Circular No. 34 TC/ĐT stipulates the management and allocation of investment capital for new economic zone construction projects and resettlement schemes.

CIRCULAR

Regulations on managing and allocating capital for new economic zone construction projects and settlement

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Pursuant to Decision No. 168/HĐBT dated May 16, 1992 of the Council of Ministers amending and supplementing Resolution 186/HĐBT; after consultation with the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Forestry, and the Ministry of Finance, regulations on the management and allocation of investment capital (construction investment capital and economic service capital) from the Central State Budget for new economic zone and settlement projects included in the annual plan are hereby stipulated as follows:

I- GENERAL PRINCIPLES:

1. The State budget supports investment including construction investment capital and economic service capital (hereinafter referred to as investment capital) according to programs, projects, and plans for building new economic zones and settlements (hereinafter referred to as projects) that have been approved by competent authorities and recorded in the annual national plan of the sector and locality. The project sponsor must mobilize all other sources of capital such as joint ventures, partnerships; bank loans, borrowing or mobilizing from the public; attracting foreign capital, etc., to supplement the construction investment capital for the project, ensuring the implementation of the annual plan objectives.

2. The State budget according to the annual plan for new economic zone and settlement projects will be concentrated and balanced within the central state budget estimate and authorized by the Ministry of Finance for provincial finance departments to allocate funds according to the progress of completed work volumes of the projects, paid through the National Treasury system.

3. The project manager and the project sponsor are responsible to the State for using investment capital for projects in accordance with their intended purposes, effectively as per the approved annual plan, complying with current financial management regulations and the provisions of this Circular.

4. The project sponsor is the person directly assigned by the competent authority to receive capital, manage, and use capital during the implementation of the project and after its completion. The project manager is the supervising unit above the project sponsor (for local projects, the project manager is the People's Committee of the Province/City; for central projects, the project manager is the relevant central ministries).

II - CONTENTS AND PROCEDURES FOR ESTABLISHING AND REVIEWING THE PLAN

ALLOCATION OF INVESTMENT CAPITAL FOR NEW ECONOMIC ZONE AND SETTLEMENT PROJECTS:

1. Contents of the plan for allocating investment capital for new economic zone and settlement projects include:

- Capital allocated for project preparation work, including project establishment and review.

- Capital allocated for the value of completed works within the planned year of the new economic zone or settlement project.

- Value of completed works reported in the annual report but not yet funded for payment of new economic zone or settlement projects.

2. Procedures for establishing and reviewing the annual plan for allocating investment capital for projects:

- Each year, project sponsors are responsible for preparing the investment capital allocation plan for the project according to the aforementioned content (in Form 01 KH/ĐT) to submit to the project supervisory agency.

- Based on the investment capital allocation plan prepared and submitted by project sponsors, the project supervisory agency compiles the investment capital allocation plan for all projects (in Form 02 KH/ĐT) to submit to the Joint Ministries of Labor, War Invalids and Social Affairs and Finance (for new economic zone projects); the Joint Ministries of Forestry and Finance (for settlement projects).

- Based on the investment capital allocation plan for projects compiled by the supervisory agencies, the Ministry of Finance, in collaboration with the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Forestry, reviews and consolidates the plan within the State Budget to submit to the Council of Ministers. After approval by the Council of Ministers, the Ministry of Finance notifies the investment capital allocation plan for projects to the Ministry of Labor, War Invalids and Social Affairs (for new economic zone projects); the Ministry of Forestry (for settlement projects). At the same time, it informs the project supervisory agencies, provincial finance departments, and the National Treasury branches in provinces/cities for monitoring, managing, and funding payments.

ALLOCATION OF INVESTMENT CAPITAL FOR NEW ECONOMIC ZONE AND SETTLEMENT PROJECTS

III- 1. Transfer of capital for new economic zone and settlement projects:

The Ministry of Finance transfers investment capital for new economic zone and settlement projects to provincial finance departments via the "Authorized Expenditure" method for provincial finance departments to allocate investment capital for new economic zone and settlement projects according to the regulations stipulated in Circular No. 13 TC/ĐT dated March 6, 1990 of the Ministry of Finance.

For capital spent on project preparation work, it is allocated according to the provisions of Circular No. 17 TT/LB dated November 20, 1990 of the Joint Ministries of Finance, Planning, and Labor, War Invalids and Social Affairs.

