic organizations without going through the Bank, the payment for books between the Central Book Distribution Office and localities shall be carried out in the form of "collection on behalf of payment" through the Bank. Under this form, the Central Book Distribution Office sends goods and then entrusts the Bank to collect money on its behalf.

2. The method and time of payment for books between branch offices and central book distribution rooms with the Central Book Distribution Office shall be applied according to the payment regulations through the Bank as stipulated in Directive No. 168-KH dated May 7, 1958 of the State Bank of Vietnam.

V. INTEREST PAYMENT, DEPRECIATION, LOSS SUBSIDY AND BASIC CONSTRUCTION CAPITAL ALLOCATION

In 1959, although branch offices and central book distribution rooms were decentralized to localities, the Ministry of Culture still managed overall profit and loss and depreciation funds throughout the distribution sector.

Therefore, all branch offices and central book distribution rooms in provinces transferred their interest and depreciation for 1959 to the Central Book Distribution Office to pay to the Ministry of Culture, and the Ministry of Culture would subsidize losses for branch offices and central book distribution rooms that were approved as having losses.

From 1960 onwards, the Provincial People's Committees and City People's Committees will assume the profit and loss of branch offices and central book distribution rooms. Branch offices and central book distribution rooms will pay interest and depreciation to local finance bureaus: if there is a loss, they will request a subsidy from the local budget.

Regarding basic construction capital for branch offices and central book distribution rooms from 1960 onwards, it will also be allocated from the local budget.

Specifically, the five distribution units in the Autonomous Region, Thai Meo, Bac Can Province, Ha Giang Province, Lao Cai Province, and Vinh Linh Area, which were handed over to local management from 1957 and 1958, do not fall within the scope of the Ministry of Culture's overall profit and loss management in 1959 and are handled by the locality.

VI. EFFECTIVE DATE

After receiving this Circular, the Central Book Distribution Office, branch offices and central book distribution rooms in provinces and cities, cultural departments, finance departments, and bank branches shall discuss and develop plans to implement this from October 1, 1959. It is requested that the Provincial People's Committees and City People's Committees urge relevant agencies in their localities to actively comply with this Circular.

It is requested that the Provincial People's Committees and City People's Committees urge relevant agencies in their localities to actively comply with this Circular.