Law on National Reserves No. 22/2012/QH13

LAW

National Reserve

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BASED ON THE CONSTITUTION OF THE SOCIALIST REPUBLIC OF VIETNAM IN 1992 AS AMENDED AND COMPLEMENTED BY RESOLUTION NO. 51/2001/QH10;

The National Assembly enacts the Law on National Reserve.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates the formation, management, operation, and utilization of the national reserve; the rights and obligations of agencies, organizations, and individuals involved in national reserve activities.

Article 2. Applicability

The subjects to which this Law applies are agencies, organizations, and individuals related to the formation, management, operation, and utilization of the national reserve.

Article 3. Objectives of the national reserve

The State forms and uses the national reserve proactively to meet urgent and critical needs for disaster prevention, response, and aftermath mitigation; to serve defense and security purposes.

Article 4. Definitions

In this Law, the following terms shall be understood as follows:

1. The national reserve consists of materials, equipment, and goods managed and held by the State.

2. National reserve activities involve developing and implementing strategies, plans, and budgets for the national reserve; building material and technical infrastructure systems; managing, operating, and utilizing the national reserve.

3. National reserve items are materials, equipment, and goods listed in the National Reserve Goods Catalogue managed and held by the State for national reserve objectives.

4. The National Reserve Goods Catalogue includes the names of groups of goods, materials, and equipment for the national reserve.

5. Operating the national reserve involves managing, importing, exporting, purchasing, selling, storing, and protecting national reserve items.

6. Ministries and sectors managing national reserve items are ministries, ministerial-level agencies, and government agencies directly managing national reserve items according to the Government's assignment.

7. National reserve units are organizations under ministries and sectors managing national reserve items tasked with directly managing, importing, exporting, purchasing, selling, storing, and protecting national reserve items.

8. Urgent and critical situations refer to widespread disaster risks, epidemics, fires, and national defense and security tasks requiring immediate resolution.

9. Total national reserve value is the total value of the national reserve.

10. Allocation amount for the national reserve is the amount allocated for the national reserve in the annual state budget estimate.

11. Storage period for national reserve items is the maximum time from when items enter storage until they are removed from storage.

12. Issuing national reserve items without charge refers to the act of issuing national reserve items free of charge to organizations and individuals.

Article 5. State policy on the national reserve

1. The State has strategies, plans, and programs for developing the national reserve that align with national economic and social development strategies, plans, and programs during each period.

2. The State builds a strong, well-structured national reserve capable of achieving national reserve objectives, consistent with the state budget balance capacity.

3. The State implements policies to invest in scientific and technological research and development for the national reserve, applying preservation technology and information technology to modernize national reserve operations.

4. The State implements policies to mobilize resources, encourage, and create conditions for organizations and individuals to participate in national reserve activities.

5. The Government shall provide detailed regulations on this matter.

Article 6. Sources of forming the national reserve

The national reserve is formed from the following sources:

1. State budget;

2. Other legitimate resources outside the state budget included in the national reserve consist of resources obtained from voluntary investment in material infrastructure construction and provision of information technology for national reserve management and preservation, direct preservation of national reserve items; goods and materials mobilized from organizations and individuals in urgent and critical situations as prescribed by law.

Article 7. Principles for managing and using national reserve goods

1. National reserve goods must be managed strictly, safely, and confidentially in accordance with the provisions of the law; they must proactively meet the requirements and objectives of the national reserve in a timely manner. After being released from the reserve, national reserve goods must be replenished adequately and promptly.

2. National reserve goods must be used for their intended purposes and in accordance with the provisions of the law; they may not be used for business activities.

Article 8. National Reserve Organizations

1. National reserve organizations must ensure centralization and unity under the direction of the Government.

2. The system of national reserve organizations is arranged at the central level and in strategic regions across the country to promptly meet the requirements and objectives of the national reserve, including:

a) A specialized agency for managing the national reserve under the Ministry of Finance organized vertically, comprising central agencies and local units by region;

b) Units under the Ministry of Defense, the Ministry of Public Security, and part-time national reserve work units within ministries and sectors managing national reserve goods.

Article 9. Regulations and Policies for Personnel Engaged in National Reserve Work

1. Personnel engaged in national reserve work include:

a) Civil servants and officials working at specialized agencies for managing the national reserve;

b) Personnel engaged in national reserve work who are military personnel and police officers;

c) Civil servants and officials engaged in national reserve work at ministries and sectors.

2. Personnel engaged in national reserve work as stipulated in points a and b of Clause 1 of this Article shall enjoy seniority allowances; depending on the field and nature of the job, they shall also enjoy occupational preference allowances. The Government shall provide detailed regulations on this matter.

Article 10. Contents of State Management over the National Reserve

1. Issuing and implementing legal normative documents concerning the national reserve.

2. Deciding on strategies, planning, plans, and policies for developing the national reserve.

3. Specifying the National Reserve Goods List; allocating state budget funds for the national reserve; deciding on the release, import, purchase, and sale of national reserve goods.

4. Organizing research and application of scientific, technical, and technological advancements for preserving national reserve goods.

5. Propagating, disseminating, and educating about laws related to the national reserve.

6. Organizing training and professional development in national reserve work.

7. Conducting inspections, audits, handling complaints and accusations, and enforcing violations of laws related to the national reserve.

