Circular No. 27 TC/NLTL guides certain issues regarding the management of investment capital for supporting the reception of people, land reclamation, and construction of new economic zones according to Decree No. 76/HĐBT dated May 19, 1984 of the Council of Ministers.

CIRCULAR

Guidelines on certain issues regarding the management of investment capital for support in welcoming people and developing new economic zones according to Decree No. 76/HĐBT dated May 19, 1984 of the Council of Ministers

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The Council of Ministers issued Decree No. 76/HĐBT dated May 19, 1984, dissolving the Central Steering Committee for Labor and Population Allocation and transferring the responsibility for managing capital and materials allocated for the development of new economic zones from the Central Steering Committee for Labor and Population Allocation to relevant sectors and localities directly responsible.

Based on the reassigned tasks and the budget decentralization system for localities stipulated in Resolution No. 138/HĐBT dated November 19, 1983, the Ministry of Finance supplements guidelines on certain issues regarding the management of investment capital for support in welcoming people and developing new economic zones in collective economic areas of localities as follows:

I. GENERAL PROVISIONS

In Decision No. 95/CP dated March 27, 1980 of the Council of Ministers and Circular No. 03/TT-LB dated October 27, 1980 of the Joint Ministries of Agriculture, State Planning Commission, State Bank, and Ministry of Finance, general principles for managing investment capital for welcoming people and developing new economic zones were established. The Ministry of Finance further clarifies some points as follows:

1\. The management system for basic construction capital for state-owned enterprises building new economic zones has been regulated in the Basic Construction Regulations issued together with Decree No. 232/CP dated June 6, 1981 and Circular No. 06/TT-LB dated July 14, 1983 of the Joint Ministries of Finance and State Bank. The additional provisions in this Circular only apply to new economic zone projects within the collective economic sector.

2\. The support standards remain applicable as per Decision No. 95/CP dated March 27, 1980 and Circular No. 03/TT-LB dated October 27, 1980 of the Joint Ministries. This Circular provides supplementary guidance on the management of capital sources due to changes in the principal investor according to Decree No. 76/HĐBT dated May 19, 1984 and the decentralized budget management system for localities stipulated in Resolution No. 138/HĐBT dated November 19, 1983 of the Council of Ministers.

3\. Following the principle that "the State and the People work together, the Central and Local levels collaborate," localities must enhance the self-reliance spirit of workers moving to develop new economic zones, mobilize and utilize well the contributions from cooperatives in sending and receiving people and local budgets. The Central Government will support localities with part of the basic construction investment, focusing on building some infrastructure facilities in new economic zones as specified in Point 3, Section I of Decision No. 95/CP dated March 27, 1980 of the Council of Ministers. For provinces with higher expenditure needs than their revenue capacity, the Central Budget will provide subsidies according to Resolution No. 138/HĐBT dated November 19, 1983 of the Council of Ministers.

4\. The work of opening up land and developing new economic zones in the collective sector is a component of the local economic structure, implemented and directly managed by local authorities for all types of capital dedicated to this purpose.

II. SOURCES OF CAPITAL

According to Resolution No. 138/HĐBT dated November 19, 1983 of the Council of Ministers on improving the decentralized budget management system for localities, the sources of capital for opening up land and developing new economic zones at the local level include:

1\. Capital supported by the Central Government with specific objectives for localities to prepare for investment and build some infrastructure facilities in new economic zones according to the annual plan approved by the Council of Ministers.

2\. Local government budget subsidies to ensure current standards for expenses related to welcoming people, small area surveys, planning, and activities of the New Economic Zone Committees at various levels.

3\. The New Economic Zone Fund contributed by the people according to Decision No. 14/HĐBT dated February 8, 1982 of the Council of Ministers, used for expenditures as specified in Article 3 of said Decision.

Besides the capital subsidized by the State Budget and the New Economic Zone Fund contributed by the people, cooperatives assisting in welcoming and sending people, and new economic zone cooperatives can borrow funds from the State Bank under the current credit regulations to construct material bases and engage in production and business operations.

4\. Capital for the social cause of relocating people to develop new economic zones according to Decision No. 95/CP dated March 27, 1980 remains subsidized by the Central Government through the Ministry of Labor Management as per Decision No. 09/HĐBT dated July 25, 1983 of the Council of Ministers.

III. PREPARATION AND DISTRIBUTION OF CAPITAL PLANS, SETTLEMENT OF INVESTMENT CAPITAL FOR OPENING UP LAND AND DEVELOPING NEW ECONOMIC ZONES.

Annually, based on the investment capital targets assigned by the Council of Ministers, localities direct the New Economic Zone Committees to organize the preparation of plans from the grassroots level, submitting them to the Provincial People's Councils for review according to the following regulations:

1\. For basic construction capital:

+ After the People's Council reviews and approves the basic construction capital support plan for cooperatives developing new economic zones, it must be consolidated into the local concentrated investment construction plan and submitted to the Council of Ministers for approval (also sent to the State Planning Commission, Ministry of Finance, and Investment Construction Bank).

