Joint Circular No. 25/TTLB guiding the implementation of policies on ordering and sponsoring for Cinema under Decree No. 48/CP dated July 17, 1995 of the Government.

CIRCULAR

JOINT MINISTRY OF CULTURE - INFORMATION - FINANCE DECREE 25/TTLB DATED APRIL 19, 1997 GUIDING IMPLEMENTATION OF POLICIES ON ORDERING AND SPONSORSHIP FOR FILMS ACCORDING TO GOVERNMENT DECREE 48/CP ISSUED JULY 17, 1995 BY THE PRIME MINISTER 

IN ORDER TO STRENGTHEN STATE MANAGEMENT OVER FILM ACTIVITIES, GRADUALLY OVERCOME DIFFICULTIES IN REFORMING AND DEVELOPING THE FILM INDUSTRY TO PRODUCE MORE QUALITY CULTURAL ARTISTIC WORKS SERVING POLITICAL TASKS AS DIRECTED BY THE PARTY AND THE STATE, THE PRIME MINISTER ISSUED GOVERNMENT DECREE NO. 48/CP ON THE ORGANIZATION AND OPERATIONS OF THE FILM INDUSTRY ON JULY 17, 1995. THE JOINT MINISTRY OF CULTURE - INFORMATION - FINANCE PROVIDES DETAILED GUIDANCE ON THE FOLLOWING POINTS:

 I. GENERAL PROVISIONS

1. FILM ACTIVITIES INCLUDE MAJOR AREAS SUCH AS FILM PRODUCTION, FILM DISTRIBUTION (FILM RELEASE AND SCREENING), EXPORT AND IMPORT OF FILMS. FILMS (INCLUDING FILM STRIPS, VIDEO, AND OTHER RECORDING MATERIALS) ARE CULTURAL IDEOLOGICAL PRODUCTS ORDERED AND SPONSORED BY THE STATE TO DEVELOP THE NATIONAL FILM INDUSTRY IN LINE WITH SOCIALIST ORIENTATIONS AND TO CONTRIBUTE TO POLITICAL EDUCATION, IMPROVE AESTHETIC APPRECIATION, AND SERVE THE SPIRITUAL CULTURAL LIFE OF THE PEOPLE.

2. OBJECTS OF SPONSORSHIP AND ORDERING ARE:

+ PRODUCTION OF DOCUMENTARY, SCIENTIFIC, ANIMATED, AND FICTION FILMS ON REVOLUTIONARY HISTORICAL TOPICS, CHILDREN'S SUBJECTS, AND TOPICS SERVING THE NATIONAL RENEWAL EFFORT, DECIDED BY THE MINISTER OF CULTURE - INFORMATION TO BE PRODUCED.

+ CERTAIN IMPORTED FILMS FOR CHILDREN AND SOME FOREIGN FILMS OF HIGH IDEOLOGICAL AND ARTISTIC VALUE.

+ SCREENINGS TO IMPLEMENT SOCIAL POLICIES FOR MOUNTAINOUS REGIONS, ETHNIC GROUPS, ISLAND AREAS, REMOTE RURAL AREAS, AND OTHER RURAL AREAS.

3. SOURCES OF SPONSORSHIP ARE THE STATE BUDGET ACCORDING TO CURRENT BUDGET MANAGEMENT LEVELS.

4. FILMS ORDERED BY THE STATE HAVE COPYRIGHT BELONGING TO THE STATE. FILMS SPONSORED BY THE STATE AT 60% OR MORE OF THE COST OF PRODUCTION HAVE COPYRIGHT ALSO BELONGING TO THE STATE (THE PRODUCING UNIT SHALL INITIATE DISCUSSIONS WITH THE FILM DISTRIBUTION AUTHORITY TO AGREE ON THE PURCHASE PRICE OF THE WORK BASED ON THE MARKETING POTENTIAL OF EACH WORK, OR SELF-DISTRIBUTE).