8. International cooperation in the national reserve.

Article 11. Specialized Inspections of the National Reserve

1. Agencies responsible for state management in the national reserve sector shall perform specialized inspection functions concerning the national reserve in accordance with the law on inspections.

2. Specialized inspections of the national reserve are inspections of compliance with laws on the national reserve as prescribed by this Law and other relevant laws.

3. The powers and responsibilities of specialized inspections of the national reserve; the rights and obligations of organizations and individuals subject to inspection and those related to them shall be implemented in accordance with the law on inspections.

Article 12. Tasks and Powers of the National Assembly, Standing Committee of the National Assembly

1. The National Assembly has the following tasks and powers:

a) Deciding on policies for developing the national reserve, guiding national reserve resources, and approving five-year plans for the national reserve;

b) Deciding on the allocation of the central budget for the national reserve annually.

2. The Standing Committee of the National Assembly has the following tasks and powers:

a) Deciding on additional allocations from the central budget for the national reserve annually (if necessary);

b) Deciding on the central budget for purchasing replacement goods for the national reserve that have been released;

c) Adjusting the National Reserve Goods List.

Article 13. Tasks and Authorities of the Government and the Prime Minister

1. The Government shall uniformly manage state affairs concerning national reserves and have the following tasks and powers:

a) Submit to the National Assembly for decision on national strategic reserve development policies, orientation of national strategic reserve resources, and five-year plans for national strategic reserves;

b) Submit to the National Assembly for decision on the annual budget allocation from the central state budget for the national strategic reserve;

c) Submit to the Standing Committee of the National Assembly for decision on additional funding from the central state budget for the national strategic reserve annually (if applicable);

d) Submit to the Standing Committee of the National Assembly for decision on the central state budget to purchase replacement goods for the national strategic reserve that have been issued;

đ) Submit to the Standing Committee of the National Assembly for adjustment of the list of goods in the national strategic reserve;

e) Assign ministries and sectors to manage goods in the national strategic reserve.

2.

a) Approve the national strategic reserve strategy, annual national strategic reserve plan, and overall planning of the national strategic reserve storage system;

b) Allocate the state budget plan for the national strategic reserve within the scope of the state budget plan approved by the National Assembly;

c) Decide on the import and export of goods in the national strategic reserve according to this Law and other relevant laws.

Article 14. Tasks and Authorities of the Ministry of Finance

The Ministry of Finance assists the Government in managing the state administration of the national strategic reserve, with the following tasks and authorities:

1. Lead and coordinate with the Ministry of Planning and Investment to advise the Government to submit to the National Assembly for decision on national strategic reserve development policies, orientation of national strategic reserve resources, and five-year plans for national strategic reserves;

2. Lead and coordinate with the Ministry of Planning and Investment to prepare the state budget plan and the proposal for the allocation of the central state budget for the annual national strategic reserve allocation plan for the Government to submit to the National Assembly for decision on the allocation of the central state budget for the national strategic reserve annually for ministries and sectors managing goods in the national strategic reserve. Lead and coordinate with the Ministry of Planning and Investment to report to the Government on the additional central state budget for the national strategic reserve annually (if applicable) for submission to the Standing Committee of the National Assembly for decision;

3. Lead and coordinate with the Ministry of Planning and Investment and ministries and sectors managing goods in the national strategic reserve to develop the national strategic reserve strategy, annual national strategic reserve plan, overall planning of the national strategic reserve storage system, scientific research, and application of technology for the preservation of goods in the national strategic reserve;

4. Lead and coordinate with ministries and sectors managing goods in the national strategic reserve to develop and promulgate national technical standards and economic-technical norms for goods in the national strategic reserve;

5. Organize the operation of the national strategic reserve, inspect and audit the implementation of the annual national strategic reserve plan and according to decisions made;

6. Based on the state budget plan, the annual national strategic reserve plan, and economic-technical norms for goods in the national strategic reserve, ensure financial sources for the national strategic reserve for each sector managing goods in the national strategic reserve; review and consolidate the final accounts of the state budget expenditure for the national strategic reserve;

7. Issue regulations on financial management systems and budgets within its authority, decide on maximum purchase prices, minimum selling prices, compensation prices for losses of goods in the national strategic reserve, and costs for importing, exporting, purchasing, selling, preserving, and insuring goods in the national strategic reserve; guide, monitor, and inspect the quantity, quality, and value of goods in the national strategic reserve; organize the implementation of regulations on management, preservation, purchase, sale, import, export, and rotation of goods in the national strategic reserve.

Article 15. Tasks and Authorities of the Ministry of Planning and Investment

1. Take the lead and coordinate with the Ministry of Finance to allocate and distribute capital for basic construction projects related to national reserves.

2. Coordinate with the Ministry of Finance to develop strategies, plans, and five-year and annual plans on national reserves to be submitted for approval.

3. Coordinate with the Ministry of Finance to advise the Government to submit to the National Assembly for decision on the annual budget allocation plan for national reserves; coordinate with the Ministry of Finance to report to the Government on the additional central budget for national reserves annually (if any) to be submitted for decision by the Standing Committee of the National Assembly.

Article 16. Tasks and Authorities of Ministries and Sectors Managing National Reserves

1. Participate in developing strategies, plans, the list of goods for national reserves, national technical standards for goods in national reserves, economic and technical norms for goods in national reserves, and the level of each type of goods in national reserves.

2. Direct subordinate national reserve units to implement the national reserve plan; sign and execute storage contracts for national reserve goods according to the provisions of the law.

