Circular No. 31/2013/TT-BTC guides the financial management mechanism for the National Investment Promotion Program.

CIRCULAR

Guidelines for the financial management mechanism of the national investment promotion program

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Pursuant to Decree No. 60/2003/NĐ-CP dated June 6, 2003 of the Government detailing and guiding the implementation of the Law on State Budget;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government on the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 26/2012/QĐ-TTg dated June 8, 2012 of the Government on the issuance of regulations on the development and implementation of the national investment promotion program;

The Minister of Finance hereby issues this Circular amending and supplementing certain Articles of Circular No. 133/2015/TT-BTC dated August 31, 2015, issued by the Minister of Finance guiding the financial management mechanism for the Vietnam Chamber of Commerce and Industry (hereinafter referred to as Circular No. 133/2015/TT-BTC).

The Ministry of Finance issues this Circular guiding the financial management mechanism of the national investment promotion program as follows:

Section 1

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular guides the expenditure regime and financial management applicable to national investment promotion projects approved and implemented in accordance with the regulations on the development and implementation of the national investment promotion program issued together with Decision No. 26/2012/QĐ-TTg dated June 8, 2012 of the Government (hereinafter referred to as the program).

Article 2. Applicability

1. The main organizing units of the program are ministries, sectors, provincial People's Committees under the central government, management boards of economic zones, industrial parks, export processing zones, and high-tech zones that have national investment promotion projects approved by competent authorities.

2. Units participating in implementing the program include agencies, enterprises, business associations, and industry associations.

Article 3. Sources of funding for the program

Funding for the National Investment Promotion Program is allocated from the state budget for the content of national investment promotion approved annually by the National Assembly, revenues, and other legitimate sources of funding (if any).

Article 4. Principles of expenditure management

1. The main organizing units must use state budget support funds for their intended purposes, effectively, in accordance with current standards and expenditure regimes, and the levels of expenditure for the program's content as stipulated in this Circular.

2. For expenditure items not covered by existing guidelines, based on contracts, invoices, and actual expenditure receipts that comply with legal provisions, the main organizing units shall be responsible for decisions on expenditures as well as the accuracy and honesty of the amounts expended and accompanying documentation.

3. For expenditure items required to be tendered, the provisions of the Law on Bidding and related guiding documents shall apply.

Section 2

REGULATIONS ON CONTENT AND LEVELS OF SUPPORT

Article 5. Content of Expenditure and Levels of Support

It includes expenditures for the contents of the national investment promotion program specified in Article 3, Chapter I of the Regulations on the Development and Implementation of the National Investment Promotion Program issued together with Decision No. 26/2012/QĐ-TTg dated June 8, 2012 of the Government, specifically:

1. Supporting 100% of the costs for the contents prescribed in Points a, b, c Clause 1, Clause 2, Point a Clause 3, Point b Clause 4, Points a and b Clause 5 of Article 3 of the Regulations on the Development and Implementation of the National Investment Promotion Program, including:

a) Publicity and promotion of Vietnam's investment environment

- Costs for implementing information and publicity about Vietnam's investment environment, policies, and directives of the Party and State on investment through domestic and international mass media, publishing investment guidance materials, business-related documents, and related publications.

- Costs for commissioning domestic and foreign media outlets to write articles, produce news reports on radio, television, online news portals, and promotional films about Vietnam's investment environment according to full-package contracts.

- Costs for upgrading and maintaining the operation of the online portal introducing Vietnam's investment environment, connecting it with the online portals of ministries, sectors, and localities across the country, and reputable global online portals.

b) Building orientations, policies, and strategies for investment promotion

- Costs for developing feasibility studies on various economic fields, regions, and industries to serve as a basis for formulating and implementing investment promotion projects;

- Costs for compiling a list of key national projects for domestic and foreign direct investment in line with strategic plans for socio-economic development periods and economic-technical planning; preparing detailed project documents for key national projects, including supporting costs:

+ Costs for seminar organization: costs for renting conference halls, equipment rental, decoration, drinking water, office supplies;

+ Costs for collecting and purchasing documents;

