Decree No. 20/1998/ND-CP on Developing Trade in Mountainous Areas, Islands, and Ethnic Minority Regions

DECREE CỦA THE GOVERNMENT

On the development of mountainous, island, and ethnic minority areas trade
and regions with ethnic minorities

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Law on Commerce dated May 10, 1997;

At the proposal of the Minister of Trade,

DECREE:

PART I
GENERAL PROVISIONS

Article 1. Object and scope of application.

This Decree stipulates policies for traders engaged in trade activities in mountainous, island, and ethnic minority areas, policies on supply and consumption of essential goods that significantly impact production and living conditions of ethnic minorities residing and operating in these areas.

Article 2. AApply relevant provisions.

In addition to the policies prescribed in this Decree, traders operating in mountainous, island, and ethnic minority areas shall also enjoy other preferential policies in accordance with related laws.

PART II
ENCOURAGE THE DEVELOPMENT OF MOUNTAINOUS AREA TRADE,
ISLANDS AND ETHNIC GROUP REGIONS

Article 3. Encourage the development of trade in mountainous, island, and ethnic minority areas.

The State encourages and creates conditions for all organizations and individuals, regardless of economic sectors, to participate in the development of trade in mountainous, island, and ethnic minority areas. Establish economic linkages between state-owned enterprises and other enterprises, and between state-owned enterprises and traders from other economic sectors, thereby creating a system of smooth channels for commodity circulation from production to consumption.

Article 4. Construct state-owned or cooperative trade service markets.

Encourage the construction of markets with state-owned or cooperative trade service shops in clusters of communes in mountainous, island, and ethnic minority areas. Market construction in commune clusters must be linked to planning and plans for building commune cluster centers, suitable to population distribution and density in the area so that the market truly becomes a trading, contact, and commodity purchasing and selling center for people in the region, promoting commodity exchange in each mountainous, island, and ethnic minority area and between regions within each zone.

Article 5. Commune clusters under the Program for Building Commune Cluster Centers in Mountainous Areas and Highlands.

For commune clusters under the Program for Building Commune Cluster Centers in Mountainous Areas and Highlands according to Decision No. 35/TTg dated January 13, 1997 of the Prime Minister, priority investment should be given to constructing markets in the first phase of each project to immediately form a trading, exchange, and commodity purchasing and selling location for the people, laying the groundwork for expanding commodity exchanges, stimulating production development, contributing to improving and enhancing the living standards of mountainous, island, and ethnic minority residents.

Article 6. Commune clusters not under the Program for Building Commune Cluster Centers in Mountainous Areas and Highlands.

For commune clusters not under the Program for Building Commune Cluster Centers in Mountainous Areas and Highlands according to Decision No. 35/TTg dated January 13, 1997 of the Prime Minister, the People's Committee of the province shall consider and determine those commune clusters that need to invest in market construction, allocate funds from the local budget to build markets for these commune clusters at appropriate scales.

Article 7. Construct markets in cities, towns, and townships in mountainous, island, and ethnic minority areas.

For cities, towns, townships, and areas in mountainous, island, and ethnic minority regions with convenient transportation and certain economic development, the provincial People's Committee shall apply appropriate forms to mobilize capital from businesses or from state credit sources for medium and long-term loans with preferential interest rates, combined with state budget support to construct markets and other facilities serving trade activities. Revenue from selling and leasing business locations in the market and other lawful revenues from the market are the sources to repay the mobilized capital mentioned above.

Article 8. Allocation of land, lease of land, and reduction of land lease fees.

1. When the State allocates land for organizations to construct markets in mountainous, island, and ethnic minority areas, it does not collect land use fees.

2. Traders from all economic sectors engaged in trade activities in mountainous, island, and ethnic minority areas are prioritized by the State to be allocated land and leased land at advantageous locations for business needs, granted certificates of land use rights, and implement the rights and obligations of land users when leasing land in accordance with Article 13 and Article 14 of Decree No. 85/CP dated February 17, 1996 of the Government.

3. Traders operating in Zone II are exempted from land lease fees for the first five years and have their land lease fees reduced by 50% for the next five years starting from the date of signing the land lease contract.

4. Traders operating in Zone III are exempted from land lease fees for constructing and expanding business premises.

Article 9. Exemption and reduction of turnover tax and profit tax.

