Circular No. 2001-BVT/TT guiding the implementation of Resolution No. 187-HĐBT dated December 22, 1982 of the Council of Ministers.

CIRCULAR

OF THE SUPPLY MINISTRY NO. 2001-BVT/TT OCTOBER 13, 1984
GUIDELINES FOR IMPLEMENTING RESOLUTION NO. 187-HĐBT
DECEMBER 22, 1982 OF THE COUNCIL OF MINISTERS

On November 22, 1982, the Council of Ministers issued Resolution No. 187-HĐBT on accelerating the implementation of bilateral economic contracts. This is an important document regarding bilateral economic contracts, which is an organized form of exchange between the State and farmers, forest workers, fishermen, and salt producers; between industry and agriculture, reflecting the policy of the alliance between workers and peasants in the new phase of the revolution.

The Supply Ministry provides guidelines for implementation within the scope of its responsibilities as follows:

I. BASIS FOR ENTERING INTO BILATERAL ECONOMIC CONTRACTS

Article 5 of Decree No. 158-HĐBT dated December 17, 1983 of the Council of Ministers on issuing the system of legal indicators for the state plan in 1984 stipulates:

"a) Central funds for materials and goods allocated to localities for the purpose of purchasing, mobilizing export goods, transportation... for the central government shall be directly planned by Ministries and sectors and distributed to each locality corresponding to the tasks assigned to that locality, and submitted to the State Planning Commission for consolidation and submission to the Chairman of the Council of Ministers for allocation together with other plans, while notifying the relevant Ministries.

b) Ministries and General Departments have the responsibility to urge the strict implementation of signed economic contracts, directly managing the execution of plans. Supply units may only distribute materials to localities corresponding to the actual quantity of products handed over to the central government confirmed by the Ministry responsible for managing the purchase of such goods."

Therefore, the basis for signing supply contracts to implement bilateral economic contracts is:

- Based on the national plan indicators assigned to Ministries and localities regarding the tasks of purchasing, mobilizing export goods, transportation... for the central government.

- Based on the distribution plan indicators assigned by Ministries and localities (provinces, cities, centrally governed special zones) to purchasing organizations and People's Committees at the district level regarding the tasks of purchasing and delivering products.

- Based on the distribution plan indicators assigned by People's Committees at the district level to purchasing organizations and production units regarding the purchase and sale of products within the district.

In addition, it must also be based on price policies, material management policies, market management policies, economic and technical norms, material and goods supply quotas according to the amount of products sold to the state, etc., to sign economic contracts in accordance with the spirit of Decree No. 54-CP dated March 10, 1975 of the Council of Ministers and Resolution No. 187-HĐBT dated November 22, 1982 of the Council of Ministers.

II. TYPES OF MATERIALS TO BE SUPPLIED UNDER BILATERAL ECONOMIC CONTRACTS

Technical materials supplied under bilateral economic contracts are those types of materials included in the unified list managed by the state, allocated to the fund of materials and goods reserved for planned purchases annually that the state assigns to sectors responsible for purchasing and localities. Among them, there are parts for planned purchases and parts for purchases exceeding the plan.

III. FORM AND IMPLEMENTATION OF CONTRACTS

Supply and purchasing companies, county material stations have the responsibility to assist County People's Committees in grasping the demand for materials for production and the material and goods fund reserved for purchases assigned by the province to the county. To compile the annual plan based on the balanced demand for materials.

After receiving the plan indicators from the Provincial People's Committee and the County People's Committee, provincial and municipal (central and local) supply companies, purchasing and supplying companies, and county material stations must promptly proceed to sign economic contracts ensuring the supply of materials for production and the state's purchase plan.

Purchasing organizations, material supply organizations, and producers base themselves on the distribution indicators of the County People's Committee to sign purchase and product sales contracts and material supply contracts under the centralized and unified guidance of the County People's Committee.

1. Regarding Contract Signing:

The authorized representatives of purchasing organizations at the county level are responsible for organizing the signing of contracts with the authorized representatives of production cooperatives, production groups, production solidarity groups, or village trading cooperatives, and the authorized representatives of county material supply organizations.

