Circular No. 18TC/DTPT issued in 1996 by the Ministry of Finance supplements and amends the guidelines for managing borrowed funds from the Japan Overseas Cooperation Fund (OECF) for basic construction projects in Vietnam. This document specifies additional methods for transferring money to withdraw funds and pay suppliers of goods and services.
Scope of application
Project sponsors using OECF loan funds; Ministry of Finance (General Department of Investment and Development, Foreign Financial Affairs Department); Vietnam Bank for Foreign Trade
Key points
- Project sponsors may withdraw funds from the Japan Overseas Economic Cooperation Fund to pay suppliers of goods and services in Vietnamese Dong (Point e, Section II).
- Suppliers must fulfill their contractual obligations after receiving approval notification from the Ministry of Finance (Point e, Section II).
- Project sponsors must submit payment request files to the Ministry of Finance within three working days from the date they receive payment requests from suppliers (Point e, Section II).
- Transfer fees are directly collected by the Tokyo Bank and the Vietnam Bank for Foreign Trade from project sponsors (Point e, Section II).
- The Ministry of Finance will process withdrawal procedures to transfer funds with OECF within three working days from the date it receives complete payment request files from project sponsors (Point e, Section II).
🌐 Social impact of this document
- Enhance management and effective use of foreign loan funds for basic construction projects.
- Reduce waiting time for withdrawing funds and paying suppliers of goods and services.
- Project sponsors may face difficulties in complying with complex procedures when withdrawing funds.
- Suppliers of goods and services are guaranteed faster payments.
❓ Frequently asked questions
What method does the project sponsor use to withdraw funds from OECF?
Project sponsors can use the transfer method to withdraw funds and pay suppliers of goods and services.
How long does the project sponsor have to submit the payment request file?
Project sponsors must submit payment request files within three working days from the date they receive payment requests from suppliers.
Who is responsible for collecting transfer fees?
Transfer fees are directly collected by the Tokyo Bank and the Vietnam Bank for Foreign Trade from project sponsors.
Full text
CIRCULAR
OF THE MINISTRY OF FINANCE NO. 18 TC/ĐTPT ON MARCH 12, 1996 AMENDING AND COMPLEMENTING GUIDELINES FOR THE MANAGEMENT OF LOAN FUNDS FROM THE JAPANESE OVERSEAS ECONOMIC COOPERATION FUND (OECF) FOR BASIC CONSTRUCTION PROJECTS
BASED ON THE GOVERNMENT DECREE NO. 20/CP OF MARCH 15, 1994 ISSUING REGULATIONS ON THE MANAGEMENT AND USE OF OFFICIAL DEVELOPMENT ASSISTANCE FUNDS;
BASED ON THE GOVERNMENT DECREE NO. 58/CP OF AUGUST 30, 1993 ISSUING REGULATIONS ON THE MANAGEMENT OF FOREIGN LOANS AND DEBTS;
BASED ON THE GOVERNMENT DECREE NO. 177/CP OF OCTOBER 20, 1994 ISSUING THE REGULATIONS ON INVESTMENT AND CONSTRUCTION MANAGEMENT;
BASED ON THE CREDIT AGREEMENTS SIGNED BETWEEN THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM AND THE JAPANESE OVERSEAS ECONOMIC COOPERATION FUND (OECF) AND THE SUPPLEMENTARY AND AMENDMENTS TO THE LOAN AGREEMENTS SIGNED BETWEEN THE MINISTRY OF FINANCE ON BEHALF OF THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM AND OECF ON AUGUST 14, 1995;
TO PROMPTLY MEET THE NEEDS FOR WITHDRAWAL AND MANAGEMENT OF CAPITAL FOR BASIC CONSTRUCTION PROJECTS USING OECF LOAN FUNDS;
THE MINISTRY OF FINANCE AMENDS AND COMPLEMENTS CERTAIN POINTS OF CIRCULAR NO. 95 TC/ĐT OF NOVEMBER 14, 1994 AS FOLLOWS:
1. ADD THE FOLLOWING CONTENT TO POINT 8, SECTION II (METHODS OF WITHDRAWAL AND PAYMENT):
e. TRANSFER METHOD:
THIS METHOD IS APPLICABLE WHEN THE INVESTOR WISHES TO WITHDRAW FUNDS FROM OECF TO PAY THE SUPPLIER FOR THE PART OF THE CONTRACT DENOMINATED IN VIETNAMESE DONG IMMEDIATELY AFTER RECEIVING THE PAYMENT REQUEST FROM THE SUPPLIER.
