Circular No. 171/2014/TT-BTC guiding the financial mechanism to support from the state budget for implementing the National Trade Promotion Program

CIRCULAR

Guidelines for the financial mechanism to support from the state budget to implement the National Trade Promotion Program

implementing the National Trade Promotion Program

_________________

The Minister of Finance issues this Circular regulating the preparation of budgets, management, use, and settlement of funds supported by the State budget for organizations assigned or authorized by the Ministry of Foreign Affairs to perform tasks of selecting, introducing, and managing Vietnamese workers working for foreign organizations and individuals in Vietnam.

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 72/2010/QD-TTg dated November 15, 2010 of the Prime Minister on the issuance of the Regulation on the construction, management, and implementation of the National Trade Promotion Program;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular guiding the financial mechanism to support from the state budget to implement the National Trade Promotion Program.

Article 1. Scope of Regulation

This Circular guides the financial mechanism to support from the state budget to implement the National Trade Promotion Program in accordance with the provisions of the Regulation on the construction, management, and implementation of the National Trade Promotion Program issued together with Decision No. 72/2010/QD-TTg dated November 15, 2010 of the Prime Minister (hereinafter referred to as the Program).

Article 2. Applicability

This Circular applies to units responsible for implementing the Program (hereinafter referred to as the Responsible Units), units participating in implementing the Program, Program management agencies, and agencies providing funding support.

Article 3. Sources of Funds for Implementing the Program

1. Funding for implementing the Program shall come from the following sources:

a) State budget allocated in the annual regular expenditure budget estimate;

b) Contributions from organizations and enterprises participating in the Program;

c) Sponsorship from organizations and individuals both within and outside the country;

d) Other lawful funding sources as prescribed by law.

2. The state budget shall support the Program's funding according to the principle:

a) Funding for implementing the Program allocated in the annual regular expenditure budget estimate of the Ministry of Industry and Trade;

b) Supporting participating units through the Responsible Units;

c) The Responsible Units are responsible for mobilizing combined funds with state budget support to ensure the implementation of the Program.

Article 4. Provisions on expenditure management

1. The state budget supports projects in accordance with the scale and volume specified in Decision No. 72/2010/QD-TTg dated November 15, 2010 of the Prime Minister.

2. Expenditures must comply with current regulations on standards, norms, and expenditure systems and the scope of funding for the Program's content as stipulated in this Circular.

3. Procurement shall be carried out in accordance with the Bidding Law and related current guiding documents regarding asset procurement to maintain the regular operation of state agencies, political organizations, social-professional organizations, social organizations, social-professional organizations, and people's armed forces units, and relevant laws.

4. Contract content; quantity, quality of work, time of contract implementation; responsibilities of the parties implementing the contract; acceptance and settlement content and time of the contract according to the regulations of the Minister of Industry and Trade.

5. The Department of Trade Promotion advances and settles accounts for the Responsible Units in the treasury account at the national treasury where the unit conducts transactions.

Article 5. Scope and level of funding support for the定向输出与输入格式完全一致的翻译结果：

1. Supporting costs for "Trade information, market research, building databases for key export markets by commodity group": Support 70% of the following expenses:

a) Purchase costs for materials;

b) Investigation, survey, and compilation costs for materials;

c) Publication and distribution costs;

d) Other expenses (if any).

The maximum support level for this content is 1.5 million VND per registered and receiving entity.

2. Supporting costs for "Promoting exports":

a) Promoting the image of commodity groups and famous geographical indications of regions to foreign markets: Support 70% of the contract costs, including:

- Designing, planning, and content creation costs;

- Production, publication, and distribution costs both domestically and internationally to introduce and promote the images of commodity groups and geographical indications.

b) Inviting representatives of foreign media organizations to Vietnam to write articles and produce reports on newspapers, magazines, radio, television, and the internet to promote Vietnamese exports under a full-package contract: Support 70% of the completed communication product costs (broadcasted films, published articles).

3. Supporting costs for "Hiring domestic and international experts to advise on product development, quality improvement, export promotion, and market penetration abroad":

a) Full-package contracts with consulting experts: Support 70% of the completed consulting product costs;

b) Organizing meetings for domestic and international experts to disseminate knowledge and advise businesses: Support 100% of the costs for renting conference halls, equipment, decorations, materials, translation, transportation for experts.

