Decision No. 191/2004/QD-TTg On the establishment, organization, and operation of the Vietnam Universal Service Fund for Telecommunications Services

 

Pursuant to …;

Regarding the establishment, organization, and operation of

The Vietnam Universal Service Fund

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Post and Telecommunications Ordinance dated May 25, 2002;

Pursuant to Decree No. 160/2004/NĐ-CP dated September 3, 2004 of the Government detailing the implementation of certain provisions of the Post and Telecommunications Ordinance on telecommunications;

Considering the proposal of the Minister of Posts and Telecommunications,

DECISION:

Article 1. Establish the Vietnam Universal Service Fund to support the implementation of the State's policies on providing universal telecommunications services throughout the country.

Article 2. Legal status and principles of operation of the Fund

1. The Vietnam Universal Service Fund (hereinafter referred to as the Fund) is a state financial organization under the Ministry of Posts and Telecommunications; the Fund has legal personality, its own seal, registered capital, and separate balance sheet. The Fund shall open accounts at the State Treasury and domestic banks.

2. The main office of the Fund shall be located in Hanoi City and may have branches in certain areas within the country if necessary.

3. The Fund operates without profit motive and is exempt from corporate income tax and value-added tax on activities specified in Article 7 of this Decision.

The Charter of the organization and operation of the Fund (hereinafter referred to as the Fund Charter) shall be issued by the Minister of Posts and Telecommunications.

Article 3. Tasks of the Fund

1. To receive and mobilize financial resources as stipulated in Article 6 and implement funding for programs and projects providing universal telecommunications services as specified in Article 7 of this Decision.

2. To carry out tasks assigned by the Ministry of Posts and Telecommunications regarding coordination in building and implementing programs, plans, and projects for providing universal telecommunications services.

3. To organize the selection and review of projects providing universal telecommunications services funded by the Fund according to relevant state regulations.

4. To monitor, compile, and report on the implementation of programs, plans, and projects providing universal telecommunications services funded by the Fund; the financial situation of the Fund according to the regulations of the Ministry of Posts and Telecommunications and other competent state agencies.

5. To preserve the registered capital.

6. To manage the Fund’s capital and assets in accordance with the law.

7. To comply with state regulations on financial management, accounting, auditing, and other related regulations concerning the Fund's operations.

8. To perform other tasks assigned by competent authorities.

Article 4. Rights of the Fund

1. To propose to competent authorities to issue, amend, or supplement mechanisms, policies, and systems regarding the provision of universal telecommunications services by the State and the operation of the Fund.

2. To notify telecommunication enterprises and Internet companies (collectively referred to as telecommunication enterprises) of their financial contribution plans to the Fund and request these enterprises to provide data, documents, and explanations regarding their fulfillment of financial contribution obligations to the Fund; to detect and propose that competent state management authorities handle violations by telecommunication enterprises in fulfilling their financial contribution obligations to the Fund as stipulated in this Decision and other relevant laws.

3. To inspect and supervise the use of funds provided by the Fund for loans to implement programs, plans, and projects for providing universal telecommunications services; to suspend funding or loan disbursements or recover previously disbursed funds when discovering that the recipient violates the agreement with the Fund and regulations on the use of Fund funds.

4. To directly engage with organizations and individuals both domestically and internationally to solicit and accept financial contributions for programs, projects, and tasks related to providing universal telecommunications services.

5. To handle risks or propose that competent state authorities address financial risks in the implementation of programs and projects for providing universal telecommunications services in accordance with the law.

6. To establish an Advisory Council for professional issues in the Fund's operations and invite experts, representatives of ministries, sectors, organizations, and enterprises related to participate in the Advisory Council.

7. To enjoy salary, bonus, and welfare benefits as prescribed for state-owned enterprises.

Article 5. Scope and objects receiving universal telecommunications services funded by the Fund

1. The Fund supports the development and provision of universal telecommunications services in areas where, according to market mechanisms, businesses cannot cover costs for providing such services; supports the implementation of government, Prime Minister, and Ministry of Posts and Telecommunications solutions to promote the widespread availability of telecommunications services in Vietnam.