(THE IMPLEMENTATION SCHEME OF THIS METHOD IS STATED IN ATTACHMENT 4)
- AFTER RECEIVING THE APPROVAL NOTICE FROM THE MINISTRY OF FINANCE REGARDING THE CONTRACT SIGNED BETWEEN THE INVESTOR AND THE SUPPLIER (AS PROVIDED BY THE GUARANTEE METHOD), THE SUPPLIER PERFORMS ITS OBLIGATIONS TO THE INVESTOR ACCORDING TO THE SIGNED CONTRACT.
- THE CONTENT OF THE PAYMENT REQUEST FROM THE SUPPLIER INCLUDES THE ADVANCED CAPITAL AND THE PROGRESS PAYMENT AS SPECIFIED IN THE CONTRACT.
- THE INVESTOR, AFTER RECEIVING THE PAYMENT REQUEST, BASED ON THE SIGNED CONTRACT, WILL CHECK THE LEGALITY OF THE PAYMENT REQUEST. THEN, IT WILL PREPARE AND SEND THE FOLLOWING DOCUMENTS TO THE MINISTRY OF FINANCE (INVESTMENT MANAGEMENT GENERAL DEPARTMENT AND FOREIGN FINANCE DEPARTMENT):
+ THE PAYMENT REQUEST FROM THE SUPPLIER WITH THE ENDORSEMENT OF THE INVESTOR (IN ACCORDANCE WITH THE TEMPLATE GUIDED BY OECF)
+ A SUMMARY OF THE PAYMENT CONTENT.
- WITHIN THREE WORKING DAYS FROM THE DATE OF RECEIVING THE COMPLETE PAYMENT REQUEST DOCUMENTS FROM THE INVESTOR, THE MINISTRY OF FINANCE (INVESTMENT MANAGEMENT GENERAL DEPARTMENT) WILL REVIEW. IF THERE ARE NO OBJECTIONS TO THE INVESTOR'S REQUEST, IT WILL PROCEED WITH THE PROCEDURE TO WITHDRAW FUNDS AND TRANSFER MONEY TO OECF (FOREIGN FINANCE DEPARTMENT). THE DOCUMENTS FOR THE PAYMENT REQUEST TO WITHDRAW FUNDS AND TRANSFER MONEY SENT TO OECF INCLUDE:
+ THE WITHDRAWAL REQUEST
+ THE PAYMENT REQUEST FROM THE SUPPLIER WITH THE ENDORSEMENT OF THE INVESTOR.
+ A SUMMARY OF THE PAYMENT CONTENT.
THE FEES OF THE TOKYO BANK AND THE VIETNAM FOREIGN TRADE BANK ARE COLLECTED DIRECTLY FROM THE INVESTORS BY THE VIETNAM FOREIGN TRADE BANK, WHILE THE FEES OF THE INVESTMENT MANAGEMENT GENERAL DEPARTMENT ARE COLLECTED FROM THE INTEREST PAID BY THE INVESTORS IN ACCORDANCE WITH THE CREDIT AGREEMENT.
THIS CIRCULAR SHALL TAKE EFFECT FROM THE DATE OF ISSUE. OTHER PROVISIONS OF CIRCULAR NO. 95 TC/ĐT OF NOVEMBER 14, 1994 THAT DO NOT CONTRADICT THIS CIRCULAR SHALL REMAIN IN FORCE.
ANNEX 1
PAYMENT UNDER THE TRANSFER METHOD
1. CREDIT AGREEMENT.
2. SIGNING THE CONTRACT.
3. IMPLEMENTING THE CONTRACT.
4. SUBMITTING THE PAYMENT REQUEST (INITIAL REACTION, FOLLOWED BY PERIODIC PAYMENT REQUESTS ACCORDING TO THE CONTRACT) IN VIETNAMESE DONG.
5. CONVERTING FROM VIETNAMESE DONG TO JAPANESE YEN AT THE SELLING RATE OF THE STATE BANK ON THE DAY BEFORE THE PAYMENT REQUEST, SUBMITTING THE PAYMENT REQUEST IN JAPANESE YEN (WITHDRAWAL REQUEST, PAYMENT REQUEST, SUMMARY OF PAYMENT CONTENT).
6. RECEIVING JAPANESE YEN, BEGINNING TO COUNT THE LOAN DEBT.
7. TRANSFERRING JAPANESE YEN.
8. NOTIFYING THE TRANSFER OF JAPANESE YEN.
9. TRANSFERRING JAPANESE YEN.
10. PAYING IN VIETNAMESE DONG TO THE SUPPLIER AND NOTIFYING THE INVESTOR.
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