Decree No. 240/2025/NĐ-CP on the establishment, management, and use of the Defense Policy and Foreign Relations Fund

DECREE

Regulations on the establishment, management, and use of the Defense Policy and Foreign Relations Fund

Pursuant to the Law on Government Organization No. 63/2025/QH15;

Pursuant to the Law on National Defense No. 22/2018/QH14 amended and supplemented by some articles in the Law Amending 11 Laws on Military Affairs and National Defense No. 98/2025/QH15;

Pursuant to the Law on State Budget No. 89/2025/QH15;

Pursuant to the Corporate Income Tax Law No. 67/2025/QH15;

"Based on the proposal of the Minister of National Defense;"

The Government promulgates this Decree stipulating the establishment, management, and use of the Defense Policy and Foreign Relations Fund.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the establishment, management, and use of the Defense Policy and Foreign Relations Fund; sources of formation, procedures for receiving, contents of expenditure from the Fund; responsibilities of agencies, units, enterprises, organizations, and individuals related to the Fund.

Article 2. Applicability

This Decree applies to the Fund management agency; agencies, units, enterprises under the Ministry of National Defense participating in managing, contributing, sponsoring, and supporting the Defense Policy and Foreign Relations Fund; other organizations and individuals inside and outside the military related to the Fund.

Article 3. Name and Legal Status of the Defense Policy and Foreign Relations Fund

1. The Defense Policy and Foreign Relations Fund (hereinafter referred to as the Fund) is a state financial fund outside the budget, having legal personality, its own seal, and opening accounts at commercial banks operating legally in Vietnam.

2. The Government establishes the Defense Policy and Foreign Relations Fund in accordance with this Decree. The Fund is located at the Ministry of National Defense, the Minister of National Defense decides on the organizational structure, management mechanism, and promulgates the regulations on organization and operation of the Fund in accordance with this Decree.

Article 4. Principles of Operation of the Fund

1. The state budget does not provide funding for the operational expenses of the Fund.

2. The management and operation of the Fund are carried out on a part-time basis.

3. The management and use of the Fund must be in accordance with the purpose, lawful, timely, effective, transparent, and open.

4. The Fund shall not accept contributions, sponsorships, and supports that harm national interests, security, defense, violate laws on anti-corruption, money laundering, terrorist financing, and other activities contrary to the law.

5. The Fund shall not support organizations and individuals engaged in illegal activities contrary to Vietnamese law.

Article 5. Objectives and Tasks of the Fund's Activities

1. To receive, manage, and use contributions, sponsorships, and supports in cash and kind from businesses, organizations, and individuals inside and outside the military for implementing policy and foreign relations work in national defense.

2. To support policy and foreign relations activities in national defense that the state budget has not ensured or has ensured but not met practical requirements.

3. To implement reporting and accounting systems as prescribed in this Decree and other relevant laws.

4. To comply with inspections, audits, and reviews conducted by authorized state agencies in accordance with the law.

5. To use idle operational funds of the Fund to deposit in term deposits for a maximum period of up to 12 months at commercial banks for the purpose of increasing the operational budget of the Fund.

Chapter II

ORGANIZATION AND MANAGEMENT OF THE FUND

Article 6. Management and Operational Structure of the Fund

1. The Management Board of the Fund consists of the Chairman, Vice Chairmen, and members.

a) The Chairman of the Fund is appointed and relieved of duty by the Minister of National Defense;

b) The Vice Chairmen and members are decided upon in terms of number, appointment, and relief of duty by the Minister of National Defense based on the proposal of the Chairman of the Fund.

2. The permanent management agency of the Fund is designated by the Minister of National Defense.

3. The tasks, powers, and working system of the Management Board and the permanent management agency of the Fund are regulated by the Minister of National Defense.

Article 7. Sources for forming the Fund and procedures for receiving contributions, support, and sponsorship

1. Sources

a) Contributions, support, and sponsorship in the form of money, assets, and goods from organizations, individuals, and businesses inside and outside the Military;

b) Income from interest on deposits;

c) Other income from contributions, support, and sponsorship as prescribed by law.