The area for providing universal telecommunications services is determined based on administrative units, consistent with each type of universal telecommunications service and each supportive activity of the Fund. Criteria for determining areas eligible for universal telecommunications services include:

- The ratio of subscribers using universal telecommunications services in each area compared to the national average.

- Economic and social conditions in each area.

- Other criteria prescribed by the Ministry of Posts and Telecommunications.

2. Objects receiving universal telecommunications services include:

a) Individuals accessing universal telecommunications services at public access points funded by the Fund.

b) Individual and household subscribers residing in areas provided with universal telecommunications services and other special objects as prescribed by the Ministry of Posts and Telecommunications.

Article 6. Sources of Fund Capital

The operating capital of the Fund is formed from the following sources:

1. Registered Capital.

The initial registered capital of the Fund upon establishment is 500 billion VND. Of which, the state budget allocates: 200 billion VND (allocated over two years from the date the Fund commences operations); the remaining amount will be supplemented from annual contributions of telecommunication enterprises (as stipulated in Clause 2 of this Article) during the first three years of the Fund's operations to reach the registered capital.

2. Contributions from telecommunication enterprises.

All legally operating telecommunication enterprises in Vietnam must fulfill the obligation to provide universal telecommunications services through financial contributions to the Fund. Contributions from telecommunication enterprises to the Fund include:

a) Contributions based on telecommunications service revenue (excluding interconnection charges):

Regardless of the technology applied for business operations and the scale of the enterprise, enterprises must contribute financially to the Fund based on their revenue from service provision to customers (excluding connection charges), specifically:

- For mobile telecommunications services, the contribution rate is 5% of revenue.

- For international long-distance telephone services and international leased-line services, the contribution rate is 4% of revenue.

- For domestic long-distance telephone services and domestic leased-line services, the contribution rate is 3% of revenue.

b) Additional connection charges (if any) shall be determined according to regulations of the Ministry of Posts and Telecommunications.

The contributions of telecommunications enterprises stipulated in points a and b of Clause 2 of this Article to the Fund are expenses incurred in fulfilling the obligation to provide public telecommunications services and are recorded as business expenses.

Telecommunications enterprises must separately record revenues from services subject to contribution obligations and fully and promptly comply with reporting and payment procedures for contributions to the Fund as guided by the Ministry of Finance and the Ministry of Posts and Telecommunications.

Adjustments and supplements to the contribution obligations of telecommunications enterprises to the Fund shall be proposed by the Minister of Posts and Telecommunications to the Prime Minister for decision after consulting the Ministry of Finance and relevant agencies.

3. Other funds for implementing programs and projects related to the provision of public telecommunications services assigned by the State.

4. Other funds:

a) Grants, sponsorships, and voluntary contributions from organizations and individuals within and outside Vietnam for the provision of public telecommunications services in Vietnam.

b) Other lawful funds.

Article 7. Activities of the Fund

1. Supporting recipients of public telecommunications services through telecommunications service providers in the following ways:

a) Supporting costs for the development and maintenance of public telecommunications services during each phase.

b) Providing preferential loans to telecommunications and Internet enterprises for new construction, upgrading, and expansion of telecommunications and Internet infrastructure and other facilities serving the provision of public telecommunications services.

2. Other activities.

The Fund may temporarily invest idle funds not derived from the budget in government bonds in accordance with laws and the Charter of the Fund.

The Fund may entrust certain operational tasks related to the disbursement of loan capital through the State Treasury, commercial banks, and financial institutions in accordance with the law.

Article 8. Management and operation of the Fund

1. The management and operation structure of the Fund includes the Management Board, the Supervisory Board, and the operating body of the Fund.

a) The Management Board of the Fund consists of five members appointed and relieved of duty by the Minister of Posts and Telecommunications. Among them, the Chairman of the Management Board is concurrently held by a leader of the Ministry of Posts and Telecommunications, and one member holds the position of Director of the Fund.