3. Report on the management and use of national reserve goods to the Ministry of Finance for consolidation and reporting.

Article 17. Tasks and Authorities of Specialized National Reserve Agencies

1. Advise the Ministry of Finance to implement state management over national reserves; directly manage national reserve goods according to this Law and other relevant laws.

2. Advise the Ministry of Finance to take the lead and coordinate with ministries and sectors managing national reserve goods to compile reports on the management and use of national reserve goods for submission.

3. Inspect the import, export, purchase, sale, storage, and use of national reserve goods according to the provisions of this Law.

4. Advise the Ministry of Finance to take the lead and coordinate with relevant ministries and sectors to develop national technical standards for national reserve goods, economic and technical norms for national reserve goods; consolidate and report on national reserve activities for the Ministry of Finance to submit.

5. Submit to the Ministry of Finance for decision on management and storage costs for units storing national reserve goods.

Article 18. Tasks and Authorities of National Reserve Units

1. Directly store and protect national reserve goods ensuring sufficient quantity, correct quality, types, and locations as required by competent authorities.

2. Ensure timely response to mobilization and use of national reserve goods in all situations.

3. Import, export, purchase, and sell national reserve goods according to decisions of authorized bodies.

4. Organize monitoring of the import, export, purchase, sale, and rotation of national reserve goods according to legal provisions.

Article 19. Tasks and Authorities of Organizations and Enterprises Receiving Storage Contracts

1. Directly store national reserve goods ensuring sufficient quantity, correct quality, types, and locations as stipulated in the signed contract.

2. Timely implement import, export, purchase, and sale of national reserve goods according to decisions of authorized bodies.

3. Implement circulation and exchange of old and new national reserve goods of the same type, quantity, and quality according to legal provisions.

4. Report on the import, export, and inventory of national reserve goods to specialized national reserve agencies and hiring ministries and sectors.

Article 20. Tasks and Authorities of the People's Committee of Provinces and Central-South Cities

1. Propaganda, dissemination, and implementation of policies and laws on national reserves.

2. Direct relevant agencies to coordinate with units directly managing national reserves within their jurisdiction to perform tasks related to importing, exporting, purchasing, selling, storing, and transporting national reserve goods, ensuring safety and confidentiality of national reserve activities at the local level.

3. Have the responsibility to allocate land for constructing national reserve warehouses according to the approved planning of the national reserve warehouse system by the competent authority.

Article 21. Allocation of Management of National Reserve Goods

1. The Ministry of Finance directly organizes management and storage of national reserve goods that meet requirements for production, living, rescue, disaster relief, prevention, mitigation, and response to natural disasters, catastrophes, and fires.

2. The Ministry of Defense and the Ministry of Public Security directly organize management and storage of national reserve goods that meet requirements and tasks for national defense and security.

3. The Government assigns ministries and sectors to directly organize management and storage of national reserve goods not specified in Clause 1 and Clause 2 of this Article.

Article 22. Prohibited Acts

1. Disclosing state secrets about national reserves.

2. Taking advantage of importation, exportation, purchase, sale, storage, and transportation of national reserve goods, arbitrarily changing the purchase price and sale price of national reserve goods for personal gain.

3. Neglecting responsibilities or intentionally violating regulations on national reserve management causing damage, loss, or waste of assets belonging to national reserves.

4. Violating, destroying infrastructure and goods in national reserves.

5. Obstructing national reserve activities.

6. Using national reserve goods for unauthorized purposes.

7. Importing, exporting, purchasing, or selling national reserve goods beyond authorized limits, incorrect types, quantities, quality, or locations.

8. Illegally interfering in national reserve activities.

9. Failing to comply with accounting and statistical regulations in national reserve activities.

10. Renting organizations or enterprises without the necessary conditions to store national reserve goods.

Chapter II

NATIONAL RESERVE STRATEGY AND PLANS

Article 23. National Reserve Strategy

1. Principles for developing the national reserve strategy:

a) Consistent with the economic and social development strategy, ensuring national defense and security, and sectoral and territorial planning during each period;

b) Consistent with the budget balance capacity of the state;

c) Based on forecasts of world, regional, and domestic situations, and unexpected critical scenarios that may occur.

2. Contents of the national reserve strategy:

a) Objectives of national reserves, ensuring sustainable development requirements, consistent with the process of international economic integration;

b) Resources of national reserves; plans for allocating national reserves across regions and strategic areas; ensuring effective management and use for intended purposes; readiness to respond to unexpected and urgent situations;

c) Orientation for national reserve development;

d) Main tasks and solutions to implement the national reserve strategy.

3. The national reserve strategy is developed for a ten-year phase, with a vision of twenty years, consistent with the economic and social development strategy.

Article 24. National Reserve Plan

1. The national reserve plan is developed for five years and annually and is integrated into the socio-economic development plan.

2. Bases for developing the national reserve plan:

a) National reserve development strategy;

b) Objectives of the national reserve;

c) State budget balance capacity;

d) Forecast of domestic and international economic and social conditions.

3. Contents of the national reserve plan:

a) Final level of national reserves;

b) Plan to increase or decrease national reserves, rotation of goods;

c) Investment in the development of material and technical infrastructure;

d) Research and application of scientific and technological progress;

đ) Financial balancing schemes for national reserve activities.

Article 25. Total Level of National Reserves

The total level of national reserves ensures the achievement of national reserve objectives.