+ Costs for field surveys and investigations;

+ Translation costs for documents;

+ Consulting, design, printing costs for building a model project list;

- Supporting costs for writing proposals when cooperating with organizations and individuals both domestically and internationally to research and write proposals for investment promotion according to strategic partners (national or transnational corporations).

c) Organizing investment promotion programs in key areas abroad according to themes and sectors to attract foreign direct investment into Vietnam and promote overseas investment by Vietnamese businesses in certain suitable fields, specifically supporting costs:

- Travel expenses for those organizing or participating in the program. For investment promotion activities conducted far from the center requiring frequent travel, if the actual travel costs exceed the stipulated support level, additional support may be provided based on the travel itinerary and reasonable actual receipts.

- Costs for organizing seminars and forums calling for investment, including: costs for renting conference halls, equipment rental, decoration, printing and photocopying of documents, simultaneous interpretation, refreshments during breaks, reception dinners (if any), office supplies.

- Costs for promoting and introducing the organization of investment promotion programs through foreign mass media.

- Costs for hiring event organizers; transportation costs for documents and equipment; mailing documents and materials via postal services.

d) Training investment promotion staff from ministries, sectors, provincial People's Committees under the central government, management boards of economic zones, industrial parks, export processing zones, and high-tech zones through organizing study tours, exchanges of experience with successful investment promotion organizations worldwide, specifically supporting costs:

- Expenses for participants in the survey, study, and experience exchange teams on investment promotion. Support for 1 person per unit participating in the team.

- Venue rental fees, equipment rental fees, decoration costs, refreshment costs during breaks, printing and photocopying costs for documents, office supplies, and costs for teaching and presentation staff.

d) Other activities:

- Supporting costs for providing information, promoting, and publicizing large-scale projects that significantly impact regional economic and social development and key economic sectors, specifically:

+ Costs for implementing, publishing, and distributing brochures and project-related materials;

+ Communication and mailing costs for sending materials;

+ Promotion and publicity costs for the project through press conferences and mass media.

- Implementing local investment promotion activities, including organizing policy dialogue meetings, improving legal frameworks, and resolving difficulties faced by enterprises already investing in Vietnam.

2. Maximum support of 70% of expenses for the contents stipulated in Point b Clause 3 Article 3 of the Regulation on Building and Implementing the National Investment Promotion Program regarding organizing domestic investment promotion conferences and seminars by region and sector to attract investment in key economic regions and sectors. For units invited to attend these conferences and seminars, only 1 person per unit will be supported.

3. As for Point d Clause 1, Point a Clause 4, and Point c Clause 5 of Article 3 of the Regulation on Building and Implementing the National Investment Promotion Program, the level of financial support is as follows:

a) Organizing or participating in domestic and international exhibitions to introduce the investment environment and investment outcomes in Vietnam.

- Full support for exhibition organization costs, including venue rental fees for national exhibitions, electricity and water costs, decoration costs, design and necessary material costs, printing and transportation costs for documents to the event location, office supply costs, promotional costs for the exhibition organization activity, and event organizing company rental costs.

- Full support for travel expenses for civil servants and employees receiving state budget salaries who organize or participate in the program.

- Support up to 70% of travel expenses for non-state budget salary recipients participating in the exhibition. Support for 1 person per unit participating.

b) Organizing training and enhancing the capacity and skills of investment promotion for government agencies, organizations operating in the investment attraction sector, and businesses, including inviting foreign experts and lecturers to teach, wherein:

- Full support for training course organization costs, including: venue rental fees; equipment rental fees; decoration costs; printing and photocopying costs for materials; translation costs; refreshment costs during breaks; office supply costs; certification course costs; and field survey vehicle rental costs for the training course (if applicable).

- Full support for travel expenses for government agency management staff participating in the course.

- Support up to 70% of travel expenses for non-state budget salary recipients participating in the course.

c) For the activity of establishing investor support centers in countries with advanced technology or substantial capital to provide special support mechanisms for investors from those countries: Maximum support of 70% of the center's operational costs in the first year since establishment, including: Office rental costs; costs for purchasing necessary equipment; costs for purchasing documents and office supplies.