II. METHODS OF SPONSORSHIP

1. REGARDING FILM PRODUCTION.

+ FILMS ORDERED BY THE PRIME MINISTER OR AUTHORITIES DEPUTIZED BY THE GOVERNMENT ARE SPONSORED AT 100% OF REASONABLE EXPENSES FOR THE FILM.

+ FOR DOCUMENTARY, SCIENTIFIC, AND ANIMATED FILMS PRODUCED IN FILM STRIP, VIDEO, AND OTHER MATERIALS ORDERED BY AUTHORIZED AUTHORITIES, SPONSORSHIP IS AT 100% OF REASONABLE EXPENSES FOR THE FILM, BUT MUST BE WITHIN THE SCOPE OF QUANTITY AND FUNDS ANNOUNCED ANNUALLY FOR SPONSORSHIP AND ORDERING.

+ FOR FICTION FILMS (ON REVOLUTIONARY, HISTORICAL, CHILDREN'S, AND NATIONAL RENEWAL TOPICS) APPROVED FOR PRODUCTION BY THE MINISTRY OF CULTURE - INFORMATION, SPONSORSHIP DOES NOT EXCEED 80% OF REASONABLE EXPENSES FOR EACH FILM, WITHIN THE ANNUAL ANNOUNCED PLAN FOR SPONSORSHIP AND ORDERING FUNDS.

2. FILM DISTRIBUTION.

+ FOR DOCUMENTARY, SCIENTIFIC, ANIMATED, AND FICTION FILMS ON REVOLUTIONARY, HISTORICAL TOPICS, IMPORTED FILMS FOR CHILDREN, AND FILMS OF HIGH IDEOLOGICAL AND ARTISTIC VALUE DISTRIBUTED TO LOCAL FILM UNITS SERVING ETHNIC GROUPS, MOUNTAINOUS REGIONS, RURAL AREAS, AND ISLAND AREAS ACCORDING TO ANNUALLY APPROVED PLANS WILL BE SPONSORED FOR ALL EXPENSES FOR LARGE SCALE PRINTING (INCLUDING RAW MATERIAL COSTS (PLASTIC, WHITE TAPE), LABOR COSTS, COSTS FOR MASTER AND LARGE SCALE PRINTS FOR LOCAL DISTRIBUTION... AND DISTRIBUTION COSTS (INCLUDING TRANSPORTATION, DISTRIBUTION MATERIALS, FILM PROMOTION AND ADVERTISING COSTS, AND OTHER RELATED DISTRIBUTION COSTS).

+ FOR IMPORTED FILMS FOR CHILDREN AND FILMS OF HIGH ARTISTIC VALUE, IF DISTRIBUTION RESULTS IN LOSSES, SPONSORSHIP WILL BE CONSIDERED UP TO 60% OF THE COST FOR CHILDREN'S FILMS AND 40% FOR FILMS OF HIGH ARTISTIC VALUE.

3. FILM SCREENINGS.

+ FOR CHILDREN'S FILMS AND FICTION FILMS ON REVOLUTIONARY AND HISTORICAL TOPICS (DOMESTIC AND FOREIGN) SCREENED FOR MOUNTAINOUS REGIONS, CHILDREN, SOCIAL POLICY TARGETS, ETHNIC MINORITY REGIONS, REMOTE RURAL AREAS, AND ISLAND AREAS, WHERE THE PROVINCE CULTURE - INFORMATION DEPARTMENT HAS ASSIGNED SCREENING SESSIONS, 100% OF SCREENING EXPENSES WILL BE PROVIDED AND 50% FOR OTHER RURAL AREAS.

+ THE PROVINCE CULTURE - INFORMATION DEPARTMENT SHALL ASSIGN SCREENING SESSIONS TO LOCAL FILM DISTRIBUTION COMPANIES.

+ THE EXPENSES FOR THESE SCREENINGS ARE DETERMINED BY THE FOLLOWING FORMULA:

STATE BUDGET ALLOCATION = NUMBER OF SCREENING SESSIONS ASSIGNED TIMES THE AVERAGE REASONABLE EXPENSES PER SESSION APPROVED UNDER CURRENT REGULATIONS (INCLUDING RENTAL FEES FOR NON-STATE ORDERED FILMS).

