Circular No. 17/2009/TT-BTTTT detailing the implementation of Decision No. 65/2008/QĐ-TTg dated May 22, 2008 of the Prime Minister on providing universal postal services

CIRCULAR

Regulations for the implementation of Decision No. 65/2008/QĐ-TTg dated May 22, 2008 of the Prime Minister on the provision of universal postal services

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MINISTER OF INFORMATION AND COMMUNICATIONS

Based on the Ordinance on Posts and Telecommunications dated May 25, 2002;

Based on Decree No. 157/2004/NĐ-CP dated August 18, 2004 of the Government detailing certain provisions of the Ordinance on Posts and Telecommunications regarding postal services;

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

Based on Decree No. 187/2007/NĐ-CP dated December 25, 2007 on the functions, tasks, and powers of the Ministry of Information and Communications;

Based on Decision No. 256/2006/QĐ-TTg dated November 9, 2006 of the Prime Minister on the issuance of the Procurement, Ordering, and Implementation Plan for the Production and Supply of Public Goods and Services;

Based on Decision No. 65/2008/QĐ-TTg dated May 22, 2008 of the Prime Minister on the provision of universal postal services;

At the proposal of the Director of the Department of Planning and Finance,

c) Enterprises may be granted permission for no more than one block out of the total three dual-frequency blocks (FDD) B

Article 1. Universal Postal Services

Universal Postal Services include basic postal services and mandatory postal services.

1. Basic postal services are basic letter services with a single piece weight up to 02 kilograms (kg). In this Circular, basic letter services refer to letter services, including postcards, without elements that increase the value of the service. Specifically:

Article 3. Public Utility Services in Newspaper Distribution Activities

b) International basic letter services from Vietnam to other countries;

c) International basic letter services from other countries to Vietnam.

2. Mandatory postal services are postal services provided at the request of the State to serve economic and social development, ensure national defense and security; to serve emergency work related to natural disasters and epidemics, and other mandatory postal services as decided by the Prime Minister. The State clearly defines the scope, target groups, and duration of enjoying these services.

Article 2. Distribution of newspapers through public postal networks

Types of newspapers specified in Clause 1, Article 2 of Decision No. 65/2008/QĐ-TTg of the Prime Minister shall be guaranteed by the State for distribution through public postal networks according to the demand for newspaper purchases by organizations and individuals, based on the quality of service and postage rates prescribed by the State.

Article 3. Plan for the Provision of Universal Postal Services and Newspaper Distribution Through Public Postal Networks

1. Responsibilities of Vietnam Post Corporation (Vietnam Post):

a) Vietnam Post has the responsibility to develop and report to the Ministry of Information and Communications the following plans (with detailed explanations of the reporting indicators):

- Plan for the provision of universal postal services and newspaper distribution through public postal networks;

- Financial plan to ensure the provision of universal postal services and newspaper distribution through public postal networks;

In addition to the above plans, Vietnam Post is responsible for developing and reporting to the Ministry of Information and Communications business production and financial plans of the enterprise accompanying the plan for the provision of universal postal services.

b) The plans mentioned in Point a, Clause 1 of this Article shall be developed for the periods from 2009 to 2010 and from 2011 to 2013 (detailed annually) according to the reporting forms stipulated in Appendix 1 of this Circular and relevant legal regulations.

c) Reporting time for the plans: Plans for the period from 2009 to 2010 shall be reported in June 2009; plans for the period from 2011 to 2013 shall be reported in June 2010.

2. On the basis of Vietnam Post's reports, the Ministry of Information and Communications shall decide the plan for the provision of universal postal services and the distribution of types of newspapers as stipulated in Clause 1, Article 2 of Decision No. 65/2008/QĐ-TTg of the Prime Minister for the periods from 2009 to 2010 and from 2011 to 2013 (detailed annually), including mainly the following contents:

a) Volume of universal postal services as stipulated in Clause 1, Article 1 of this Circular. The unit of measurement for the planning indicator is pieces (letters);

b) Volume of types of newspapers as stipulated in Clause 1, Article 2 of Decision No. 65/2008/QĐ-TTg of the Prime Minister. The unit of measurement for the planning indicators is copies (newspapers).

Article 4. Ordering the Provision of Public Postal Services

The Ministry of Information and Communications orders Vietnam Post to provide public postal services. The service provision ordering contract for public postal services is signed for two periods from 2009 to 2010 and from 2011 to 2013.