2. Procedures for Receiving

a) Financial sources specified in Clause 1 of this Article shall be received at the Fund management agency either directly or through bank accounts opened according to Clause 1 of Article 3 of this Decree;

b) In cases where contributions, support, and sponsorship are made in the form of money: The Fund shall receive such contributions directly in cash or through the Fund's bank account with a legally operating commercial bank in Vietnam;

c) In cases where contributions, support, and sponsorship are made in the form of assets or goods: The Fund shall receive such contributions directly at the Fund management agency or at the agreed location between the Fund and the contributor, supporter, or sponsor. The value of contributions, support, and sponsorship in the form of assets or goods shall be converted into Vietnamese dong and recorded in the contribution, support, and sponsorship receipt documents.

For projects funded through construction, the appraisal, approval of technical design and total budget estimate, issuance of construction permits, quality control, acceptance, handover, warranty, and insurance of construction projects shall be carried out in accordance with current laws on investment in construction.

Article 8. Contents of Expenditure of the Fund

1. Expenditure for Policy Activities

a) Expenditure for policy beneficiaries, policy programs that have been approved by the Party and State or decided by the Minister of National Defense;

b) Expenditure for disaster relief, epidemic control, search and rescue operations;

c) Expenditure for supporting forces under the Ministry of National Defense in performing military and defense tasks;

d) Expenditure for restoring, renovating, and repairing cultural works and historical sites closely related to national revolutionary movements; martyrs' cemeteries.

2. Expenditure for Defense Diplomacy Activities

a) Expenditure for defense diplomacy activities of the Ministry of National Defense or diplomatic activities according to the Party and State's policies;

b) Expenditure for assisting countries worldwide in disaster relief, epidemic control, and search and rescue operations.

3. The subjects and levels of support shall be determined by the Minister of National Defense in the Regulations on the Organization and Operation of the Fund.

Article 9. Policies for Businesses Implementing Contributions, Support, and Sponsorship

1. Business contributions, support, and sponsorship to the Fund shall be accounted for as production and business expenses and deducted when determining corporate income tax payable.

2. State-owned enterprises contributing, supporting, and sponsoring the Fund voluntarily but not exceeding 5% of their annual taxable corporate income.

3. Contributions, support, and sponsorship as stipulated in Clause 2 of this Article shall be excluded when evaluating and classifying businesses and when determining the wage fund for employees in the year.

Article 10. Accounting System, Asset Management, and Audit, Inspection, and Review

1. The Fund's accounting system shall comply with the accounting regulations for administrative and public institutions. Annually, the Fund shall report to the Minister of National Defense on its operational results, including the results of receiving, supporting, and the effectiveness of using funds and assets of the Fund, risk assessments, limitations in the Fund's operations, recommendations, and proposed solutions for appropriate handling.

2. The Fund's balance at the end of the previous year shall be transferred to the next year for continued use.

3. The management and use of assets in the form of contributions, support, and sponsorship from organizations, individuals, and businesses inside and outside the Military shall be carried out in accordance with the law.

4. The Fund shall be subject to inspection, audit, and review by state agencies as prescribed by law.

Chapter III

IMPLEMENTING PROVISIONS

Article 11. Responsibilities of the Ministry of National Defense

1. The Minister of National Defense decides on the organization, operation, working mechanism, management mechanism, receipt and use of revenue, and support levels for the subjects specified in this Decree.

2. Implement the receipt of contributions, support, and sponsorship from agencies, units, enterprises, organizations, and individuals inside and outside the Military.

3. Regularly or at any time upon request, compile and report the results of financial income and expenditure of the Fund in accordance with regulations.

4. Take the lead and coordinate with the Ministry of Finance and relevant agencies to inspect and urge the implementation of this Decree.

Article 12. Effective date and implementation

1. This Decree takes effect from September 3, 2025.

2. The Minister of National Defense, the Minister of Finance, the Heads of ministerial-level agencies, the Heads of government-affiliated agencies, and related organizations and individuals are responsible for implementing this Decree.