1. Traders operating in Zone III in mountainous, island, and ethnic minority areas are entitled to a 50% reduction in turnover tax payable for a period of four years from the effective date of this Decree, or from the month of taxable turnover for newly added or newly registered traders after the effective date of this Decree; they are exempted from profit tax for the first four years from the date of taxable profit and have their profit tax reduced by 50% for the next seven years, if they employ an average of 20 or more workers annually, then they will have an additional 50% reduction in profit tax payable for the following two years.

2. Traders operating in Zone II in mountainous, island, and ethnic minority areas are entitled to a 50% reduction in turnover tax on income derived from selling social policy goods and agricultural and forestry products purchased under subsidized freight policies for a period of four years from the effective date of this Decree, or from the month of taxable turnover for newly added or newly registered traders in these categories; they are exempted from profit tax for the first two years from the date of taxable profit and have their profit tax reduced by 50% for the next five years, if they employ an average of 20 or more workers annually, then they will have an additional 50% reduction in profit tax payable for the following two years.

3. Merchants in Zone I shall directly sell social welfare goods. Merchants directly operating businesses in Zone I and Zone II within mountainous, island, and ethnic minority areas shall be granted a 25% reduction in turnover tax for a period of three years from the date this Decree takes effect or from the month they first incur taxable turnover, for newly added or newly registered merchants; they shall be exempted from income tax for the first two years from the date they first incur taxable profit, and shall have their income tax reduced by 50% for the following four years if they employ an average of twenty or more workers annually; they shall further have their income tax reduced by an additional 50% for the next two years.

4. The time frame for implementing tax exemptions and reductions is as follows:

a) For turnover tax:

For merchants who were already operating before the issuance of this Decree, the period for exemption and reduction of turnover tax shall be calculated from the date this Decree takes effect.

For merchants who commence operations after the issuance of this Decree, the period for exemption and reduction of turnover tax shall be calculated from the date they generate turnover.

b) For income tax:

It shall be applied from the date this Decree takes effect.

Article 10. Interest rate reduction on credit.

1. Merchants directly engaged in commercial activities in Zone III within mountainous, island, and ethnic minority areas when borrowing from state-owned commercial banks shall have their interest rates on credit reduced by 30% compared to the interest rates applicable in mountainous, island, and ethnic minority areas as announced by the State Bank.

2. Merchants directly engaged in commercial activities in Zone II within mountainous, island, and ethnic minority areas when borrowing from state-owned commercial banks shall have their interest rates on credit reduced by 15% compared to the interest rates applicable in mountainous, island, and ethnic minority areas as announced by the State Bank.

The State Bank shall direct state-owned commercial banks to ensure sufficient credit capital for commercial activities in mountainous, island, and ethnic minority areas.

Article 11. Exemption of tuition fees for training and retraining of civil servants and employees in mountainous, island, and ethnic minority areas.

Civil servants working in trade agencies and staff members of trading enterprises of all economic sectors operating in mountainous, island, and ethnic minority areas who are sent for training, retraining, or vocational enhancement at schools funded by the state budget to continue working in these areas shall be exempted from tuition fees.

CHAPTER III
SUBSIDIES AND TRANSPORTATION COSTS FOR THE SALE OF SOCIAL WELFARE GOODS AND PURCHASE OF PRODUCTS PRODUCED IN MOUNTAINOUS, ISLAND, AND ETHNIC MINORITY AREAS

PART 1
SALE OF ESSENTIAL ITEMS WITH SUBSIDIES AND TRANSPORTATION COSTS IN MOUNTAINOUS, ISLAND, AND ETHNIC MINORITY AREAS

Article 12. Essential items sold with subsidies and transportation cost assistance.

To ensure that residents in mountainous, island, and ethnic minority areas can purchase essential items for production and daily life at prices equivalent to those in mountain city areas, the State shall provide subsidies and transportation cost assistance for iodized salt, crop seeds, kerosene for lighting, student writing paper, book distribution, medical drugs, fertilizers, pesticides, and coal mining products according to Articles 14 and 15 of this Decree.

The Prime Minister, based on requirements and policies to encourage economic and social development, recommendations from the Committee for Ethnic Minorities and Mountainous Areas, relevant ministries, and provincial people's committees in mountainous areas or having mountainous districts, shall decide on amending and supplementing the list of subsidized social welfare goods for transportation costs and subsidies during each period.

Article 13. Establish supply quotas.