Depending on the specific situation of each place, one of the following two contract signing methods can be chosen:

a) After the purchasing organization signs contracts with producers, they consolidate the demand for materials along with the material distribution plan according to the signed contracts with producers. On this basis, the purchasing organization directly signs a contract with the material supply organization to ensure the supply of materials for the purchase plan and product delivery.

b) The purchasing organization, material supply organization, and producer jointly sign a single contract (including product purchase and material supply) initiated and organized by the purchasing organization.

- The head of the county-level supply and purchasing company represents the material supply organization in signing contracts with the authorized representatives of state purchasing organizations at the county level and producers. In places where there is no county-level supply and purchasing company, the heads of provincial and municipal (central and local) supply companies may delegate authority to the heads of county material stations to sign economic contracts with the authorized representatives of purchasing organizations and producers at the county level.

- In places where there is neither a county-level supply and purchasing company nor a county material station, the heads of provincial and municipal (central and local) supply companies are responsible for signing contracts with the authorized representatives of purchasing organizations and producers at the county level.

- Based on the results of signing contracts with purchasing organizations and the producers' side, county supply and purchase companies aggregate the material needs and enter into contracts with provincial and central material supply companies based on the State plan indicators assigned to the purchasing management sectors and People's Committees of provinces and cities; the People's Committees of provinces and cities allocate to counties; the People's Committees of counties assign to supply and purchase companies and other state economic organizations at the county level.

2. Contents of bilateral economic contracts:

Bilateral economic contracts differ from ordinary technical material purchase contracts. While they share some common features in content and form, they also have unique characteristics. Therefore, the contents of a bilateral economic contract for supplying technical materials and serving production and purchasing products must fully reflect the main clauses below:

1. Quantity, specifications, quality, and value of materials supplied to producers.

2. Quantity, specifications, quality, and value of products sold by producers to state purchasing organizations. 3. Price of materials sold to producers.

4. Price of products sold by producers to state purchasing organizations.

5. Methods of inspecting state-supplied technical materials and products sold by producers to the state.

6. Time, location, and method of delivering materials.

7. Time, location, and method of submitting products.

8. Payment terms of the contract.

9. Total value of the contract.

10. Material liability of the parties to the contract.

11. Effective date of the contract.

Bilateral economic contracts signed according to annual plan indicators but divided into quarters or seasons. Thus, the start of the season depends on natural conditions, planting and harvesting seasons, and fishing seasons in each locality. Contracts must be signed immediately upon receiving plan indicators or according to the season. When adjusting plans, purchasing organizations, material supply organizations, and producers must discuss to adjust and supplement contracts to align with state plan indicators.

3. Payment methods:

- In principle, producers must directly pay for materials received from material supply organizations.

- If purchasing organizations directly pay for materials to material supply organizations, they must ensure that producers pay immediately for materials received. The entire payment cannot be made only at the end of the contract.

- Selling prices of materials must follow state-set prices. Prices of materials within the plan and those exceeding the plan or contract must be clearly stated.

- Payment terms agreed upon by the parties must be clearly recorded in the contract but must not contravene the regulations set by the State Bank of Vietnam.

4. Implementation of signed contracts:

- Annually, when the State assigns plan indicators, industrial unions and general corporations must firmly grasp the material quotas allocated by the State to localities and purchasing management sectors to balance forces and assign plan indicators to subordinate economic units. Industrial unions and general corporations are responsible for guiding and directing subordinate units to sign and implement bilateral economic contracts with county supply and purchase companies to ensure the State's purchasing plan.

Provincial material supply companies (central and local) must promptly enter into supply contracts with county supply and purchase companies after receiving plan indicators from superiors and being notified by the People's Committee of the province about allocations to counties. The contracts must clearly record the materials for implementing bilateral economic contracts as the basis for payment and settlement.

After signing contracts with county supply and purchase companies, provincial material supply companies must aggregate demands to create orders and have plans to deliver materials to county supply and purchase companies to ensure timely service for production and purchasing under signed contracts.

