Circular No. 153/2009/TT-BTC guides the financial management to ensure the provision of public postal services according to Decision No. 65/2008/QD-TTg dated May 22, 2008 of the Government Prime Minister.

CIRCULAR

Guidelines for financial management to ensure the provision of public postal services according to

Decision No. 65/2008/QD-TTg dated May 22, 2008 of the Government

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Pursuant to Decree No. 118/2008/ND-CP dated November 27, 2008 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 09/2009/ND-CP dated February 5, 2009 of the Government promulgating the Financial Management Regulations for State-owned enterprises and the management of state capital invested in other enterprises;

Pursuant to Decree No. 31/2005/NĐ-CP dated March 11, 2005 of the Government on production and supply of public goods and services;

Pursuant to Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister promulgating the Procurement Regulations for ordering, allocating plans for production and supply of public goods and services;

Pursuant to Decision No. 65/2008/QD-TTg dated May 22, 2008 of the Prime Minister on the provision of public postal services;

The Ministry of Finance provides guidelines for financial management to ensure the provision of public postal services according to Decision No. 65/2008/QD-TTg dated May 22, 2008 of the Prime Minister as follows:

Article 1. General Provisions:

1. The State allocates annual subsidies to Vietnam Post Corporation (referred to as Vietnam Post) to maintain the operation of the public postal network for the provision of public postal services.

The list of public postal services is specified in Article 1 and Clause 1, Article 2 of Decision No. 65/2008/QD-TTg dated May 22, 2008 of the Prime Minister on the provision of public postal services and Articles 1 and 2 of Circular No. 17/2009/TT-BTTTT dated May 27, 2009 of the Ministry of Information and Communications detailing the implementation of Decision No. 65/2008/QD-TTg dated May 22, 2008 of the Prime Minister on the provision of public postal services.

2. Method of providing public postal services: The State orders Vietnam Post to provide public postal services.

3. Mechanism for allocating subsidy levels for the provision of public postal services to Vietnam Post shall be implemented during the period from January 1, 2008 to no later than December 31, 2013. After that, Vietnam Post will self-fund the costs of maintaining the public postal network.

The annual allocation level for Vietnam Post is determined by the Ministry of Information and Communications after obtaining the written agreement of the Ministry of Finance.

The subsidy amount decreases annually and is determined according to the provisions of Circular No. 17/2009/TT-BTTTT dated May 27, 2009 of the Ministry of Information and Communications.

4. Sources of funding for subsidies to Vietnam Post:

- From 2008 to the end of 2010: The State allocates a portion of the post-tax profit (up to 20% of post-tax profit) distributed according to the state investment capital at the Vietnam Posts and Telecommunications Group to subsidize Vietnam Post. In cases where the subsidy for Vietnam Post exceeds the aforementioned ratio, the Ministry of Information and Communications, in coordination with the Ministry of Finance, reports to the Prime Minister for consideration and decision on additional funding sources.

- From 2011 to the end of 2013: The State subsidizes Vietnam Post from the state budget.

5. Management principles: Vietnam Post is responsible for managing and using state-subsidized funds for their intended purpose and effectively to maintain the operation of the public postal network for the provision of public postal services according to the service provision contract between the Ministry of Information and Communications and Vietnam Post and in accordance with the law.

Vietnam Post has the right to utilize state capital, assets, and resources allocated to organize business activities in accordance with the law to ensure that by no later than the end of 2013 it can self-fund the costs of maintaining the public postal network without affecting the public service tasks assigned by the State.

Article 2. Planning and ordering service supply:

1. Annual service supply plan:

Vietnam Post is responsible for establishing the annual plan for supplying public postal services and the annual financial plan in accordance with Circular No. 17/2009/TT-BTTTT dated May 27, 2009 of the Ministry of Information and Communications. Specifically, the subsidy funding plan for financial support to provide public services will be implemented in two phases as follows:

- From 2009 to 2010: Based on the annual profit plan established by the Vietnam Posts and Telecommunications Group, Vietnam Post will develop a plan to transfer post-tax profits allocated according to state capital investment to subsidize Vietnam Post, and report to the Ministry of Finance and the Ministry of Information and Communications before July 20 of the previous year.

In cases where the subsidy exceeds 20% of the post-tax profits allocated according to state capital investment at the Vietnam Posts and Telecommunications Group (excluding profits allocated according to state capital investment for Vietnam Post), the Vietnam Posts and Telecommunications Group and Vietnam Post shall report to the Ministry of Information and Communications. The Ministry of Information and Communications shall take the lead and coordinate with the Ministry of Finance to report to the Prime Minister for consideration and decision on additional funding sources before July 30 of the previous year.

- From 2011 to 2013: Vietnam Post is responsible for preparing the annual subsidy funding plan and submitting it to the Ministry of Information and Communications. The Ministry of Information and Communications is responsible for reviewing and submitting it to the Ministry of Finance before July 30 of the previous year. After reaching an agreement with the Ministry of Finance, the Ministry of Information and Communications will incorporate it into the budget expenditure plan of the Ministry.