Article 26. Methods of National Reserves

National reserves are stored in the form of materials, equipment, and goods.

Article 27. List of Goods for National Reserves

1. Goods included in the list of goods for national reserves must meet the national reserve objectives stipulated in Article 3 of this Law and satisfy one of the following criteria:

a) Strategic and essential goods with high usage frequency, capable of timely response in unexpected and urgent situations;

b) Special goods that cannot be replaced;

c) Materials, equipment, and goods ensuring national defense and security where domestic production has not met quantity, quality, and type requirements.

2. The list of goods for national reserves includes the following groups:

a) Foodstuffs;

b) Rescue and relief materials and equipment;

c) Common materials and equipment for mobilization;

d) White salt;

đ) Fuels;

e) Industrial explosives;

g) Crop seeds;

h) Plant protection chemicals;

i) Disinfectants and sterilizers for environmental cleaning, water treatment, and aquaculture;

k) Medicines for disease prevention and control in humans;

l) Medicines for disease prevention and control in livestock, poultry, crops, and aquaculture;

m) Materials, equipment, and goods serving national defense and security.

3. In cases requiring adjustment to the list of goods for national reserves, the Government shall submit it to the Standing Committee of the National Assembly for consideration and decision.

4. The Government shall provide detailed regulations on paragraph 2 of this Article.

Chapter III

 STATE BUDGET FUNDS FOR NATIONAL RESERVES

Article 28. State Budget Funds for National Reserves

1. State budget funds for national reserves are implemented according to the State Budget Law and are allocated in the annual state budget estimate.

2. The Ministry of Finance manages and allocates funds for purchasing national reserve goods and replenishing national reserve goods sold during the planning year after approval by the competent authority.

Article 29. State Budget Funds for Purchasing National Reserve Goods

1. Based on the national reserve plan and the allocated budget for national reserves, the Ministry of Finance provides funding to ministries and sectors managing national reserve goods to purchase national reserve goods as prescribed.

2. In cases of replenishing national reserve goods sold, ministries and sectors managing national reserve goods prepare supplementary budgets to submit to the Ministry of Finance.

3. Unspent state budget funds allocated to ministries and sectors for increasing or replenishing national reserve goods within the planning year due to insufficient purchases of national reserve goods; materials, equipment, and goods with production cycles exceeding the fiscal year, seasonal characteristics; special goods for national defense and security, the Minister of Finance decides to transfer the funds to the next year based on the proposal of the heads of ministries and sectors managing national reserve goods.

Article 30. State budget expenditure for basic construction investment of national reserve

1. State budget expenditure for basic construction investment of national reserve shall be allocated in the annual development investment plan of the ministries and agencies managing national reserve goods.

2. Ministries and agencies managing national reserve goods shall be responsible for managing and using the capital for basic construction investment in accordance with the provisions of the law.

Article 31. State budget expenditure for national reserve management activities

1. State budget expenditure for national reserve management activities includes: expenditure for management operations; expenditure for import, export, purchase, sale, storage, protection, insurance of national reserve goods; expenditure for research and application of scientific and technological progress in storage; expenditure for training and capacity building of officials, civil servants, and employees engaged in national reserve work and other expenditures as prescribed by law.

2. State budget expenditure for national reserve management activities of ministries and agencies, national reserve units shall be implemented according to plans, budgets, standards, contracts for storing national reserve goods, and current financial and state budget management systems.

3. Expenditure for import, export, and storage of national reserve goods shall be carried out under the quota system.

4. Expenditure for import, export, and allocation of national reserve goods pursuant to the decision of

Article 32. Financial mechanism; accounting, auditing systems; statistical and reporting systems on national reserves

1. The financial mechanism for national reserves shall be implemented in accordance with the provisions of the State Budget Law and other relevant laws. Ministries and agencies managing national reserve goods shall prepare the state budget expenditure budget for national reserve activities, submit it to the Ministry of Finance for examination, verification, consolidation, and reporting to the Government for submission to the National Assembly for approval. After being approved by the National Assembly,

2. Ministries and agencies managing national reserve goods, national reserve units, and organizations, enterprises storing national reserve goods must comply with the provisions of the law on financial management, state budget, accounting, statistics, auditing, and reporting systems on national reserves.

3. Ministries and agencies managing national reserve goods shall be responsible for examining and approving the final accounts of the state budget allocated to the units storing national reserve goods and shall be responsible for the approved final accounts; consolidate and report the final accounts to the Ministry of Finance. The Ministry of Finance shall examine, consolidate the final accounts on national reserves, and report to the Government. The final accounts of the state budget on national reserves must be audited in accordance with the provisions of the law.

Chapter IV

MANAGEMENT AND CONTROL OF NATIONAL RESERVES

Section 1

IMPORTING AND EXPORTING NATIONAL RESERVE GOODS

Article 33. Principles for importing and exporting national reserve goods

Importing and exporting national reserve goods must ensure the following principles:

1. In accordance with the plan and authority;

2. By type, quantity, quality, price, location; ensuring timeliness, safety; complying with the procedures for importing and exporting as prescribed by law.

Article 34. Cases of importing and exporting national reserve goods

1. Importing and exporting national reserve goods pursuant to the decision of

2. Importing and exporting national reserve goods in emergency situations as stipulated in Article 36 of this Law.

3. Importing, exporting, and rotating national reserve goods according to the assigned targets as stipulated in Article 37 of this Law.