4. For other investment promotion activities as decided by the Prime Minister, the level of support shall be according to the Prime Minister's decision and the provisions of this Circular.

Article 6. Budget allocation for the contents of the program

The state budget will support funding for national investment promotion projects according to the expenditure items specified in Article 5 of this Circular and approved by the competent authority at a reasonable actual expenditure level but not exceeding the current expenditure standards applicable to administrative agencies and public service units. Specifically as follows:

1. Expenditure for conferences, seminars, and travel expenses for domestic work trips of individuals as decided by the approving agency and the main organizing unit to implement investment promotion activities shall be carried out in accordance with Circular No. 97/2010/TT-BTC dated July 6, 2010, issued by the Ministry of Finance, which stipulates travel expense regulations and conference organization expense regulations for state agencies and public service institutions.

2. Travel expense reimbursement for individuals traveling abroad to participate in investment promotion programs shall be implemented in accordance with Circular No. 102/2012/TT-BTC dated June 21, 2012, issued by the Ministry of Finance, which stipulates travel expense regulations for state officials and civil servants on short-term overseas assignments funded by the state budget.

3. Expenses for hosting foreign guests, organizing international conferences, and seminars on investment promotion shall be carried out in accordance with Circular No. 01/2010/TT-BTC dated January 6, 2010, issued by the Ministry of Finance, which stipulates expense regulations for hosting foreign guests visiting Vietnam, organizing international conferences and seminars in Vietnam, and hosting domestic guests.

4. Costs for organizing training courses to enhance the capacity and skills of investment promotion staff for state management agencies, organizations operating in the investment attraction sector, and enterprises shall be implemented in accordance with Circular No. 139/2010/TT-BTC dated September 21, 2010, issued by the Ministry of Finance, which stipulates the preparation, management, and utilization of state budget funds for training and cadre development.

5. Costs for developing projects to assess the current status of economic sectors, regions, and industries to serve as a basis for implementing investment promotion projects shall be carried out in accordance with Joint Circular No. 44/2007/TTLT-BTC-BKHCN dated May 7, 2007, issued by the Ministry of Finance and the Ministry of Science and Technology, which provides guidelines on the construction and allocation of budgets for scientific and technological research projects funded by the state budget.

6. Costs for upgrading and maintaining the operation of the electronic information portal introducing Vietnam's investment environment, connecting this portal with the electronic information portals of ministries, localities nationwide, and reputable global electronic information portals shall be carried out in accordance with Circular No. 137/2007/TT-BTC dated November 28, 2007, issued by the Ministry of Finance, which stipulates the cost of creating electronic information, and Joint Circular No. 19/2012/TTLT-BTC-BKHĐT-BTTTT dated February 15, 2012, issued by the Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Information and Communications, which provides guidelines on managing and utilizing funds for the National Program on the Application of Information Technology in State Agency Operations.

7. For expenditure items without guiding regulations, special nature expenses such as mass media information dissemination activities both domestically and internationally; publishing publications, books, and materials; film production costs; advertising costs; event organization costs... must be implemented through competitive bidding or tendering in accordance with the Bidding Law and guiding documents of the Bidding Law.

Article 7. Regarding investment promotion activities of the Provincial People's Committee, the Management Board of Economic Zones, Industrial Parks, Export Processing Zones, and High-Tech Zones

The Provincial People's Committee, the Management Board of Economic Zones, Industrial Parks, Export Processing Zones, and High-Tech Zones shall implement investment promotion projects from local budgets and other lawful financial sources based on the guidance on content and expenditure levels stipulated in this Circular.

Section 3

PROVISIONS ON ESTABLISHING BUDGET ESTIMATES, ALLOCATING EXPENSES,

TEMPORARY ADVANCE AND FINAL ACCOUNT SETTLEMENT OF THE PROGRAM

Article 8. Consolidation, Construction, and Allocation of Budget Estimates

1. The Ministry of Planning and Investment shall consolidate the demand for budgetary support funds to implement the national investment promotion program and submit it to the Ministry of Finance. Based on the state budget's balancing capacity, the Ministry of Finance will consider consolidating it into the annual state budget plan and report to the Government for approval by the National Assembly.