The Ministry of Finance will allocate funds from the state budget, submit to the competent authority for approval, and notify the Ministry of Information and Communications of the annual subsidy amount for providing public postal services. On this basis, the Ministry of Information and Communications will approve the plan and sign the service supply order contract annually with Vietnam Post.

2. Ordering service supply:

The Ministry of Information and Communications shall implement signing the service supply order contract with Vietnam Post in accordance with Circular No. 17/2009/TT-BTTTT dated May 27, 2009 of the Ministry of Information and Communications before December 31 of the previous year.

3. Contract contents: include the following main items:

3.1 Service content:

a) Name of public service;

b) Service volume;

c) Service quality;

d) Completion time;

d) Contract value;

e) Acceptance and payment methods;

f) Obligations and responsibilities between the ordering agency and the contracted enterprise;

g) Responsibilities of each party in case of breach of contract.

3.2 Financial content:

a) Revenue from direct service supply, specifying the proposed state subsidy support;

b) Costs allocated to public services;

c) Profit, including plans to set aside enterprise funds.

Article 3. Accounting, payment, and settlement for public service supply:

1. Allocation and payment of subsidy funds to Vietnam Post for public postal service supply:

1.1 The allocation and payment to Vietnam Post will be carried out quarterly, at a rate of 30% of the approved subsidy amount. The payment deadline is before the 15th day of the last month of each quarter. The final payment (10% of the subsidy amount) will be made after the Ministry of Information and Communications approves the annual public service supply settlement.

If the temporarily allocated amount (90%) exceeds the amount approved by the settlement, it will be deducted from the subsidy amount for the following year, refunded to the Vietnam Posts and Telecommunications Group, or deposited into the state budget (in cases where support does not continue in the following year).

1.2 Specific allocation and payment to Vietnam Post:

a) From 2008 to 2010:

Quarterly, based on notifications from the Ministry of Information and Communications, the Vietnam Posts and Telecommunications Group is responsible for transferring subsidy funds to Vietnam Post in accordance with Clause 1.1, Article 3 of this Circular.

For 2008, based on the subsidy level determination principle stated in Circular No. 17/2009/TT-BTTTT dated May 27, 2009 of the Ministry of Information and Communications and the provisions of this Circular, the Ministry of Information and Communications will review and decide the official subsidy quota for 2008 for Vietnam Post after obtaining the agreement of the Ministry of Finance. Based on the officially approved subsidy level, within 15 days from receiving the notification from the Ministry of Information and Communications, the Vietnam Posts and Telecommunications Group is responsible for transferring the remaining amount (the difference between the officially approved subsidy level and the temporarily allocated amount) to Vietnam Post.

b) From 2011 to 2013:

The Ministry of Information and Communications will withdraw the budget from the State Treasury to allocate and pay the service supply order contract with Vietnam Post based on the approved subsidy amount by the competent authority, report on the progress of implementing the service supply order contract, and the request of Vietnam Post. The allocation and payment to Vietnam Post will be carried out in accordance with Clause 1.1, Article 3 of this Circular.

In cases where the subsidy funds for public postal service supply in 2011, 2012, and 2013 are not fully utilized in the year and await settlement, they will be transferred to the next year and settled after the contract acceptance in accordance with Clause 2 and Clause 3, Article 3 of this Circular.

2. Every April, based on the service supply order contract and the acceptance record of the results achieved, the Ministry of Information and Communications will take the lead and coordinate with the Ministry of Finance to settle the public postal service supply of the previous year for Vietnam Post.

3. Documentation for allocation, payment, and settlement:

- Service supply order contract;

- Acceptance record of service volume and quality completed between the Ministry of Information and Communications and Vietnam Post; In cases of quarterly payment based on the progress report of the service supply order contract implementation.

- Decision on subsidy quota by the Ministry of Information and Communications;

- Request for payment from Vietnam Post;

- Other related documents.

4. In case of failure to fulfill assigned public service tasks, the payment level shall be determined according to the reduction amount specified in the service supply contract issued by the Ministry of Information and Communications.

The Ministry of Information and Communications is responsible for managing and using funds for their intended purposes and settling the budget in accordance with regulations.

5. Accounting entries:

Vietnam Post shall record the state-assigned subsidy funding for providing public services as revenue in accordance with current regulations. The accounting entries shall be centralized at Vietnam Post Corporation.

Vietnam Posts and Telecommunications Group shall base on the approved subsidy funding allocation level for Vietnam Post and the notification of fund transfer from the Ministry of Information and Communications to record a decrease in post-tax profit distributed according to state investment capital in enterprises at corresponding levels.

Article 4. Organization of Implementation

1. Apart from the provisions set forth in this Circular, Vietnam Post shall comply with other legal regulations concerning financial management for state-owned companies.

2. This Circular takes effect 45 days from the date of signature.

3. During implementation, if there are any difficulties, Vietnam Post and related units are requested to compile reports for the Ministry of Finance to study and make appropriate amendments and supplements./.