4. Importing and exporting national reserve goods in other cases as stipulated in Article 39 of this Law.

Article 35. Importing and exporting national reserve goods pursuant to the Prime Minister's decision

1.

a) When the Chairman of the People's Committee of the province or centrally governed city (hereinafter referred to collectively as provincial level) announces the occurrence of a disease outbreak in the locality;

b) To prevent, control, and mitigate the consequences of natural disasters, catastrophes, epidemics, fires, and famine relief;

c) When market prices experience sudden increases or decreases;

d) To meet defense and security requirements.

2. Procedure for exporting national reserve goods:

a) In cases where national reserve goods are exported according to the provisions of point a and point b, Clause 1 of this Article, the Chairman of the People's Committee at the provincial level, the head of the ministry or sector managing the relevant field shall submit a report and request;

b) In cases where national reserve goods are exported due to sudden changes in market prices, the Minister of Finance shall submit a request;

c) In cases where national reserve goods are exported to meet defense and security requirements, the Ministry of National Defense and the Ministry of Public Security shall submit a request to the Ministry of Finance for review and submission;

Article 36. Importing and exporting national reserve goods in emergency situations

In emergency situations as stipulated in Clause 8, Article 4 of this Law, the authority to decide on importing and exporting national reserve goods shall be implemented as follows:

1. The Prime Minister decides urgently on the importation and exportation of national reserve goods;

2. The Ministers of Finance, National Defense, Public Security, and Agriculture and Rural Development decide on the importation and exportation of national reserve goods according to the following regulations:

a) Temporarily export national reserve materials and equipment to serve immediate emerging tasks; upon completion of the task, they must be immediately recovered for maintenance, re-stored in the national reserve warehouse, and preserved according to regulations or reported to the Prime Minister for decision-making on handling;

b) Immediately import and export national reserve goods with a value corresponding to the authority to approve budget expenditures of the Minister of Finance as stipulated in the State Budget Law to serve immediate needs for each emerging task;

c) The person authorized to decide on the importation and exportation of national reserve goods as stipulated in Clause 2 of this Article must manage and use them for their intended purposes and objects; report to the Prime Minister and notify the Ministry of Finance within three working days from the date of the decision on the importation and exportation of national reserve goods and bear responsibility for their decisions;

d) The Ministry of Finance shall inspect the importation and exportation of national reserve goods as stipulated in this Article, report, and recommend timely measures to the Prime Minister for handling violations and bear responsibility for the inspection results.

Article 37. Importing and exporting national reserve goods according to plans and rotating replacement of national reserve goods

1. Importing and exporting national reserve goods according to plans and rotating replacement of national reserve goods shall be carried out annually. Ministries and sectors managing national reserve goods shall prepare plans for importing, exporting, and rotating replacement of national reserve goods and submit them to the Ministry of Finance for consolidation and submission to the Prime Minister for decision;

2. Heads of ministries and sectors managing national reserve goods shall organize the implementation of plans for importing, exporting, and rotating replacement of national reserve goods; if the plan is not completed within the year, they shall report to the Ministry of Finance for submission to the Prime Minister for consideration and decision;

3. In cases where the proceeds from selling goods for rotation replacement are insufficient to purchase the planned quantity due to price changes, the ministry or sector managing national reserve goods shall purchase goods corresponding to the amount received;

4. In cases of purchasing seasonal national reserve goods or rotating replacement, new goods must be purchased before selling old ones; the Minister of Finance shall consider and decide on the temporary allocation of state budget funds for purchasing goods; the ministry or sector managing national reserve goods shall be responsible for repaying the temporarily allocated funds within the planning year.

Article 38. Internal Transfer of National Reserve Goods

1. The head of the ministry or sector managing national reserve goods shall decide on internal transfer of national reserve goods in the following cases:

a) In accordance with planning and plans to ensure safety and suitability for warehouse conditions and storage of national reserve goods;

b) National reserve goods in areas affected by natural disasters, fires, or unsafe conditions;

c) Transfer of national reserve goods to necessary locations to be ready to serve emerging tasks;

d) Due to necessary requirements for inventory, handover, inspection, and investigation work.

2. The head of the ministry or sector managing national reserve goods shall notify the Minister of Finance about the internal transfer of national reserve goods within three working days from the date of the decision to transfer.

Article 39. Importing and Exporting National Reserve Goods in Other Cases

1. The head of the ministry or sector managing national reserve goods shall decide on importing and exporting national reserve goods in other cases, including:

a) Exporting national reserve goods when liquidating or destroying them;

b) Importing national reserve goods for quantities that are greater than recorded in accounting records upon actual inventory.

2. The Government shall provide detailed regulations for this Article.

Section 2

FOR PURCHASING AND SELLING NATIONAL RESERVE GOODS

Article 40. Methods of Purchasing National Reserve Goods

Purchasing national reserve goods shall be carried out through the following methods:

1. Purchasing national reserve goods in accordance with the provisions of the Law on Bidding;

2. Direct wide-ranging purchase from all entities.

Article 41. Purchasing National Reserve Goods in Accordance with the Law on Bidding

1. Purchasing national reserve goods in accordance with the provisions of the Law on Bidding shall be implemented through the following forms:

a) Open bidding;

b) Direct procurement;

c) Competitive quotation;

d) Direct award.