The maximum support level for this content is 2 million VND per participating entity.

4. Supporting costs for "Short-term training within and outside the country to enhance trade promotion skills": Support 50% for enterprises and cooperatives; support 100% for government and non-governmental trade promotion organizations; including the following expenses:

a) Instructor fees, rental of classrooms, teaching equipment, materials for participants, other expenses (if any).

b) Or the full package course fee.

5. Supporting costs for "Organizing and participating in trade fairs and exhibitions":

a) Organizing and participating in trade fairs and exhibitions abroad: Support 100% of the following expenses:

- Renting space and designing, setting up booths;

- Common decoration of the Vietnamese area (including the national booth if applicable);

- Opening ceremony organization costs (if it is a Vietnamese-only fair): Invitation letters, reception, decoration, sound, lighting;

- Seminar organization: Hall rental, equipment, decoration, sound, lighting, translation, security, reception, drinking water, materials, speakers;

- Product demonstration: Venue rental, stage design and decoration, sound, lighting, equipment, performers, hosts, translation;

- Travel expenses for staff organizing the Program;

- Other expenses (if any).

The maximum support level for this content is 200 million VND per participating entity.

b) Organizing export-oriented trade fairs in Vietnam: Support 50% of the following expenses:

- Renting space and designing, setting up booths;

- Service costs: Electricity, water, security, protection (if not included in booth rental costs);

- Management costs of the exhibition organizer;

- Common decoration of the exhibition;

- Opening and closing ceremony organization: Invitation letters, reception, decoration, sound, lighting;

- Seminar organization: Hall rental, equipment;

- Other expenses (if any).

The maximum support for this content is 12 million VND per participating unit.

c) Promoting and inviting customers to transact when organizing trade fairs and exhibitions as stipulated in points a and b, Clause 5, Article 5 of this Circular: Support 100% of production, issuance, and introduction costs for the trade fair and exhibition, and other expenses (if any).

The maximum level of support for this content is 12% of the costs for organizing the trade fair as stipulated in points a and b, Clause 5, Article 5 of this Circular.

6. Expenditure on supporting "Organizing a business transaction delegation abroad": Support 100% of the following expenses:

a) One round-trip air ticket per participating unit;

b) Organizing a business seminar: Renting conference halls, equipment, invitation letters, interpreters, materials;

c) Promoting and inviting guests to attend and transact;

d) Administrative expenses for staff organizing the Program;

d) Other expenses (if any).

The maximum level of support for this content is: VND 40 million per participating unit for transactions in the Asia region; VND 60 million per participating unit for transactions in the Europe, Africa, Australia, North America, and West Asia regions; VND 100 million per participating unit for transactions in the Central America and Latin America regions.

7. Expenditure on supporting "Organizing comprehensive promotional activities": Support 70% of the expenses according to the specific contents stipulated in Clause 5 and Clause 6, Article 5 of this Circular with a ceiling on the amount of support corresponding to the ratio.

8. Expenditure on supporting "Organizing foreign business delegations to Vietnam for transactions": Support 100% of the following expenses:

a) Expenses for receiving foreign business delegations;

b) Administrative expenses for staff organizing the Program;

c) Promoting and inviting guests to attend and transact;

d) Other expenses (if any).

9. Expenditure on supporting "Organizing international industry export conferences in Vietnam": Support 100% of the following expenses:

a) Expenses for renting and decorating conference halls, equipment, interpreters, translators, printing materials;

b) Expenses for promoting and advertising.

10. Expenditure on supporting "Trade promotion activities that have been implemented and effectively expanded export markets": Support 100% of the expenses (if these activities have not yet been supported under the National Trade Promotion Program):

a) One round-trip air ticket per participating unit;

b) Food and accommodation expenses;

c) Expenses for participating in trade fair booths;

The maximum support level for this content is 200 million VND per participating entity.