The Management Board operates on a part-time basis (except for the member holding the position of Director of the Fund) and receives benefits as prescribed by the State.

b) The Supervisory Board of the Fund consists of three to five members, including the Head and other members nominated by the Management Board and appointed and relieved of duty by the Minister of Posts and Telecommunications. The Supervisory Board operates in accordance with the Charter of the Fund.

c) The operating body of the Fund includes the Director of the Fund, Deputy Directors of the Fund, specialized units, and branches of the Fund. The Minister of Posts and Telecommunications decides:

- Appointing and relieving the Director of the Fund and Deputy Directors of the Fund.

- Deciding on the establishment, division, merger, and dissolution of specialized units and branches of the Fund based on proposals from the Management Board.

Appointments and reliefs of the Chief Accountant; Heads and Deputy Heads of specialized units and branches of the Fund are made in accordance with the Charter of the Fund.

2. Duties and powers of the Management Board; the Supervisory Board; the Director of the Fund as prescribed in the Charter of the Fund.

Article 9. Responsibilities of telecommunications service providers.

Telecommunications service providers have the responsibility:

- To use the financial support provided by the Fund for its intended purpose effectively and manage such funds in accordance with the law.

- To provide public telecommunications services to recipients in accordance with the provisions of this Decision.

- To fulfill other tasks as prescribed in Decree No. 160/2004/NĐ-CP dated September 3, 2004, detailing the implementation of certain provisions of the Ordinance on Posts and Telecommunications regarding telecommunications.

Article 10. Responsibilities of ministries, sectors, and localities

1. Ministry of Posts and Telecommunications:

The Ministry of Posts and Telecommunications is responsible for all activities of the Fund and performs specific tasks as follows:

a) Issuing the Charter of organization and operation of the Fund based on the proposal of the Management Board, consistent with this Decision and current regulations of the State.

b) Determining and announcing the list of public telecommunications services, specific criteria for identifying areas and recipients of public telecommunications services, levels of support for each use of the Fund, and methods of disbursing support funds from the Fund in each period in accordance with the law.

c) Leading and coordinating with the Ministry of Finance, the Ministry of Planning and Investment, and relevant ministries and sectors to develop public telecommunications service provision programs for each period to be submitted to the Prime Minister.

d) Approving and directing annual plans for the provision of public telecommunications services; ensuring the maintenance and development of public telecommunications service provision nationwide.

đ) Coordinating with the Ministry of Finance and relevant ministries and sectors to guide the implementation of this Decision.

e) Approving the final accounts report of the Fund.

2. Relevant ministries and sectors:

Ministries, ministerial-level agencies, and government agencies under their respective functions, duties, and authorities, perform state management functions over the Fund and carry out specific tasks as follows:

a) Ministry of Finance:

- Issuing financial management regulations for the Fund.

- Leading and coordinating with the Ministry of Posts and Telecommunications to guide telecommunications enterprises in recording and paying contributions to the Fund as stipulated in this Decision.

- Guiding accounting work for the Fund.

- Allocate state budget funds to support the Fund in implementing public interest telecommunications service policies as prescribed by law.

b) The State Bank of Vietnam shall coordinate with the Ministry of Posts and Telecommunications to provide specific guidance on the preferential loan mechanism of the Fund.

3. Provincial People's Committees shall perform management tasks related to public interest telecommunications services at the local level in accordance with the provisions of the law; cooperate with the Ministry of Posts and Telecommunications and the Fund management agency to facilitate the implementation of programs and projects providing public interest telecommunications services at the local level in a timely manner and achieve effectiveness.

Article 11. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 12. The Minister of Posts and Telecommunications; the Minister of Finance; the Minister of Planning and Investment; the Governor of the State Bank of Vietnam; the Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, and Chairpersons of Provincial People's Committees directly under the central government are responsible for enforcing this Decision.