Joint Circular No. 34/2005/TTLT/BLDTBXH-BTC-BKHDT guides certain provisions of Decision No. 71/2005/QD-TTg on the management and operation mechanism for loans from the National Employment Fund.

JOINT CIRCULAR

Guidelines for certain provisions of Decision No. 71/2005/QD-TTg dated April 5, 2005

of the Prime Minister on the management and operation mechanism of loans from the National Employment Fund

Implementing Decision No. 71/2005/QD-TTg dated April 5, 2005 of the Prime Minister on the management and operation mechanism of loans from the National Employment Fund, the Ministry of Labour - Invalids and Social Affairs, the Ministry of Finance, and the Ministry of Planning and Investment provide guidance as follows:

I. LOAN RECIPIENTS

Loan recipients shall comply with the provisions of Article 5 of Decision No. 71/2005/QD-TTg dated April 5, 2005 of the Prime Minister on the management and operation mechanism of loans from the National Employment Fund (hereinafter referred to as Decision No. 71/2005/QD-TTg).

II. PROJECT DEVELOPMENT AND LOAN APPLICATION DOCUMENTATION

Project development and loan application documentation shall be carried out in accordance with Clause 1 of Article 9 of Decision No. 71/2005/QD-TTg as follows:

1. Project Development:

Loan applicants must develop projects, clearly stating the objectives, contents, and economic benefits of the project, and commit to using the funds for their intended purpose, attracting the correct number of workers, specifically:

- For the entities mentioned in Clause 1 of Article 5 of Decision No. 71/2005/QD-TTg, the project owner must develop the project according to Model No. 1a issued along with this Circular;

- For the entities mentioned in Clause 2 of Article 5 of Decision No. 71/2005/QD-TTg, the project owner must develop the project according to Model No. 1b issued along with this Circular, specifically:

+ For households participating in a joint project (group household project), the household head (the borrower) must submit an application to join the project according to Model No. 02 issued along with this Circular to the project owner (representative of the group household, representative of local authorities, or representative of mass organizations);

+ For individual households developing their own projects, the household head acts as the project owner.

2. Preparation of Loan Application Documentation:

The loan application documentation shall be prepared in four copies, specifically:

a) For the entities mentioned in Clause 1 of Article 5 of Decision No. 71/2005/QD-TTg, the loan application documentation includes:

- A project with confirmation from the People's Committee of the commune, ward, or town (hereinafter referred to as the People's Committee of the commune) regarding the current location of the entity within its jurisdiction;

- A certified copy of the ownership certificate of assets used as collateral, pledge, and guarantee for the pledge;

Additionally, depending on specific cases, one of the following documents may be required:

+ A certified copy of the production and business cooperation contract with confirmation from the People's Committee of the commune (for Production Groups);

+ A certified copy of the document proving compliance with the criteria for determining a farm as stipulated in Section III of Circular Joint No. 69/2000/BNN-TCTK dated June 23, 2000 of the Ministry of Agriculture and Rural Development - General Statistics Office "Guidelines for Criteria to Determine Farm Enterprises" (for Farm Owners);

+ A certified copy of the business registration certificate or license to practice (for Individual Business Households; Cooperatives; Small and Medium-sized Enterprises operating under the Enterprise Law; Production and Business Units of Disabled Persons);

+ A certified copy of the establishment decision (for Vocational Education and Social Work Centers);

b) For the entities mentioned in Clause 2 of Article 5 of Decision No. 71/2005/QD-TTg, the loan application documentation includes:

- A project with confirmation from the People's Committee of the commune regarding the permanent residence registration of the project owner;

- An application to join the project from each household with confirmation from the People's Committee of the commune regarding the permanent residence registration of the applicant within the jurisdiction (in the case of a group household project).

III. REVIEW AND APPROVAL OF PROJECTS

Review and approval of projects shall be conducted in accordance with Clause 2 and 3 of Article 9 of Decision No. 71/2005/QD-TTg as follows:

1. Delegation of Authority for Review and Approval of Projects:

a) For projects funded by local authorities:

- Projects with a loan amount up to 100 million VND: The Department of Civil Affairs - Labour - Invalids and Social Affairs shall lead the review in collaboration with the Branch of the State Bank for Social Policies, then submit to the Chairman of the People's Committee of the district, city district, town, or provincial city for approval.

- Projects with a loan amount over 100 million VND to 500 million VND: The Department of Labour - Invalids and Social Affairs shall lead the review in collaboration with the Branch of the State Bank for Social Policies, then submit to the Chairman of the People's Committee of the province or centrally-administered city for approval.

b) For projects funded by political-social organizations and social organizations:

- Projects with a loan amount up to 100 million VND: The implementing agency at the district level (hereinafter referred to as the implementing agency at the district level) shall lead the review in collaboration with the Branch of the State Bank for Social Policies, then submit to the Head of the implementing agency at the provincial level (hereinafter referred to as the implementing agency at the provincial level) for approval.

In cases where there is no implementing agency at the district level, the implementing agency at the provincial level shall lead the review and submit to the Head of the central implementing agency for approval.

- Projects with a loan amount over 100 million VND to 500 million VND: The implementing agency at the provincial level shall lead the review in collaboration with the Branch of the State Bank for Social Policies, then submit to the Head of the central implementing agency for approval.