The Committee for Ethnic Minorities and Mountainous Areas shall establish supply quotas per person entitled to transportation cost and price subsidies for each region during each period as a basis for implementation.

Article 14. Transportation cost subsidies and price subsidies.

1. For items such as iodized salt, crop seeds, kerosene for lighting, student writing paper, and medical drugs, the distance for transportation cost subsidy shall be calculated from the nearest warehouse of central-managed enterprises located outside the subsidized area to clusters of villages (announced by the Committee for Ethnic Minorities and Mountainous Areas); for fertilizers, pesticides, coal mining products, and book distribution, the transportation cost subsidy distance shall be calculated up to the centers of mountainous, island, and ethnic minority districts.

2. In addition to the transportation cost subsidy stipulated in Clause 1 of this Article, iodized salt shall also be supported with labor costs for mixing iodine into salt and plastic bag costs for packaging small bags of iodized salt; crop seeds shall be subsidized by the difference between the actual selling price to farmers in village clusters and the purchase price by enterprises from seed centers plus reasonable costs (excluding transportation costs already subsidized) to supply ethnic minorities in mountainous, island, and ethnic minority areas.

Article 15. Determination of selling prices and subsidy rates.

1. The Government Price Board shall base on traffic conditions, economic and social development levels in each area to set principles for determining maximum selling prices for goods sold with subsidies and transportation cost assistance, consistent with the characteristics and actual transportation distances of each area, ensuring that enterprises assigned the task of supplying social welfare goods have sufficient necessary transportation costs, including primitive means of transport (if any), to timely and conveniently provide goods to ethnic minorities in mountainous, island, and ethnic minority areas.

2. The Chairman of the People's Committee of provinces with mountainous, island, and ethnic minority areas shall, based on guidance from the Government Price Board and local realities, taking into account the necessity of special preferential sales points in each village cluster, set retail prices or price ranges and transportation cost subsidy rates for each item at each sales point.

The selling price and quantity of subsidized goods and services must be publicly displayed at each sales point for everyone to know, monitor, and check the implementation.

Article 16. Determine the delivery and receipt locations for subsidized goods and services.

The Ministry of Trade shall lead in collaboration with the Government Price Board, industry management agencies, and provinces in mountainous areas, islands, and ethnic minority regions to determine warehouses and sales points for subsidized goods and transportation costs, ensuring that ethnic minorities living in mountainous areas, islands, and ethnic minority regions can conveniently purchase policy goods at lower costs for the State.

Industry management agencies responsible for subsidized goods and transportation costs shall instruct business units under their jurisdiction to prioritize signing contracts and transporting goods according to the quantities and times requested by provinces in mountainous areas, islands, and ethnic minority regions, promptly meeting the consumption needs of people in these areas.

Article 17. Source of funds for subsidizing prices and transportation costs for selling social policy goods.

1. Funds used to subsidize prices and transportation costs for social policy goods are allocated from the central budget and transferred to provincial People's Committees through the "delegated fund" method.

2. Funds used to subsidize prices and transportation costs for iodized salt provided to the national program for preventing iodine deficiency disorders are handled as follows:

a) For iodized salt produced locally for local consumption, the subsidy funds for prices and transportation costs are directly allocated to the province through the "delegated fund" method.

b) For iodized salt supplied by central enterprises to localities for sale to residents in mountainous areas, islands, and ethnic minority regions, the transportation cost subsidies from district centers to village clusters are directly allocated to the province through the "delegated fund" method; funds to support the mixing of iodized salt and transportation costs to district centers are directly allocated to central enterprises implementing this task.

3. Enterprises assigned the task of selling social policy goods to ethnic minorities in mountainous areas, islands, and ethnic minority regions, if they have not been allocated subsidy funds and need to borrow from commercial banks to fulfill this task, will be reimbursed for actual interest paid from the time of delivery until the subsidy funds are allocated.

Article 18. Develop plans for selling subsidized goods and services.

1. The Ministry of Trade shall lead in collaboration with the Committee for Ethnic Minorities and Mountainous Areas, the Ministry of Planning and Investment, the Government Price Board, and relevant ministries and sectors to determine the quantity of goods, subsidized prices, and transportation costs for each type of goods for specific localities as a basis for determining subsidy funds for prices and transportation costs.

2. The Ministry of Finance shall coordinate with the Ministry of Planning and Investment to allocate funds for transportation cost subsidies and price subsidies for social policy goods for ethnic minorities in mountainous areas, islands, and ethnic minority regions in the annual budget plan.