+ On the basis of officially assigned national plan indicators, localities allocate the concentrated investment construction capital plan and send it to the Ministry of Finance and Investment Construction Bank. The transfer, distribution, management, and settlement of capital shall comply with the provisions of Circular No. 04/TC-DT dated February 7, 1984 of the Ministry of Finance.

2\. For social capital for welcoming people, surveying, planning, and capital for the New Economic Zone Committees at various levels:

+ The Departments of Finance examine and review the calculation bases and submit the budget revenue and expenditure estimates for the New Economic Zone Committees at various levels and collective economic new zone investors in the locality to the Provincial People's Council for review.

On the basis of the revenue and expenditure budget approved by the People's Committee of the province, city, or special administrative region, the Departments of Finance shall aggregate and balance it into the local budget project and submit it to the Ministry of Finance.

The Departments of Finance shall organize the disbursement and require the recipients to settle accounts with the funds disbursed according to the current regulations.

IV. IMPLEMENTATION ORGANIZATION

1. Regarding the effective date

The dissolution of the Central Steering Committee for Labor Distribution and Population Redistribution and at all levels must be completed before June 30, 1984 (Point 2, Article 3 of Decree No. 76/HĐBT dated May 19, 1984). Therefore, the method of managing and disbursing support investment capital for new economic zones as stipulated in this Circular shall take effect from July 1, 1984.

As the beginning of 1984 had not yet balanced the sources of capital (construction investment capital, capital for welcoming residents, planning and survey expenses, and capital for the new economic zone management body) into the local budget, the central government will continue to transfer funds to the locality for the construction of new economic zones according to the state plan for the second half of 1984 (after deducting the amount already disbursed in the first six months).

+ The remaining state budget capital for public services, after deducting the amount already disbursed from the beginning of the year, will be transferred to the local budget for the Department of Finance to implement disbursement and management according to the current regulations.

+ For construction investment capital, after deducting the amount already disbursed from the beginning of the year, the remaining amount will be transferred by the Ministry of Finance to the locality in accordance with the provisions of Circular No. 04/TC-DT dated February 7, 1984 of the Ministry of Finance. Localities need to urgently review the work done in the last six months regarding the corresponding capital plan to have a basis for transferring the capital.

2. Handover work

Based on the task of managing capital and materials allocated for land reclamation and new economic zone construction in accordance with the spirit of Decree No. 76/HĐBT dated May 19, 1984 of the Council of Ministers, the handover of tasks, capital, assets, and equipment is specified as follows:

a) The Central Steering Committee for Labor Distribution and Population Redistribution shall proceed to hand over to relevant sectors and localities the following contents:

+ Hand over the targets and tasks for land reclamation and new economic zone construction, receiving aid, and the capital and material quotas assigned by the State.

+ The implementation situation of the first six-month plan and the forecast for the full-year 1984 plan and the third quarter plan so that relevant sectors and localities can have a basis to continue implementing the work.

+ The situation of capital disbursement and management for land reclamation and new economic zone construction in the first six months of 1984, difficulties and advantages encountered, and issues related to capital that need to be resolved.

b) The Central Steering Committee for Labor Distribution and Population Redistribution has the responsibility to examine and consolidate the settlement of investment capital for land reclamation and new economic zone construction from Decision No. 95/CP dated March 27, 1980 up to the end of 1983 with the Ministry of Finance and the Vietnam Investment Construction Bank, transferring data to relevant sectors and localities to have a basis for preparing and examining the settlement of 1984. The Ministry of Finance and the Vietnam Investment Construction Bank will settle the capital according to the provisions of Joint Circular No. 03/TT-LB dated October 27, 1980 of the Ministry of Finance, Ministry of Agriculture, State Planning Commission, and the State Bank.

c) Specifically, for expenditures on the office of the Central Steering Committee for Labor Distribution and Population Redistribution, the Committee is responsible for resolving outstanding capital issues and settling the funds used until the date of dissolution with the Ministry of Finance.

d) The handover of assets of the Central Steering Committee for Labor Distribution and Population Redistribution and at all levels shall be carried out on the principle that the task handed over to which unit, the equipment and assets serving that task shall also be handed over to that unit. When handing over, a detailed inventory of assets must be conducted, the capital reassessed, and any outstanding issues, including debts, advances, loans, must be addressed, and a handover record must be established. On this basis, financial authorities at all levels shall proceed with the procedures for increasing or decreasing capital according to the current regulations.

The Departments of Finance shall be responsible for monitoring, organizing inspections, and urging the implementation in accordance with the provisions of this Circular.

During the implementation process, if there are any difficulties or obstacles, they should be promptly reported to the Ministry of Finance for research and resolution. /./