2. Cases of direct award shall be applied according to the provisions of the Law on Bidding and for the following cases:

a) For packages of bids for purchasing national reserve goods serving defense and security tasks that must meet the requirement of information confidentiality as prescribed by the Law on Safeguarding State Secrets;

b) In cases where open bidding or competitive quotation cannot be applied due to the suddenness, urgency, seasonal nature, or timing requirements for packages of bids for purchasing national reserve goods such as epidemic prevention and control medicines, disinfectants, plant protection chemicals, and crop seeds.

Article 42. Conditions for Direct Award

1. Cases of direct award prescribed in Clause 2 of Article 41 of this Law must satisfy the following conditions:

a) Included in the assigned plan for purchasing national reserve goods;

b) Have a direct award plan approved;

c) Have a budget approved in accordance with regulations;

d) The contract implementation period does not exceed twelve months.

2. The direct award process must be conducted no later than thirty days from the date of approval of the request dossier; in cases where the bid package has a large scale and complex nature, it shall not exceed sixty days.

3. Authority and procedures for direct award shall be applied in accordance with the provisions of the Law on Bidding.

Article 43. Wide-Ranging Direct Purchase from All Entities

1. Wide-ranging direct purchase from all entities shall only be applied in the case of purchasing national reserve rice.

2. Wide-ranging direct purchase from all entities shall be implemented as follows:

a) The unit assigned the task of purchasing national reserve goods shall prepare a plan for wide-ranging direct purchase from all entities to submit for approval by the head of the specialized national reserve management agency;

b) Determine the quantity, quality, type of rice to be purchased; the purchasing location; the purchasing deadline; the purchase price; Based on the approved plan, the unit assigned the task of purchasing national reserve goods shall publish the purchasing plan in newspapers for three consecutive issues or announce it on television three times consecutively over three days and at the purchasing location; organize the purchase strictly in accordance with the plan and listed prices.

Article 44. Methods for Selling National Reserve Goods

The sale of national reserve goods shall be carried out through the following methods:

1. Auction sale;

2. Directed sale;

3. Broad direct sale to all entities.

Article 45. Auction Sale of National Reserve Goods

1. The auction sale of national reserve goods shall be conducted in accordance with the laws on auctions.

2. In cases where the auction does not succeed, the unit entrusted with the task of selling national reserve goods shall report to the head of the ministry or sector managing national reserve goods to decide on broad direct sale to all entities.

Article 46. Directed Sale, Broad Direct Sale to All Entities

1. National reserve goods serving defense and security purposes may only be sold through directed sale for defense and security purposes.

2. National reserve goods eligible for broad direct sale to all entities include:

a) Rice, vaccines, disinfectants, plant protection chemicals, crop seeds, white salt;

b) National reserve goods not covered by Clause 1 and Point a of this clause must be auctioned but if two auctions fail, they shall be sold through broad direct sale to all entities. The price for broad direct sale to all entities shall not be lower than the starting price of the auction.

3. Directed sale, broad direct sale to all entities shall be implemented according to the following procedures:

a) The unit entrusted with the task of selling national reserve goods shall prepare a plan for directed sale and broad direct sale to all entities to submit for approval by the head of the ministry or sector managing national reserve goods;

b) Determine the name of the goods; quantity, quality of national reserve goods for sale; location of sale; deadline for sale; sale price;

c) Based on the approved plan, the unit entrusted with the task of selling national reserve goods shall publish the plan in three consecutive issues of a newspaper or announce it three times consecutively over three days on television and at the sales location regarding the sales plan and organize the sale strictly according to the plan and listed price. For national reserve goods specified in Clause 1 of this Article, there is no need to announce on mass media; the sale price shall be according to the approved price by the Minister of Defense and the Minister of Public Security.

Article 47. Liquidation of National Reserve Goods

1. National reserve goods that do not meet the criteria for serving the national reserve purpose shall be liquidated in accordance with the provisions of the law. The liquidation of national reserve goods shall be decided by the head of the ministry or sector managing national reserve goods.

2. Proceeds from the liquidation of national reserve goods, after deducting reasonable expenses, shall be deposited into the state budget.

3. For national reserve goods that cannot be used, they shall be destroyed. The destruction of national reserve goods shall be decided by

Article 48. Authority to Decide Methods for Purchasing and Selling National Reserve Goods

The head of the ministry or sector managing national reserve goods shall decide the method for purchasing and selling national reserve goods based on the provisions of this Law and bear responsibility for their decision.

Section 3

PURCHASE PRICE, SALE PRICE, IMPORT COSTS, EXPORT COSTS AND STORAGE COSTS OF NATIONAL RESERVE GOODS

Article 49. Purchase Price, Sale Price of National Reserve Goods

1. The purchase price of national reserve goods under tender procurement and the sale price of national reserve goods under auction sale shall be carried out in accordance with the laws on tender procurement and auctions and the laws on prices.

2. The purchase price and sale price of national reserve goods under broad direct sale to all entities shall be determined as follows:

a) The Minister of Finance shall determine the maximum purchase price and minimum sale price for national reserve goods based on the proposal of the head of the ministry or sector managing national reserve goods;

b) The head of the ministry or sector managing national reserve goods, except the Minister of Defense and the Minister of Public Security, shall determine specific prices according to market prices at the time and in each locality when purchasing and selling national reserve goods within their management scope but shall not exceed the maximum purchase price and fall below the minimum sale price determined by the Minister of Finance;

c) When purchasing and selling national reserve goods, if market prices fluctuate higher than the maximum purchase price or lower than the minimum sale price, the Minister of Finance shall review and adjust the maximum purchase price and minimum sale price based on the proposal of the head of the ministry or sector managing national reserve goods.