Article 19. Allocate subsidy funds for social policy goods.

The Committee for Ethnic Minorities and Mountainous Areas shall lead in collaboration with the Ministry of Planning and Investment, the Ministry of Trade, and the Ministry of Finance to allocate subsidy funds based on annual targets and total subsidy funds for transportation and prices for social policy goods for ethnic minorities in mountainous areas, islands, and ethnic minority regions, prioritizing difficult localities. Based on the allocation plan, the Ministry of Finance shall transfer funds to localities and sectors for implementation.

Article 20. Manage subsidy funds for prices and transportation costs.

1. The Ministry of Finance shall collaborate with relevant ministries and sectors to stipulate and guide provincial finance and price bureaus, treasury branches, and enterprises in maintaining records, vouchers, inspection procedures, and confirmation of results for subsidized goods and transportation cost sales and purchases, clearly defining the settlement deadlines for subsidy funds for prices and transportation costs, avoiding delays that may affect financial conditions and business operations.

2. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The Committee for Ethnic Minorities and Mountainous Areas shall lead in collaboration with the Ministry of Trade, the Ministry of Finance, and the Government Price Board to inspect and supervise the implementation of price and transportation cost subsidies for social policy goods and sales to beneficiaries in specific areas; promptly identifying and resolving issues and difficulties, reporting and proposing necessary policies and solutions to the Government to ensure correct implementation, effectively stabilizing production and living conditions for ethnic minorities in mountainous areas, islands, and ethnic minority regions.

Article 21. Determine enterprises selling social policy goods.

Provincial People's Committees in mountainous areas, islands, and ethnic minority regions shall base decisions on local traffic conditions and customs to apply bidding or select state-owned enterprises with appropriate networks and staff to undertake the task of selling social policy goods (excluding medicines) to ensure convenient, quality, and regulated purchases at designated locations, saving costs.

Article 22. Adjusting the structure, regulating funds.

1. Essential goods for ethnic minorities in mountainous areas, islands, and ethnic minority regions such as iodized salt, student writing paper, book distribution, and medical drugs must be ensured in quantities as prescribed by standards.

In addition to the aforementioned essential goods, the Chairman of the Provincial People's Committee in mountainous areas, islands, and ethnic minority regions shall, based on the characteristics, usage needs of the people in each locality, total subsidized price and transportation cost funds, and the local budget capacity, proactively adjust the structure, quantity (level), and funds among various goods to ensure policy goods for the people.

2. For some particularly difficult regions, if the people are unable to purchase goods, the Chairman of the Provincial People's Committee shall base on the total subsidized price and transportation cost funds allocated to the locality and the provincial budget, consider and decide to provide free of charge one or several essential goods as follows: iodized salt, medical drugs, student writing paper.

PART 2
SUPPORTING THE CONSUMPTION OF PRODUCTS PRODUCED IN
MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC MINORITY REGIONS

Article 23. Subsidizing transportation costs to facilitate the consumption of certain products produced in mountainous areas, islands, and ethnic minority regions.

To support producers in mountainous areas, islands, and ethnic minority regions to sell their products, maintain and develop commodity production, contribute to creating momentum for economic restructuring in these areas, the State implements a policy of subsidizing transportation costs based on the results of purchases made by traders directly buying certain agricultural and forest products and processed products from agricultural and forest products (collectively referred to as agricultural and forest products) produced by organizations and individuals (collectively referred to as producers) in mountainous areas, islands, and ethnic minority regions. Priority is given to purchasing products in Zone III and Zone II within mountainous areas, islands, and ethnic minority regions with difficulties.

Article 24. Principles for determining products eligible for transportation cost subsidies:

1. The determination of products eligible for transportation cost subsidies shall be based on the following principles:

a) Products produced in Zone III and Zone II that have the largest proportion compared to other products in the region or products whose consumption has a significant impact on stabilizing the livelihoods and encouraging production development of the people in the region.

b) New products formed through implementation of production planning aimed at economic restructuring towards commodity production, contributing to export products.

c) Products produced to replace prohibited production (such as opium plants...) or not encouraged production.