Article 6. Scope and Level of Financial Support for the Domestic Market Trade Promotion Program

1. Expenditure on supporting "Organizing consumer goods fairs or fairs for agricultural and rural development materials, machinery, and equipment, introducing Vietnamese enterprises' products to consumers at appropriate scales for each locality": Support 50% of the following expenses:

a) Renting space and designing, setting up booths;

b) Service fees: Electricity, water, sanitation, security, protection (if not included in booth rental and setup costs);

c) Management costs of the fair organizing unit;

d) General decoration of the fair;

đ) Opening and closing ceremonies: Invitation letters, reception, decoration, sound, lighting;

e) Organizing seminars: Hall rental and equipment costs;

f) Promotion and advertising costs for introducing the fair;

g) Other expenses (if any).

The maximum level of support for this content is VND 10 million per participating unit.

2. Expenditure on supporting "Organizing sales activities, implementing programs to bring Vietnamese goods to rural areas, industrial zones, urban areas through businesses operating in specific industries, cooperatives, cooperative groups providing services on the local area according to approved plans": Support 70% of the following expenses:

a) Transportation costs;

b) Booth rental and design setup costs;

c) Service fees: Electricity, water, sanitation, security, protection;

d) General decoration of the sales activity area;

đ) Opening and closing ceremonies: Invitation letters, reception, decoration, sound, lighting;

e) Management and labor service costs;

f) Promotion and advertising costs for introducing the sales activity;

g) Other expenses (if any).

The maximum level of support for this content is VND 105 million per sales event.

3. Expenditure on supporting "Domestic market research, survey, and study; building databases for important and essential goods; researching and developing distribution systems and commercial infrastructure. Publications to disseminate research results, laws, customs, and shopping habits": Support 100% of the following expenses:

a) Purchase costs for materials;

b) Investigation, survey, and compilation costs for materials;

c) Publication and distribution costs;

d) Other expenses (if any).

The maximum level of support for this content is VND 1 million per registered and information-receiving unit.

4. Expenditure on supporting "Promoting public awareness about Vietnamese goods and services through media activities such as newspapers, online news, radio, television, publications, and other information dissemination methods": Support 100% of the costs for producing and distributing communication products.

The maximum level of support for this content is VND 95 million per promotional topic.

5. Expenditure on supporting "Planning, managing, and operating commercial infrastructure": Support 50% of the costs (if not funded by the state) related to planning, management, and operation of commercial infrastructure, purchasing research materials.

The maximum level of support for this content is VND 175 million per planned cluster or point.

6. Expenditure on supporting "Organizing comprehensive domestic market trade promotion events: Discount month, Vietnamese week, product programs, new product introduction programs, most favored Vietnamese product selection programs monthly, quarterly, annually": Support 50% of the expenses according to the specific contents in the implementation contract for the project within the scope of the expenses stipulated in Clause 1, Clause 2, Clause 3, and Clause 4, Article 6 of this Circular with a ceiling on the amount of support corresponding to the ratio.

7. Expenditure on supporting "Short-term training on business skills, retail network organization; supporting participation in short-term specialized training courses for businesses operating in specific industries; training domestic market development skills for leading units; cooperating with organizations and individuals to develop domestic market development programs": Support 100% of the following expenses:

a) Instructor fees, classroom rental, teaching equipment, materials for students, and other expenses (if any);

b) Or the full package course fee.

Article 7. Scope and level of financial support for the Mountainous, Border, and Island Trade Promotion Program

1. Organizing domestic goods markets from production areas to mountainous regions, border areas, remote areas, ethnic minority regions, and islands: Support 100% of the following expenses:

- Transportation costs;

- Renting space, setting up stalls, electricity, water, security, sanitation;

- Publicity and promotion costs for introducing the program and distribution system;

- Other expenses (if any).

The maximum level of support for this content is 150 million VND per market session. For domestic goods markets on islands, the maximum level of support is 200 million VND per market session.

2. Establishing and developing a distribution system for domestic goods to border areas with neighboring countries: Support 100% of the following expenses:

a. Organizing domestic goods markets in border areas with neighboring countries:

- Costs for obtaining permits from local authorities (organized in foreign provinces bordering Vietnam);

- Renting space, overall decoration, setting up stalls, electricity, water, security, sanitation;

- Publicity and promotion costs for introducing the program and distribution system;

- Other expenses (if any).

The maximum level of support for this content is 300 million VND per market session.

b. Administrative fees actually paid to licensing authorities to establish representative offices in foreign provinces bordering Vietnam.