3. The Minister of Defense and the Minister of Public Security shall determine the purchase price and sale price of national reserve goods for defense and security purposes after reaching agreement with the Minister of Finance on pricing principles.

Article 50. Standards for Import Costs, Export Costs, and Storage Costs for National Reserve Goods

The determination of import costs, export costs, and storage costs for national reserve goods must be based on the economic and technical standards for national reserve goods and the national technical standards for national reserve goods. The Minister of Finance shall stipulate the import cost standards, export cost standards at the national reserve warehouse gate, and the maximum export cost outside the warehouse gate, as well as the storage cost standards, based on the proposals from the ministries and agencies managing national reserve goods.

Section 4

PRESERVATION OF NATIONAL RESERVE GOODS

Article 51. Principles for Storing National Reserve Goods

1. National reserve goods must be stored separately at the designated location, managed according to the national technical standards for national reserve goods, economic and technical standards for national reserve goods, and the storage management contract for national reserve goods, ensuring quantity, quality, and safety.

2. If there is excessive loss beyond the standard allowed by law due to subjective reasons during the storage of national reserve goods, the entity or individual responsible for storage must compensate for the excess loss; if the loss is less than the standard, the entity or individual may receive a reward as prescribed by the Government.

3. National reserve goods that deteriorate or decrease in quality during storage must be restored or sold promptly to minimize losses. In cases where deterioration or reduction in quality is due to objective reasons, the entity or individual responsible for storage does not need to compensate; in cases where it is due to subjective reasons, compensation is required and they will be dealt with according to the law.

Article 52. Responsibilities for Storing National Reserve Goods

1. Ministries and agencies managing national reserve goods must comply with the national technical standards for national reserve goods, economic and technical standards for national reserve goods, and legal provisions concerning the protection of state secrets.

2. Heads of ministries and agencies managing national reserve goods are responsible for directing the implementation and inspection of the storage of national reserve goods; they must promptly prevent and handle violations of laws related to the storage of national reserve goods.

3. Heads of units directly managing national reserve goods and individuals directly managing and storing national reserve goods are responsible for the quantity and quality of the national reserve goods assigned to them.

4. For national reserve goods with specific technical characteristics, storage facilities, and storage requirements, ministries and agencies managing national reserve goods must select organizations and enterprises meeting the conditions stipulated in Article 53 of this Law to sign contracts for the storage of national reserve goods.

5. Specialized national reserve agencies have the responsibility to inspect and check the storage of national reserve goods by ministries and agencies, units managing national reserve goods, and organizations and enterprises storing national reserve goods.

Article 53. Conditions for Being Eligible to Store National Reserve Goods

Organizations and enterprises selected by ministries and agencies managing national reserve goods to store national reserve goods must meet the following conditions:

1. Having legal person status;

2. Producing or trading goods compatible with the goods being stored;

3. Warehouses and equipment suitable for the technical requirements of national reserve goods for import, export, and storage operations;

4. A team of technical staff with experience and expertise to meet the storage requirements of national reserve goods;

5. Sufficient financial capacity to fulfill the storage contract for national reserve goods.

Article 54. Application of National Technical Standards and Economic-Technical Norms for National Reserve Commodities

1. Management agencies, organizations, and enterprises storing national reserve commodities must apply national technical standards for national reserve commodities. The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors to inspect the application; review, amend, and supplement national technical standards for national reserve commodities in accordance with the provisions of laws on standards and technical regulations.

2. Ministries and sectors managing national reserve commodities and specialized national reserve agencies shall base economic-technical norms for national reserve commodities to develop plans and budget estimates, and lease storage services for national reserve commodities. The Ministry of Finance shall take the lead and coordinate with ministries and sectors managing national reserve commodities to study, review, amend, and supplement economic-technical norms for national reserve commodities to ensure they are consistent with reality and management requirements.

Section 5

USE OF NATIONAL RESERVE COMMODITIES

Article 55. Principles for Using National Reserve Commodities

1. National reserve commodities must be used for their intended purposes and objects; in compliance with financial asset management systems and state property statistics as prescribed by law.

2. Agencies and organizations using national reserve commodities shall be subject to supervision, inspection, and audit by authorized agencies; report the results of using national reserve commodities to specialized national reserve agencies.

3. Heads of ministries and sectors managing national reserve commodities and Chairpersons of provincial People's Committees shall be responsible for proposing and using national reserve commodities.

Article 56. Responsibilities for Issuing and Accepting National Reserve Commodities

1. Agencies, organizations, and units assigned the task of issuing national reserve commodities shall be responsible for implementing warehouse exit procedures, transportation, and delivery at designated locations promptly, safely, and in accordance with quantity, quality, and type.

2. Ministries, sectors, and provincial People's Committees assigned the task of accepting national reserve commodities must receive them promptly, distribute them according to established policies and objects; comply with financial asset management systems, state property statistics, and be subject to supervision and inspection by authorized agencies.

Article 57. Management and Use of National Reserve Commodities

Ministries, sectors, provincial People's Committees, agencies, and organizations after receiving national reserve commodities shall be responsible for:

1. Managing and using national reserve commodities for their intended purposes and objects in accordance with legal standards; ensuring no loss or waste occurs;

2. Establishing records to track, account for, and report on the management and use of national reserve commodities issued in accordance with accounting and statistical laws. For national reserve commodities used multiple times, detailed tracking ledgers must be maintained as prescribed by law.