2. Based on the situation and requirements for socio-economic development in mountainous areas, islands, and ethnic minority regions, proposals from the Chairmen of the People's Committees of the localities and relevant Ministries and sectors; the National Ethnic Minorities Commission and Mountainous Areas Commission shall coordinate with the Ministry of Commerce, Ministry of Agriculture and Rural Development to submit to the Prime Minister for decision and announcement of the list of products eligible for transportation cost subsidies for purchase in mountainous areas, islands, and ethnic minority regions during each period.

Article 25. Transportation cost subsidy for traders directly purchasing and consuming products.

1. Encourage traders from all economic sectors to directly purchase and consume products produced by ethnic minorities in mountainous areas, islands, and ethnic minority regions. The State subsidizes transportation costs for traders directly purchasing goods in mountainous areas, islands, and ethnic minority regions based on the actual quantity of goods purchased.

2. The distance for calculating transportation cost subsidies for purchasing and consuming products produced in mountainous areas, islands, and ethnic minority regions (according to the published list of items) is calculated from the center of the commune cluster to the nearest city or town in the plain area.

The Ministry of Commerce shall take the lead in determining the nearest cities and towns in the plains for calculating the transportation distance eligible for subsidies for each province, serving as the basis for determining the transportation cost subsidy fund.

3. To be eligible for transportation cost subsidies, traders must prepare a specific business plan before purchasing and consuming products (eligible for transportation cost subsidies) and submit it to the Chairman of the Provincial People's Committee or the agency designated by the Chairman of the Provincial People's Committee for review.

4. The Ministry of Finance shall stipulate the method for determining the actual quantity of goods purchased directly from the people or through cooperative stores in the commune cluster as the basis for calculating the quantity of goods purchased eligible for subsidies.

Article 26. Allocating plans and funding sources to support purchasing and consuming products.

1. Funds used for subsidizing transportation costs to purchase and consume certain products produced in mountainous areas, islands, and ethnic minority regions are drawn from the central government budget to allocate to Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the People's Committee of the province under the form of "delegated funds".

2. The Government Price Control Board shall take the lead in coordinating with the Ministry of Commerce to stipulate unit prices for transportation cost subsidies for each product in each locality and region.

3. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The National Ethnic Minorities Commission and Mountainous Areas Commission shall take the lead in coordinating with relevant Ministries and sectors and provinces with mountainous areas, islands, and ethnic minority regions to formulate plans and measures for purchasing and consuming products for ethnic minorities in each region and locality during specific periods; monitor, inspect, and guide localities and units to implement purchasing and consumption measures for producers to ensure that transportation cost subsidies are provided to the correct goods and target groups, thereby promoting trade and economic and social development in mountainous areas and encouraging people to develop production.

4. The Ministry of Planning and Investment shall take the lead in coordinating with Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the National Ethnic Minorities Commission and Mountainous Areas Commission and the Ministry of Finance to allocate annual state budget funds to achieve this goal.

5. Based on the approved total funds and the list of items to be purchased and consumed, Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).the National Ethnic Minorities Commission and Mountainous Areas Commission shall take the lead in coordinating with the Ministry of Commerce, the Ministry of Planning and Investment, and the Ministry of Finance to allocate transportation cost subsidy funds. Based on the above allocation plan, the Ministry of Finance shall allocate funds to mountainous provinces, island provinces, and provinces with ethnic minority regions benefiting from this policy.

6. Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The Department of Ethnic Minorities and Mountainous Areas shall take the lead in coordinating with the Ministry of Commerce, relevant ministries and sectors, and localities to select certain areas and specific products for pilot implementation, drawing lessons to effectively organize the provision of transportation subsidies for the sale and purchase of certain products produced in mountainous regions, islands, and ethnic minority areas, as stipulated in Articles 24, 25, and 26 of this Decree.

Article 27. Inspect the implementation of price and transportation subsidy policies.

1. The Chairman of the People's Committee of the province shall be responsible for directing and organizing regular inspections of the implementation of transportation and price subsidy policies, the allocation and use of transportation and price subsidy funds down to each sales point in accordance with the provisions of this Decree, ensuring that ethnic minorities living in mountainous regions, islands, and ethnic minority areas can purchase goods under policy regulations in the specified quantities and locations, preventing wastage and loss of state budget funds, and being accountable to the Prime Minister for the results of implementation.

2. Annually, Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).The Department of Ethnic Minorities and Mountainous Areas shall take the lead in coordinating with the Ministry of Commerce, the Ministry of Planning and Investment, the Ministry of Finance, the Government Price Control Board, and other relevant ministries and sectors to inspect the organization and implementation by management agencies and enterprises, promptly identifying issues requiring resolution and reporting to the Prime Minister.