Bases for transferring investment capital:

- The approved investment capital plan for the project for the planning year; the investment capital allocation plan notified by the Ministry of Finance.

- Monthly and quarterly reports on the implementation of new economic zone and settlement investment plans by project supervisory agencies.

- Quarterly investment capital allocation plans for new economic zone and settlement projects by the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Forestry.

2. Allocation of new economic zone and settlement capital:

- Every quarter, based on the coordinated capital allocation plan for new economic zone and settlement projects within the State Budget, the Ministry of Finance notifies the Ministry of Labor, War Invalids and Social Affairs about new economic zone capital and the Ministry of Forestry about settlement capital.

- On the basis of the notified quarterly capital amount, the Ministry of Labor, War Invalids and Social Affairs, and the Ministry of Forestry review the results of project implementation reported by project supervisory agencies to establish and notify the capital allocation plan for each project (monthly detailed in Form 05 KH/ĐT) to the Ministry of Finance, while informing the project supervisory agencies.

- Based on the above documents, every month, the Ministry of Finance transfers capital (detailed for each type of capital for each project) to the "Authorized Expenditure" account of provincial finance departments for them to verify the completed work volume of new economic zone and settlement projects according to the regulations and fund payments into the accounts of project sponsors opened at the National Treasury.

The project sponsor is responsible for submitting documents to provincial finance departments as legal bases for capital allocation, including:

- On the basis of the above documents, the Ministry of Finance transfers funds (in detail, each type of fund for each project) to the account "Authorized Expenditure" for the provincial and municipal Departments of Finance to review the volume of work completed by new economic projects and settlement projects according to the prescribed regulations and to disburse funds into the accounts of the project owners opened at the State Treasury.

The project owner is responsible for submitting to the provincial and municipal Departments of Finance the documents serving as legal grounds for the disbursement of funds, including:

+ Approval documents for the project (or economic and technical justification) issued by the competent authority.

+ Annual implementation schedule, financial disbursement plan of the Ministry of Finance.

+ Overall budget estimate or approved project item budgets.

+ Economic contracts serving the construction according to the project.

+ Reports on new economic work volume and completed resettlement plans monthly.

+ Other related documents.

- Based on the capital allocated by the Department of Finance to each project owner; the Treasury Office shall rely on the capital plans of the projects, tendering and awarding contracts, acceptance certificates and price lists, etc., as the basis for inspection and payment for completed works to relevant units at the request of the project owner. Project owners must provide all required documents for payment as stipulated by the State Treasury.

IV- INSPECTION, REPORTING, AND SETTLEMENT WORK

NEW ECONOMIC CAPITAL, RESIDENTIAL RELOCATION:

1/ The managing agency of the project is responsible for regularly inspecting the implementation of investment plans for new economic projects and residential relocation, guiding project owners to comply with financial management regulations, promptly reporting any issues or difficulties in capital management to the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, and the Ministry of Forestry for appropriate resolution.

2/ Monthly, project owners are responsible for reporting the implementation of the plan for that month (according to Form No. 03 BC/ĐT) to the managing agency of the project and the Department of Finance and Price Control. The managing agency of the project is responsible for compiling the implementation of investment capital plans for projects under its management (according to Form No. 04 BC/ĐT) and submitting it to the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs (for new economic projects), and the Ministry of Forestry (for residential relocation projects).

3/ Annually and upon completion of the project, project owners are responsible for settling the investment capital for the project and submitting it to the managing agency of the project and the Department of Finance (the agency authorized by the Ministry of Finance to allocate capital).

The central managing agency (for centrally managed projects), the People's Committee of Province/City authorized the Department of Finance (for locally managed projects) is responsible for reviewing, compiling, and settling the annual capital and submitting it to the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs (regarding new economic projects), and the Ministry of Forestry (regarding residential relocation projects).

The state management agency for new economic projects (Ministry of Labor, Invalids and Social Affairs) and residential relocation (Ministry of Forestry) is responsible for compiling and proposing solutions to any remaining issues in the annual capital settlement and upon project completion, and submitting them to the Ministry of Finance according to the prescribed regulations.

V- IMPLEMENTING PROVISIONS

This Circular takes effect from January 1, 1992. Previous documents that conflict with this Circular are no longer valid.

During implementation, if there are any difficulties, the relevant ministries, sectors, localities, and project owners should promptly report them specifically to the Ministry of Finance for necessary supplementary guidance.