Chapter V

NATIONAL RESERVE WAREHOUSES, SCIENTIFIC RESEARCH AND APPLICATION OF TECHNOLOGY FOR PRESERVING NATIONAL RESERVE COMMODITIES

1. Principles for planning the national reserve warehouse system:

a) Consistent with the strategy for socio-economic development, defense, security, and territorial areas;

b) Consistent with the national reserve strategy and land use planning;

c) Integrated and consistent with production sources, population density; ensuring safety.

2. The comprehensive planning for the national reserve warehouse system must meet the following requirements:

a) Consistent with the goals and requirements of national reserves;

b) Ensuring the continuity of the national reserve warehouse system along routes and territorial areas;

c) Ensuring modernization development;

d) Consistent with investment capital capacity;

e) Clearly defining implementation solutions and timelines.

3. The Ministry of Finance shall take the lead and coordinate with the Ministry of Planning and Investment and ministries and sectors managing national reserve commodities to develop comprehensive planning for the national reserve warehouse system to submit for approval.

Article 59. Detailed planning of the national reserve warehouse network

1. Principles for detailed planning of the national reserve warehouse network:

a) Must be based on the overall planning of the national reserve warehouse system and land use planning of localities;

b) Facilitate protection, fire prevention, traffic, communication, import and export of goods; ensure that warehouses are not flooded; be synchronized, large-scale, with advanced preservation technology, mechanization in importing and exporting national reserves.

2. The content of detailed planning of the national reserve warehouse network must meet the following requirements:

a) Ensure continuity and connection between major economic centers and different regions nationwide, facilitating the import and export of national reserve goods;

b) Ensure high efficiency in use;

c) Ensure development towards modernizing preservation technology and procedures for import and export.

d) Consistent with investment capital capacity;

e) Clearly defining implementation solutions and timelines.

3. Heads of ministries and sectors managing national reserve goods organize the construction and approval of detailed planning of the national reserve warehouse network within their management scope after reaching consensus with the Ministry of Finance and the Ministry of Planning and Investment.

Article 60. Land fund planning for building national reserve warehouses

1. Ministries and sectors managing national reserve goods base on the detailed planning of the national reserve warehouse network to develop plans for land use to build national reserve warehouses in accordance with local land use planning.

2. State agencies authorized in land use planning, allocation, and leasing have the responsibility to allocate land funds for building national reserve warehouses according to the planning and implement state management over land used for the purpose of building national reserve warehouses.

Article 61. Requirements for national reserve warehouses

1. National reserve warehouses must be constructed according to approved planning; gradually meeting modernization requirements, equipped with advanced preservation technology, sufficient technical equipment necessary to achieve mechanization and automation in importing, exporting, and preserving national reserve goods.

2. The area of national reserve warehouses must be organized for strict security, safety, and secrecy in accordance with the law; equipped with multi-media and necessary technical equipment for observation, monitoring, prevention of natural disasters, fires, damage, loss, and other factors that may cause damage to national reserve goods.

3. Based on the approved national reserve warehouse planning, ministries and sectors managing national reserve goods mobilize organizations, enterprises, and individuals to invest in building national reserve warehouses according to the warehouse standards stipulated in Article 62 of this Law for national reserve units to lease or enter into storage contracts for national reserve goods.

Article 62. Standards for national reserve warehouses

1. Warehouse standards for national reserve warehouses must be consistent with preservation technology requirements and the specific characteristics of each type of national reserve goods.

2. The Minister of Finance decides on warehouse standards for national reserve warehouses after reaching consensus with the Minister of Planning and Investment and the heads of ministries and sectors managing national reserve goods. For national reserve warehouses in the defense and security sectors, the Minister of Defense and the Minister of Public Security decide on warehouse standards for national reserve warehouses after reaching consensus with the Minister of Finance and the Minister of Planning and Investment.

Article 63. Modernizing National Reserve Activities

National reserve activities must be invested in research, application of science and technology for preservation; investment in developing information technology and other means; ensuring the modernization of national reserve activities.

Article 64. Scientific Research, Technology Application, and Preservation Technology for National Reserve Goods

1. Scientific research, technology application, and preservation technology for national reserve goods must meet the following requirements:

a) Extending storage periods, ensuring quality, reducing losses of national reserve goods; limiting environmental pollution;

b) Being practical; selectively absorbing and transferring advanced international preservation technologies.

2. The content of scientific research and technology application for preserving national reserve goods includes:

a) Researching new preservation technologies to replace outdated, environmentally polluting preservation technologies for national reserve goods, and replacing imported technologies from abroad;

b) Expanding international cooperation in transferring and applying advanced preservation technologies for national reserve goods;

c) Training and enhancing human resources with high qualifications.

3. The Ministry of Finance shall take the lead and coordinate with relevant ministries and sectors managing national reserve goods to develop plans for researching and applying science and technology for preserving national reserve goods.

Chapter VI

IMPLEMENTING PROVISIONS

Article 65. Effective Date

This Law takes effect from July 1, 2013.

Article 66. Detailed Provisions and Guidance on Implementation

The Government and competent authorities shall provide detailed provisions and guidance on implementation of the Articles and Clauses assigned in this Law.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the 13th term, fourth session, on November 20, 2012./.