PART IV
STATE ENTERPRISES ENGAGED IN COMMERCE
MOUNTAINOUS AREAS, ISLANDS, AND ETHNIC MINORITY REGIONS

Article 28. Develop and strengthen state commercial enterprises and cooperative trade service organizations in mountainous regions, islands, and ethnic minority areas.

1. Develop and strengthen state commerce in mountainous regions, islands, and ethnic minority areas to purchase products, sell materials for production, and consumer goods for ethnic minorities in these areas, implementing policy items.

State commerce must have a network reaching central commune centers in mountainous regions, islands, and ethnic minority areas. Develop trade cooperatives and services, and utilize state economic organizations (state enterprises, agricultural farms, forestry farms), other state forces, and trusted individuals in villages to act as agents for buying and selling goods, including those subject to price and transportation subsidies for state enterprises.

2. Ministers of relevant ministries, Chairmen Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).of provincial people's committees shall be responsible for developing and strengthening state enterprises, organizing and directing state forces under their jurisdiction to coordinate and support state commercial enterprises in expanding commodity exchanges in mountainous regions, islands, and ethnic minority areas, and implementing policies to ensure policy items and product consumption.

Article 29. Public welfare enterprises engaged in commerce in mountainous regions, islands, and ethnic minority areas.

State commercial enterprises mainly operating in Zone III of mountainous regions, islands, and ethnic minority areas, if they meet the criteria set out in Clause 2 of Article 2 of Decree No. 56/CP dated October 2, 1996, may be considered for conversion to public welfare enterprises to operate public welfare activities in mountainous regions, islands, and ethnic minority areas according to laws on public welfare enterprises.

Article 30. Capital for state commercial enterprises operating in mountainous regions, islands, and ethnic minority areas.

1. State commercial enterprises in mountainous regions, islands, and ethnic minority areas shall be guaranteed working capital equivalent to 50% of the required working capital. If state commercial enterprises do not have sufficient working capital at the aforementioned level, they shall submit requests to competent authorities for additional capital approval in accordance with the State Budget Law.

2. State commercial enterprises shall be provided with adequate reserve capital for policy items. Depending on the specific area and item, the average reserve level should ensure consumption needs in mountainous regions, islands, and ethnic minority areas for two to three months. Enterprises are exempt from paying interest on the capital allocated for policy item reserves.

3. The Ministry of Commerce, together with the Ministry of Finance, shall take the lead and coordinate with relevant ministries and sectors to specifically implement the provisions of Clauses 1 and 2 of this Article.

Article 31. Loan support.

State commercial enterprises in mountainous regions, islands, and ethnic minority areas may borrow medium- and long-term loans from state credit sources (including the national investment support fund) at preferential interest rates to invest in opening additional business points serving mountainous regions, islands, and ethnic minority areas, especially in Zone III, and to expand the scale of commercial operations or production processing.

CHAPTER V
IMPLEMENTING PROVISIONS

Article 32. EFFECTIVE DATE

This Decree takes effect 15 days after the date of signature. Previous regulations contrary to this Decree are abolished.

Article 33. Guidance on Implementation.

1. The Minister, Head Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).of the Department of Ethnic Minorities and Mountainous Areas, based on the authority delegated by the Prime Minister, shall specify the mountainous, island, and ethnic minority areas and the classification of mountainous, island, and ethnic minority areas (Zone I, Zone II, Zone III) as a basis for applying and implementing the provisions of this Decree.

2. The Minister of Commerce shall take the lead, coordinating with the Ministers of Planning and Investment, Finance, Health, Governor of the State Bank, the Minister, Head Within 10 working days from the date of receipt of the dossier as mentioned in Sub-clause b, Clause 1, Article 3 above, the Ministry of Foreign Affairs will review and submit to the competent authority for decision (Issues exceeding the Ministry of Foreign Affairs' jurisdiction will be referred to the Prime Minister for consideration and decision).of the Department of Ethnic Minorities and Mountainous Areas, Director of the Government Price Control Board, Chairmen of the People's Committees of mountainous provinces, islands, and provinces with ethnic minority areas, shall be responsible for guiding and organizing the implementation of this Decree.

Article 34. TheMinisters

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, and Chairpersons of Provincial People's Committees under central governance are responsible for implementing this Decree./.