3. Supporting "Building and providing information on border and port markets of Vietnam and neighboring countries": Support 100% of the following expenses:

a) Purchase costs for materials;

b) Investigation, survey, and compilation costs for materials;

c) Publication and distribution costs;

d) Other expenses (if any).

The maximum level of support for this content is VND 1 million per registered and information-receiving unit.

4. Supporting "Organizing cargo handling, transportation, and export-related services through border ports": Support 100% of project investment planning costs, design costs, administrative procedure costs, review and approval costs aimed at building transport terminals, cargo handling, product consolidation, infrastructure systems serving exports at border gate areas.

The maximum level of support for this content is 350 million VND per planned cluster or point.

5. Supporting "Organizing trade activities and bringing goods into Border Economic Zones": Support 100% of the following expenses:

a) Trade organization: Renting conference halls, equipment, decoration, reception, materials, translation;

b) Other expenses (if any).

The maximum level of support for this content is 1 million VND per participating unit.

6. Supporting "Activities to enhance the capacity of traders involved in exporting goods across borders and traders in mountainous, border, remote, ethnic minority, and island areas": Support 100% of training and knowledge enhancement costs for officials, cooperative leaders, and traders in border, mountainous, and island areas regarding market management, border economic zones, organizing sales and consumption of products in border, mountainous, and island areas, and implementing government policies.

7. Supporting "Organizing promotional, advertising, and consumption activities for goods, especially agricultural products in mountainous, border, remote, ethnic minority, and island areas": Support 100% of the following expenses:

a) Design and strategic communication content development costs;

b) Production, publication, and distribution costs.

The maximum level of support for this content is 50 million VND per promotional topic.

Article 8. Establishment, Implementation, and Finalization of State Budget Funds

The establishment, implementation, and finalization of state budget funds for the implementation of the National Trade Promotion Program in accordance with the State Budget Law and current guiding documents. This Circular provides detailed guidance on certain additional contents.

1. Budget preparation and allocation

Each year, the Ministry of Industry and Trade prepares the budget estimate for the National Trade Promotion Program (including the direct implementation budget estimate of the Trade Promotion Department and the contracted budget estimate with the leading units) and consolidates it within the Ministry's overall budget estimate, submitting to the Ministry of Finance for consolidation and submission to the Prime Minister in accordance with current regulations.

Based on the approved budget estimate, the Ministry of Industry and Trade approves the Program, allocates detailed funding according to each leading unit and the provisions set out in Articles 5, 6, and 7 of this Circular, ensuring that the total support funding for implementing the Program's projects does not exceed the allocated budget estimate. It then sends this to the Ministry of Finance for review. After receiving the Ministry of Finance's agreement, the Ministry of Industry and Trade implements the budget allocation to the Trade Promotion Department (including the direct implementation budget of the Trade Promotion Department and the contracted budget with the leading units).

2. Implementation of the Budget Estimate

Based on the budget expenditure estimate assigned by the Ministry of Industry and Trade, the Trade Promotion Department withdraws the budget estimate from the State Treasury at the transaction location. The State Treasury at the transaction location controls expenditures according to current regulations (currently Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Ministry of Finance) and the provisions of this Circular.

a) Advance payment and settlement of state budget support funding for cases where the Trade Promotion Department signs contracts with leading units:

- Advance payment of support funding:

+ Documents include: Decision of the Minister of Industry and Trade approving the Program according to the support contents stipulated in Decision No. 72/2010/QĐ-TTg dated November 15, 2010, of the Prime Minister; Decision of the Minister of Industry and Trade allocating the budget estimate to the Trade Promotion Department; contract for implementing the project between the Trade Promotion Department and the leading units;

+ Maximum advance payment amount: 70% of the state budget support estimate based on the progress of implementation. In cases where trade promotion activities involve services outside the country and the foreign side requires a 100% deposit of the contract value, the advance payment amount equals 100% of the approved estimate.

- Settlement of support funding, documents include: Contract, acceptance certificate, and settlement certificate for implementing the project between the Trade Promotion Department and the leading units;

- Leading units make advance payments and settle support funding at the State Treasury according to current regulations. The maximum advance payment amount is 70% of the state budget support estimate based on the progress of implementation. In cases where trade promotion activities involve services outside the country and the foreign side requires a 100% deposit of the contract value, the advance payment amount equals 100% of the approved estimate.

b) Advance payment and settlement of state budget support funding for cases where the Trade Promotion Department directly implements the Program:

- Advance payment and settlement: Implemented according to the Ministry of Finance's regulations on controlling and settling state budget expenditures through the State Treasury.