+ BASED ON THE ASSIGNED SCREENING SESSIONS AND APPROVED EXPENSES, LOCAL FILM COMPANIES SHALL PREPARE PLANS AND SUBMIT THEM TO THE PROVINCE CULTURE - INFORMATION AND FINANCE DEPARTMENTS FOR COMBINATION AND ISSUE QUARTERLY.

III. PLANNING AND ISSUING FUNDS

1. ANNUALLY, UNITS ELIGIBLE FOR SPONSORSHIP AND ORDERING MUST PREPARE PLANS FOR FILM PRODUCTION, IMPORT, DISTRIBUTION, AND SCREENING AND SUBMIT THEM TO THE SECTOR MANAGEMENT AUTHORITY (MINISTRY OF CULTURE - INFORMATION, PROVINCE CULTURE - INFORMATION DEPARTMENT) FOR REVIEW. THE SECTOR MANAGEMENT AUTHORITY SHALL COMPILE THE SPONSORSHIP AND ORDERING PLAN AND SUBMIT IT TO THE SAME LEVEL FINANCE AUTHORITY FOR REVIEW AND INCORPORATION INTO THE BUDGET ESTIMATE TO BE SUBMITTED TO THE AUTHORITY WITH APPROVAL POWER FOR DECISION.

2. BASED ON THE ANNUAL BUDGET ESTIMATE FOR SPONSORSHIP AND ORDERING ANNOUNCED BY THE FINANCE AUTHORITY, THE MINISTRY OF CULTURE - INFORMATION AND THE PROVINCE CULTURE - INFORMATION DEPARTMENT SHALL ISSUE PLANS FOR SPONSORSHIP AND ORDERING FUNDS FOR LOCAL FILM COMPANIES TO IMPLEMENT THEIR PLANS. FOR SPONSORSHIP OF SCREENING SESSIONS, SPECIFIC SPONSORSHIP AMOUNTS FOR EACH SCREENING UNIT MUST BE ANNOUNCED.

3. Films ordered or subsidized by the State, after being reviewed and approved by the Script Review Board and assigned for production by the Minister of Culture and Information, must establish a total budget estimate to be submitted to the industry management agency (Ministry of Culture and Information) and financial agencies for review of the ordering and subsidizing levels. In special cases where films not included in the annual subsidy plan are required due to political tasks, they shall be handled accordingly.

3.1. Films ordered by the Prime Minister or agencies authorized by the Government shall be allocated supplementary budgets and reviewed according to current regulations.

3.2. Films decided upon by the Minister of Culture and Information shall be considered for resolution according to current regulations within the announced state budget estimates. 

4. To ensure film production adheres to the assigned schedule, after receiving price notifications and subsidy levels, the financial agency will advance 70% of the funding. Upon completion of the film, based on the decision of the authorized authority by the Minister of Culture and Information approving the ideological content, artistic quality, technical quality, and allowing distribution, the production unit will be paid the remaining subsidy and ordering funds. If there are significant changes in ideological content or artistic and technical quality, these must be reviewed by the Film Council with comments, and the Minister of Culture and Information must issue a new decision, then the aforementioned price approval agency will reassess the ordering and subsidizing funds for final settlement.

5. The film distribution agency must establish a subsidy expenditure plan to be submitted to the industry management agency (Ministry of Culture and Information) and financial agencies. After approval and notification of the subsidy plan by the industry management agency, the financial agency will advance 60% of the subsidy plan to allow the distribution agency to proactively implement film screening plans across provinces and cities nationwide.

6. The subsidy and ordering budget will be directly provided by the financial agency to the recipient.

7. All units receiving subsidy and ordering funds must organize accounting and settlement in accordance with the current state budget management system.

IV. IMPLEMENTATION PROVISIONS

This Circular replaces Circular No. 88/TT-LB dated October 25, 1993, and takes effect from the date of signature. Any difficulties encountered during implementation should be reported in writing to the Ministry of Culture and Information - Ministry of Finance for consideration and resolution.