The contents of the service provision ordering contract for public postal services shall be in accordance with the guidelines of the Ministry of Finance and current laws.

Article 5. Principles and Methods for Determining Subsidy Levels for Vietnam Post to Maintain the Public Postal Network for Providing Public Postal Services.

1. The State allocates subsidies to Vietnam Post to maintain the public postal network for providing public postal services according to the principle of gradually decreasing each year.

2. Method for Determining Subsidy Levels:

Subsidy Level = Annual Costs to Maintain the Operation of the Public Postal Network for Providing Public Postal Services (+) Profit from Providing Public Postal Services (-) Revenue from Public Postal Services.

Where:

a) Annual costs to maintain the operation of the public postal network are determined in accordance with Decision 65/2008/QĐ-TTg and the guidance of relevant ministries, including costs for international postal network connections. Among these, labor costs for the public postal network (including wages, salaries, social insurance, health insurance, and other expenses for employees as stipulated by law) are allocated within the range of 34% to 45% of total annual maintenance costs.

b) The self-sufficiency ratio of costs to maintain the operation of the public postal network from activities outside the provision of postal services by Vietnam Post will gradually increase each year. Specifically:

- In 2008, the self-sufficiency ratio of costs to maintain the operation of the public postal network of Vietnam Post was 40%.

- From 2009 onwards, the self-sufficiency ratio of costs to maintain the operation of the public postal network of Vietnam Post increases by at least 4% annually compared to the previous year.

In cases where external factors affect the inability to ensure the increase in the self-sufficiency ratio of costs to maintain the operation of the public postal network, Vietnam Post reports to the Ministry of Information and Communications for consideration and adjustment of the minimum ratio accordingly.

c) The annual profit level from providing public postal services is determined according to the current laws applicable to enterprises providing public utility services.

d) Revenue from public postal services is based on the plan for service volume and average tariff rates for public postal services. Among them, the basic mail service volume within the country and the basic international mail service volume from Vietnam to other countries must increase by at least 10% annually compared to the previous year.

For newspaper distribution services through the public postal network and basic international mail services from other countries to Vietnam, the Ministry of Information and Communications decides the annual volume plans based on actual conditions.

3. Based on the principles and subsidy calculation methods stipulated in Clause 1 and Clause 2 of this Article, the Ministry of Information and Communications determines the annual subsidy amount for Vietnam Post after consulting with the Ministry of Finance.

Article 6. The level of subsidy for 2008, the period from 2009 to 2010, and the period from 2011 to 2013

1. The level of subsidy for 2008:

The Ministry of Information and Communications decides the level of subsidy for providing postal public service in 2008 (after consulting with the Ministry of Finance), based on:

a) The specific level of subsidy determined for 2008 shall not exceed the levels of subsidy in the schemes in the Project reported by the Ministry of Information and Communications to the Prime Minister for issuance of Decision No. 65/2008/QĐ-TTg.

b) Determining the factors forming the level of subsidy for 2008:

- Revenue from providing postal public services: determined based on volume and tariff rates of postal public services in 2008. In cases where enterprises have not organized separate tracking of volume and revenue of postal public services in accordance with this Circular, the following priority revenues will be applied:

+ Total revenue from actual postal items services in 2008;

+ Postal public service revenue according to the scheme in the Project reported by the Ministry of Information and Communications to the Prime Minister for issuance of Decision No. 65/2008/QĐ-TTg.

- The proportion of labor costs to other costs for maintaining the postal public network is determined as follows:

+ Labor costs for the postal public network are determined based on the actual salary of workers belonging to the postal public network but not exceeding the maximum limit set by the State regarding salaries in state-owned enterprises in 2007;

+ Other costs of the postal public network are determined as follows:

In the above formula, other costs of the dependent accounting unit of Vietnam Post have been excluded from the cost of commercial goods inventory (arising within the dependent accounting unit of Vietnam Post) and costs arising at the Postal Savings Service Company.

- Profit from providing postal public services as prescribed by the State.

c) Based on the implementation of production and business operations in 2008, Vietnam Post reports detailed figures on the proposed support level for 2008 along with detailed explanations for the Ministry of Information and Communications to consider and decide.