- Maximum advance payment amount: 70% of the state budget support estimate based on the progress of implementation. In cases where trade promotion activities involve services outside the country and the foreign side requires a 100% deposit of the contract value, the advance payment amount equals 100% of the approved estimate.

3. Accounting and Finalization Work

a) Funding for implementing national trade promotion projects is accounted for and finalized under category 430 subcategory 459 "trade promotion activities," according to the corresponding Chapter of the State Budget Manual;

b) Content, review process, examination, and notification of annual finalization: Implemented according to the Ministry of Finance's guidelines on reviewing, examining, and notifying annual finalization for administrative agencies, public institutions, organizations supported by the state, and budgets at all levels (currently Circular No. 01/2007/TT-BTC dated January 2, 2007, issued by the Ministry of Finance); specifically:

The Trade Promotion Department prepares the finalization report for each Program and project, reporting to the Ministry of Industry and Trade; the Ministry of Industry and Trade is responsible for reviewing, consolidating, and finalizing the Ministry's overall report, sending it to the Ministry of Finance for review according to regulations.

c) Documentation retained by the direct implementing unit includes: Expenditure vouchers and other relevant documents of the national trade promotion project according to current regulations.

In cases where the Trade Promotion Department signs contracts with leading units: Documentation for settlement and finalization is retained by the Trade Promotion Department, including: Detailed project implementation contract; acceptance certificate; settlement certificate; budget withdrawal voucher; and related documents.

d) Funding carried over to the next year

- Funding for Program content currently being implemented but not fully utilized by the assigned/contracted units is carried over to the next year.

- Funding for Program content not assigned/contracted to units for implementation must be remitted to the state budget according to regulations.

đ) In cases where the support level specified in this Circular is less than or greater than actual expenditures according to the support content, they are handled as follows:

- If the support level is less than actual expenditures, the difference is recorded as production and business costs by participating enterprises. Documentation retained by enterprises includes: Summary table of expenditures for implementing the project by the leading unit (including the division of state support funding and enterprise contributions); copies of expenditure vouchers related to the enterprise contribution.

- If the support level exceeds actual expenditures, the excess amount must be deposited into the Trade Promotion Department's budget account within 15 days after acceptance and settlement of the contract to fund other projects or carried over to the next year for Program funding.

Article 9. Inspection and Supervision Work

The Ministry of Industry and Trade shall be responsible for coordinating with the Ministry of Finance to conduct regular and surprise inspections of the implementation of tasks and objectives of the projects, ensuring that the management and use of funds under the Program are in accordance with their intended purposes, economically, and effectively. In cases where funds need to be recovered due to inspections by competent authorities, the Ministry of Industry and Trade shall be responsible for requiring the leading unit to refund the state budget and report to the Ministry of Finance on the results of implementation in accordance with the provisions of the law.

Article 10. Provisions on Management and Use of Funds for the Local Trade Promotion Program

1. Provincial People's Committees and municipal people's committees directly under the central government shall base their regulations on Decision No. 72/2010/QD-TTg dated November 15, 2010 of the Government Chairman on the issuance of the Regulation on the construction, management, and implementation of the National Trade Promotion Program; the provisions on the management and use of funds for the National Trade Promotion Program as stipulated in this Circular; current laws and regulations on trade promotion; to specify the content of trade promotion activities supported and the appropriate level of financial support in line with local realities, serving as a basis for local trade promotion organizations to implement.

2. The source of funding for local trade promotion activities shall come from the local budget and other legitimate financial sources of the locality.

Article 11. Effective Date

1. This Circular shall take effect from January 5, 2015, and replace Circular No. 88/2011/TT-BTC dated June 17, 2011, of the Ministry of Finance guiding the financial mechanism for supporting from the state budget to implement the National Trade Promotion Program.

2. During the implementation process, if there are any difficulties, units are requested to reflect them to the Ministry of Finance for research and appropriate amendments./.