Depending on the actual situation in the locality and of the central implementing agencies, the Chairman of the People's Committee of the province or centrally-administered city and the Head of the central implementing agency may delegate authority to lower levels for review and approval of projects with a loan amount over 100 million VND to 500 million VND.

c) For projects funded by the Ministry of Defence, the delegation of authority shall be guided by the Head of the Ministry of Defence based on specific circumstances.

2. Receipt of Documentation, Review, and Approval of Projects:

- The leading reviewing agency shall be responsible for guiding project development, receiving loan application documentation, and issuing a receipt to the project owner (or authorized person). The receipt shall clearly state the date and time of receipt, the documents included in the application, the number of sets of documentation, and the response deadline.

The leading agency responsible for reviewing shall guide the preparation of the project, receive the loan application files, and issue a receipt to the project owner (or the authorized representative). The receipt shall clearly state: the date, month, and year of file receipt; the documents contained in the file; the number of file sets; and the response deadline.

- The leading agency responsible for review shall cooperate with the corresponding level policy bank to organize the review of the project (in accordance with Forms 3a and 3b issued together with this Circular) and submit it to the competent authority for approval.

- Within fifteen working days from the date of receiving complete files, the leading agency responsible for review shall organize the review of the project file and submit it to the competent authority for approval.

If no decision on approval of the project is made within the above time limit, the leading agency responsible for review shall be responsible for providing a written response stating the reasons.

- Decisions approving projects by the Chairman of the People's Committee or the Head of the Agency implementing the Program at all levels, accompanied by the consolidated project form as Form 04 issued together with this Circular (including the loan application file that has been reviewed), shall be sent one copy to the project owner for implementation; one copy retained by the leading agency responsible for review; one copy kept by the policy bank at the corresponding level responsible for disbursing the project funds; one copy sent to the Department of Labor, Invalids and Social Affairs (for projects funded by local management) or the Central Agency implementing the Program (for projects funded by the Central Agency implementing the Program) for monitoring and consolidation.

IV. IMPLEMENTATION

1. Responsibilities of agencies:

a) Provincial People's Committees directly under the central government:

- Direct relevant agencies to guide the construction of feasible projects, effective use of capital, and ensure strict review procedures;

- Allocate funding sources, assign job creation targets to lower-level agencies; decide on project approval and delegate approval authority according to regulations;

- Direct relevant agencies, agencies implementing the Program, and local policy banks to inspect and evaluate the implementation and lending results of the Fund.

b) Central agencies implementing the Program:

- Direct subordinate agencies to organize reviews and approvals of projects to facilitate borrowers quickly and smoothly;

- Allocate funding sources, assign job creation targets to lower-level agencies; decide on project approval and delegate approval authority according to regulations;

- Monitor the implementation of lending, compile and report quarterly, semi-annually, and annually to the Ministry of Labor, Invalids and Social Affairs using Forms 5a and 5b issued together with this Circular.

c) Policy Banks:

- Direct subordinate policy banks to cooperate with labor agencies and agencies implementing the Program in reviewing projects, primarily responsible for financial plans and repayment plans for loans, implement project disbursements, recover debts, and handle debts in accordance with the law;

- Monitor the implementation of lending, compile and report monthly, quarterly, semi-annually, and annually to the Ministry of Labor, Invalids and Social Affairs using Forms 06, 07, 08, and 09 issued together with this Circular.

d) Departments of Labor, Invalids and Social Affairs:

- Lead and coordinate with the Departments of Planning and Investment, Finance, to develop plans for allocating job creation targets and new funding sources and recovered funds at the provincial level, submit them to the provincial People's Committee for consideration and decision-making; direct county-level labor agencies to implement in accordance with this Circular;

- Lead and coordinate with policy bank branches to review projects for which they have delegated authority, submit them to the provincial People's Committee Chairperson for approval; primarily responsible for borrower eligibility, project feasibility, employment targets; coordinate with related agencies to re-examine risky projects as prescribed; inspect and evaluate the lending results of the Fund;

- Coordinate with policy bank branches to consider the recovery of capital and the use of funds;

- Compile and report regularly on the lending results of projects managed locally, using Forms 5a and 5b issued together with this Circular.

đ) Departments of Planning and Investment:

- Coordinate with the Departments of Labor, Invalids and Social Affairs, Finance, to allocate job creation targets and loan funding targets to various levels and organizations, submit them to the provincial People's Committee for consideration and decision-making;

- Coordinate with related agencies to inspect and evaluate the implementation and results of lending from the Fund.

e) Departments of Finance:

- Coordinate with the Departments of Labor, Invalids and Social Affairs, Planning and Investment, to develop plans for allocating budgetary capital for each district, to consolidate and submit them to the provincial People's Committee for consideration and decision-making;

- Allocate management costs for the employment job creation loan fund in the annual administrative management budget for local state management agencies;

- Inspect and supervise the use of management and operational costs for the Fund in accordance with regulations;

- Coordinate with policy bank branches to appraise collateral assets of borrowers.

2. Effective Date:

This Circular takes effect fifteen days after its publication in the Official Gazette. All conflicting regulations are hereby abolished.

During implementation, if there are any difficulties, please promptly reflect them to the Joint Ministries of Labor, Invalids and Social Affairs, Finance, and Planning and Investment for consideration and resolution./.