2. The level of subsidy for 2009 and 2010:

Based on the plan for providing postal public services, the Ministry of Information and Communications decides the allocated subsidy level for 2009 and 2010. Among which, Vietnam Post's responsibility to increase self-sufficiency in maintaining the postal public network and increasing the volume of postal public services as stipulated in point a and point b, Clause 2, Article 5 of this Circular must be ensured:

- In 2009, the subsidy for Vietnam Post decreases by 13% compared to the subsidy level in 2008.

- In 2010, the subsidy for Vietnam Post decreases by 15% compared to the subsidy level in 2009.

3. The level of subsidy for the period from 2011 to 2013:

a) The level of subsidy during this period is calculated based on the plan for providing postal public services of the Ministry of Information and Communications and the principles and methods of determination prescribed in Article 5 of this Circular. Specifically, the relationship between labor costs for the postal public network and other costs outside labor costs will be reassessed to suit the actual situation.

b) Annually, the Ministry of Information and Communications consolidates the subsidy funding for providing postal public services into the annual state budget of the Ministry to report to competent authorities for decision-making. Based on the approved annual state budget for subsidizing the provision of postal public services, the Ministry of Information and Communications adjusts the value of the Contract for Providing Postal Public Services accordingly.

c) For the year 2013, in case the State has not adjusted the tariff for postal public services and newspaper distribution through the postal public network to cover the cost of service, the State determines the subsidy for Vietnam Post according to Decision No. 65/2008/QĐ-TTg dated May 22, 2008 of the Prime Minister on providing postal public services, as guided in this Circular and relevant laws.

4. During the implementation of the plan and contract for providing postal public services, if there are adjustment factors as prescribed in Clause 1, Article 7 of this Circular, the annual reduction in subsidies will be adjusted accordingly.

Article 7. Adjustment of Subsidy Levels for Vietnam Post

1. The subsidy levels for Vietnam Post shall be reviewed and adjusted in the following cases:

a) The State adjusts the minimum wage regime for state-owned enterprises.

b) The State adjusts the rates for universal postal service tariffs and newspaper distribution tariffs as stipulated in Article 2 of Decision 65/2008/QĐ-TTg.

c) The State adjusts national technical standards for public postal services.

d) The State adjusts regulations concerning profit margins for the provision of public postal services.

2. Within forty-five days from the date these provisions of Clause 1 of this Article take effect, Vietnam Post shall be responsible for recalculating the subsidy level and requesting the Ministry of Information and Communications to consider and decide on adjusting the subsidy amount.

Article 8. Reporting on the Provision of Public Postal Services

1. Vietnam Post shall be responsible for reporting (in writing) to the Ministry of Information and Communications on the implementation of the provision of public postal services according to regular schedules and upon urgent requests.

2. Contents of regular reports:

a) Implementation status of the plan for providing public postal services (Report form and method of preparation according to Form 04/TH attached to this Circular);

b) Quality of public postal services (Form 05/TH);

c) Receipt of state subsidies for the operation of public postal service provision activities;

d) Difficulties encountered and recommendations to the State (if any).

3. Time for submitting regular reports:

a) Quarterly report: applicable to the content stipulated in point a of Clause 2 of this Article, submitted to the Ministry of Information and Communications in April, July, and October.

b) Semi-annual report: applicable to the content stipulated in point b of Clause 2 of this Article, submitted to the Ministry of Information and Communications in July.

c) Annual report: applicable to all contents stipulated in Clause 2 of this Article, submitted to the Ministry of Information and Communications before February 28 of the following year.

Article 9. Inspection of the Results of Annual Contracts for Providing Public Postal Services

1. Time of inspection:

In April each year, the Ministry of Information and Communications will conduct inspections of the results of annual contracts for providing public postal services of the previous year.

2. Basis for inspection:

a) The procurement contract for providing public postal services that has been signed, and any supplementary agreements amending the contract (if any);

b) Reports by Vietnam Post on the results of contract performance regarding the extent to which the public postal network maintains operations to ensure the provision of public postal services as stipulated in the procurement contract; statistical reports on actual volumes of public postal services provided during the year;

c) Volumes of public postal services determined in accordance with the regulations of the Ministry of Information and Communications;

d) Reports on the results of quality inspections and supervision of public postal services conducted by competent state management agencies.

Article 10. Effective Date

This Circular takes effect from July 10, 2009./.