- Contract parties must cooperate closely, help each other to fully implement agreed terms and those recorded in the contract. State purchasing organizations must regularly report purchasing results to material supply organizations. Material supply organizations will sell materials to producers only upon confirmation by purchasing organizations. State purchasing organizations and material supply organizations must be accountable to the State for ensuring that materials are supplied to regions corresponding to the actual volume of products and goods delivered to the central government... and in accordance with the exchange ratio prescribed by the State.

- Provincial material supply companies (central and local), county material stations, county supply and purchase companies, and state purchasing organizations at the county level are responsible for guiding producers to use materials for their intended purposes, within specified limits, and according to technical standards, and assist county People's Committees in supervising material usage at production facilities; strengthening market management, preventing misuse of state materials for resale, barter, illegal business activities, etc.

IV. SETTLEMENT OF CONTRACTS

Upon completion of the contract or its expiration, the parties to the contract must jointly settle the contract.

The content of contract settlement is based on the commitments recorded in the contract, allowing the parties to review and evaluate implementation results, identify issues, causes, responsibilities, and solutions, etc.

During contract settlement, the following key contents must be focused on and clarified:

a) Results of supplying materials to producers under the contract.

b) The result of purchasing products from producers sold to the State under the contract.

c) Whether the exchange rate between materials and products complies with the regulations of the State.

d) Prices and the results of payment for goods.

e) Settlement of materials.

g) Existing issues, causes, and measures to resolve them.

The content of the contract termination must be recorded in a protocol and signed by all parties to the contract.

V. SETTLEMENT OF DISPUTES AND VIOLATIONS OF CONTRACTS

All parties signing the contract must strictly implement the signed contract. Any party violating the contract shall bear material responsibility according to Article 17 of the Regulations on Economic Contract System (issued pursuant to Resolution No. 54-CP dated March 10, 1975 of the Council of Ministers). In case of disputes and violations of contracts, the relevant parties must first take the initiative to meet and discuss solutions. If the two parties cannot reach an agreement, they shall file a complaint with the economic arbitration board at the district level for handling and adjudication in accordance with current laws.

Where there is no economic arbitration board at the district level, complaints shall be submitted to the People's Committee of the district for resolution. For serious and complicated cases that the People's Committee of the district cannot resolve, the complaint shall be transferred to the economic arbitration board at the provincial level for handling and adjudication.

VI. ORGANIZATIONAL MEASURES TO ENSURE IMPLEMENTATION

To effectively implement the two-way economic contract system, provincial and municipal material supply companies, material supply stations, and county-level material supply and procurement companies must organize training and thoroughly understand the contents of Resolution No. 187-HĐBT and this Circular issued by the Ministry of Materials, as well as directives and guidance from the Provincial and Municipal People's Committees and the County People's Committees regarding the implementation of the two-way economic contract system for all cadres, workers, and staff within their units, and develop plans to implement it.

Implementing the two-way economic contract system is a shared responsibility of all sectors and levels, but directly it is the responsibility of the county level. Currently, the organizational structure for material supply and procurement is not fully established and stable. Many counties have not organized material supply and procurement companies, and those that have been established generally lack organizational strength and business skills, with insufficient technical facilities to ensure operations.

To vigorously implement the two-way economic contract system in accordance with the spirit of Resolution No. 187-HĐBT dated November 22, 1982 of the Council of Ministers, particularly ensuring material supply, the urgent task now is to complete the organization of material supply and procurement companies at the county level nationwide; consolidate and improve existing county-level material supply and procurement companies. All sectors and levels, especially provincial and municipal material supply companies, must take responsibility and closely coordinate with local authorities in implementing construction and strengthening assistance to county-level material supply organizations in all aspects, as stipulated in Resolution No. 50-HĐBT dated May 17, 1983 of the Council of Ministers on continuing to promote the construction of counties and strengthening the county level so that material supply organizations can quickly mature and fulfill their tasks effectively.

This Circular is disseminated to grassroots economic units in the material supply sector. Heads at all levels are required to develop plans for implementation and report the results to the Ministry.