2. Based on the allocated budget estimate, the Ministry of Planning and Investment shall approve the program and allocate funds for implementing the national investment promotion program in detail according to each main implementing unit and the provisions set out in Articles 5 and 6 of this Circular, ensuring that the total support funds for program projects do not exceed the approved budget estimate.

Article 9. Procedures for Temporary Advance and Final Settlement of Support Funds

1. Advance Payment of Funds

a) Based on the annual program approval decision of the Minister of Planning and Investment within the scope of the announced state budget plan, the main implementing unit shall submit the detailed budget estimate, which has been approved by the program management agency or higher-level management agency, along with the application for temporary advance funds to the Ministry of Finance (Enterprise Financial Department).

b) The application for temporary advance funds includes:

- A letter requesting temporary advance funds;

- The decision approving the program by the competent authority;

- The detailed budget estimate of the program, which has been approved by the competent authority;

- The schedule and time frame for implementing the programs according to the plan;

- Other relevant documents related to the implementation of the program;

c) Maximum amount of temporary advance funds

The maximum temporary advance amount is 70% of the detailed budget estimate already approved by the competent authority and reviewed by the Ministry of Finance.

d) Time limit for review for temporary advance: Within ten working days from the date of receipt of all complete application documents from the main implementing unit, the Ministry of Finance shall conduct a review and provide support funds to enable the main implementing unit to proceed according to the approved schedule.

2. Final settlement of funds

2.1 Final settlement of each program:

a) Within thirty working days after the completion of the program, the main implementing unit is responsible for collecting all supporting documents, preparing the final settlement report of the program, submitting it to the program management agency or higher-level management agency for verification and approval, and sending it to the Ministry of Finance (Enterprise Financial Department) for review to consider additional funding support or recovery of excess advance funds over the approved final settlement amount.

b) The application for funding support includes:

- A document requesting funding support after final settlement;

- The decision approving the final settlement of the program by the competent authority, accompanied by the program implementation documentation;

- A report on the results of program implementation;

- Other relevant documents related to the implementation of the program.

c) Within fifteen working days from the date of receipt of all valid applications for funding support from the main implementing unit, the Ministry of Finance is responsible for reviewing and issuing a decision to provide funding support to the main implementing unit or recover funds if the advance amount exceeds the final settlement amount.

2.2 Annual consolidation and final settlement: By December 31 each year, the main implementing unit is responsible for consolidating the final settlement of support funds for all programs, preparing a report, and submitting it for approval to the Ministry of Finance, simultaneously sending it to the Ministry of Planning and Investment no later than January 31 of the following year for the Ministry of Finance to review the consolidated final settlement of implemented programs and notify the results to the main implementing unit. In cases where the final settlement is made after January 31 of the following year, it will be transferred to the next fiscal year but no later than March 31 of the following year.

Article 10. Records and files of the leading unit

1. Collection and retention of records: The leading unit is responsible for collecting all expense records in accordance with the content, time, location, and other conditions specified in the Decision approving the National Investment Promotion Program issued by the Ministry of Planning and Investment.

The leading unit is responsible for retaining original records related to the items of state-supported funding as prescribed by law.

2. For contents where the state supports part of the expenses, the leading unit is responsible for securing sufficient funds to implement them.

3. The leading unit implementing the program is responsible for the accuracy and honesty of the records and invoices executed. Any violations regarding records and invoices will be penalized according to the law and payment will be refused.

Article 11. Transfer of funding sources

Annual national investment promotion funds allocated from the state budget that remain unused within the planned year may be carried over for use in the following year. The Ministry of Finance shall issue a notification on transferred funds based on the annual consolidated report and settlement of the implementation of the program by the Ministry of Planning and Investment.

Section 4

EFFECTIVE DATE

Article 12. Effective Date

This Circular takes effect from May 5, 2013.

During implementation, if there are any difficulties or emerging issues, units are requested to report to the Ministry of Finance for prompt resolution.